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Brand names return to Thai garment industry


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Brand names return to Thai garment industry

 

Published on Jul 14, 2004

 

 

Three well-known athletic apparel brands have returned to place orders in Thailand after being disappointed by suppliers in low labour-cost countries like China and Vietnam, according to a local manufacturer.

 

Adidas, Nike and Reebok have once again started placing orders in Thailand, said Dheevara Witanakorn, the managing director of Hi-Tech Chaiyaphum Apparel Ltd, yesterday.

 

Dheevara said the companies had contracts with Chinese and Vietnamese companies to make their products, but had encountered poor quality, inferior sewing systems and shipment delays.

 

?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, which has plants in Bangkok, Suphan Buri and Chaiyaphum, does business with all three athletic apparel companies. As a result of their change of heart, Hi-Tech expects to meet its revenue goal of Bt2 billion this year.

 

Somchai Kitmeerasmiyothin, president of the Chaiyaphum branch ofthe Federation of Thai Industries, said the government had designated the province as a garment manufacturing cluster area.He said the Industrial Promotion Department wants to establish a prototype company in the area to make a Thai clothing brand and will encourage the company to market its clothing on the international stage.

 

A name and logo for the brand has not yet been chosen, but the province?s symbol, the Siamese tulip, is under consideration.

 

The Board of Investment (BoI) has already established an industrial promotion area inChaiyaphum that gives companies locating there tax breaks, said Thawat Suwutthikul, governor of the province.

 

He said the province spent Bt27 million on a training programme to ensure a skilled labour supply for the garment industry.

 

Some 28 garment-makers plan to move or expand operations to the province. By 2007, the government expects some 37 garment factories to be operating in Chaiyaphum.

 

 

 

The Nation

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