Virus could kill off up to half of garment factories
The Covid-19 crisis is hammering the Thai garment industry and many factories will likely be closed in the near future.
Yuttana Silpsarnvitch, president of the Thai Garment Manufacturers Association, said on Thursday (May 26) that factories’ advanced orders have decreased by 30-40 per cent with no sign of a likely return to previous volumes.
He appealed to the government for financial aid.
“The factory owners need to find a way to save their business and staff, such as by manufacturing medical masks and clothing for medical personnel,” he said.
But they still face the problem of cash flow. Some factories can only last a month or two with their orders drastically reduced, he said.
“If the Covid-19 situation continues for another month, 20 to 30 per cent of the factories will close, and if it goes on for two more months, 50 per cent. Employment and salaries will be affected most in the Bangkok area.”
Domestic demand slumps further with the closure of department stores during the state of emergency, Yuttana noted, and related industries are hurt as well.