Half Of Thailand's Textile And Garment Factories Were Hit By Floods.

Thailand Taihua Farmers Research Center recently released a report that Thailand textile and garment industry is one of the industries affected by catastrophic floods. As an important textile and clothing production base in Thailand, the central region suffered huge floods, which not only caused local manufacturers to suffer losses, but also had a combined impact on downstream industries. The number of textile and garment factories affected by this catastrophic flood accounts for 51.4% of the total number of textile and garment factories in Thailand. Most of them are located in Bangkok and surrounding areas, among which clothing industry suffers the most serious situation, followed by spinning, weaving and household textile industry.

The Thai Farmers' Research Center believes that in the fourth quarter of 2011, which could have received a large number of orders, Thailand's textile and clothing exports will be significantly hit by the large scale floods affected by domestic production, resulting in lower export volume than originally predicted. In addition, Thailand's textile and garment industry may also lose business opportunities in the international market, because the major trading partners will shift some of their orders to other competitors in Southeast Asia, which are of equal quality to Thailand, such as Indonesia and Vietnam.

The center said that the above factors will lead to an increase of 3.0%~5.0% in Thailand's textile and clothing exports in 2011, representing only 7 billion 900 million ~81 billion, compared with 19.1% in 2010. Badly hit products will be ready-made garments, yarns and fibers. As for the trend in the first half of 2012, textile and garment producers and exporters are expected to recover in the first and second quarters after the flood receded. However, if the recovery takes a long time, the relevant industries may have to look for other production bases or turn to rely on imported commodities.

Insiders pointed out that the next stage must be traced to the flood situation in Western Bangkok until the Samut Sakhon government, which is the production base of textile and garment factories such as dyeing, textile and garment factories. If the disaster worsens here, it may increase the number of affected factories, which will lead to the worsening export of textile and garment industry.

In addition, another immeasurable economic impact is the loss of business opportunities and competitiveness, namely the loss of capacity during post disaster reconstruction and the orders taken by competitors from the trading partners.