Thai enterprises plans to build textile and garment factory in Vietnam

Under the competitiveness pressure in the market, Thailand’s textile and garment enterprises plans to build factories in Vietnam and other countries in Southeast Asia region.

Dej Pattanasethpong, former chair of the Thai Garment Manufacturers’ Association (TGMA) stated that the garment manufacturing firms should reinforce their production capacity via expanding production in foreign markets so as to improve the competitive capacity. Due to lack of labour sources and essential logistic services, many Thai textile and garment enterprises seek investment opportunities in Asean countries.

He added that Vietnam and Indonesia were two among the countries that Thai enterprises would choose as the destination for their investment plans.

By the end of Q3, there were five garment manufacturers in Thailand who would like to move to Vietnamese markets due to increasing production costs in the native land. These five enterprises included Hong Seng Knitting CO, Hi-Tech Apparel Co, Nice Apparel Co, Liberty Garment Co and Golden Thai Indistry Co. Their garment factories in Vietnam were expected to be put into operation within this year, attracting about 24,000 local workers.

There may be other firms that would expand production in other low-cost labour markets such as Vietnam, Bangladesh, Cambodia, Burma. At present, Thailand has 1,600 textile and garment factories, declining much against the number of 2,600 factories in 2005. If the labour costs continue rising, the amount of factories will be reduced to 500-600 units in the coming five years.

TGMA set targets to reach annual growth of at least 5 percent for the textile and garment industry in 2011. Last year, Thais garment manufacturers reported gaining total revenue of $3.2 billion. – Vietbiz24

Posted by VBN on May 16 2011. Filed under Garment Textile. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry