• 
• 

 Virat Tandaechanurat, executive director of the institute, said on Tuesday that some textile companies including Thai Silp South East Asia Import Export Co Ltd have to shut down business due to lack of understanding and trust from commercial banks.

 "Textile companies have continually adjusted their strategies. In the past year, their machinery import value was worth Bt15-Bt20 billion," Virat said.

 Many factories, through cooperation with the institute, have also successfully achieved standard certificates from major trading partners. Four factories have been able to use non-poison dyeing colours and they have been awarded the environment label from the European Union.

 Virat also noted that Thailand's textile and garment industry has expanded 2.6 per cent in the first half, and throughout this year it could grow 4-5 per cent with the total export value of US$6.9-$7 billion, on top of $6.8 billion in 2006. Attributing to the increase is the Japan-Thai Economic Partnership Agreement (Jtepa), which would boost Thai exports to Japan from merely $400 million at present.

 "Thai exporters face competition mainly from Bangladesh, Vietnam, India and India. And it is necessary for them to adjust their production process to produce more value-added products on the back of advanced technologies," he said.

 Virat also said that Thai textile companies have also been hit by cheap products from China. "The government should impose stringent safety standards on the textile imports," he said.

 The US is now the largest export market of Thailand. In 2006, exports to the country totalled $2.18 billion. While textiles accounted for $320 million, apparel exports totalled $1.86 billion. 

 "Small and medium-sized textile companies must improve themselves, as their export value to the US could drop to $50 million because of fiercer competition from cheap-labour markets," Virat said.

- The Nation