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Adidas, Nike & Reebok make beeline for Thai garment industry |
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2004-7-16
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It was ‘return to Thailand’ for three well-known athletic apparel brands after being disappointed by suppliers in low labour-cost countries like China and Vietnam, according to a local manufacturer.
Brand leaders Adidas, Nike and Reebok started placing orders on Thai firms, informed Dheevara Witanakorn, Managing Director, Hi-Tech Chaiyaphum Apparel Ltd, yesterday.
According to Dheevara the Chinese and Vietnamese companies delivered poor quality, had inferior sewing systems and involved shipment delays which clinched the issue in Thailand’s favour.
“Thai garment manufacturers became afraid of huge losses after orders were shifted to these competitor countries. But now orders have returned because the buyers are convinced of our quality and commitment,” he said.
The company’s Bangkok plants at Suphan Buri and Chaiyaphum do business with all three athletic apparel companies. In the changed situation, Hi-Tech expects to meet its revenue goal of Bt2 billion this year.
As per Somchai Kitmeerasmiyothin, President of the Chaiyaphum branch of the Federation of Thai Industries, the government had designated the province as a garment manufacturing cluster area.
He stated that the Industrial Promotion Department wished to establish a prototype company in the area to make a Thai clothing brand and would encourage the company to market its clothing on the international stage.
A name and logo for the brand was yet not selected, but the province’s symbol, the Siamese tulip, was under consideration.
The Board of Investment (BoI) has already established an industrial promotion area in Chaiyaphum that gave companies locating therein, tax breaks, said Thawat Suwutthikul, governor of the province.
About Bt27 million was spent on a training programme to ensure a skilled labour supply for the garment industry.
About 28 garment-makers plan to move or expand operations to the province and by the year 2007, the government expects 37 garment factories to be in operation in Chaiyaphum. |
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