According to a report from Nikkei, Panita Shinawatra, the deputy director of the Thailand Office of Small and Medium Enterprises Promotion (OSMEP), stated that Thai small and medium enterprises (SMEs) should focus on producing products with higher added value to counter the influx of cheap imports from China.
The office, under the Thai Prime Minister’s Office, oversees approximately 3.2 million SMEs, accounting for around 99% of all businesses in the country. Panita pointed out that “the growing import of low-cost Chinese products has had a negative impact on Thai SMEs.”
She also mentioned that “the influx of a large number of low-cost Chinese goods into Thailand not only squeezes the profit margins of Thai manufacturers and traditional retailers but also brings about significant deflationary pressures.” She emphasized that the government hopes businesses will not get involved in price wars that cannot be sustained in the long run.
She urged Thai enterprises to shift towards developing high-value-added products and “enhance competitiveness by introducing environmentally friendly products, implementing sustainable manufacturing, and obtaining green certifications.” This way, Thai SMEs can have a better chance of becoming preferred first or second-tier suppliers when facing strict procurement standards from multinational corporations and domestic giants.
The office is working on establishing a support system to help Thai companies comply with EU environmental regulations in response to the EU’s import tax measures for products with high carbon emissions.
Regarding cooperation with Japan, Panita stated, “For decades, Japanese companies and the government have been essential partners for Thailand in promoting industrialization. We look forward to elevating bilateral cooperation to new heights through continued technology exchange in the field of circular economy.”
Through these efforts, Thai SMEs can adapt to the changing global market dynamics and improve their competitiveness on the international stage.