Garment industry to profit from Japan pact
YUTHANA PRAIWAN
Bangkok Post, Thailand
Textile and garment exports next year are projected to rise by 8%, thanks to higher demand helped by the new Thailand-Japan free trade agreement.
The Office of Industrial Economics (OIE) and the Thai Textile Institute (THTI) expect export sales next year to reach US$7.68 billion.
Atchaka Brimble, the director-general of the OIE, said exports would grow due largely to the Thai-Japanese pact that came into effect last month. The agreement would eliminate Japanese tariffs that currently range from 2.5% to 13.4%.
Ms Atchaka also hopes to see demand in Southeast Asia drive the Thai textile and garment sector.
The OIE expects the sector’s exports will reach $7.68 billion, with $3.98 billion from raw materials, up 10% from 2014. The remaining $3.7 billion would from garments, up 6.6% from 2014.
She forecast that exports to Japan next year would jump from $410 million to $1.6 billion. Thailand’s total market share in Japan is 5-10%.
Japan next year expects to import $32.05 billion worth of textiles and garments from the global market, up from an estimated $30.52 billion this year _ a 5% increase.
The total export value of Thai textiles and garments to Japan dropped from $429.7 million in 2004 to $412.5 million 2005 and $415 million in 2014. In the first 10 months of this year, exports declined to $308.8 million _ an 8.64% drop year-on-year.
In 2014, the Japan-Thailand Economic Partnership Agreement (JTEPA) is expected to help exports rebound.The JTEPA would also enhance Thai products’ competitiveness against those from Bangladesh, Cambodia, China, India and Vietnam.
However, only medium- to high-end products would survive in the tough textile and garment market where countries with cheap labour enjoy cost advantages.
In January 2014, Japanese garment traders are scheduled to visit Thai garment factories to sign supply contracts.
Last year, Thailand exported $775.7 million worth of garments to Asean out of a total of $13.53 billion.
