Expectation to the development of textile industry in Thailand for Japanese market by EPA taken effect.
The textile industry has been changing in the harsh economic environment and free trading in the world. The serious depression of US & EU's market hit directly the textile industry of each country in Asia and now the expectation towards Japanese market has been growing up strongly in those Asian countries. Even though the market is getting slow the Japanese clothing industry which seeks for another market besides China accelerates the movement in those countries.
`Look East', the DEP Officer shows the eager for expanding the export to Japan while reexamine the too much importance in US market. This matches the needs of Japanese clothing industry and material, textile makers of Japan which is decreasing the domestic production and shifting to Asian countries.
US was the most important market for Thailand's export until last September when the world simultaneous depression caused by Lehman Brothers and it occupied 50% of the export in Thailand's sewing products. During Jan-Aug in '09 the export for US decreased for 28% and even the for the secondary big share, EU dropped heavily, which is -9.12%. Especially the drop of those major countries such as England, Germany and France was serious. On the other hand, for Japan is +7.06%, which is a 7.84% share in sewing products of Thailand. By dividing EU in each country, Japan became the secondary country for export getting over England. Although the Japanese retail market is severely down as well as other countries, the export of Thailand towards Japan is increasing now.
The Thai government and textile related industry are paying attention on Japanese Market more because of the textile market map has been changed. The slogan "Look East" shows their strong intention.
According to the DEP official, "We understand that 90% of Japanese apparel are imported from China and 1 % something from Thailand. We visited Japan with Thai 9 associations related fashion industry in February for market survey. We had confidence to compete with China to produce same quality with same price when we visit Uniqlo shop. We unify our power and want to expand the export to Japan. We will make effort to expand the share, at least 2 times of current market share."The Chairman, Mr. Dej Patjanasetpong of TGMA who has strong power in Thai textile industry talked "The market share of Thai apres is just 1.7%. We intend to increase up over 5%." The specifies the target.
And he emphasized that the Thai textile industry have started taking action practically to realize. One of actions is BIFF; Bangkok International Fashion Fair and BIL; Bangkok International Leather Fair" held every year for exhibiting all fashion industry.
These two exhibitions were held in August 13^-16, the visitor from Japan was rather few because of Obon period. They will change the period of these fairs in 2010 to April 1-4.
They said that it is for the Japanese market. Besides, they have started "Thai Textile Trend (T3) Project" collaborating with the Japanese Textile Federation and METI. They are inviting the dying specialist to get instruction, intend to produce from the yarn to fabric to suit to the Japanese market. They have promoting development for Japan market.
They also undertook to introduce the product inspection of "Japanese standard" collaborating with the Japanese inspection organization.
They are turning effort to ASEAN countries not running only Thailand, they are instructing Vietnam, Laos or Cambodia to utilize their manufacturing fruitful experience, material and technique of assemble, and also supporting Myanmar's apparel export.
The movement of Japanese firms is getting vital. This movement is back-up by shifting manufacturing base to China plus one and EPA.
The movement of shifting domestic production base to Asia in the area of synthetic fiber, spinning and dyeing is prominent. Teijin's polyester business is the typical case. Teijin will stop production of continuous fiber at Matsuyama Plant in Japan and shift production to TPL and TJT (Teijin's affiliate company in Thailand).
In spinning, Kurabo diminishes domestic plant and shifting production to Thailand and Indonesia. Nisshobo is diminishing domestic plant in the area of spinning, weaving cloth and dyeing and is about to shift production in Indonesia. In dyeing, Tokai Senko KK is utilizing affiliate plant in Thailand and Indonesia. JTEPA, the EPA which was concluded between Thailand and Japan in November 2007, and AJCEP (ASEAN multi EPA) is activated in Thailand in this June have accelerated the movement.
The denim business of Luckytex which is under Toray group had been suffering for 4 - 5 years, but Luckytex has been in full operation since June because AJCEP is applied to Thailand. Thai Toray Textile Mills is getting business of supplying knit for garment to Viet Nam sewing plant and supplying material to Japan.
The textile business of Itochu Corporation (Thailand) was 40 % for domestic and 30 % each for Japan and Europe & the USA. But the business from Japan has increased due to JTEPA and AJCEP. Kurabo Thailand is in good boom because big Japanese SPAs are shifting production from China to ASEAN due to AJCEP TTDF which is dyeing and processing company of Kurabo group has been in full operation due to order increase from Thai Kurabo since June.
Thai Tokai, the dyeing and processing base of Tokai Senko KK down-scaled production due to structural reorganization in January, but is in good boom right now. Benefitted by AJCEP and JTEPA, the production for Japan has increased from 50,000 yard to 200,000 yard. Fujibo is strengthening Thailand as China plus on production base in the underwear business of "BVD".
TPL which is under Teijin Group is showing expectation" I am not sure about the specific effect from AJCEP yet, but the number of Japanese customers is big. I assume production will increase by 10 % to 20% as the supplier of material for Vietnam sewing plant is Thailand."
The relation between Thai and Japanese textile industries which has long history is getting into new development stage due to change of world trading structure.
By Senken Shimbun Co., Ltd. on 24 November 2009
Source : http://www.depthai.go.th