Thailand to develop new IP for SMEs

The Industrial Estate Authority of Thailand (IEAT) has revealed that a new industrial estate developed specifically for small- and medium-sized enterprises (SMEs) is likely to be situated in the Eastern Economic Corridor (EEC).

Acting governor of the IEAT Sumet Thangprasert said officials expect to use part of an IEAT-owned industrial estate in the EEC to develop the new industrial complex.

The EEC, which spans parts of Chon Buri, Rayong, and Chachoengsao, is meant to be Thailand's high-tech industrial hub hosting 12 targeted industries, including new-generation cars and smart electronics.

Sumet emphasized that the authority is in talks with many industrial estate developers to see whether they want to help SMEs, but in the end the government may choose IEAT for this project.

The latest effort to help SMEs stems from an initiative of Industry Minister Akanat Promphan, who vowed to offer better financial and technical support to SMEs.

Akanat said earlier he would discuss with the IEAT the idea of building a new industrial estate for SMEs.

Usually buying land to build factories inside industrial estates requires a huge investment, but this new estate can serve SMEs with a limited budget, he said.

The government wants to ensure SMEs will not shoulder expensive costs when they use facilities inside the estate.

Besides, Sumet said the IEAT will cooperate with the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) and the Industry Ministry to help firms that want to invest in the SME industrial estate.

Meanwhile, managing director of SME D Bank Pichit Mitrawong acknowledged that this will be a good opportunity for SMEs to enhance their business growth at the new industrial estate, while the government can manage the estate by promoting eco-friendly manufacturing and digital technology.

Thailand has created a strong industrial estate network covering 68 locations in 16 provinces, attracting a cumulative investment of more than 17 trillion baht ($515 billion) and creating jobs for 953,630 people.