The Organizing of CICA Business Forum and SMEs Networking InterContinental Bangkok Hotel 30-31 March 2011 Bangkok, Thailand “Promote, Support & Assist.

The Organizing of CICA Business Forum and SMEs Networking

InterContinental Bangkok Hotel30-31 March 2011Bangkok, Thailand

““Promote, Support & Assist the SMEsPromote, Support & Assist the SMEs””

Presentation Topics

1. Economic Health of Thai Economy

2. Current Profile of Thai SMEs

3. Plan, Strategy & Tool for SMEs Promotion

And the Refocusing of SMEs Promotion Policy

4. Provisional Programme for CICA Business Forum & SMEs Networking

5. Administrative Arrangements

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Economic Health of Thailand

Bank of Thailand projects the Thai economy to grow robustly from early 2011 onwards on the back of private spending.

The role of both private consumption and investment in driving the economy will become more evident once the impacts of the adverse transitory factors abate.

This outlook is supported by indicators in 2010 Q4, which pointed toward resilient demand. Furthermore, the improvement in exports following the global recovery should also lend additional support to growth.

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The Monetary Policy Committee (MPC) announced in the January 2011 issue of the Inflation Report on 21 January 2011 on economic condition as following:

Condition of Thai Economic Factors

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1. Demand for Thai exports is revised up slightly in 2011 mainly attributable to the improved prospects of the US economy, with a strong momentum sustaining well into 2012.

2. The Fed funds rate is anticipated to rise in 2011 Q3, 3. Regional currencies will appreciate more.

4. Direct government spending for fiscal year 2011 is revised upwards,5. The Dubai oil price assumption is raised throughout the forecast

period.6. Agricultural prices will rise gradually over the period ahead, 7. The daily minimum wage assumption is revised up to 215 baht in

2011, before rising to 226 baht in 2012, in line with the economic growth and higher inflation going forward.

National Board of SMEs Promotion1. Demand for Thai exports is revised up slightly in 2011 mainly attributable to the improved

prospects of the US economy, with a strong momentum sustaining well into 2012. 2. The Fed funds rate is anticipated to rise in 2011 Q3, similar to the previous assumption, as some

fragility and delay in the US economic recovery are still conceivable 3. Regional currencies will appreciate more against the US dollar throughout the projection period in line with latest data and strong growth prospects in Asia.

4. Direct government spending for fiscal year 2011 is revised upwards, mostly because of the reclassification of some transfer payments into consumption spending. Both consumption and investment expenditures in fiscal year 2012 will then rise from the preceding fiscal year following the budget expansion.

5. The Dubai oil price assumption is raised throughout the forecast period, in tandem with upward demand pressure coming from the unusually cold weather and the rising global demand. Going forward, the Dubai crude price will continue to edge up following the acceleration in demand from emerging market countries. As a result, the Dubai oil price will average at 91.3 and 98.1 US dollars per barrel in 2011 and 2012, respectively.

6. Agricultural prices will rise gradually over the period ahead, with pressure from both a negative supply shock due to last year’s flood and firming domestic demand. Climate factors and natural disasters also lead to a substantial upward revision in non-fuel commodity prices, mainly through the upswing in prices of food, beverages, and agricultural raw materials. In addition, the continued capital inflows into commodity markets also contribute to the upward pressure. This view is consistent with the IMF’s forecasts of a sizeable surge in prices of food, beverages, and agricultural raw materials over the short horizon.

7. The daily minimum wage assumption is revised up to 215 baht in 2011, before rising to 226 baht in 2012, in line with the economic growth and higher inflation going forward.

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Condition of Thai Economic Factors

Number ofEnterpriseNumber ofEnterprise

Employment(Person)

Employment(Person)

GDP(Million Bt.)

GDP(Million Bt.)

Export Value(Million Bt.)

Export Value(Million Bt.)

