BANGKOK, 9 Dec 2013 The Thai fabric industry future looks bright, says the Federatin of Thai Industries.
According to Mr. Wanlop Wittanakorn, Vice President of the Federation of Thai Industries, the sector has constantly been receieving orders from foreign nations, especially the fabric industry; which has to work at full capacity until June next year in order to fill its orders. He attributed the activity to the economic recovery of major buyers such as the United States, the European Union, and Japan.
Mr. Wanlop expects the growth of athlete wear sector to be higher next year than that of previous years due to the World Cup 2014. He said the athlete wear accounted for 28% of the orders in the entire fabric industry.
As for the expiration of the Generalized System of Preferences (GSP), specifically for the fabric industry, with the European countries, which would take effect on January 1st, 2015, the industry is eagerly awaiting the outcome of the Free Trade Agreement (FTA) deal between the EU and the Kingdom.
Should the FTA be implemented, the fabric industry would greatly benefit from it, as it would waives all tariffs. Under the current GSP, the industry is entitled to a 20 % reduction from the EU’s 12% tariff rates
The FTA is expected to be conclude within 7 rounds of talks; the 3rd round is scheduled for December 9th.
