Restaurants, spas among SMEs looking to invest in region, Osmep says
The Office of Small and Medium Enterprises Promotion says many restaurants, spas and construction businesses have shown strong interest in penetrating neighbouring markets to cash in on the economic boom in the region and the full implementation of Asean
Osmep deputy director Wimonkarn Kosumas said restaurant and spa businesses had opportunities for growth in neighbouring countries because of their strong tourism potential. Meanwhile, local businesses in many markets such as Myanmar, Laos and Cambodia are still lacking both investment capital and skills.
However, Thai small and medium-sized enterprises would still face high risks when penetrating these markets because of local regulations, which have been changing frequently. They would also need to find good local partners.
In the manufacturing sector, few SMEs have moved into these countries as they don’t want to take the risk. Setting up a manufacturing operation requires a higher investment than a service operation. However, many processors of food and agricultural products have started to invest in neighbouring markets and some of their products have been exported back to Thailand.
Meanwhile, Suwanchai Lohawatanakul, director of the Institute for Small and Medium Enterprises Development, said SMEs should keep their eyes on six mega-trends.
By 2020, the proportion of the global population who will live in cities is expected to rise to 60 per cent from the present 50 per cent, and Thailand will follow the same trend. The other five trends are the green economy, the ageing society, the female-driven economy, high-speed transport systems, and digital lifestyles.
