Export-Import Bank of Thailand (Exim Bank) estimates that one-third of small and medium sized enterprises (SMEs) are on the verge of going out of business because of the impact of the prolonged pandemic, said the bank's president Rak Vorrakitpokatorn.
He said many SMEs are like zombies that do not realise they are dead, meaning that some SMEs have no sales revenue at all but can still survive by depending on the state's assistance measures.
He made the remark yesterday at an online seminar -- Digital Turns Global Trade Around -- co-hosted by Exim Bank and the Small and Medium Enterprise Development Bank of Thailand.
Mr Rak added that the pandemic has disrupted global trade which will never be the same after the contagion is contained and e-commerce is the only way to survive, not just an option like in the past.
He said global trade and services conducted on the conventional channel contracted 10% and 15%, respectively, last year.
Meanwhile e-commerce expanded 20% to US$4.2 trillion.
He said an increasing number of people are buying products via the online channel.
Ten years ago the value of items purchased via the online channel did not exceed $50 per transaction.
The sales of luxury goods via the online channel is on the rise and accounts for 23% of total trade value in the e-commerce world.
He urged SMEs to embrace e-commerce and dare to foray overseas. He added that only 1% of over 3 million SMEs that registered with the Commerce Ministry can export products.
He also suggested that SMEs keep updating their risk management plans, adding that they should not draw up too long term plans because of the rapid and drastic changes in the situation.
Moreover, SMEs should regularly monitor the financial status of their customers and embrace advanced technology to enhance their products and services.
Pawoot Pongvitayapanu, managing director of Tarad Dot Com Group Co, urged online SMEs to promote unique products and differentiate their products from others.
Kornasa Pansuwan, head of government partnership relations of e-commerce giant Lazada Co, said more people are staying at home because of the pandemic.
This has resulted in a spike in sales of products to protect themselves against Covid-19 and health products on the online channel.