The Commerce Ministry has vowed to boost the economic value of small and medium-sized enterprises through stimulating consumption, investment, government spending, and international trade, setting a target to increase the GDP contribution of SMEs to 40% by 2027.
According to Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), Commerce Minister Phumtham Wechayachai and his deputy Napintorn Srisunpang recognised SMEs' vital role in the country's economic growth and placed a high priority on fostering and enhancing the trade activities of SME businesses.
SMEs constitute 99.5% of all businesses and employ 70% of Thailand's workforce.
Mr Poonpong said TPSO was tasked with studying strategies to propel SME trade, with the aim of generating a 40% contribution to the country's GDP by 2027.
Examining the economic status of the country's SMEs, the TPSO found in 2022 they generated an economic value of 6.1 trillion baht, accounting for 35.2% of GDP.
To reach the goal of contributing 40% to the country's GDP, it is imperative to elevate the economic value to roughly 8-9 trillion baht by 2027, said Mr Poonpong.
"To achieve this, the Commerce Ministry and related agencies must work together more closely to enhance consumer markets to generate increased demand for products and services of SMEs parallel to developing the capabilities of entrepreneurs. This effort will help create larger markets for SMEs both domestically and internationally," he said.
"The ministry is poised to leverage its strength with provincial trade offices present in every province and 58 trade promotion offices worldwide, ensuring effective coordination in line with the government's policy of reducing expenses, increasing income, expanding opportunities, focusing on grassroots development, and caring for the underprivileged."
According to Mr Poonpong, TPSO studied strategies to drive SME trade and suggested the ministry focus on promoting consumption, investment, government expenditure and exports, aligning with the components of GDP.
To generate and expand domestic consumption markets, Mr Poonpong said it is crucial to stimulate Thai consumers, international tourists, as well as foreign workers contributing to Thailand's workforce, to increase their purchases of products and services from SME businesses. This can be achieved by organising promotional activities in key cities or provincial areas.
Premium-quality products, such as geographical indication products, One Tambon One Product items, and community enterprise products, should be strategically showcased in commercial centres and international airports.
In addition, there should be business matching activities, both in the business-to-business and business-to-consumer formats. SMEs must align their businesses with current consumer behaviours, promote marketing and sales on online platforms/e-commerce, utilise technology for operational management, create distinctive product brands, and register trademarks and intellectual property.
Additionally, efforts should be made to encourage SMEs to invest in technology and innovation to develop products and services that meet consumer needs, increase production capacity, and enhance business value.
This involves supporting capital with special conditions to be used as a revolving fund within the business, organising business matching events among SMEs and between SMEs and researchers/developers, and promoting access to funding through capital market channels for long-term financing options, particularly for research and development investments in organisational and product development.
Moreover, Mr Poonpong said there must be a push for government agencies to procure products and services from SMEs by supporting the "measures to facilitate SME access to government procurement" initiative of the Office of Small and Medium Enterprises Promotion, as well as encouraging regional government agencies and local administrative organisations to engage in procurement activities with local businesses.
In a move to promote market expansion internationally, the ministry pledges to seek consumer markets for SMEs. This includes leading entrepreneurs to participate in international exhibitions and expos, promoting the Thailand Trust Mark (T-Mark) as a form of soft power in branding to instil confidence in product quality, and supporting SMEs in meeting international standards, both at the organisational and product/service levels.
This also involves supporting entrepreneurs to make the best use of tax benefits under free trade agreements, distributing products on foreign online platforms, and promoting cross-border e-commerce.