LEsAnd Others

SMEs

Micro EnterprisesOTOP

2,896,106

(99.8%) 9,701,354

(78.2%)3,417,86

0 (42.73%)

2,900,759

12,405,597

7,998,151

5,199,912

4,653 (0.2%)

2,704,243

(21.8%) 4,156,704

(51.97%)

1,589,199

(30.56%)

Total

Current Profile of Thai SMEs, 2009

1) GDP in the figure was only the non-agricultural sector, accounting for 88.4% of the overall and 5.3% of which represented other types of enterprises unable to identify their size. 2) GDP of agricultural sector was 1,052.564 mln. bt or 11.6% of overall GDP.3 ) Export value of 3.58% was from export transactions unable to identify the exporter size.

3,424,579

(65.86%)

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Structure of Gross Domestic Product, 2009

66

Agriculture sector 11.6 %

Non-

agriculture

sector

88.4 %

LE

45.9 %SMEs

37.8 %

Others

4.7 %

Source: The Office of the National Economic and Social Development BoardComplied by: The Office of Small and Medium Enterprises Promotion (OSMEP)

Foreign Trade Value of SMEs, 2007-

2009

77

Trade in Baht 2007 2008 2009

SMEs EXPORT 1,575,971.60 1,691,144.90 1,589,199.87

SMEs IMPORT1,452,734.40 1,771,502.00 1,377,740.25

SMEs BALANCE 123,237.20 -80,357.10 211,459.62

SMEs TRADE 3,028,706.00 3,462,646.90 2,966,940.12

SMEs EXPORT GROWTH (%)

8.47% 7.36% - 6.03%

SMEs IMPORT GROWTH (%)

-16.4% 21.9% - 22.24%

Source : Thai Customs DepartmentCompiled : The Office of Small and Medium Enterprises Promotion (OSMEP)

Thailand’s Plan, Strategy and Toolfor SMEs Promotion

&The Refocusing of SMEs Promotion Policy

2nd SMEs Promotion Master Plan (2007-2011)

Vision: SMEs to Grow with Sustainability & Strength

Intellectual

Infrastructure

Network&

Alliance

Productivity

Competitiveness

Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneursStrategy 3: Increase the efficiency and reduce impediment in trading sectors

Strategy 4: Promote the Capability on Value Creation in Services Strategy 5: Promote SMEs in Regional and Local Areas

Strategy 2: Upgrade Manufacturing SMEs Strategy 6 :

Create business environment and enabling factors

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OSMEP’s Tool for SME Promotion

Skills & Competency

building

Capacity Building

Financing

Support

Market Accessibility

■ Incubation

■ Mentorship

■Consultancy

■ Business

Coaching

& Training

■ SME University

■ iSMEs

■ Machine Fund■Internation-alization Fund

■ Intellectual Property Fund

■ Consultancy Fund

■ Venture

Capital

Fund

■ Business

Matching

New Growth Strategic for SMEs Promotion

Strengthen up SMEs to Sustainability

♦ Efficiency & Productivity♦ Adding Value in Products & Services♦ Capital Access Opportunity♦ Enabling Factors Favorable to Entrepreneur’s Business Conduct♦ Manufacturing Development to International & National Standards

Grassroots IncomeGeneration &

Econ. Capability

Promote Economic Linkages

♦ Start-ups & New Enterprises♦ SME’s Capability & Locality’s Core Competency♦ OTOP Upgrading to SMEs♦ Networking Development ♦ SMEs in Creative Economy

♦ New Marketing Channels♦ Knowledge Build-up for SMEs♦ SMEs in Opportunity from FTAs and AEC ♦ SMEs to Cope with Negative Impact of New Regional Factors

New Growth Strategic for SMEs Promotion

Strengthen up SMEs to Sustainability

Grassroots IncomeGeneration &

Econ. Capability

Promote Economic Linkages

Target Industry

• Food and Beverage• Textile• Furniture & Wood Products• Chemical Products• Hotel & Related Businesses• Cultural Tourism• Retail – Wholesale Businesses

Target Industry

To Create Businesses of New Paradigm , i.e.

