The leather industry in Thailand has been growing at a steady pace from the last two decades. It is one of the world’s notable leather goods producer. But, the country is facing tough competition from neighboring nations like China Indonesia etc, who are producing low innovative products at low costs.
Furthermore, the labor cost in Thailand has increased greatly. This also inhibits the production of low-cost leather products to compete in the international market. And within the country, the invasion of Chinese products at minimum costs is another hindrance for the growth of the Thai leather industry. The availability of Chinese and other countries’ leather products at comparatively cheaper prices is pushing Thailand out of the market. Due to higher prices of leather goods in Thailand, buyers are moving to China and Vietnam for their needs.
At present, Thailand is facing a tough time. The nation signed free trade contract with Japan that increased the hope of decreasing the import taxes and in due course remove the tax. Thailand has significant productions of buffalo hides, and it is an important producer of dog chews and industrial gloves. It also has the largest industrial unit for producing golf gloves. Additionally, many manufacturers of various shoe brands are also investing in the country.