Kingdom pushes for regional furniture cluster
Thailand has proposed the establishment of a regional furniture industry cluster to enhance the efficiency, productivity and competitiveness of Asean manufacturers ahead of the launch of the Asean Economic Community (AEC), said Dhanakorn Kasetrsuwan, vice
Speaking after the annual meeting of the seven-member AFIC, Dhanakorn said that forming a cluster would require furniture manufacturers in Asean to share information on global raw-material sources, for example, to keep costs competitive. Doing so would enhance productivity and production efficiency, he said.
He said the idea would benefit all members; however, some manufacturers consider raw-material sources and certain kinds of production information to be confidential. Thus, it is uncertain whether the idea could be realised before the implementation of the AEC in 2015.
Within Thailand, furniture manufacturers have been trying for several years to establish such an information-sharing system.
“Once the Asean countries become a single market in 2015, this region will be more open to flows of funds, information and labour. I believe that if [Asean furniture manufacturers] can collaborate … the total trading value of the furniture industry in this region will grow,” he said.
The members of AFIC are Thailand, Malaysia, Singapore, Vietnam, Burma, Indonesia and the Philippines. Vietnam is the group’s largest exporter, with export value of US$3.9 billion (Bt123.24 billion) in 2011. Thailand ranks fourth with expected sales of not less than $1.1 billion in 2011. Thailand recorded sales of $880 million during the first nine months of last year.
The five biggest export markets for Thailand are Japan, the US, the UK, Australia and Germany.
Despite increasing competition from China, Thailand’s furniture exports to the country continue to grow. They were worth $42.8 million in 2009; $60 million in 2010; and $73 million in the first nine months of 2011.
