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Current SME Situation and SME promotion in Thailand By the Office of SMEs Promotion 30 March 2011.

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Presentation on theme: "Current SME Situation and SME promotion in Thailand By the Office of SMEs Promotion 30 March 2011."— Presentation transcript:

1 Current SME Situation and SME promotion in Thailand By the Office of SMEs Promotion 30 March 2011

2 1.Definition of Thai SMEs 2.Economic Significance of Thai SMEs 3.OSMEP as Focal Agency on SME Promotion 4.Vision, Roles & Responsibilities of OSMEP 5.Plan, Strategies & Tools for SME Promotion 6.Refocusing of SME Promotion Policy

3 ME SE 15 Over Retails Over Over Over Fixed Asset (million baht) Employment (Persons) 50 Fixed Asset (million baht) Employment (Persons) Services Wholesa les Manufac turing Enterprise Size Sector 1. Definition of SMEs in Thailand

4 - Majority of the Economy - Key Job Creators - Contributors of GDP - Contributors of Export Value 2. Economic Significance of Thai SMEs

5 Number of Enterprise Number of Enterprise Employment (Person) GDP (Million Bt.) GDP (Million Bt.) Export Value (Million Bt.) Export Value (Million Bt.) LEs and Others SMEs Micro Enterprises OTOP 2,896,106 (99.8%) 9,701,354 (78.2%) 3,417,860 (42.73%) 2,900, ,405, 597 7,998, 151 5,199, 912 4,653 (0.2%) 2,704,243 (21.8%) 4,156,704 (51.97%) 1,589,199 (30.56%) Total Economic Significance of SMEs ) GDP in the figure was only the non-agricultural sector, accounting for 88.4% of the overall and 5.3% of which represented other types of enterprises unable to identify their size. 2) GDP of agricultural sector was 1, mln. bt or 11.6% of overall GDP. 3) Export value of 3.58% was from export transactions unable to identify the exporter size. 3,424,579 (65.86%)

6 Structure of Gross Domestic Product 2009 Source: The Office of the National Economic and Social Development Board Complied by: The Office of Small and Medium Enterprises Promotion (OSMEP)

7 Foreign Trade Value of SMEs Trade in Baht SME EXPORT 1,575, ,691, ,589, SME IMPORT 1,452, ,771, ,377, SME BALANCE 123, , , SME TRADE 3,028, ,462, ,966, SME EXPORT GROWTH (%) 8.47%7.36 %- 6.03% SME IMPORT GROWTH (%)-16.4%21.9% % Source : Thai Customs Department Compiled : The Office of Small and Medium Enterprises Promotion (OSMEP)

8 In order to promote the growth of the SMEs, t he Office of Small and Medium Enterprises Promotion (OSMEP) was established by the endorsement of the SME Promotion Act 2000 (Publicized in the Royal Gazette on February 17, 2000) as focal point on SME promotion 3. OSMEP as Thailands Focal Agency on SME Promotion

9 The National Board of SME Promotion OSMEP Mr. Yuthasak Supasorn The Executive Board of OSMEP Mr. Witoon Simachokedee Dr. Trairong Suwankiri

10 4. Vision & Mission of SME Promotion

11 VISION on SME Promotion To be leader in policy formulation on SME promotion and to serve as center in coordinating working systems in order to forge overall SME promotion within 2012 Dr. Yuthasak Supasorn OSMEP Director-General

12 MISSION 1.Recommending SME promotion policy and formulating SMEs promotion master plan and action plan for the overall, sectoral and area approaches and recommending the amendment of SME related laws and regulations 2.Forging, supporting, operating and coordinating the cooperation in the public and private sectors, domestically and internationally, as well as, monitoring and evaluating the operation results to ensure the efficiency 3.Developing the National Center of SME Database and Early Warning Information which is comprehensive, accurate and up to date and conducting study, analysis, research and situation report for the use of policy formulation on SME promotion and services 4.Developing SME promotion systems and conducting pilot projects, integration projects and ad hoc projects to jointly promote SME with other relevant agencies 5.Utilizing SME Promotion Fund which is efficiently managed as a tool of SME promotion

