Good opportunities for Thai SMEs in China

Thailand’s presence was organised by the government’s Office of Small and Medium Enterprises Promotion. Bangkok Bank was a co-sponsor and I attended along with other senior BBL executives.
The fair proved to be a great opportunity for more than 200 Thai SMEs to explore tapping into the dynamic Chinese market, develop business relationships with Chinese companies and exchange ideas with their counterparts.
Guangzhou is the capital of Guangdong province, traditionally the most prosperous, and now the most populous, region in China. The first area to be opened to foreign investment in the 1980s, it has developed at breakneck speed and includes the Pearl River Delta, the world’s largest manufacturing base.
The strong business and family ties between Thailand and the region go back generations, and today the region makes up about US$17 billion or one-third of bilateral trade, with large investment flows also in both directions.
There are tremendous opportunities for business collaboration between Thai SMEs and Chinese SMEs, in many areas. For example, the Thai SMEs participating in the fair were from industries as diverse as food and beverage, including organic products; fashion and lifestyle; home decoration; Thai herbal cosmetics, health tourism and spas; medical devices; digital content, including media; electronics; automobile and petrochemicals.
I was particularly taken with the quality of the products on display from several food processing companies.
Of course, having a good product is only one contributing element to success. For example, SMEs are unlikely to have the resources needed to establish the strong distribution networks vital for a strong presence in China.
This is where the Thai government can step in by providing support through the Department of Export Promotion and the Thai Trade Centres already established in major cities across China.
Another important factor to consider is communication – having confidence that your contracts convey very clearly to your Chinese partner or customer the nature of the service you have undertaken to deliver.
Having support on the ground is also key. From Bangkok Bank’s point of view, our first full branch in China was established in Guangdong in 1992 and is now located in the province’s economic hub of Shenzhen. Having a well-established Thai bank in the region has helped many Thai companies set up business there.
As consumers throughout China become more affluent, the demand for good products and services from Thai SMEs should continue to grow.