The textile and clothing industry is a major contributor to the Thai
economy. It is the largest manufacturing industry and, with more than
1 mn employees, it accounts for around 20% of total manufacturing
employment.
It is also the country's second leading export industry, after electrical
goods and equipment, with annual exports worth more than US$6 bn.
Garment exports account for almost 55% of this total. The biggest
export market is the USA, which takes slightly more than a third of all
Thai textile and garment exports, and over half of all garment exports.
Next in importance is the EU, followed by Asean (Association of
Southeast Asian Nations), East Asia, Japan and the Middle East.
The textile industry is divided into five sub-sectors: fibre production;
spinning; woven and knitted fabrics; bleaching, dyeing, printing and
finishing; and clothing. These industries are linked and form an
integrated whole.
The industry is having to face up to the challenge of rising production
and labour costs and greater outside competition, particularly from
China. Further investment is needed in new machinery and techniques.
The government recognises the importance of the industry and is
putting measures into place to assist it. The industry is also expected
to benefit substantially from a number of free trade agreements,
following the elimination of quotas at the end of 2004. | 
