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Published on November 15, 2007

Office of Small and Medium Enterprises (Osmep) director-general Jhitraporn Techacharn yesterday said Jetro's advice was delivered during Osmep's 34th International Small Business Congress.

She said Jetro president Kato Yoichi encouraged local manufacturers to exploit their benefits from the Japan-Thailand Economic Partnership Agreement (Jtepa), which was implemented on November 1.

However, Jhitraporn warned: "Unless local makers improve product quality and deliver products on time, it will be difficult for them to boost their exports to Japan despite tariff reductions from Jtepa."

She said Osmep would select some sectors, including food and agricultural products, that had enough potential to create value-added products for export. The office will also act as a middleman to encourage micro-enterprises to become outsourcers for multinational firms, following a practice being promoted by the Indian government. The most significant obstacle for micro-enterprises is they have low credibility for loans, she said. However, Osmep's venture-capital project will be offered as another choice for them.

At the International Small Business Congress, interest among participants indicated that logistics innovation had become a new issue among SMEs around the world.

Jhitraporn said the government must draw up a serious national plan for developing the country's logistics, because logistics was one of the main costs for SMEs.

"It's very important for SMEs to reduce their logistics costs, in order to compete in domestic and international markets," she said.

Speakers at the congress also sought to create greater awareness of corporate social responsibility among SMEs.

Chalida Ekvitthayavechnukul

 The Nation