The International Institute for Trade and Development (ITD) provides policy recommendations to strengthen micro, small and medium enterprises (MSMEs) in the automotive and auto parts and fashion industries by leveraging innovative technologies with low-interest financing and a focus on new markets such as Africa, India and the Middle East.
Wimon Punkong, deputy executive director of academic affairs at ITD, said MSMEs are regarded as being vital enablers of socioeconomic development as they account for more than 97% of all enterprises and 85% of employment.
Nevertheless, MSMEs face chal- lenges and disadvantages compared to larger businesses, especially in accessing international markets, as they still have limitations when it comes to production capacity.
As a result, ITD conducted a study that assessed the export potential and implications on policy development to find ways to support and promote MSMEs in order to improve their competitiveness in the global market.
Ms Wimon said the results of the research found Thailand's automotive industry played an important role in the country's economy, especially in terms of exports.
The auto industry has more than 2,500 manufacturers in the supply chain, including MSMEs.
Moreover, in 2019 Thailand was the world's 10th largest car producer. It was ranked fifth in Asia and first in Asean at that time.
In 2022, car production in Thailand had increased to 1.9 million units, while in 2023 the value of the country's auto exports reached US$41 billion.
Key export products include cars, equipment and parts.
However, MSMEs in the automotive industry face challenges in the form of technological advancements, especially amid a shift to electric vehicles and protectionist measures as a result of the trade war between the US and China.
Policy recommendations include organising exhibition and trade fairs overseas in emerging markets such as Africa, India and the Middle East, promoting the use of innovative technology to reduce production costs, developing the workforce in response to trends in automotive technology such as advanced driver assistance systems, and by providing low-interest loans.
The fashion industry plays an important role in driving Thailand's creative economy. Most of the businesses involved in this sector are MSMEs.
In 2023, the value of fashion exports amounted to $8.3 billion, of which $3.1 billion were exports by MSMEs.
However, MSMEs in the fashion industry face several challenges.
These include limited resources, a high degree of market volatility, and the need to adapt to rapidly changing consumer preferences.
In addition, MSMEs struggle with the integration of sustainability concepts into their marketing activities, as they encounter limitations in sustainable sourcing and face difficulties in getting certification for so-called ethical products.
Policy recommendations include providing knowledge and understanding of intellectual property protection in international markets, promoting R&D as well as training on sustainable design, developing certification standards related to production, material use, and environmental management in the fashion industry to build consumer trust and confidence.
