Export markets will require a greener approach

       Strict environmental regulations in key markets could cause Thai furniture exports to slump unless local manufacturers start making more eco-friendly products,experts say.
       Local firms need to become alert to the increased demand for green products and the fact that they could save costs by using more efficient manufacturing processes, said Somchai Chatratana, deputy executive director of the Technology Management Center, a state agency that provides technological assistance to the private sector.
       "Five years ago, promoting the concept of eco-friendly products would have been impossible because manufacturers were scared of higher costs. But now we have to give more importance to it,"said Dr Somchai, speaking yesterday at the Woodworking Forum 2009, which focused on boosting the competitiveness of Thai furniture.
       Many countries are moving to ban products with a large carbon footprint.International standards, such as the Green Label, are being increasingly used to verify products' environmental impact.
       Such initiatives would effectively become non-tariff barriers for Thai furniture exports to developed countries if the sector does not shift to greener production techniques, said Dr Somchai.
       Thailand's main furniture export markets are Japan, the US and Britain,according to the Thai Furniture Industries Association.
       The sector's export figures for the first seven months to July plummeted to $500 million from $1.2 billion in the same period last year.
       Nudjarin Ramungul, a researcher with the National Metal and Materials Technology Center, said eco-friendly products had become more popular since the beginning of the economic crisis as consumers are more conservative.
       "We are seeing pollution controls on products to ensure they contain the least amount of resources and that they create the least damage to the environment.This is what we call sustainability," she said.
       Many countries are discussing levying green taxes. Products would be taxed according to the amount of carbon dioxide created by the manufacturing process. If producers cannot show improve-ments, they will be taxed heavily.
       "Japan, for instance, has a policy to eliminate waste at the very start of the production cycle, whereas European countries include waste fees in products that cannot be destroyed," said Dr Nudjarin.
       Government agencies such as the National Science and Technology Development Agency (NSTDA) have played a key role in encouraging manufacturers to become more green focused.
       The NSTDA acts as a matchmaker between researchers and business operators. Its industrial technology assistance programme supports the private sector in developing technologies.
       "By adjusting the production cycle to become more efficient on waste management and energy costs, the product's overall cost will be lower," said Dr Somchai.
       Thailand still has a long way to go due to a lack of eco-design experts and the fact that many firms are simply not interested in being more green, said Prin Boonkanit, and engineering manager at Eco Design Consultant Co.
       "The Thai government has no business paradigm, even though the country shows high potential to develop towards the trend given the strong skills of its [furniture] designers," Dr Prin said.
       Only about 20% of Thailand's furniture products are considered to be ecofriendly, said the TFIA.
       "In the future we should place importance on the life cycle of a product,starting from production to waste management," said Dr Prin.