The Thai industrial sector is facing some challenges, and the Textile Industry Standards Institute (TISI) has taken a significant hit. The company's double dip has been attributed to several factors, including political uncertainties, declining exports, and the failure to secure opportunities in the Middle East.The political uncertainties arising from the formation of the Thai government have impacted the Thai market negatively. The formation of the government in July last year saw the country's economic prospects affected as the political factions fighting for power caused slowdowns in trade and investment. The situation was made worse by the protracted election process, which led to a significant decline in the market.The TISI's decline was also brought about by the declining exports from Thailand's industrial sector. The government's efforts to boost exports were hit by numerous trade tensions and uncertain global markets. Thai exports in 2019 declined by 2.7%, making it the worst-performing year since 2015.Another factor responsible for TISI's setback is the inability to secure significant opportunities in the Middle East. Many Thai textile companies had sought to establish a foothold in the Middle East, where there was a growing demand for textiles. However, other international textile firms had already cemented their position in the market, making it challenging for TISI to compete.Despite the challenges facing the Thai industrial sector, there are still opportunities available for companies like TISI. For example, the Thai government has been diversifying the economy to cushion the impact of declining exports. The government is investing in different sectors, such as tourism, which is growing rapidly.There are also opportunities in the Middle East market. Even though many multinational textile companies have established a presence there, there is still a growing demand for textiles which can be met by Thai companies like TISI. The Thai government has also increased efforts to promote exports to new markets such as Africa.In conclusion, TISI's double dip and decline are a reflection of the broader challenges facing the Thai industrial sector. Political uncertainties, declining exports, and the inability to secure opportunities have all played a role. However, there are still opportunities available for TISI to recover and grow. The Thai government's diversification efforts and the Middle East's growing textile market present promising avenues for growth and recovery. As Thailand continues to look for ways to strengthen its industries, textile companies like TISI need to be proactive in diversifying and looking for new opportunities to grow.
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