Trade Opportunities for SMEs among SAARC & ASEAN Countries

1. Trade Opportunities for SMEs among SAARC & ASEAN Countries Watcharas Leelawath The International Institute for Trade and Development, Thailand Hotel LeRoyal Meridien, Chennai December 12, 2009

2. Outline • Overview of Small and Medium Enterprises in Thailand • Policy initiatives by the Government that supports the growth of SMEs • Organizations/Associations that supports SME Growth • Trade opportunities for SMEs between Thailand and India • Areas of Cooperation in Trade and Technology

3. 1. Overview of Small and Medium Enterprises in Thailand

4. Source: Ministry of CommerceThailand

5. Overview of SMEs in Thailand • In 2008, GDP of SMEs were approximately 3,446.59 Bn Baht, around 37.9%of GDP • GDP of SE around 25.2% of GDP , while MEaround 12.6%

6. Proportion of SMEs and Growth Rate of GDP by Enterprise Size Source: Office of the National Economic and Social Development Board

7. Value of GDP in 2003-2008 by Enterprise Size GDP at constant price (Million Baht) Share per GDP at constant price (%) Source: Office of the National Economic and Social Development Board

8. 2.Policy initiatives by the Government that supports the growth of SMEs

9. Policies to promote SMEs in Thailand • In 2000, issued the SME Act and established SMEs Promotion Board (Prime Minister is president) • In 2001, established Office of Small and Medium Enterprises Promotion (OSMEP) for being the center to set the policy and plan

10. Policies to promote SMEs in Thailand • Objectives • GDP Growth is 42% in 2011 • Growth rate of exports in SMEs increased not less than growth rate of total exports • Total Factor Productivity (TFP) of SMEs grow at least 3% per year. TFP of target sectors and labor productivity of SMEs grow at least 5% per year

11. Policies to promote SMEs in Thailand Six Strategies of Plan No.2 (2007-2011) • create and develop entrepreneurs • increase productivity and innovation capabilities of SMEs in the manufacturing sector • increase efficiency and reduce the impact in the trade sector • promote the service to create value and added value • promote SMEs in region and local • develop the supporting factors for business

12. 3.Organizations/Associations that supports SME Growth

13. OSMEP • Formulating SMEs promotion master plan and SMEs promotional policies. • Preparing action plan for the promotion of regional/sector SMEs as well as micro and community enterprises. • Serving as SMEs information center in conducting researches and studies on SMEs-related issues including SMEs early warning system. • Developing information systems and networks to support the operation of SMEs.

14. SME Bank • Providing financial services that respond to SMEs’ needs • Give nurture to new entrepreneurs • Supporting existing SMEs so have sustainable growth • Develop good governance in management systems

15. Agencies to assist SMEs

16. Agencies to assist SMEs (continued)

17. Agencies to assist SMEs (continued)

18. 4.Trade Opportunities for SMEs between Thai - India

19. ASEAN 10 Trade by Country of Destination, 2006-2008 Export (US$ Million) Source: ASEAN Statistical Yearbook 2008

20. ASEAN 10 Trade by Country of Destination, 2006-2008 (US$ Million) Source: ASEAN Statistical Yearbook 2008

21. ASEAN 10 Trade by Country of Destination, 2006-2008 Import (US$ Million) Source: ASEAN Statistical Yearbook 2008

22. ASEAN 10 Trade by Country of Destination, 2006-2008 (US$ Million) Source: ASEAN Statistical Yearbook 2008

23. 19,433,467 8,853,900 3,034,408 2,659,314 2,005,280 1,812,607 Sources : ITC calculations based on COMTRADE statistics

24. Share of Indonesia in India 's export 1.46% Share of Viet Nam in India 's export 1% Share of Thailand in India 's export 1.1% Share of Singapore in India 's export 4.87% Share of Malaysia in India 's export 1.67% Sources : ITC calculations based on COMTRADE statistics.

25. 26,698,438 8,304,751 7,461,390 6,431,337 2,664,791 906,267 Sources : ITC calculations based on COMTRADE statistics

26. Share of Viet Nam in India's imports 0.12% Share of Singapore in India's imports 2.63% Share of Indonesia in India's imports 2.04% Share of Thailand in India's imports 0.84% Share of Malaysia in India's imports 2.36% Sources : ITC calculations based on COMTRADE statistics.

27. Trade situation of SMEs in Thailand 2008 Import Export Office of Small and Medium Enterprises Promotion, Thailand

28. Value of Thai exports by enterprise size in 2005-2008 Unit : Million Baht Office of Small and Medium Enterprises Promotion, Thailand Value of Thai imports by enterprise size in 2005-2008 Unit : Million Baht Unit : Million Baht). Office of Small and Medium Enterprises Promotion, Thailand

29. Important export products of Thailand. Source: Ministry of CommerceThailand

30. Important Import products of Thailand Source: Ministry of CommerceThailand

31. Trade between Thailand - India

32. Overview of Trade • India is a trade partner of Thailand, No. 18 • Trade between Thailand - India in 2008 around 1.6 % of Thailand’s trade value to the world. Growth increased around 20% • October 2003, Thailand and India have signed the framework agreement on establishing Free Trade Area of Thailand – India in order to eliminate trade barriers, expand trade and attract to the foreign investment

33. Trade summary between Thailand and INDIA Source: Ministry of CommerceThailand

34. Exports Structure Source: Ministry of CommerceThailand

35. Imports Structure Source: Ministry of CommerceThailand

38. 5.Areas of Cooperation in Trade and Technology

39. India-Thai Free Trade Area(ITFTA)

40. Source: Ministry of CommerceThailand

41. Source: Ministry of CommerceThailand

42. ASEAN-India Free Trade Area(AIFTA)

43. Source: Ministry of CommerceThailand

44. Source: Ministry of CommerceThailand

45. Preferential Access Source: Ministry of CommerceThailand

46. Sample items and Year eliminate tariffs: AIFTA.

47. Thank You http://www.itd.or.th