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Made-in-Thailand can earn B1.77tn
The government believes its new Made-in-Thailand campaign, which promotes the use of locally made products in state projects, can create domestic economic value of 1.77 trillion baht.
The scheme is meant to help local businesses, including small and medium-sized enterprises (SMEs), through state procurement projects.
Factory operators and workers should also benefit from the scheme, said the Industry Ministry.
“Up to 60,000 factories have registered with the Industry Ministry and there are around 5 million workers employed in factories and SMEs,” said Industry Minister Suriya Jungrungreangkit, who co-launched the campaign on Wednesday.
He expects the scheme will reduce the country’s dependence on imported products.
“This scheme is not a trade barrier. It supports local products,” said Mr Suriya.
Finance Minister Arkhom Termpittayapaisith said the scheme sets the proportion of local products at no less than 60% of the total used for state projects.
If the items used are steel and iron, the proportion rises to 90%, he said.
Authorities expect the scheme will be another tool to help Thailand cope with the impact of the Covid-19 pandemic, while also improving the efficiency of local industries.
The Finance Ministry said the government allocated a budget worth 1.77 trillion baht in fiscal 2021 for state procurement projects.
“The Made-in-Thailand scheme is expected to strongly contribute to the domestic economy,” said Mr Arkhom.
His ministry has told state agencies to draft terms of reference for projects under the scheme.
Supant Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), said he believes the Made-in-Thailand scheme can be another channel to help local companies and SMEs expand their product sales to the state sector.
Companies and SMEs that want to join the Made-in-Thailand scheme can submit their applications to the FTI. The group provides applicants with certificates indicating their participation in the scheme.
“Companies can use Made-in-Thailand certificates to join bidding for state projects,” said Mr Supant.
FTI expects companies and SMEs offering over 100,000 products to join the scheme this year. So far 800 products have been granted certificates.
Earlier state efforts to help SMEs include a new 9.5-billion-baht soft loan programme initiated by the Industry Ministry to retain 28,800 jobs at SMEs.
The money, to be granted under the ministry’s Local Economy Loan scheme, is expected to help 5,760 businesses struggling with liquidity.
Mr Suriya said earlier prospective borrowers can start submitting loan requests to the Small and Medium Enterprise Development Bank of Thailand until December 2021. The cabinet approved the scheme on Jan 19.
Source: https://www.bangkokpost.com/business/2085399/made-in-thailand-can-earn-b1-77tn