Issue 21
As major Thai fashion brands expand their business overseas, the Thai Garment Manufacturers Association organizes trade shows and training projects to encourage entrepreneurs in the fashion industry to develop their products to catch up to the demands in the world market.
The Thai garment industry is one of the main sectors in the country’s export economy. In 2014, Thailand’s total garment exports were worth US$2.8 billion, with the USA, the EU and Japan the top three export markets.
Yuttana Silpsarnvitch, Secretary General of the Thai Garment Manufacturers Association (TGMA), says that the DITP and TGMA have had a long-standing relationship. “The DITP (then DEP) was one of the founders of the TGMA, and we have collaborated on numerous projects for twenty years,” says Silpsarnvitch.
Much of their recent work has focused on the Japanese market. “In January, the DITP, with the TGMA, brought fifty Thai entrepreneurs to join the Japan trade mission in Osaka for the fourth consecutive year, with huge success, as our members negotiated with over 300 Japanese buyers,” says Silpsarnvitch. “Every year the trade show gains more attention and achieves higher trading value.”
Issue 20
The president of the Thai Autoparts Manufacturers Association (TAPMA) reveals its plan to accelerate the preparation of the Thai autoparts industry for the upcoming ASEAN Economic Community (AEC).
Despite external factors, TAPMA President, Atchana Limpaitoon gave a healthy prognosis for the Thai autoparts industry in 2015.
The head of the Thai autoparts body added that she did not expect this to have any effect on the production of vehicles, which is expected to rise to 1.85 million units.
“The expansion of auto industries is due to our strong economic and financial condition,” she added. “The autoparts industry accounts for 12% of GDP, which helps boost Thailand’s economy. I am confident that the autoparts industry will grow by 8% this year.”
According to Limpaitoon, Thailand enjoys many advantages over neighbouring countries. “The country serves as a gateway to Asia and we have good infrastructure, as well as transportation and logistics systems which is attractive to foreign investors,” she said. “Apart from the auto parts industry, other industries such as jewellery and tourism also play a significant role in stimulating economic growth.”
She also believes that the emergence of the AEC at the end of 2015 could alter the auto industry landscape considerably. “There are challenges, especially with labour costs,” she said. “Recently manufacturers of autoparts from India have shown an interest to enter the Thai market, which could have an effect on the labour market.”
Issue 18
The textile and garment industry is one of the most significant sectors supporting Thailand’s economic development. The success of one leading company demonstrates the benefits of striking a balance between the functional and the aesthetic.
“Beauty is just following a trend but function is long lasting,” says Schle Wood-Thanan, design director of Pasaya Textile Gallery, a Thai brand with a glowing reputation for world-class designs. “We add functionality to our products by creating innovative fabrics.”
The company’s innovation has not gone unrewarded. Pasaya’s energy saving curtain was certified at the National Innovation Awards (NIAWARDS 2011) and received the Design Excellence Award (Demark 2011), while the Pasaya Rug won the Good Design Award (G-mark 2011).
Wood-Thanan says the company will focus on developing products that involve more scientific elements such as dust protection. He believes that this is the future for the industry. “The way to drive the industry is to mix science with the arts, as industry needs innovation to create new things while craft or tradition should maintain the uniqueness,” he says.
Issue 19
This year looks set to be a great year for the Thai garment industry according to the Thai Garment Manufacturers Association
The Thai Garment Manufacturers Association (TGMA) has set a goal to drive export growth by three to five percent in 2015. The association will collaborate with the DITP to develop skills for Thai entrepreneurs and to proceed with an ASEAN road show.
Realising that the industry needs to improve the quality of production, pattern and design, Thavorn Kanokvaleewong, Director of TGMA said that, “the association and related departments are looking to provide entrepreneurs with training sessions to enhance their skills and capabilities needed for branding, designing and manufacturing products that ensure a high standard.”
Issue 17
With the approach of the ASEAN Economic Community (AEC), 2015 could be a landmark year for Thai-EU trade negotiations.
“Once you start thinking about growth,” said Nobel-prize-winning economist Robert Lucas, “it is hard to think about anything else.” Ensuring productivity and growth in Thailand could be achieved by international cooperation and in light of this, trade promotion organisations such as the Bangkok-based European Association for Business and Commerce (EABC) is more relevant than ever.
EABC’s aim is to increase European trade and investment in Thailand. It also seeks to use Thailand as a gateway to the rest of ASEAN for European businesses. Partly funded by the EU, the EABC also brings both legitimacy and high-level connections for Thai companies seeking to develop relationships with the world’s second largest economic bloc. EABC’s main focus is in working with small and medium-sized enterprises (SMEs).
Current EABC President, Rolf-Dieter Daniel, believes that Thailand remains an undoubtedly attractive place in which to invest.
“The resilience of Thailand’s economy in the face of global economic shocks has been based on the country’s three strong pillars of agriculture, manufacturing and services,” says the general manager of German stationery manufacturer Staedtler. “Thailand’s manufacturing sector has made significant gains in productivity, and agriculture has continued to be a stable contributor to the economy.”
In the coming year, 2015 Staedtler will celebrate its 25th anniversary. Daniel says that sales have increased year-on-year, and that now the company is the largest foreign supplier of writing equipment in Thailand. It has also established two manufacturing plants in the country to maintain market competitiveness.
“Next year our sales growth is expected to be double digit,” he says. “Since we are planning to expand production by almost doubling our capacity.”
The following year also sees the launch of the ASEAN Economic Community (AEC), which Daniel welcomes as a potential panacea to slowing growth. “With the idea of a single market and production base, businesses in ASEAN shall gain benefits from trade liberalisation, facilitation and promotion,” he says. “EABC [sees] this opportunity as an advantage for existing European firms who possibly receive similar AEC benefits.”
Keen to ensure the continued prosperity of its adopted home, the EABC is preparing a European Business Position Paper in Thailand to share knowledge and concerns with the European business community, as well as provide feedback to the Thai government.
Going into 2015, the EABC will continue its ongoing negotiations for an EU-Thailand Free Trade Agreement (FTA). As the FTA would not be seeking to create an entirely new trade relationship, but rather build upon an already strong relationship, Daniel sees negotiations as initiating “a virtuous cycle that builds strength on strength.”
Words by Yvonne Liang
For more information, visit http://youtu.be/8_lxENK2OrQ
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