Thai textiles and garments have strong potential to grow and add higher value hence the government is promoting a new investment policy under the concept of clusters, expecting to bring Thai industries to the next level, focused on added value, said Mr. Somsak Srisuponvanit, Chairman of the National Federation of Thai Textile Industries.

Japanese investors have expressed interest in producing textiles for medical use in Thailand and making the country a regional hub for innovative garments and medical equipment, said Mr. Somsak .

Japanese textile companies using high technology would seek local partners to invest in the production of special garments and textiles for medical use.

With new investment in innovation, garment and textile businesses could shift to value-added textiles such as disinfected bed sheets for hospitals and scrubs for personnel.

Mr Somsak said that he had discussed the idea with Japan's Ministry of Economy, Trade and Industry and various Japanese companies.

The federation sees an opportunity for the garment and textile industry to take the next step into high-tech garments. As the textile and garment industry needs to shift away from the lower market where competition has intensified with countries that have the advantage of low labour costs, such as Bangladesh, Vietnam, Myanmar, Cambodia and Laos.

Apart from elevating the market, Thailand is also working with Sri Lanka on business matching to create new investment in the sector. Sri Lanka's government recently brought 25 garment companies to meet 60 Thai counterparts in order to create investment.

The Sri Lankan investors are seeking Thai partners to help expand their business in the country as they see strong potential for Thailand to be the centre of Asean, where demand is seeing significant growth.

This year the value of garment exports is expected to grow by atleast 10 percent to US$8.6 billion, according to the federation. Also switching to innovative products would help the Thai garment industry enter the upper market with fewer competitors and higher added value.