Publication Code: Y92H
by Suphat Suphachalasai
The textile industry in a broad sense includes five industries; man-made fibre, dying and finishing, spinning, weaving and garment manufacture. The textiles and garment industry has become particularly important to the Thai economy since the mid-1980s. The industry has grown so rapidly that it has become the largest foreign exchange earner, contributes the highest share of manufacturing Gross Domestic Product (GDP) and has the highest employment total in the manufacturing sector. Closer examination of the structure of this industry, however, reveals an imbalance between the number of firms in the different sectors. The garment industry has a large number of firms, while the number is small in weaving and spinning and fairly small in man-made fibre production. This paper examines the extent to which government policy affects the structure of the textile industry. It consists of four parts: the first gives the background of the industry's development in Thailand. The second gives a detailed examination of the industry and its production, the third examines government policy affecting the industry. The final part offers a summary and conclusions.
November 1992