Thailand apparel exports continued to resist competition from other Asian countries during last year. Thai fall of the baht helped in stimulating sales while large availability of domestic textile materials remained a very strong advantage for Thai producers.

Thai clothing exports will face  economic crisis, while the elimination of US quotas is dramatically depressing sales to the U.S. market. Thailand's apparel exports were not significantly affected by the economic crisis in the last year but may now be threatened by a serious slowdown.

According to Thai official data, apparel exports continued rising 7% in December last year from the same period last year at US$263 million. Exports were clearly weaker over the fourth quarter, however, with a mere 0.62% rise at US$742 million. Shipments had previously increased by 3% in the second quarter and even 6% in the third quarter.

Although generally experiencing higher labour costs than most other suppliers in Asia, Thailand's apparel industry resisted foreign competition over the past four years.

Apparel exports did not really decline, only losing 2% from 2005 to 2009, at US$3.1 billion. Exports of yarns and fabrics also remained healthy over the years, reflecting Thailand's main advantage in the textile-apparel market.

With quality fabrics widely available at home in large varieties of fibers, clothing producers may offer more sophisticated products while keeping costs at a reasonable level. The level in textile exports reflects the quality of Thai products. On a total of US$7.27 billion in textile and clothing exports in 2009 (including home textiles), apparel only accounted for 42%.