"France has extensive expertise in brand-building, and they're ready to share their knowledge and technology to help develop our small- and medium-sized enterprises (SMEs)," said director-general Jhitraporn Techacharn.

Catherine Gras, deputy director-general of the French Directorate for Wholesale and Retail Trade, Craft Industries, Services and the Professions, said the agreement would pave the way for French SMEs to invest in Thailand. Most current investment comes from large-sized French companies, particularly those in the retail sector, such as Carrefour and Casino, which are Bic C partners.

"In the eyes of French investors, Thailand is [the most] promising among Southeast Asian nations. If there is to be any investment, Osmep will be asked to advise and facilitate French business operators," Gras said.

Under the Thai-French cooperation agreement that was signed earlier this week, both parties have agreed to promote the perfume-essence field first. This is regarded as having high potential, because Thailand has many scented flowers and trees that offer different fragrances to those of other countries. Work is currently under way in northern Thailand towards the development of perfume essences.

The parties to the agreement also see the food business as having high potential, due to the many Thai restaurants in France that are owned by Thais and Westerners alike, plus the fact that many other types of restaurants are using Thai food ingredients.

"The signing [of this agreement] follows exchange programmes since 2006, which have allowed us to find channels for sharing knowledge to increase the potential of SMEs in both countries. The French signatories have agreed to dispatch product-design experts to Thailand to help us develop perfume essence, software, fashion and food clusters," Jhitraporn said.

The parties to the agreement will in November discuss matching trade, matching investment and matching procurement. Then, brand creation discussions will follow, because Osmep aims to create new brands in all sectors, particularly for fashion garments and household furniture.

The French signatories to the cooperation agreement are the Directorate for Wholesale and Retail Trade, Craft Industries, Services, and the Professions (DCASPL) and the Ministry of Small and Medium-Sized Enterprises, Trade, Small-Scale Industry and the Professions (MPMECAPL).

Osmep has signed similar cooperation agreements with Japan, Malaysia, Italy and Singapore.

To entice investment from Japanese SMEs, Osmep plans to create a "Japan Desk" within two months after having seen Thailand's potential to draw additional investment from Japan.

Chularat Saengpassa

The Nation

Paris