Priority areas in Thailand

GTZ will concentrate its activities for economic reform and development of the market system from 2004 to 2012 on strengthening the competitiveness of small and medium-sized enterprises (SMEs). The Federal Ministry for Economic Cooperation and Development (BMZ) and the Thailand International Cooperation Agency (TICA) agreed on this priority area in Technical Cooperation in 2002 after detailed consultations between GTZ and its Thai partners. Concentrating on SME promotion takes account of the advanced development of the Thai economy and the resultant needs of the target group.

Moreover, with this priority area GTZ is building on the outcomes of a number of projects that are reaching completion in vocational and technical education and technology transfer (Thai German Institute), occupational guidance, business development services and networks for strengthening the competitiveness of SMEs, promotion of small-scale industry, practical engineer training, microfinance, privatization of state enterprises, eco-industrial parks and networks and the safe transport and handling of hazardous freight.

The priority area of strengthening the competitiveness of SMEs is addressed in an integral programme approach with two components:

By raising the competitiveness of SMEs, the first programme component to improve services and framework conditions for SMEs makes a contribution to sustainable job creation and poverty reduction. This centres on strengthening the market for business development services for SMEs.

The second programme component for promoting eco-efficiency in industry aims at sustainable and clean industrial development. Core elements are the efficient use of raw materials and by-products, recycling, energy-saving measures and environmentally safer production operations in selected sectors.

The programmatic approach harnesses synergies. Training measures for entrepreneurs, employees and academics will contain aspects of environmentally safer management techniques. Moreover, the introduction of eco-industrial production methods will effect significant cost savings and thus improve the competitiveness of SMEs.