A textile and garment industry group yesterday unveiled its plan for strengthening the country's export competitiveness by focusing more on regional resources and forming alliances with major trading partners to ensure market access after the seamless trade era was launched early this year.

The "Asean One" strategy by the Textile and Garment Development in Efficiency and Technology Project (T-det) will focus not only on finding new supply resources but also on expanding export markets in the Asean region. The plan also aims to solve the country's labour shortage and trim back industry wages domestically.

Moreover, "Asean One" will allow Thailand to enjoy export privileges in other Asean countries.

The "Thai-US Borderless" part of the strategy will encourage exporters to form business alliances or joint ventures with US importers and logistic operators.

The plan has been released after the world's textile trade is logging double-digit growth while Thailand's export growth remains in single digits. The textile industry has been among the country's top 10 foreign-exchange income earners for decades.

Kartchai Jamkhajornkiat, chief of public relations and a T-det committee member, said the plan would initially spur the country's textile exports to grow 20-25 per cent to US$15 billion [Bt611 billion] next year.

Laos is the first priority in the expansion plan. Thai garment manufacturers plan to set up new production bases there at the beginning of next year. That's when the Lao government plans to open a special industrial zone at Savannakhet opposite Mukdahan in Thailand's Northeast.

Establishing factories in Laos would benefit Thai manufacturers by providing low raw materials prices and reduce the likelihood of anti-dumping duties imposed by trading partners.

"The expansion to other Asean countries will help the region become the textile hub of the world," Kartchai said.

The country's textile exports grew 3.4 per cent to $4.39 billion during the first eight months of this year, compared to the same period last year. That's short of the Thai textile industry's target growth of 10 per cent to $7 billion for the year.

Kartchai, who is also on a Thai Garment Manufacturers Association committee, said the "Thai-US Borderless" strategy would boost exports to the US.

He suggested that Thai manufacturers form joint ventures or business alliances with major American importers. The plan will ensure seamless trade after the conclusion of a Thai-US free trade agreement.

"Joint ventures between large, medium and small enterprises and US importers and logistics operators will promote Thai products in the region," he said, adding that becoming a US partner would allow Thai manufacturers to make decisions about where they source their raw materials and products.

In addition, cooperation with US importers will increase confidence in Thai products in the US and build direct trade links between Thailand and the US, he said. Logistics links with American companies will allow Thailand to deliver goods to customers’ doors as well as reduce customs procedures via network linkages.

The US is the largest market for Thai textiles, buying 58 per cent of exports.

Kartchai noted that the association plans to provide experts to improve garment-design skills and marketing plans.

Representatives of the association are scheduled to meet with Commerce Ministry officials next month to request support for the scheme.

Under the draft proposal, the government would reduce export and investment regulations and provide financing for the industry to set up a central expert unit to help textile and garment makers, Kartchai said.

Nationmultimedia.com