Government to boost production of Thai SMEs

BANGKOK, February 4 (TNA) - The government, through the Ministry of Industry's Department of Industrial Promotion, plans to help boost the production of local small and medium-sized enterprises (SMEs) to the extent of 40 per cent of Thailand's gross domestic product (GDP) over the next 10 years, from 37 per cent currently. The department's director-general, Atchaka Sribunruang, told journalists of the initiative on Tuesday, noting that there are now as many as 2.724 million SMEs in Thailand. Atchaka, who is a former Board of Investment of Thailand (BOI) chief, said that her department is also preparing Thai SMEs for the ASEAN Economic Community (AEC), set to be formed by 2015, by investing 157 million baht to enable 600 local SMEs and 12,000 business operators to be part of supply chains in ASEAN covering in 10 industries, including processed agro-industrial products, garments, furniture, rubber products, automobiles and parts, gems and jewelry, lifestyle products, electrical and electronic appliances, shoes and leather products and construction goods. Besides, her department will spend 307.35 million baht on improving the productivity and innovation of 12,025 SMEs and the capabilities of 3,800 workers to support their growth and on promoting the integration of 470 SMEs. According to the senior official, her department also plans to develop Thailand to become a fashion product center in the 10-member ASEAN bloc because fashion concerns many small industries, with the initiative including the enhancement of productivity, brand and designer development, promotional campaigns for Thai fashion products, personnel development, the networking of operators in same industries and the local and international promotion of four areas of fashion products namely Siam Square, Pratunam, Bo Bae and Chatuchak. The senior official revealed that her department will also spend 48.6 million baht on helping develop 170 local SMEs in food and processed agro-industrial sectors involving at least 230 product items. In addition, her department will spend 105.75 million baht on increasing the values of outstanding local community-based products, under the one-tambon-one-products (OTOP) program, for 400 enterprises, enhancing the capabilities of 1,450 people participating in royal development projects and improving 350 community-based SMEs. The senior official revealed that her department is also evaluating impacts from domestic political rallies in inner Bangkok areas over the past three months on the Thai industrial sector, pointing out that local businesses having been affected most likely to be jewellery and accessories and OTOP ones, followed by food industry, caused by a drop in international visitors to Thailand and people's spending on products. The senior official reported that automobile and parts and electronic components industries are, however, unlikely to be affected by the ongoing political protests and most Thai SMEs appeared unharmed, especially in provincial tourist destinations, like Chiang Mai in the Thai North. The senior official suggested affected businesses to adjust themselves by, for instance, reducing their production costs managing human resources more effectively, improving machine efficiency and finding new marketing channels.(TNA)