Fabric finishing sector benefits from ASEAN FTA.

The signing of the ASEAN Free Trade Agreement (AFTA) has opened up several opportunities for the Thailand textile and clothing sector in the countries which make up the ASEAN bloc and for the dyeing, bleaching and printing industry in particular.

According to Nopadol Piamkulawanich, President of the Association of Thai Textile Bleaching Dyeing Printing and Finishing Industries, exports of goods from this segment is expected to grow by 20 percent and maintain the rate in the next few years.

In 2009, while exports from the textile and apparel sector fell by 10 percent to US $7 billion, when corresponded with those of 2008, export turnover of the bleaching and dyeing industry stood at $1.167 billion, down by 3 per cent.

Since the FTA came in to effect from January 1, 2010, orders from the ASEAN countries for bleached and dyed products has grown immensely, mainly due to the lowering of import duties ranging between 5 to 10 percent to zero percent.

Exports from the finishing sector grew by 20 percent in January, when compared with figures from a year ago. The key drivers for these figures were the influx of orders from countries such as the Philippines, Vietnam, Cambodia and Indonesia.

The signing of AFTA has led to several Thailand based dyeing and printing units mulling to set up operations in ASEAN countries, along with which orders from countries like China, India, Bangladesh and Europe is also on the ascent.
 
Source : Fibre2fashion.com