New economic community could spell relocation for - footwearbiz: Lead

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New economic community could spell relocation for Thai shoemakers

16/02/2012
The president of the Thai Footwear Association (TFA), Chanin Jitkomut, has warned that some of the manufacturers among his organisation’s 200 members are preparing to set up production in lower-cost countries in the region after the ASEAN Economic Community (AEC) comes into effect in 2015.

There are ten countries in the Association of South East Asian Nations (ASEAN). The organisation announced in 2007 that the AEC would take effect in 2015; the aims of the economic initiative include establishing a single market and production base for ASEAN countries.

Chanin Jitkomut said in recent comments to local media that labour-intensive industries in Thailand, including footwear, were likely to relocate to neighbouring countries such as Myanmar, Vietnam and China to take advantage of cheaper costs once the new freedoms came into effect.

He forecast that more than 100 footwear businesses will relocate away from Thailand in the next decade.

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