Ex-post Evaluation

1. Background of the Project

The textile industry is one of the major industries in Thailand. However, Thailand is losing its comparative advantage since other countries, such as China, Indonesia and Vietnam, started exporting cheaper products. In order to survive the global competition, small and medium enterprises need to strengthen their competitiveness by improving the quality of their products.

2. Project Overview

The Thai Government made a request to Japan for a project type technical cooperation to improve product quality of small and medium enterprises by upgrading the testing and inspection services of the Textile Industry Division in the Ministry of Industry.

(1) Overall Goal

The product quality of small and medium scale textile/government industries will be improved.

(2) Project Purpose

Technical services for small and medium scale textile/government industries extended by TID, BISD will be upgraded.

(3) Outputs

1. The operation unite will be enhanced.
2. The necessary machinery and equipment will be provided installed, operated and maintained properly.
3. Technical capability of the counterpart personnel will be upgraded.
4. The testing and inspection services will be implemented systematically.
5. Training courses and seminars will be implemented systematically.
6. Information and advisory services as a trial will be implemented systematically.

(4) Inputs

Japanese side:

Thai side:

3-1 Summary of Evaluation Results

(1) Impact

Even though the number of industrial clients decreased sharply after the transfer of testing and inspection operations from TID to THTI in 2001, the number of clients has increased continuously because they have gained more confidence in THTI and there are now 132 factories already registered with THTI to join the Project on Enhancing Capacity of the Textile Testing Center (TTC).

(2) Sustainability

After the operation and inspection operations of the TID were transferred to THTI, not all of the counterpart personnel wanted to move to THTI as expected so the operation system became weakened. The budget support from the government was somewhat less than expected and the project sustainability has been weakened.

3-2. Factors Promoting Sustainability and Impact

(1) Factors concerning Planning

The operation of THTI seemed to be critical in early 2003 but the MOI has a firm policy to improve the quality of textile and garment products including modern fashion promotion then assigned THTI to be responsible for this. This will encouraged THTI to make a good plan for the future implementation which resulted in stronger sustainability of the project.

(2) Factors concerning the Implementation Process

The former C/P of TID are being invited to assist THTI's staff. Some of them have already started to work. This will help strengthen THTI implementation.

3-3. Factors Inhibiting Sustainability and Impact

(1) Factors concerning Planning

TID's counterpart personnel did not move to work with THTI as planned, this is the main cause that slowed down the project.

(2) Factors concerning the Implementation Process

1. Changes of the Executive Administrators.
2. Only part of the project machinery and equipment were transferred to THTI which caused the project to be implemented less effectively.

3-4. Conclusions

The project achieved its overall goal before its termination. Transformance of the operation from TID to THTI did not go as smoothly as expected. This caused delays to the project progress. The project’s sustainability has been weakened.

3-5. Recommendations

Short term:

Long term:

3-6. Lessons Learned

• Economic crisis could affect the project’s sustainability.
• Capability of the technical personnel is the key factor to the project's success.
• Independent accounting system of THTI can not assure the project’s sustainability, there should be some other options in the planning stage to solve problems (if they occur).

3-7. Follow-up Situation

N/A