Web Exclusive | October 2016
Thailand garment export on decline
Export of garments from Thailand is expected to move south with more manufacturers migrating to neighbouring countries to tap cheaper costs and better tariff benefits. An adviser to the Thai Garment Manufacturers Association says after investing in places like Cambodia and Vietnam in the last four years, manufacturers were expected to generate $600 million in overseas sales this year.
As a result, garment exports from Thailand were forecast to decline about 7 per cent to $2.55 billion. Exports from neighbouring countries particularly Cambodia and Vietnam is expected to grow further compared to Thailand’s which was worth less than $3.15 billion this year, he claimed. The estimated $600 million in sales from overseas this year will be contributed from 33 apparel manufacturers operating in Cambodia and Vietnam. They had a combined initial investment capital of about 4 billion Baht.