The Federation of Thai SMEs has called on the government to help accelerate improvement in the export capabilities of small and medium-sized enterprises (SMEs), promote direct investment domestically, and establish a trade and branding agency as a new organisation to enhance the competitiveness and income of SMEs.
According to Sangchai Theerakulvanich, president of the federation, a group of SMEs proposed during a recent meeting with Commerce Minister Phumtham Wechayachai the ministry upgrade the export capabilities of SMEs, especially by establishing a trade and branding agency managed under a public-private partnership model.
The new agency would compile market data and support collective buying and selling, as well as supply chain management for SMEs, including small agricultural cooperatives that play a significant role in the grassroots economy.
The proposed agency would help small firms export their products by addressing language barriers and enhancing their product development, increasing the value of goods and services, and contributing to the creative economy.
"The new agency can facilitate collective buying and selling as well as brand creation for Thai products," said Mr Sangchai.
"It should be a collaboration between the government and private sector, with the state providing initial funding, selecting key products and services to promote for export."
He cited China Oil and Foodstuffs Corporation (Cofco), a Chinese state-owned enterprise that is a leader in rice and food production and importation. In 2020, Cofco reported a profit of 101 billion baht.
"The private sector and the government can work together, possibly forming public organisations and social enterprises to improve the economy and generate income. These entities can help Thai businesses in the spas, restaurants and herbs segments, as well as products related to Thai culture such as textiles and fashion to expand their exports globally, helping to promote Thailand's soft power," said Mr Sangchai.
"The goal is to enable small businesses to export their products, increasing income for this sector."
Some 22,000 Thai entrepreneurs are classified as direct exporters, accounting for about 60% of all exporters.
However, Thai SMEs account for only 13% of the total export value, equivalent to 1 trillion baht of the 8 trillion in total export value last year.
He also recommended the government increase the use of local content in products to create a self-sustaining and balanced economy.
The Commerce Ministry should collaborate with the Higher Education, Science, Research and Innovation Ministry as well as the Industry Ministry to promote the use of domestic raw materials and support Thai investment through special perks, low-cost funding sources, technological and innovation knowledge support, and the production of quality and standardised goods, said Mr Sangchai.
Moreover, the government should encourage farmers and SMEs to participate in carbon credit programmes to address future requirements to calculate carbon emissions for exports, he said.
Thailand also needs to establish a carbon credit fund for SMEs and farmer groups, said Mr Sangchai.
He said a national branding strategy should be developed to promote high-quality Thai products using tools such as Trust Mark and Thai SELECT.
According to data from the Federation of Thai SMEs, Thailand's GDP tallied 17.4 trillion baht last year, representing a 2.6% year-on-year increase.
Of this amount, 65% came from large businesses, amounting to 11.3 trillion baht, up 2.1% year-on-year.
The remaining 35% came from SMEs, with a value of 6.1 trillion baht, representing a 4.5% increase year-on-year.
Of the SME amount, 99.5% was from micro, small, and medium-sized enterprises, which employ up to 12.8 million people.