Thai Clothing Firms Eyeing Outsourcing to Vietnam

Thai clothing firms are eyeing outsourcing to Vietnam to strengthen their export competitiveness in the American market if Thailand and the US cannot reach a free-trade agreement this year.

 

According to vice president of the Thai Garment Manufacturers' Association, Yotsaton Kijkusol, Thai companies would enjoy 20-30 per cent lower labor costs in Vietnam, that is soon to become a member of the World Trade Organization and is planning to form a free-trade agreement with the US. These moves will benefit Thai manufacturers setting up new production bases in Vietnam.

 

Yotsaton, who is also managing director of Vanson (Thailand) Co. Ltd., said Thai manufacturers were waiting for the conclusion of Thai-US free-trade talks.

 

 

Leading Thai firms such as Hua Thai Manufacturing Plc and Thai Garment Group have already set up manufacturing bases in Vietnam.

 

Yotsaton said Vanson also have plans to invest there.

 

It is forecast that Vietnam will overtake Thailand within the next 14 years, with exports expecting Vietnam to achieve US$500 billion against Thailand's US$463 billion by 2020.

 

Bilateral trade between the two countries was reported at US$2.32 billion in 2004 and US$3.2 billion last year.
The Nation, Young People