Thai franchise drive shifts gear

The Commerce Ministry is planning to help 300 small and medium-sized enterprises open franchises overseas in order to enable Thai businesses compete internationally and boost exports.
Kanissorn Navanugraha, director-general of the Business Development Department, said yesterday that the agency would encourage more enterprises to develop franchises. The strategy aims to strengthen the country's competitiveness alongside global franchisers. "The franchises will not only create income in terms of the franchise fee but also promote export growth," he said. The department initiated the Thai Franchise to the World project in March last year and, of the 40 enterprises joining the ministry's training programme, 20 companies have successfully operated overseas, creating about Bt100 million in trade. Those businesses fall into seven sectors: restaurants, spas, education, car services, clothing and ornaments, furniture and waste disposal. Kanissorn added that the department was planning to organise franchise road shows in Vietnam, Malaysia, the UAE, China, Laos and Cambodia. Black Canyon (Thailand) managing director Pravit Chitnarapong suggested new franchisers promote their brand recognition before starting to trade. A new enterprise should create a connection with foreign businesses through a website and find information about the target countries, he said. Black Canyon has had franchising success in Indonesia, Malaysia, Burma, Cambodia and the UAE.
Petchanet Pratruangkrai The Nation
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