THE GUIDELINES FOR DEVELOPMENT OF POLICY ON THAILAND’S TEXTILE INDUSTRY TO ACCOMMODATE THE JOINING OF ASEAN ECONOMIC COMMUNITY

Abstract

The objectives of this research were: (1) to study the impacts of Thailand’s joining ASEAN Economic Community (AEC) on Thai textile industry, (2) to find out the guidelines for potential development of Thailand’s textile entrepreneurs, and (3) to find out the guidelines for development of policy on Thailand’s textile industry to accommodate the joining of AEC. This study employed the qualitative research methodology with the use of documentary review and in-depth interviews of 13 experts. The research instrument was a structured interview form. Research findings were as follows:
1. The positive impacts of joining the AEC on Thailand’s textile industry are the expansion of market and the increase of demand for Thai textile products; while the negative impacts are that the competition in this industry will be intensified and cheap textile products will flow into Thailand resulting in negative effects on SMEs in Thailand. Details for each issue are as follows: (1) the export values of upstream and midstream industry products will increase, while that of the downstream industry products will increase slightly; (2) the quality of Thai textile products will be accepted by international market; (3) the free flow of labor forces will occur in only 7 branches; (4) the trend is increasingly competitive, Thailand’s textile industry should create products that the market demands, and Thailand should increase her investment in the AEC countries; and (5) the joining of AEC will not affect relocation of production bases.
2. The guidelines for potential development of Thai textile entrepreneurs are as follows: (1) the readiness preparation on language skills; the learning of each country’s context; the integration into groups; the modern organizational management; and the possession of vision, mission, and business plans; (2) the enhancement of capability on human resource development, research and development, and innovations; (3) the state sector should provide supports on budget, knowledge, rules, regulations, practices, and privilege for textile entrepreneurs, and it should help in finding new markets.
3. The guidelines for development of policy on Thailand’s textile industry are as follows: (1) the promotion of hi-tech and clean products and application of technology in the production, and the promotion of creative thinking and innovations; (2) the promotion of human resource development and knowledge management; (3) the promotion of research and development on production technology; (4) the development of raw materials; (5) the opening of new markets; (6) the promotion for formulation of industrial clusters; (7) the provision of supports to logistics system; and (8) the modification of inappropriate tax system.