Thailand's toy exports are projected to increase by between 5 - 10 percent to around 8.5 billion baht (US$236.2 million) in value partly because exporters have penetrated into new markets and accelerated improving the quality standard of the product, according to the Kasikorn Research Centre.

The leading think tank reported that the local toy industry is expected to grow at a similar to that registered last year.

Domestically, toy producers are likely to face stiffer competition with the arrival of several new competitors.

Toy imports are anticipated to increase as some investors turned to import more products this year because import goods are cheaper due to a stronger baht.

KRC said Thailand's toy exports had accelerated their penetration into new markets such as Australia, New Zealand, Middle East, South Asia, Latin America, and Africa.

They had also boosted the quality and design of their products to ensure they could attract customers.

As well, the producers had improved their production cost management system and set a target group of customers clearly.

It resulted in an upgrading of the Thai toys from that of the Chinese ones.

Although the global economy is expected to slow down and the baht to remain volatile, KRC said, Thai toys could win more customers than the Chinese if producers managed to maintain good quality products on time.

According to Customs Department's figures, toy exports in the first 11 months of last year totaled 7.72 billion baht, up 5.4 per cent from the same period last year.

It is expected the exports for the whole year would reach 8.25 billion baht, up 5.44 per cent from the corresponding period of the previous year.