EXIM Thailand opens a way to survive Thai SMEs Points to penetrate the export market, set a 4-year target to support 100,000 SMEs exporting abroad, ready to open new services “Comprehensive Business Network Loan” to enhance liquidity from upstream to downstream
Mr. Rak Worakitpokhathorn Managing Director Export-Import Bank of Thailand (EXIM Thailand) said at the “EX1M Solution Forum” on the topic of “The future of Thai SMEs growing into the global supply chain” that to solve the problem. “Contradictions” in the structure of Thai SMEs, especially the number of Thai SMEs in the system as many as 3.1 million, or 99.5% of all operators in the system. But it only plays a role in the economy at 35% of the total GDP.
The main reason is that most of Thai SMEs trade mainly within the country. While SMEs exporters account for less than 1% of SMEs in the entire system, the expansion of the domestic market has many limitations, for example, the Thai economy has grown low, with only 2% growth in the past 10 years. The market is not large. The population is only 66 million people. Moreover, Thailand has entered an aging society. with up to 18% of the population over 60 years of age.
As for the survival of Thai SMEs, therefore, is to be connected in the international trade cycle, which can be done in 2 ways. This approach may require a period of time to develop a body of knowledge and enhance experience in various fields. This can be done immediately, such as supporting SMEs to be in the supply chain of exporters by giving export businesses that are strong and efficient in supply chain management, supporting SMEs entrepreneurs to have the opportunity to sell more and longer products. under such strong supply chain
It is estimated that at present, not many Thai SMEs are part of the supply chain, exporters in one way or another. This is because the Thai export sector relies on local raw materials (Local Content) for almost 70% of the total export value.
In addition, the epidemic situation of COVID-19 has caused the Global Supply Chain to change in many dimensions and steps. From the sourcing of raw materials, production, transportation and distribution, sales, and the product itself, the trade pattern has shifted to using raw materials from more nearby sources. More automation systems are being used to reduce communication between labor in the production process. need to plan a variety of transport channels Including insurance and adjusting the trading term to cover the risks that may occur Selling products using online channels more. And the products must be in line with the new trends of the world, outstanding and memorable. to build brand recognition and loyalty
Managing Director of EXIM Thailand further said that from the Dual-track Policy, which is to support large entrepreneurs for the development of the country. Along with providing a full range of services to develop SMEs into professional exporters, EXIM Thailand is ready to support Thai SMEs to enter or link up with the Supply Chain in the international trade cycle. with new service “EXIM Supply Chain Financing Solution” to enhance liquidity for SMEs businesses that are suppliers of large entrepreneurs (Sponsor) without the need for additional collateral. Invoice can be used to apply for a loan at a rate Special interest through the Digital Platform, up to 25% loan amount of the latest year’s total sales
Based on Sponsor’s strong credit, the service allows SMEs to access credit more conveniently and at lower costs. There is flexibility in conducting online transactions. Without having to travel to the bank, EXIM BANK’s sponsors will receive additional credit terms from their SMEs partners and have strong business relationships with each other. It is useful for further business expansion in the future. The bank aims for 4 years to support 100,000 SMEs exporting abroad.
At the same time, a strong supply chain model under the support of EXIM Thailand is Siam Global House Public Company Limited, a Thai exporter-importer and center of building materials and lifestyle products. which has more than 270,000 products for sale and has a large number of suppliers in the Supply Chain such as Vision Glass and Door Industrial Co., Ltd., a medium-sized business operator. Distribution of door and glass products for home decoration, Carshaine Company Limited, a medium-sized business operator. Selling car cleaning products, Udon Kao Charoensap Company Limited, a small business operator Selling lumber from abroad M.J. Parawood Company Limited, a small business operator. Selling wooden furniture, Wor. Plastic (2002) Co., Ltd., a small business operator. Selling plastic products
“Rehabilitation and development of the Thai economy must begin at the foundation, that is, the development of SMEs entrepreneurs to be the driving force of the economic system. Overcome capital constraints and bargaining power By relying on business alliances as a bridge to new opportunities leading to stable and sustainable growth together Reduce the problem of inequality and lack of access to funding for small entrepreneurs. Stimulate digital commerce and transactions for quick convenience for businesses and consumers. as well as strengthening Thai businesses and industries throughout the supply chain so that all sectors are strong and ready to start with new opportunities after the COVID-19 crisis,” Mr Rak said.
Source: ประชาชาติธุรกิจ by www.prachachat.net.
*The article has been translated based on the content of ประชาชาติธุรกิจ by www.prachachat.net. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!