Garment firms seek Govt help to stay competitive
Thai garment producers are seeking support from the Department of Export Promotion to set up Asean's first Fashion Product Development Centre (FPDC) in order to promote the industry and prepare it for future challenges.
The move is part of the garment manufacturers’ plan to ensure competitiveness, especially since production costs in other countries are dropping and Thai labour is becoming more expensive.
Sukij Kongpiyacharn, president of the Thai Garment Manufacturers Association, said the FPDC would aim to increase technology and know-how to help boost the value of Thai products.
“The garment industry is facing tough times and slower growth due to higher costs and severe competition. New investment in the industry will not come here because of higher production costs. Hence, the country needs to urgently develop existing manufacturers,” he said.
According to Sukij, garment exports in Thailand are expected to suffer flat growth next year, though exports this year have remained unchanged at US$3.2 billion (Bt99.87 billion).
Sukij pointed out that large garment manufacturers have been moving to neighbouring countries due to lower production costs and access to a larger workforce. In order to ensure that Thailand remains a regional hub for garment production and trading, the government should offer the industry more support, he advised.
Vallop Vitanakorn, adviser to the garment association, said the FPDC needed an initial investment of Bt182 million for the first five years.
He said that private enterprises were willing to pay service fees for the use of facilities at the centre, though they needed government support for initial investment. |Non-government officials should manage the centre so it can maintain its independence and flexibility, he advised.
The centre should include a laboratory for research and development, especially for the garment industry. It should also have a fitting room, design room, training centre, as well as a workshop and market research centre to project future trends.
The FPDC should also help develop brands for Thai manufacturers since the country could no longer rely on original-equipment manufacturing (OEM) or made-to-order goods due to higher labour costs.
Other countries that have centres like this include South Korea, Hong Kong, Japan, and China. Vallop said that if Thailand had its own development centre, the garment industry would ensure sustainable growth and expect to generate higher income by focusing more on branded products and becoming a leader in the fashion industry.
