A glance at the recovering opportunities for Thai SME. Can they make it? How can they move forward?
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It is undeniable that Thai SMEs have been greatly affected by the impact of COVID-19,but most analysts see the prospect of a quick turnaround for small and medium-sized businesses as they are able to downsize the organization with ease and better efficiency than large industries. The cost of operating an SME business is rather economic. Simply search for a factory to rent in an industrial park that has a large distribution center, equipped with full facilities, located close to raw materials for production and close to the capital city, this can help small and medium-sized businesses recover and get back on their feet.Impact of Covid-19 on Thai Economy and SMEs
It can be said that strict lockdown measures to curb the spread of the virus are the main factors affecting the business sector and the overall economy of Thailand, but on the other hand, the e-commerce and online sales are growing by leaps and bounds, causing more and more SMEs to join the online business. Adaptation is the most important part of doing business in the future, as can be seen from many companies turning more to online channels to sell products and promote themselves through platforms such as establishing Facebook, Instagram and YouTube pages for fans to follow and purchase products as they wish. Fast delivery through leading domestic shipping companies can greatly satisfy the lifestyle of people in today’s situation. Despite the overall economic slowdown, small businesses that can adapt faster are more likely to be able to sustain themselves through these difficult times. Large companies in industrial estates are different as their structure is more complicated which makes it more challenging for them to change, resulting in large inventories leftover and severe liquidity problems. Their opportunity to recover may not be as expected.
3 Strategies to enhance strength, what needs to be adjusted?
- Investing in e-commerce and online media is the top priority that businesses should pay attention to, especially with changing behavior and traveling to malls and markets is still very risky as long as the number of infected people has not decreased significantly. Choosing to rent a ready-made factory in an industrial park near the capital rather than buying or investing in the construction of a new factory will greatly help in reducing the cost.
- Investing in logistics to differentiate yourself and reduce labor costs will help your business easily return to profitability. Especially with investment in ready-made warehouses located within the industrial estates because in addition to the low investment cost, it is also close to the distribution center and the source of raw materials for production, resulting in reduced travel costs and reduced delivery time.
- Industrial estates, besides being occupied with factories that produce finished goods and raw materials used in the production process, are also supported by the Board of Investment (BOI) and the Industrial Estate Authority of Thailand both in terms of tax exemption, assistance in applying for various permissions related to factory operations, requesting a certificate of alienation, etc. The area that receives the highest tax privileges is the Eastern Special Development Zone (ECC) and this will allow small businesses to be able to operate and compete with other businesses.
Export opportunities will return after China's recovery.
At present, export figures have improved due to the weakening of the baht and the production of IT and electronic equipment that is in demand in the global market, especially the Chinese market. This is a large market and the first to recover after China seriously tackled the problem of the epidemic. China is moving towards becoming an economic superpower once again with an increased online distribution channels generating sales not only for domestic products but also products imported from Thailand. There are also many other international markets such as the USA, Europe and Southeast Asia.
For SME businesses looking for a ready-made factory in an industrial park to reduce the business startup cost, the 304 Industrial Park operates a ready-made factory rental business located in Prachinburi and Chachoengsao provinces, not far from Bangkok. Chachoengsao Province is one of the EEC areas that receive tax privileges and other privileges from the Office of the Board of Investment (BOI).
Information source:
- https://www.304industrialpark.com/th/
- https://www.304industrialpark.com/th/why-304
- https://www.warehousechod.com/th/news/detail?d=qQIcZ3tk
- https://www.krungsri.com/th/plearn-plearn/business-covid-19
- https://www.tmbameastspring.com/insights/2020-mid-year-outlook-perspectives-from-china
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