13 Mission (Cont.) 6.Formulating SME Master and Action Plan and SME related laws and regulations 7.Taking charge of SME promotional activities that have yet to be implemented by other offices 8.Establishing international network and serving as SME advocacy in both local and international arena 9.Providing support facilities for SME such as financial support, innovation and technology support, mentoring, incubation, etc. 10.Managing and monitoring special SME promotional projects under the governments policies i.e. OTOP

14 5. Plan, Strategies and Tools for SME Promotion

15 2nd SME Promotion Master Plan ( ) Vision: SMEs to Grow with Sustainability & Strength Intellect ual Infrastr ucture Netwo rk & Allianc e Productivity Competitiv eness Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneurs Strategy 3: Increase the efficiency and reduce impediment in trading sectors Strategy 4: Promote the Capability on Value Creation in Services Strategy 5: Promote SMEs in Regional and Local Areas Strategy 2: Upgrade Manufacturi ng SMEs Strategy 6 : Create business environment and enabling factors

16 16 Initiatives on SME Promotion, OTOP Project Italian Service Desk -Master Plan on the Promotion of OTOP - -National SME Information Center - ASEAN SME Partnership Roadmap -SME Flying Geese - SME Capacity Building -SME Consortium Venture Capital Fund Capacity Building Fund -SME Incubation Center -iSME Development Center 2010 SME Development and Incubation in Creative Economy Concept SME Identity Study Project

17 17 OSMEPs Tools for SME Promotion Skills & Competency building Capacity Building Financing Support Market Accessibility Incubation Mentorship Consultancy Business Coaching & Training SME University iSMEs Machine Fund Internation- alization Fund Intellectual Property Fund Consultancy Fund Venture Capital Fund Business Matching

18 5. Refocusing of SME Promotion Policy

19 New Growth Strategic for SME Promotion Strengthen up SMEs to Sustainability Efficiency & Productivity Adding Value in Products & Services Capital Access Opportunity Enabling Factors Favorable to Entrepreneurs Business Conduct Manufacturing Development to International & National Standards Grassroots Income Generation & Econ. Capability Promote Economic Linkages Start-ups & New Enterprises SMEs Capability & Locality Core Competency OTOP Upgrading to SMEs Networking Development SMEs in Creative Economy New Marketing Channels Knowledge Build-up Opportunity from FTAs and AEC

20 New Growth Strategic for SME Promotion Strengthen up SMEs to Sustainability Grassroots Income Generation & Econ. Capability Promote Economic Linkages Target Industry Food and Beverage Textile Furniture & Wood Products Chemical Products Hotel & Related Businesses Cultural Tourism Retail – Wholesale Businesses Target Industry Social Enterprise Creative & Design Business New Media Business Entertainment Business Focusing on Local & Regional SMEs Target Industry Food and Beverage Textile Handicraft Gem & Jewelry Agricultural Machinery Plastics Products Furniture Creative & Design Business

21 3 rd SME Promotion Master Plan GREEN GROWTH And CREATIVE ECONOMY Are to be highlighted in the 3 rd SME Promotion Master Plan In order to drive the growth of SMEs with STRENGTH and SUSTAINABILITY

22 Budget Approval for SME Promotion in 2011 in 3 Categories Fundamental Mission of OSMEP370mln. bt SME Promotion Action Plan212mln. bt Administration of SME Promotion Fund 180mln. bt Total762mln. bt SME Promotion Budget in 2011

23 Highlighted Projects of SME Promotion Action Plan, Highlighted Projects for Sustainable SME Development ASEAN SME Regional Gateway ASEAN SME Service Provider ASEAN SME Service Portal ASEAN SME Logistic Platform Cross-Border SME Clusters toward Global Supply Chains

24 Highlighted Projects of SME Promotion Action Plan, Highlighted Projects for Sustainable SME Development Cross-Border SME Clusters toward Global Supply Chains Cosmetic, with Cosmetic Valley of France Yacht Building, with Italy Handicraft Development, with AHPADA Medical Devices

25 1. Focal Point Agency 2. Integrated Budget 3. SME Networking 4. SME Database 5. International partnership Key Success Factors in Thailand

26 Dr. Wimonkan Kosumas Deputy Director General The Office of SMEs Promotion Tel ext.240 Fax Thank you


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