Some of these SMEs have already started selling abroad but the number is still relatively small due to their lack of experience, the absence of a marketing strategy and a network of overseas contacts. However, the ministry believes their products have high export potential.

The ministry's plan is designed to boost the country's export growth amid the appreciation of the baht and higher oil prices. Of a total of 5,000 SMEs on its list, 3,000 have been selected for the scheme.

Suvit Maesincee, caretaker vice commerce minister, said the firms should be able to compete with foreign manufacturers. In addition, the project expects each SME to generate an average of Bt100 million in foreign currency earnings per year.

"Those SMEs will be able to create a total of around Bt300 billion for the Kingdom per year, or almost 10 per cent of the total export value," said Suvit.

In the initial phase, 100 SMEs will be supported by the ministry, state-owned banks and commercial banks in their bid to explore business opportunities abroad. The remainder will be in turn be supported during the course of the five-year plan.

The ministry will help new exporters by providing information on potential markets, and the creation of networks among local importers and distribution centres in each target market.

The Export and Import Bank of Thailand, the Small and Medium-sized Enterprise Bank, Krung Thai Bank, Siam Commercial Bank, Bangkok Bank, and Kasikornbank will provide the SMEs with loans.

Sitichai Boonchujarad, manager of Thai Orchid Ltd, said the company hoped for a healthy boost in its overseas sales by taking part in the ministry's programme.

He said the appreciation of the baht and the rise in production costs had reduced its exports and that the firm was looking for new markets. Thai Orchid's major export markets are the European Union and the United States.

It aims to penetrate the Middle East and Switzerland.

The company's total sales currently bring in Bt120 million a year. Sitichai hopes the project will increase the export portion of its sales by 5 per cent per year.

Atip Kulasiriswad, export manager of Chaiyaboon Brother - which makes printer ink and other accessories - said the project would give the firm the information it needs regarding each potential export market.

He said the company had experienced logistical problems in certain markets and he hoped the project would provide the information required to increase the efficiency of its logistics system.

The company has total annual sales of about Bt350 million and aims to increase its exports by 20 per cent this year.

A seminar on the ministry's SME export plan will be held on September 4 and 5.

Meanwhile, caretaker Commerce Minister Somkid Jatusripitak will chair a meeting today in Chon Buri to review the country's domestic trading situation.

Hosted by the Internal Trade Department, the meeting aims to encourage fair trade and to control the price of essential goods in order to curb inflation.

Despite high oil prices, the ministry hopes to keep inflation at 4.5-5 per cent this year.

Petchanet Pratruangkrai

The Nation