TEXTILE AND WEARING APPAREL INDUSTRY GENERAL CONDITIONS TEXTILE INDUSTRY

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Textile and Wearing Apparel Industry

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:

Upstream Industry: fiber industry and spinning industry
Midstream Industry: weaving, knitting, dyeing, screening and furnishing industries
Downstream Industry: garment industry and other textile products industry

Number of Factory and Labor by Industrial Category

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 furnishing	405	409	46,750	59,930
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%)

TEXTILE AND WEARING APPAREL INDUSTRY GENERAL CONDITIONS TEXTILE INDUSTRY

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:

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.
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.
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. 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.
  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. 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.
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.
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.

TEXTILE AND WEARING APPAREL INDUSTRY GENERAL CONDITIONS TEXTILE INDUSTRY

Value: SD$ Million

raph 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.)

	2000	2001	2002	2002 (Jan-Oct)	2003 (Jan-Oct)	% Change
Machinery	417.7	443.2	474.7	389.3	351.1	-9.8
Fiber	603.2	606.4	585.2	496.0	537.8	+8.4
Yarn	406.8	377.4	374.5	322.4	315.8	-2.0
Fabric	998.5	919.6	942.4	789.3	793.7	+0.6
Garment	115.7	122.1	119.6	98.0	112.0	+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.

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TEXTILE AND WEARING APPAREL INDUSTRY GENERAL CONDITIONS TEXTILE INDUSTRY