Thai footwear industry expected to grow at least 5% in 2013

BANGKOK, March 5 (TNA) - The Thai footwear industry is targeted to grow by at least 5 per cent this year, worth some 1.8 billion US dollars or 54 billion baht. Kanchit Chantanapornchai, President of the Thai Footwear Industry Association, announced the targeted growth on Tuesday, pointing out that there are more rooms for Thai foodware products in the United States, Europe and even other member countries of the Association of Southeast Asian Nations (ASEAN). Kanchit acknowledged that the Thai footwear industry has encountered several obstacles, including tougher competition within the 10-member ASEAN bloc and impacts from a domestic wage hike to 300 baht a day in all areas across the country, effective from January 1, 2013, resulting in a drop in production capacity of locally-made shoes to 13.7 million pairs last year, from some 19 million pairs in 2011. Kanchit cautioned that Vietnam's production and exports of footwear products have already exceeded those of Thailand by about three times. Besides, Kanchit said the Thai footwear industry is also facing acute shortage of more than 10,000 workers despite the increased 300-baht daily minimum wage, as a number of workers have returned to work in their hometowns instead. The Thai footwear industry president, meanwhile, sought an urgent assistance from the Thai government, including allowing more employment of migrant workers as a substitute to Thai workers. The Thai footwear industry president, however, expressed his confidence in Thailand's production potential and innovations, suggesting that Thai footwear businesses further develop the quality and brandnames of their products in the lead-up to the ASEAN Economic Community (AEC), scheduled to be formed by 2015, in which more opportunities are provided for Thai business operators. (TNA)