Analysts have reduced the prospects of Thailand's footwear exports in 2007 by three percent than earlier forecast of 12 percent as the country continues suffering from strong baht and increasing competition from other countries.
In mid October, a forecast mentioned that country's footwear exports will enjoy 12 percent growth totaling to US $1.12 billion in 2007. However, baht crisis and hike in oil prices resulted in fall of exports turnover.
Moreover, lower labor costs in Vietnam and China have led to decline in Thai share in global footwear markets. To overcome losses few manufacturers have relocated to Vietnam where as several plants were shut down which were unable to cope up with the prevailing situation.
However, a strong re-bounce of bhat at 5-10 percent is expected in 2008, as Japan-Thailand Economic Partnership Agreement (JTEPA) comes into effect and will relieve pressure of exports.
Statistic figures of Thailand Export Promotion Office displayed that country's footwear and leather products export suffered a year–on–year slump of 5.15 percent in the first three quarters 2007, at baht 25.58 billion. In the remaining two months, the country targets to earn baht 39.5 billion from export.
Fibre2fashion News Desk - China
marketing@alchempro.com
