The Thailand Garment Industry & Economy

The Thailand garment industry and economy will be the focus of this research analysis. The Thailand garment industry is important to the Thailand economy, contributing more than 12 percent of overall gross national product (GNP). However, the Thailand garment industry is very dependent on trade with the United States and many other countries. For example, Poland was the second largest importer of Thai apparel in 1992 with $300 million, second only to the United States with $514 million (Lelyveld, 1992, p. A1). In addition, the changing world marketplace and that marketplace's legislation is having a profound impact on Thailand, the garment industry and many of Thailand's biggest trading partners (notably North America and the European Economic Community). As a result, not only will the makeup of the garment industry and its workforce be discussed, but so will the trade laws that affect it and the current negotiations which may affect them in the future.

Where the economy is concerned, Thailand's GNP and GDP (gross domestic product) will be analyzed, including major business and trading partners, imports and exports, trade deficits and/or surpluses. Where trade is concerned, many aspects will be discussed. First, the types of regulations and agencies within Thailand that monitor trade will be illustrated. This will be followed by a discussion of current international situations, agencies and legislation affecting Thailand's economy and the garment industry

ome the aforementioned barriers to economic growth. Thailand Garment Industry The Thai garment industry is very important in helping with the economic development of Thailand and its transition from an agrarian to an industrial society. Even though it employs only ten percent of the overall labor force, Thailand's garment industry accounts for more than 12.5 percent of total GNP. The top ten garment companies in Thailand all have foreign interests, and Thais depend on the United States for most of their raw material imports, especially where cotton is concerned. Exports of textiles and garments by Thailand were forecast to grow approximately 13 percent in 1992 to approximately $4 billion (100 billion baht) (Bangsberg, September 25, 1991, p. A4). However, these figures represent a slowdown from recent years. For example, in 1990, overseas sales grew 14 percent over 1989, but in 1989 exports jumped 40 percent over 1988 figures. This shows the dramatic leveling off in the early 1990s of the Thai economy overall, and the amazing boom years of the late 1980s. The Thai government's business economics department says the slower growth lately is due to a couple of factors, namely recession hit markets and a sharp climb in local dema