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17 Feb 2006

Industry

Thai Furniture Parts, 2006: Bright Outlook, Steady Development Needed

คะแนนเฉลี่ย

The latest data of the Thai Customs Department shows that, in 2005, Thailand's exports of furniture parts totaled USD163 million, rising by 27.4 percent over the year before. They also posted the highest growth among products in the furniture and parts overall category. For 2006, KASIKORN RESEARCH CENTER (KResearch) expects that Thailand's exports of furniture parts are set to continue growing at least 20 percent. This growth can be attributed to scores of positive factors, i.e., upbeat economic growth in Thailand's key trade partners like the US, the European Union (EU) and Japan, and Thai skilled labor that is becoming more recognized by other countries; garnering increased purchase orders from several developed countries where wages are much higher, making Thai-made products comparatively inexpensive. In addition, demand for furniture in Thailand's emerging markets has soared in line with an increasing number of housing projects and factories, while renovation of older buildings in markets such as China, India, South Africa and the Middle East, as well as Australia and New Zealand, has also been on the rise. Under these circumstances, higher demand for furniture parts from furniture manufacturers in the world market will likely be seen. Therefore, a bright outlook seems to lie ahead for Thai exports of furniture parts, this year. Among Thailand's archrivals are Mexico, Canada and Eastern Europe, where China and Vietnam have recently emerged as Thailand's new competitors.

KResearch takes the view that significance should be placed on development of furniture part production, regarded as a support industry, in earnest, and very soon. In so doing, Thai furniture parts will gain recognition in the world market, thus likely making Thailand one of the world's key furniture part-producing countries. Thailand's furniture and parts would thus be developed into an industry with sustainable competitive potential, which will eventually help the country earn rising foreign currency income in the midst of tougher competition in the global arena.

Industry

Furniture