Thailand's Textile Industry: Statistics, Sustainability Policies, and History

When discussing the Asian textile and apparel industry, we often mention countries such as Bangladesh, China, and Vietnam. These are undoubtedly the leading players in the industry, but what about the remaining Asian countries? While Thailand may not be the main textile and apparel exporter or manufacturer in the continent, it is still worth checking the statistics concerning this industry, as it remains a large economic force in the country. 

In 2016, Thailand ranked 11th in Asia for the export of apparel and clothing accessories, a business valued at roughly $7 billion, equal to over 3% of the country's total exports (The Board of Investment of Thailand, 2017). But is this industry still thriving today? 

According to data published by the Thailand Textile Institute, in March 2024, Thai textile and clothing exports earned the country a total of $543.4 million. This was, unfortunately, equal to a 2.2% decrease compared to the same period in 2023. To be more specific, textile exports were valued at $355.8 million, while garment exports were valued at $187.6 million. However, the situation seems to be positive if we look at the bigger picture. If we take the overall international trade of the Thai textile and apparel industry for the first three months of 2024, we found a value of $1,529.4 million, an increase of roughly 1.1% compared to the same period in 2023. It's important to specify that all these data were calculated considering four main products: artificial fibres, fabrics, clothing, and yarns (THTI, 2024). 

According to data published by the Board of Investment of Thailand, this country is one of the key global players in synthetic fibre production, manufacturing roughly 900,000 tons of this type of fibre every year. This country was also ranked 5th for global acrylic fibre production and 9th for global polyester fibre production. Home to roughly 4,700 textile manufacturers, including facilities producing fibres, yarns, and clothing, the Thai textile and apparel sector employs a total of 500,00 workers. This is quite impressive, considering the country has a population of roughly 71 million people. However, it's important to specify that these data are relatively old and were published in 2017, meaning that the situation may have changed now. But what about sustainability?

Regarding sustainability, the Thailand Textile Institute is working on several initiatives to promote eco-friendly practices within the country. For instance, in 2020, The Office of Lifestyle Trade Promotion, Department of International Trade Promotion, and Ministry of Commerce launched a project to boost the country's circular economy. In collaboration with the Thailand Textile Institute, this initiative involved a total of 13 companies and focused on five main Key Success Factors: the use of sustainable materials, the implementation of sustainable processes, a general reduction of waste, the focus on local production, and the creation of new job positions benefiting locals. 

This successful project had a massive positive outcome for the Thai textile and apparel industry. It is thanks to this that a new eco-friendly material made using Tong Tung leaves coated with rubber was developed. This innovative textile resembles leather and is manufactured using environmentally friendly synthetic fibres. But this was not all. This initiative also helped the development of innovative natural fibres made from pineapple waste, hemp, and kapok, a water and pesticide-free plant. This project also contributed to waste cuts, thanks to the promotion of recycling practices, such as transforming PET bottles into fibres and recycling old clothes and fabric scraps for new products (Thailand Textile Institute, 2020).

According to data from the United Nations Environment Programme, in recent years, the Thai government has also put an effort into boosting green energy by removing tariffs on clean technology and encouraging the adoption of sustainable practices within the industry. Already back in 2013, the country had eliminated taxes on wastewater treatment machines and six years earlier, in 2007, it had removed those on solar cells. Despite this, Thailand still needs to address a few issues, such as the high LED product taxes, which are now set at 40%. 

Apart from tariff adjustments, the Thai government has also implemented several environmental standards addressing issues ranging from energy efficiency to pollution minimisation, and specific requirements for dyes used on clothing. This country also registered an increase in sustainable labels such as the famous Global Organic Textile Standard (GOTS), the EU Ecolabel, and the Bluesign standard (Fibre2Fashion, 2024). 

The History of the Thai Apparel Industry Through the Century

Similarly to other countries, Thailand has been producing clothes for centuries. In particular, this country was renowned for its Sukhothai clothing style. In vogue between the 13th and 15th centuries, Sukhothai garments for men consisted of a full-sleeved top with a V-shaped neck. This was coupled with a silk loincloth and a metal or golden belt. On the other hand, women used to wear long silk sarongs, often displaying flower prints.

From the 14th to the 18th century, Ayutthaya clothing took over. These consisted of a loincloth wrap known as chong kraben. While men wore it to cover from their waist to halfway down their thighs, women covered the knees too. Despite what most people may think, bare chest and feet were acceptable in Thailand during this historical period. 

Thai modern apparel production is relatively young, as this industry expanded exponentially only in the late 1980s. Between 1988 and 1992, the country’s apparel sector experienced massive growth, which continued throughout 1997. Unfortunately, however, the following four years were quite negative and were characterised by a general slowdown. In this period, the country registered a decrease in production but an increase in quality. Factories started improving labour and social welfare practices while implementing environmental and product safety policies. Today, Thailand remains an attractive option for buyers all over the world.