Garment Manufacturers Association has appealed to the Government to provide tax break to the companies that invest in production overseas to indulge in re-exporting.
Several Thai enterprises have set up garment production units in Cambodia and export to third countries.
Baht has reached an all-time strong level, and manufacturing outside enables traders to use dollars else where, avoiding the high baht.
This is a scheme used by many companies to protect their income and profits. However, smaller enterprises may not be able to afford shifting.
According to Secretary-General of the Association, Vallop Vitanakorn, "Instead, three or four factories decided to shut down business in recent months."
In 2006, Thailand's garment exports were valued at US $3.55 billion, a 2.36 percent rise over of the year before. The US was the country's major market, buying 50.3 percent of goods, followed by the EU with 27.1 percent, Japan with 6.1 percent, and Asean with 2.15 percent.
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