Leather makers not relocating bases despite slow exports
DESPITE slowing exports of leather goods, Thai leather manufacturers have declined to move their production overseas, since most of them are small and medium-sized enterprises, and Thailand has high technology and advantages.
Veera Lertruangpunyavut, vice president of the Thai Leather Goods Association, said manufacturers here had tried to add more innovation and technology to their production systems, not only to survive in the industry but also to ensure business growth.
He said Thailand had |been a key supplier of leather |to many countries for many years. However, with higher labour and production costs, Thai manufacturers will |focus more on producing their own brands for value-added export.
Suriya Prateepmanowong, president of the association, said export of leather goods was expected to grow by 4 per cent this year to US$1.9 billion (Bt64 billion) from $1.86 billion last year.
Exports will not grow as significantly as in the past, when annual growth used to average more than 8 per cent, because the sluggish global economy. However, the association expects exports to grow to some recovering markets, mainly the United States, China, Asean and Japan.
Factors that could influence exports of leather goods are exchange rates, wages, tourism growth, and economic growth in many markets.
Products that should see growing sales are mainly accessories such as IT and mobile-phone bags.
To promote sales and more recognition of Thai leathers, the associations will join forces with the International Trade Promotion Department in hosting the “Thai Leather Week 2015” midyear sale from June 19-28 at the department’s offices on Ratchadaphisek Road in Bangkok.
