Vallop Vitanakorn, an adviser to the Thai Garment Manufacturers Association, said after expanding investments to Cambodia and Vietnam over the past four years, manufacturers were expected to generate US$600 million (Bt21 billion) in overseas sales this year.

Vallop said that as a result, garment exports from Thailand were forecast to declined about 7 per cent to $2.55 billion but that was not an alarming development.

“Exports from the industry will grow strongly from neighbouring countries in particular Cambodia and Vietnam … If we include the export figure from neighbouring countries, Thai garment exports have still increased and will not be worth less than $3.15 billion this year,” he said.

The estimated $600 million in sales from overseas this year will be contributed from 33 apparel manufacturers operating in Cambodia and Vietnam. They had a combined initial investment capital of about Bt4 billion.

Vallop said more garment enterprises would expand businesses to neighbouring countries, with Myanmar a potential option if it had stable infrastructure development.

He said in the future export income from Thailand would not increase, but exports from Thai manufacturers operating overseas would.

But he said garment manufacturers would still keep investments in Thailand, in part because the country had skilled labour.

Income from investments in neighbouring countries is expected to be 40 per cent of the total garment exports next year.