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Published on July 4, 2007

The Business Develop-ment Department is spending Bt10 million to prepare local SMEs to go international, focusing on China this year.

The project aims to boost the efficiency of small and medium-sized enterprises while generating more income for the country.

Deputy director-general Suthisak Llaohachewin said yesterday that robust economic growth in China would make it become the world's largest exporter within 10 years. It will also become the Kingdom's largest trading partner, replacing the United States.

The department wants Thai SMEs to capture their share of that burgeoning economy and has so far guided 17 firms from industries including services and agriculture into penetrating the huge market.

"Those SMEs can generate US$20 million [Bt700 million] to $30 million for the Kingdom in the first year of operation," Suthisak said, adding that promoting more SMEs in the remaining period will multiply the income contribution.

The department is targeting to introduce 50-100 enterprises to China for the remaining period of its SME development project. Potential businesses are restaurants, spas, agricultural-product manufacturers and jewellery traders.

The department is considering allocating about Bt20 million to the project for other attractive markets - India, Bangladesh and the Middle East, including the United Arab Emirates, Qatar, Kuwait and Jordan.

Businesses to be promoted are restaurants, spas, hotels and construction-material suppliers.

Since those emerging markets have high demand for services, the government will concentrate on supporting SMEs in the service sector.

Pisanu Riengmahasarn, deputy permanent secretary of the Commerce Ministry, said the ministry would help new exporters by providing information on potential markets, and creating networks among the local importers and distribution centres in each target market.

Pisanu, who is responsible for promoting trade and investment in China, said China's economy was expanding rapidly each year and consumers there had high purchasing power for everything. Enterprises that tap that market stand to gain a lot from the growing demand in the long run.

Under the SME promotion project, the ministry will conduct a training programme for businesses to explore overseas opportunities, as well as help find financial supporters for those selected SMEs in their new ventures.

Petchanet Pratruangkrai

The Nation