Thailand's Ministry of Industry has decided to scrap its Bangkok Fashion City project because it has failed to add value to the industry, reported local press.

"Our study showed that all of the budget [for Bangkok Fashion City] had been spent to promote Thailand's image as a regional hub for businesses related to fashion rather than focusing on the Kingdom's manufacturing potential, particularly in small and medium-sized enterprises," Deputy Industry Minister Piyabutr Cholvijarn said in an interview with The Nation.

Moreover, although a THB1.53bn budget was allocated to nine sub-projects, only six of these have been completed.

Instead of the Fashion City, the Ministry said it will start a new project aimed at boosting the number of Thai designers. It has given the go-ahead to a THB44m budget for this.

Under the new plan, a THB30m budget will be given to the Office of Small and Medium Entrepreneur Promotion to focus on increasing the productivity of sectors including garments, leather and jewellery.