Textile and Wearing Apparel Industry
General Conditions
Textile industry is extremely significant to Thai economic development.
There are fully processing cycles from fiber producing, spinning, weaving, knitting to
dyeing, and garments leading to huge scale of employment and foreign income,
especially in 2003 (Jan.–Oct.) the export value is over US$5,000 million. In
particular, garment has the fourth highest export value after electronics, electrical
circuits board, motor car, equipment and parts.
However, in 2003 (Jan.–Oct.), export value of textile products is
US$4,508.0 million increased by 6.3 %, compared to the same period of 2002 in
almost every market such as Japan, Hong Kong, China, Germany and France, except
for the U.S. and United Kingdom, since the world economy has been decelerated
along with more fierce price competition, especially from significant competitors such
as China, Indonesia and Vietnam.
Production Structure
Textile and wearing apparel industry has comprised with 3 major
categories as follows:
1) Upstream Industry: fiber industry and spinning industry
2) Midstream Industry: weaving, knitting, dyeing, screening and
furnishing industries
3) Downstream Industry: garment industry and other textile products
industry
Number of Factory and Labor by Industrial Category
Factory
Labor
Industrial Category
2001
2002
2001
2002
Fiber
17
18
15,340
15,600
Spinning
149
150
60,470
60,580
Weaving and Knitting
1,332
1,345
118,520
118,910
Dyeing, screening and
405
409
46,750
59,930
furnishing
Clothing
2,641
2,648
840,460
840,850
Total
4,544
4,570
1,081,540
1,082,870
Source: Department of Industrial Works, Ministry of Industry
Number of Factory
In 2002, there are 4,570 factories in textile industry. The most changing
number of factory is the fiber industry which has increased by 5.9% compared to
2001 and the least changing is the clothing industry increased by 0.3% compared to
other industrial categories.
Number of Labor
In 2002, the maximum employment is in the wearing apparel industry that
is 77.7%; followed by weaving and knitting industry (11.0%); spinning (5.6%),
dyeing, screening and furnishing (4.3%), and fiber industry (1.4%), respectively. In
the past, weaving and knitting industry has used huge amount of labors, but nowadays
machinery has been used increasingly; therefore, modern technologies have been
brought into the production processes. Regarding the fiber industry, it has used great
amount of capital and high technology; then there is the least employment as 1.4% of
all employment in textile industry. Since 1997 the employment has decreased
continuously because of Baht devaluation that leads to the increasing costs of
production and raw materials. Most raw materials are imported from abroad,
resulting in an increasing production cost and the employment must have been
decreased in order to reduce such cost. Labor is the significant varied factor of textile
industry because it is the labor intensive industry.
Export Conditions
In 2003 (Jan.–Oct.), an export value of Thai textile is US$4,508.0 million
increased by 6.3% compared to US$4,240.6 million in the same period of 2002.
Value: SD$ Million
(+6.3%)
6,000
5,585.8
5,264.6
5,145.4
5,000
4,240.6
4,508.0
4,000
3,000
2,000
1,000
0
Year
2000
2001
2002
2002(Jan-Oct.) 2003(Jan.-Oct.)
Graph 1: Thai Textile Export in 2003 (Jan. – Oct.)
Source: Information Technology and Communication Center, by cooperation of the
Customs Department
Remark: Year 2003 is primary data.
Important Exported Textile Products:
1. Garment: In 2003 (Jan.–Oct.), the export value is US$2,298.8 million
increased by 2.3% compared to US$2,247.3 million in the same period of 2002. The
main export markets are the U.S., United Kingdom, Japan, Germany and France with
ratio of 55.2%, 6.0%, 5.7%, 3.6% and 3.4% respectively.
2. Fabric and Yarn: In 2003 (Jan.–Oct.), the export value is US$1,145.3
million increased by 9.6% compared to US$1,045.3 million in the same period of
2002. The main export markets are the U.S., China, Japan, Hong Kong and United
Arab Emirates with ratio of 8.4%, 6.2%, 5.4%, 5.3% and 4.8% respectively.
2.1 Fabric: In 2003 (Jan.–Oct.), the export value is US$709.8 million
increased by 7.2% compared to US$661.9 million in the same period of 2002. The
main export markets are the U.S., United Arab Emirates, Hong Kong, China and
Bangladesh with ratio of 9.1%, 7.5%, 5.4%, 5.0% and 4.9% respectively.
2.2 Yarn and Fabricated Yarn: In 2003 (Jan.–Oct.), the export value
is US$435.5 million increased by 13.6% compared to US$383.4 million in the same
period of 2002. The main export markets are South Korea, Japan, China, U.S. and
Malaysia with ratio of 9.8%, 9.3%, 8.2%, 7.1% and 5.5% respectively.
2.2.1 Cotton Yarn: In 2003 (Jan.–Oct.), the export value is
US$96.0 million increased by 22.1% compared to US$78.6 million in the same period
of 2002. The main export markets are Japan, China, Malaysia, South Korea and U.S.
with ratio of 20.2%, 17.4%, 10.1%, 7.6% and 5.7% respectively.
2.2.2 Fabricated Yarn: In 2003 (Jan. – Oct.), the export value is
US$339.5 million increased by 11.4% compared to US$304.8 million in the same
period of 2002. The main export markets are South Korea, U.S., Turkey, Japan and
Hong Kong with ratio of 10.4%, 7.5%, 6.6%, 6.2% and 5.5% respectively.
