Thailand's Ministry of Industry has set up its policy guidelines for 2001-2006 in according to the 9th National Economic and Social Development Plan with particular emphasis on the development of the Small and Medium Size Enterprises (SMEs).

Measures aimed at stimulating the grass-root industries in the near term include: initiating the "One Tambon, One Product" projects for communities to use their local knowledge to develop own products with technical support from the Ministry; speeding up the implementation of the Industrial Restructuring Plan; Personnel development in modern production technology, environmental management, industrial safety and the adoption of international standards in both in the public and private sectors; and providing consulting services for industrial production cost reduction.

The measures also consist of legal, financial and economic assistance such as setting up the SME Bank to solve liquidity problems in the industrial sector; promoting for the use of machinery ownership registration as collateral for loans; cooperating with commercial banks to provide credit to SMEs; accelerating management restructuring; speeding up tax restructuring program; modernizing laws on factories and industrial standards; providing measures to alleviate the impact of regional trade agreements and sharing information with the private sector on trade and investment related issues.

Longer term policies includes industrial sector production restructuring and investment promotion to achieve a balance between the use local raw materials and dependence on imports; promoting the development of basic industry and industrial linkages, promoting Thailand as the world's source of quality food production and processed agro-industrial products; supporting and promoting cooperation in R&D of products and technology among the government, the public sector and the academic institutions; creating IT network on production factor and marketing and encouraging SMEs to do business in e-commerce; helping SMEs to develop business plan and giving access to credit sources through venture capital funds and credit guarantee; encourage measures to increase value-added to industrial products and increase industry productivity; creating local businesses with strong management system and supporting the formation of industrial estates; promoting sub-contract and production linkage among industrial groups; improving private environmental management and public environmental regulations; establishing channels of communication among industries in the capital and regional areas; accelerating the establishment of independent institutes to support industrial development in various sectors; and promoting and extending industrial and investment cooperation overseas.

For information on Thailand's SMEs development please visit: