The Thai apparel manufacturing industry is offsetting the decline of exports to Japan by the expansion of exports to the Middle East and the former Soviet Union.

Japanese-affiliated firms have played a predominant role in exports to Japan. The export volume changes violently, however, in a nervous response to exchange fluctuations. Many firms intend to strengthen their ties with customers in Japan because the apparel manufacturing capacity in Japan is on a shrinking trend. Partly because of sluggish apparel sales in Japan, however, exports to Japan remain shrunk despite the higher value of the yen.

The major market for apparel exports from Thailand is the U.S., including those through Hong Kong. Japanese-affiliated trading firms have also increased exports to the U.S. Meanwhile, the demand from the Middle East has expanded in line with soaring crude oil prices. Currently, imports by the Middle East are mostly from Bangladesh, Sri Lanka, Cambodia, Indonesia and China. However, the Thai apparel manufacturing industry is making efforts to regain its commercial strength by supplying products not in the same league as those being supplied by these countries. Currently, the buying demand has also increased in the former Soviet Union bloc.