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15 Sep 2006

Industry

Garments, 2007: Risk Factors Dealing a Blow to Exports( Business Brief No.1863)

คะแนนเฉลี่ย

This year, exports of Thai garments are likely to reach some USD3.4 billion, up 7.9 percent over-year, thanks to global economic growth despite oil price volatility. Additionally, Thailand is expected to receive a windfall from the quota requirements imposed on China - Thailand's archrival - by key garment importers, including the US and the European Union (EU), which have begun to place more orders for ‘Made-in-Thailand' garments.

For the year to come, Thai garment exports are poised to be confronted with spates of risk factors, namely the slowdown in global economies, i.e., the US, representing more than half of the total garment exports from Thailand. In addition, the strengthening Baht, outperforming rival currencies, will also be regarded as another major obstacle for locally made garments. Significantly, Vietnam, a key competitor, which is anticipated to join the World Trade Organization (WTO) later this year, will no longer be subject to textile and garment quota restrictions. This will, therefore, prove to be a boon for Vietnamese garment exporters into world markets. Against this backdrop, Thai garment producers should not sit idle, and prepare themselves in earnest through production cost reductions and development of quality products to better respond to market demand in order to boost their competitive potential.

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