Business clinics planned for SME trade

The Commerce Ministry has initiated plans to establish business clinics in 60 Thai trade-representative offices abroad to encourage expansion by small and medium-sized enterprises (SMEs).

The clinics will serve as a help centre for Thai SMEs facing business problems abroad.

Speaking to 50 Thais and Thai-American SME operators at a seminar entitled "Development for Thai SMEs Overseas" in Washington yesterday, Deputy Commerce Minister Alongkorn Ponlaboot said the government would strenuously promote Thai SME investment to boost the Kingdom's revenue.

"Thai SMEs are becoming an engine for the country's growth, as they can boost not only exports of Thai products but also the service industries," Alongkorn said.

The ministry is trying to promote exports and investment abroad,

and business clinics in trade offices abroad will be a good step towards investment by Thai SMEs, he said.

The clinics will make suggestions to new or existing enterprises,

provide information about their respective areas and facilitate financial support from the Small and Medium Enterprise Development Bank or the Export-Import Bank of Thailand.

The SME Bank has a soft-loan project to support Thai enterprises abroad, with each business limited to a maximum of Bt40 million.

Alongkorn said many Thai businesses had good potential to operate abroad, such as restaurants, auto-servicing, spas, medical services, franchises, retail and wholesale outlets and direct sales.

The ministry is also encouraging enterprises to set up the first Thai trade council in the United States to strengthen Thai businesses in each country of investment.

Many Thai businesses now operate in foreign countries, and some Thais living abroad are interested in owning a business but lack assistance from the Thai government.

For example, the embassy in Washington reported some 110,000 Thai Americans in the US, accounting for 1.1 per cent of the Asian population in that country. However, Thais have concentrated their business interests mainly in restaurants, with only a few venturing into other enterprises. Most operations remain small.

The government will continue to hold seminars to give Thai investors abroad better support in financing and business suggestions.

Suphanit McFarland, a Thai woman living in Tyson, Virginia, said she was interested in opening a retail shop selling One Tambon One Product goods and supplementary Thai foods, which were in demand among American buyers.

However, the lack of a particular unit to help Thai SMEs abroad has created difficulties in setting them up to begin with, she said.

Suphanit called on the government to increase the flexibility of loan conditions, as most Thais living abroad did not have access to soft loans from the Thai government.

She said the government should reduce taxes on Thai SMEs operating abroad that imported goods from Thailand to sell locally.