Four-year development plan to boost SME exports

The Export Promotion Department has drawn up a development plan to increase the ratio of small and medium-sized enterprises' contribution to national exports from the current 30 per cent to 35-40 per cent by 2010.
Chantra Purnariksha, director-general of the department, said yesterday that Thai SMEs should be a vital ministry arm for boosting the Kingdom's overall sales overseas. They should concentrate on manufacturing value-added products to ensure high export value. The plan is aimed at strengthening the country's export growth amid the baht's appreciation and rising oil prices. So far, there are 5,000 SMEs registered with the department and, of this number, 3,000 have been selected to join the programme. Under the pilot project, 100 SMEs will this week receive training on getting into the export game. These businesses will be encouraged to participate in trade fairs, both at home and internationally. In addition, they have to focus more on developing their manufacturing efficiency. In the initial phase of the scheme, targeted export markets include the Middle East, Southeast Asian countries, India and Africa. Chantra said competition in those markets was still relatively low and there were less trade barriers standing in the way of market access by Thai SMEs. Thailand's trade representatives from 55 countries will also provide information on trade and marketing strategies to the 100 enterprises. The trade representatives said each market had different demands and SMEs should focus on developing their packaging and product quality. Adisai Dhummakupt, executive director of the Thai Trade Representative in Pretoria, South Africa, said SMEs has an opportunity to increase the Kingdom's market share in Africa. Africans now enjoy increasing incomes, thanks to rising oil prices and gold, which are their main export products. Adisai, who is responsible for the African region, said consumer goods were in high demand and presented a business opportunity for Thailand. Thailand's exports to Africa increased by 26 per cent to US$500 million (Bt18.65 billion) in the first half of the year. The ministry targets 30-per-cent export growth to $1.2 billion in the market this year. All Thai exports to Africa grew in the first half, barring rice. Adisai said the high price of Thai rice hampered export growth. Normally, the export volume to Africa is about 3 million tonnes, but this year it will miss the target, he added. The Export Promotion Department will from November 8 to 11 hold its second Thailand Exhibition 2006 - in Nairobi, Kenya. About 12,000 visitors from Africa are expected to visit the fair. Petchanet Pratruangkrai The Nation
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