This paper investigates with Value Chain Management of Garment making for Small and Medium Enterprises (SME) in Thailand to develop a Competitive Advantage. The Value Chain Management comes from an analysis of the highly competitive garment industry both domestic and international. Many entrepreneurs that cannot compete have a high capital loss and close down their businesses while at the same time new entrepreneurs enter into the business. This paper attempts to analyze current problems and explains a new idea and a new theory in value chain strategic management. วารสารวิจัยและพัฒนา ปีที่ 2 2553 Research and Development Journal. Vol. 2 2010 91 The value chain’s technique is to learn the role of each operation unit in supporting the organization. Each unit can help an organization by creating value to the consumers. This value measured by the amount consumers are willing to pay. Value is created by two activities which are the primary activity and the support activity. Both activities are vital in adding value to products and services of the enterprises. The competitive advantage or disadvantage depends on better or inferior value added activities. The textile and cloth industries are important to the Thai economy. Therefore, it should be supported and promoted by the Thai government. The relationship between government and industry should be developed to promote a sustainable Thai economy.

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