BANGKOK, 7 May 2015 – The Office of Industrial Economics (OIE) has been encouraging the Thai fashion and design industry to invest in human resources of neighboring countries, in order to cut labor costs.
OIE Director Udom Wongwiwatchai said that textile and jewelry manufacturers should take advantage of cheap labor, especially in Laos and Cambodia.
These countries are currently benefiting from the Generalized System of Preferences (GSP), which allows them to export goods to the United States without tariffs.
This makes the cost of production and labor significantly more affordable to manufacturers. Mr. Udom added that the logistics of neighboring countries make it easier for them to oversee production.
However, many manufacturers have been reluctant to move their production base overseas, due to a lack of knowledge or capital.
The OIE is expected to work with relevant agencies to help them learn more about each country, how they can establish efficient logistics and how they can raise capital.