Thai shoe makers hit hard by crisis

Written by Writer on Wednesday, October 8th, 2008

Thai shoe makers hit hard by crisis

By The Nation

Thailand’s shoes and accessory exports would be hit hard by the US financial crisis, as their main markets are the United States and Europe which are reeling from the crisis, said Kasikorn Research Centre.

In the first eight months of 2008, export value reached US$665.2 million, down 0.8 per cent from the same period last year due to higher operating costs. While 38 per cent of Thai products go to Europe, 24 per cent to the US and 38 per cent to others.

“Thai exporters are faced with marketing risks as demand in both markets has shrunk in the past year,” the research centre said.

The value of export to the US in the first eight months dropped 1.4 per cent on year. In the same period last year, Thailand also witnessed a 16.5 per cent annualised decline. Export value to Europe also declined continually.

Meanwhile, the crisis would lead to the stronger Thai baht against US dollar, and this would affect Thailand’s competitiveness.