3. Fabricated Fiber: In 2003 (Jan. – Oct.), the export value is US$237.8
million increased by 18.0% compared to US$201.5 million in the same period of
2002. The main export markets are China, Indonesia, Hong Kong, U.S. and Iran with
ratio of 16.3%, 15.4%, 13.6%, 6.2% and 5.3% respectively.
4. Household and Furnishing Textiles: In 2003 (Jan. – Oct.), the export
value is US$153.8 million increased by 20.6% compared to US$127.5 million in the
same period of 2002. The main export markets are the U.S., Japan, Saudi Arabia,
Singapore and Hong Kong with ratio of 47.8%, 18.9%, 3.2%, 2.7% and 2.6%
respectively.
Export Market
The U.S. is the main market for Thai textile export with the value of
US$1,570.6 million in 2003 (Jan.–Oct.) decreasing by 3.7% from US$1,631.2 million
compared to 2002. This is 34.8% of total Thai textile export.
Japan. The export value is US$313.1 million equivalent to 7.0% of total
Thai textile export. Most exported products are garment, fabric and yarn, fabricated
fiber and other textiles.
Value: SD$ Million
1800 1,631.2
1600
1400
1200
1000
800
600
400
200
0
US
2002(Jan.-Oct.)
2003(Jan.-Oct.)
1,570.6
257.3
313.1
Japan
205.4
140.2
207.2
127.0
UK
Hong Kong
96.1 137.2
China
Graph 2: Thai Textile Export in 2002 (Jan. – Oct.) Categorized by Countries
Source: Information Technology and Communication Center, by cooperation of the
Customs Department
Remark: Year 2003 is primary data.
Textile Import Conditions
In 2003 (Jan.–Oct.), there is an increasing import in almost all textile
items with the total import value of US$1,996.4 million, increased by 4.3% from
US$1,914.4 million compared to the same period of 2002. The significant imported
products are as follows.
Fiber: In 2003 (Jan.–Oct.), the import value is US$537.8 million
increased by 8.4% compared to US$496.0 million in the same period of 2002. The
main import markets are the U.S., Australia, China, Mali and Japan with ratio of
27.6%, 21.3%, 9.7%, 5.1% and 4.7% respectively.
Yarn: In 2003 (Jan.–Oct.), the import value is US$315.8 million increased
by 2.0% compared to US$322.4 million in the same period of 2002. The main import
markets are China, Japan, Taiwan, Indonesia and South Korea with ratio of 27.4%,
13.8%, 13.1%, 8.9% and 6.3% respectively.
Fabric: In 2003 (Jan.–Oct.), the import value is US$793.7 million
increased by 0.6% compared to US$789.3 million in the same period of 2002. The
main import markets are China, Taiwan, Japan, South Korea and Hong Kong with
ratio of 29.9%, 21.9%, 9.8%, 9.3% and 8.8% respectively.
Garment: In 2003 (Jan. –Oct.), the import value is US$112.0 million
increased by 14.3% compared to US$98.0 million in the same period of 2002. The
main import markets are China, Hong Kong, Italy, Japan and France with ratio of
55.6%, 13.8%, 4.6%, 4.6% and 2.9% respectively.
Graph 3: Thai Textile Import in 2003 (Jan. – Oct.)
Machinery
Fiber
Yarn
Fabric
Garment
2000
417.7
603.2
406.8
998.5
115.7
2001
443.2
606.4
377.4
919.6
122.1
2002
474.7
585.2
374.5
942.4
119.6
2002
2003
(Jan-Oct) (Jan-Oct)
389.3
351.1
496.0
537.8
322.4
315.8
789.3
793.7
98.0
112.0
%
Change
-9.8
+8.4
-2.0
+0.6
+14.3
Source: Information Technology and Communication Center, by cooperation of the
Customs Department
Remark: Year 2003 is primary data.
The value of textile machinery importing in 2003 (Jan.–Oct.) is US$351.1
million decreasing by 9.8% compared to the same period of 2002 with US$389.3
million. The main import markets are Japan, Germany and Taiwan with ratio of 32.5,
20.0 and 12.2% respectively.
Summary and Trend in 2004
In 2003 (Jan.–Oct.), the textile and wearing apparel industry has been
increasingly exported by 6.3% compared to the same period of last year. It has been
constantly increased in garment, fabric, yarn and fabricated fiber, household and
furnishing textiles, embroidered fabric-lace and other textiles according to domestic
and overseas markets’ demand, including government’s measure through any projects
such as exempted import duty for new machinery to replace the old one, enhancement
project for Thailand to be the regional fashion center named “Bangkok: Fashion
City”. Moreover, the free trade areas with the U.S. and EU would help to abase the
effects of free trade in wearing apparel industry in line with WTO framework in 2005
at a certain level, especially agreement for reducing import duty of some textiles that
Thailand could always be competitive with the free-trading countries.
Import of textile has increased by 4.3%, compared to the same period of
last year except for weaving yarn and thread decreased by 2.0% especially from
Taiwan, Indonesia and South Korea.
Trend of textile industry in the fourth quarter of 2003 and 2004 has been
estimated that it is constantly improving because the entrepreneurs have to produce to
meet with consumer demand in both domestic and overseas markets for any upcoming
festivals including Christmas and New Year’s. For a whole year, this industry might
be expanded not less than 5-6% or over US$5,000 million. To develop the textile and
wearing apparel industry to draw foreign income continuously, the adjustment in
production system with full network, proper production capacity, personnel, tax
structure enabling to competition, pattern development, branding, updated
information, distribution channel, maintaining existing market and expansion to new
market, are necessary.