Introduction

Thai clothing and textile industries have become increasingly export-oriented during the 1970s and 1980s. Exports as a percentage of the total value of production in these industries have increased markedly: from 4 per cent in 1972 to 46 per cent in 1987 for clothing; from 8 per cent in 1972 to 22 per cent in 1986 for fabrics; and from 0.5 per cent in 1972 to 22 per cent in 1986 for yarn. However, although the importance of domestic consumption has declined, it still accounts for most of clothing and textile production.

The share of domestic consumption of clothing and textiles in total production declined from 80 per cent in 1972 to 65 per cent in 1986. The domestic market has two components: “border trade” and actual domestic consumption. Border trade consists of exports to neighbouring countries such as Burma, Kampuchea, Laos and Malaysia. Official data are not available, but it is estimated that around 20 per cent of domestic consumption, or 13 per cent of total production, is in the form of border trade (IFCT 1986; Theravaninthorn 1982). Domestic consumption and border trade use the same distribution channels, that is through the central market in Bangkok.

Export values for clothing and textiles have increased consistently. Thailand was a net importer of clothing and textiles until 1972 but since then has become a net exporter. Clothing has been the major export item, accounting for 76 per cent of the total for clothing and textiles in 1987, followed by fabrics (19 per cent), yarn (4 per cent) and fibre (1 per cent). Despite some fluctuations, the export value of clothing and textiles has grown by around 30 per cent per year since the 1980s, from $0.5 billion in 1982 to $1.9 billion in 1987. Clothing and textiles have been the country's major foreign exchange earners since 1985, displacing the traditionally dominant export item, rice (Table 6.1).

Exports destined for MFA-markets accounted for 56 per cent of the total in 1987 (Figure 6.1). The EC and the United States are the major markets for Thai clothing and textiles, each accounting for around 23 per cent of export value.