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Thailand’s Fashion IndustryThailand’s Fashion Industry

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Target Industry: Fashion Target Industry: Fashion Garments, Leather & JewelryGarments, Leather & Jewelry

Opportunities Thailand’s demand for textile machinery continues to be high

(A$667 million imported in 2004) especially in bleaching, dyeing, printing, finishing. Also needed: packaging, production, test/control equipment & machinery

Improving quality of raw materials produced in Thailand through consulting services, machinery, design

Education centers & design institutes are very high in demand

Processing centers: Thais have natural talents in precision assembly, handicrafts and relatively low cost. For example, Thailand’s diamond cutting is among the best in the world.

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Thailand is Gem and Jewelry Capital of Southeast Asia.

Exports of gems & jewelry expected to reach €4 billion by 2008. Thailand is #2 exporter of fine jewelry after Italy.50-80% of world’s rubies & sapphires passed through Chantaburi Province in 2003.

Textile exports grew over 25% between 2001-2004 to €5.1 billion in 2004

High-end branded garments, jewelry & accessories such as Cartier and Christian Dior are produced in Thailand

50% of leather exports are footwear - mostly contract manufacturing for Adidas, Reebok, Nike

Bangkok Fashion City Thai Government has invested

A$61 million to further develop fashion sector:

- International Fashion Schools

- Fashion Trend Center- Industrial

competitiveness initiatives for leather, garments, textiles, jewelry industries

- Fashion workshops- International fashion

contests- Bangkok Fashion City

- Top Fashion Reports

Thailand: Stepping out in Fashion

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Investment Incentive for Investment Incentive for Jewelry IndustryJewelry Industry

Manufacturers of gems & jewelry Within promoted gem and jewelry industrial estate:

Duty free machinery Zone 1: 5 year tax holiday Zone 2: 7 year tax holiday Zone 3: 8 year tax holiday

Relocating to promoted gem and jewelry industrial estate: 8 years corporate income tax holiday

Outside promoted industrial estate: Standard incentives according to zone

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Investment Incentive forInvestment Incentive forTextile IndustryTextile Industry

Textile-Related Activities:

– BLEACHING & DYEING & FINISHING PROJECTS• Locating in Textile industrial estate (IE):

– 8 years corporate income tax holiday – Duty-free machinery

– OTHER TEXTILE-RELATED PROJECTS locating on Textile IE• Duty-free machinery• Corporate income tax exemptions:

– Zone 1: 5 years– Zone 2: 7 years– Zone 3: 8 years