Business prospects of Lucky Spinning Company Ltd., in light of WTO | |
| Author | Sudhagar, Selvaraj |
| Call Number | AIT RSPR no.SM-05-24 |
| Subject(s) | Textile industry Clothing trade |
| Note | A research study submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-05-24 |
| Abstract | The establishment of an internationally competitive textile and garment industry in Thailand was based upon the low cost labour; its future depends much more upon smart thinking. Smart thinking is needed both to achieve efficient production throughout the supply chain, and also to deliver quality products that meet the increasingly demanding standards of international customers. It is also required to succeed in a testing international regulatory environment. The liberation of trade of textile and garments is creating an additional pressure on the Thai textile industry by further augmenting the level of competition amongst textile and garment exporters. Low cost producers in China, India, Indonesia and Vietnam provide significant competition to Thailand in labour intensive production, while Hong Kong, South Korea and Taiwan have firm holds on the higher technology garments and textile market. In Thailand, the rising costs and the increased skill levels of Thai workers without commensurate gains in factory productivity throughout the nineties has minimized the competitiveness of the industry. (Source: THTI) An alarming sign of the decrease in the competitiveness was marked by both a decrease in the Revealed Comparative Advantage (RCA) and the total exports, which reached a high of US$ 6.5 billion in 1995 declining to US$ 5.4 billion by 2003. The major export destinations will become the neighboring counties and countries in the Asean region. According to a research by THTI, The Asean market, which is currently Thailand's third largest export destination after the US and EU, will gain an increase in importance. Production adjustment among Asean economies could take place as some economies become more specialized in producing products, which suit their skills and resource endowment therefore the industry should look to the regional market for expansion, which will shield off the impact of a decline in the market share in the US and EU. Concerning the upstream industries, the spinning and fiber industries should benefit from the liberation of trade of textile consequently the government should assist its expansion by either lowering the import tariffs on raw materials or suppo1ting more production of petrochemicals. However in the long run, the government should increase its expenditure on research and development (R&D) since the current expenditure of 0.13% of GDP is far from sufficient. Moreover the country should start producing its own textile machinery to become more self sufficient, which would benefit the development of the capital-intensive end of the industry. |
| Year | 2005 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-05-24 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C. S.; |
| Examination Committee(s) | Johri, Lalit M.;Singha Chiamsiri; |
| Scholarship Donor(s) | Asian Institute of Technology, Fellowship; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2005 |