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Thailand: Exim Bank to nurture exporters
The Export-Import Bank of Thailand (Exim Bank) has set a target to increase the number of small and medium-sized enterprise (SMEs) exporters to 100,000 in next four years from around 30,000 at present, the bank’s president, Rak Vorrakitpokatorn, said yesterday.
The bank will support SMEs to become part of strong export supply chains, he said.
During an online seminar on the future of SMEs, Mr Rak said that there are around 3.1 million SMEs in Thailand, which account for 99.5% of total entrepreneurs in the country. However, their output only accounts for 35% of gross domestic product, since most of them sell products in the domestic market.
There are only around 30,000 SMEs that export their products, he added.
He advised that SMEs should connect with international trade domains by upgrading themselves to become exporters, however, it might take time to gain knowledge and experience.
Another quick way to become an exporter is through Exim Bank, which will provide SMEs support to become suppliers of existing supply chains.
Mr Rak said that SMEs, which are part of exporting supply chains, will be eligible to gain the same annual interest rate that Exim Bank offers to large companies or at around 5%. This will help SMEs reduce their production costs and bolster their competitiveness.
Mr Rak said building material retailer Siam Global House Plc (Global) is a model of a firm with a strong supply chain, with support from Exim Bank.
He said SMEs should not focus on competing for local market share, comprising 66 million people, of which 18% are ageing and thus consume less. Moreover, the Thai economy has grown at an annual average rate of only 2% over the past decade.
Source: https://www.bangkokpost.com/business/2137543/exim-bank-to-nurture-exporters