Pact with Japan on boosting of SMEs
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The Industry Ministry, through the Industrial Promotion Department, will now proceed with its planned policy of raising the capabilities of local small and medium-sized enterprises in cooperation with Japan's Organisation for Small and Medium Enterprises
This follows the signing of a memorandum of understanding between Thailand and Japan at the ministry yesterday.
Under the agreement, Thai SMEs and the SMRJ will exchange information, provide assistance and support, and share business and technical know-how, in order to raise the capabilities and competitiveness of Thai SMEs and boost their revenue contribution to the economy by 5-10 per cent next year.
Thailand has 2.739 million SME operators, accounting for 98.5 per cent of all business entities. They generate more than Bt1.76 trillion annually for the Kingdom.
SMEs in Japan account for 99.7 per cent of all business entities, and generate as much as ¥48.4 billion (Bt14.76 trillion) per year.
Witoon Simachokedee, permanent secretary at the Industrial Ministry, said the ministry planned to develop, via the Industrial Promotion Department, the structure of Thai SMEs in accordance to the government’s policy to raise the capabilities of local industries – especially SMEs – to enhance the Kingdom’s competitiveness in the international arena.
The signing of the agreement will help Thai SMEs gain the necessary business and technical knowledge needed to raise their capabilities via the following:
1) Exchange of information on policies, promotion/development plans related to the development of SMEs in cooperation with agencies under the Industry Ministry.
2) Provision of assistance to both Thai and Japanese SMEs via business networking and coordination.
3) Sharing of business, trade, technical data/information between Thai and Japanese SMEs.
4) Personnel exchanges, sites visits, sending of trade and technical delegations between SMEs of both countries.
5) Cooperation/support activities between Thai and Japanese SMEs, as agreed by both sides.
6) The Industrial Promotion Department and the SMRJ’s joint facilitation of coordination/cooperation between Thai and Japanese SMEs.
Other cooperation between Japan and Thailand may follow in the future.
SMEs are the foundation of a wide range of business, industrial and economic activity, including employment, added value, foreign-exchange generation, import-substitution production, initiation of investments, development of labour skills/experience, and connecting large industries with other production sectors, said Witoon.
