Illustrative image (Source: VNA)
Thailand’s garment export is expected to grow by 3-5 percent in 2015 and around 2 percent this year due to the possible loss of tax privilege export to the European Union and the slower recovery the United States.
President of the Thai Garment Manufacturers Association Thavorn Kanokvaleewong said the association expected next year’s garment growth to stand at 3 percent, however, it could reach 5 percent if the global economic conditions are in good shape.
The association also predicted that the Thai garment export will grow 2 percent this year to about 3 billion USD, driven mainly by speedy efforts by exporters to ship more to the EU for fear of the possible termination of the Generalised System of Preferences (GSP) in European countries early next year, according to Bangkok Post.
If the GSP is cut, Thai goods including garments exported to the EU would be subject to a 12 percent import tariff from January 1, 2015, up from the current 9.6 percent, making Thai shipments less competitive in the EU market, particularly against Vietnamese products.
More Thai manufacturers, particularly medium and large-scale operators, may relocate their production bases to Vietnam or Myanmar to cope with the possible GSP cut by the EU, labour shortage and anticipated lower tariffs in those nations in light of the free trade and Trans-Pacific Partnership (TPP) agreements.
For the first eight months of this year, Thai garment shipments fetched 1.95 billion USD, a slight increase of 1 percent from the same period last year. However, they are expected to soar in the remaining months due to the festive season spending spree.-VNA
Đăng ký: VietNam News