Start a clothing business in Thailand

Thailand attracts many years of foreign investors to register a company in the textile field. The Thai government offers tax and non-tax benefits to BOI companies. Themis Partner also helps you with your accounting and tax to obtain the required FBL licenses and to get foreign business ownership. But why is Thailand so attractive for clothing business?

Every year, huge amounts of high-quality Thai fabrics and apparel are sold domestically and exported to the rest of the world. In 2016, the textile industry’s export revenue was nearly USD 7 billion, accounting for more than 3% of total exports, with key customers including ASEAN, the United States, Europe, and Japan.

Thailand is one of the few countries in the world that offers the entire textile value chain, from upstream to downstream. With over 4,700 local textile producers, Thailand supports a wide range of activities along the entire textile value chain, from fiber and fabric production to the design, manufacturing, and sale of apparel and functional textiles.

Thailand is a leading global producer of synthetic fibers, ranking ninth in the world in polyester production and fifth in acrylics production. Every year, the country produces approximately 900,000 tons of synthetic fibers. Domestic production and consumption of man-made fibers increased by 6.4 percent and 12.3 percent year on year in 2016, respectively.

Thailand is home to major producers of synthetic fibers in the region, including many joint ventures and subsidiaries of multinational companies such as Indorama Polyester, Teijin Polyester, and Thai Toray, thanks to its strong petrochemical industry foundation and cutting-edge technology.

Thailand’s textile industry is constantly developing and evolving, so it has increased its production efficiency to produce high-quality yarns. Each year, Thai clothing business and manufacturers spin more than 800,000 tons of cotton and man-made yarns, with 70% of the output consumed domestically. In 2016, yarn exports alone were worth over USD 700 million. Major clothing business export destinations include Indonesia, Taiwan, China and Japan.

Thailand is known for its ability to weave and knit world-renowned fabrics of superior quality, thanks to an abundance of high-quality raw materials. Thailand exported over USD 1.2 billion in fabrics in 2016, primarily to ASEAN countries.

Thailand has become a leading producer of fabrics in the region thanks to decades of heavy investment in R&D. The Thai Textile Institute recently developed the “smart fabrics quality mark” to help producers increase their competitiveness by ensuring textile and clothing product quality and standards.

Thailand is the seventh largest Asian exporter, with nearly USD 4.6 million in export value each year. Silk has a long history of positively shaping the Thai textile industry’s heritage. The original hand-woven process showcases the beauty of silk, which is unique across Thailand’s different regions, and represents a truly authentic Thai fabric.

Spandex is a fabric made from elastomeric synthetic fibers that provides significant flexibility to many clothing business as underwear and sportswear brands. From 2016 to 2023, the global spandex market is expected to grow at a CAGR of more than 8%, with Asia-Pacific recording for more than 60% of global production. With a number of Thai manufacturers, spandex provides a solid foundation for Thailand’s rapidly growing sportswear industry.

Thailand currently has over 400 factories engaged in the dyeing, finishing, and printing of yarns and fabrics for local clothing business and industry. New and innovative technologies, such as 3D and digital printing, are being used to boost the value of fabrics even further. A growing number of Thai factories, including Luckytex (Thailand) PLC and Erawan Textile Co., Ltd., are automating their production lines.

In addition to textiles, Thailand’s finished clothing business sector, which includes both apparel and non-apparel items, is booming. The apparel retail market has been rising at a rate of 3.5 percent per year, which is three times the global rate.

Thailand’s fashion sector is developing very well, thanks to its excellent designs and advanced manufacturing techniques and standards. Bangkok has been designated as the Global Fashion Capital. The country has hosted numerous well-regarded regional and international fashion events, including Bangkok International Fashion Week, Elle Bangkok Fashion Week, and the Bangkok International Fashion Fair, for over ten years, thanks to strong government support.

Beyond typical cut-make-and-trim OEM production, Thailand is home to a slew of Thai designer labels, including NaRaYa, AIIZ, Jaspal, CPS Chaps, Sretsis, Disaya, and Doi Tung, all of which have made significant strides in raising their global brand awareness, as well as Dry Clean Only, which is well-known among Hollywood celebrities.

Over 80% of raw materials, such as fabrics and yarns, may be sourced locally in Thailand, which has over 2,100 clothing business apparel producers. The country is noted for its highly skilled and competitive workforce, as well as the high quality of its products. Nike, Adidas, and GAP are just a few of the well-known worldwide brands that outsource production to Thailand.

High-Tech Apparel Co., Ltd., ICC Co., Ltd., Hong Seng Knitting Co., Ltd., Nan Yang Textile Co., Ltd., and Sahapat Co., Ltd. continue to dominate the Thai market and export high-quality clothing apparel to the rest of the globe. The United States, the European Union, Japan, China, and Vietnam are among the top export destinations.

In 2016, the Thai womenswear and menswear clothing business markets both grew by 4% and 3%, respectively. By 2021, the womenswear and menswear markets are predicted to reach USD 3.5 billion and USD 2.6 billion, respectively. Despite the fact that the Thai womenswear market is slightly larger than the menswear market, male buyers tend to be more devoted to their preferred brands. Uniqlo, H&M, Zara, and G2000 are just a few of the global brands that are doing exceptionally well in Thailand.