• Social Enterprise • Creative & Design Business• New Media Business• Entertainment Business• Focusing on Local & Regional SMEs

Target Industry

• Food and Beverage• Textile• Handicraft• Gem & Jewelry• Agricultural Machinery• Plastics Products• Furniture • Creative & Design Business

3rd SMEs Promotion Master Plan, 2012-2016

GREEN GROWTHAnd

CREATIVE ECONOMYto be highlighted in

the 3rd SMEs Promotion Master Plan

Via the Tool of

Networks of Cross-border SMEs

3rd SMEs Promotion Master Plan, 2012-2016

Networks of Cross-border SMEsTarget Group of Businesses :

• Service Business – cultural tourism, health care, beauty care• Food Business – halal, cultural food, food supplement, processed food• Agricultural Product – cultural tourism, health care, beauty care• Agricultural Machinery • Real Estate Development

Target Group of Countries: CICA member counties

Network Building among CICA’s SMEs

• Exchanging of knowledge: * Workshops* Intensive Incubation programmes

done by experts and governmental officers• Business Matching•Establishing of CICA Value Chain Based on the cooperation of Capability Development, Competiveness Upgrading in full circuit of operation including production, design, raw material exchanges management know-how, business development, etc.

The Arrangements ofCICA Business Forum & SMEs Networking

Responsible AgencyThe Office of SMEs Promtion, Thailand

Duration2 Days (30-31 March 2011)

Activities 1. Business Forum and Business Matching for SME Network

building 2. A Meeting of CICA Sub-economic Dimension Group

The Arrangements ofCICA Business Forum & SMEs Networking

Objective

1. To provide information and share experience of SMEs promotion in Thailand

2. To share best practices of SMEs among the CICA member states in various sectors

3. To promote networking and establish business ties among CICA member states

4. To provide an opportunity for the CICA economic development authorities to exchange views and suggestions for SMEs development strategies in CICA member states

5. To encourage business matching opportunities with the aim to promote SMEs network building as enabling factor for sustainable growth

Activities

1. CICA Business Forum and SMEs Networking, which will provide opportunity for participants from CICA member states to learn and share their views and experiences in SMEs development

2. A meeting of CICA Sub-economic dimension group, which will provide opportunity for the relevant governmental authorities of CICA member states in SMEs development to brainstorm the SMEs development strategies and to establish their networking

3. Business matching with the aim of SMEs network building4. Industrial site’s visit

Provisional ProgrammeCICA Business Forum and SMEs Networking

InterContinental Bangkok Hotel30-31 March 2011, Bangkok

DAY 1: Wednesday, March 30, 201108:30-09:00 Registration

09:00-09:45 Opening Ceremony• Opening Remarks by Mr. Trairong Suvanakiri, Deputy Prime Minister • Welcome Speech by Mr. Yuttasak Supasorn, Director-General of the Office of SMEs Promotion• Remarks by Mr. Cinar Aldemir, Executive Director of the Secretariat of CICA• Photo session

DAY 1: Wednesday, March 30, 2011 (Cont’d)

09:45-11:00 Session I: Presentation – Thailand Experience • Overview and Trends of Thai SMEs (OSMEP) • Business Environmental Management for SMEs

(BOI) • Financing SMEs (SMEs Bank) • Promoting SME Development in Services Sector

(MOC)

11:00-11:20 Coffee Break & Visit to Sponsors’ Exhibition

11:20-12:00 Session II: Presentation – Forging Business Ties for Network Building:

Challenges and Promising Opportunities by Speakers/Resource Persons from CICA Member

States• Financial Assistance in SMEs Development

(Korea) • SMEs Development (TBC) • A contribution from Mr. Victor Ermakov CEO of the SMEs Promotion of Russian

Federation

12:00-13:30 Luncheon

DAY 1: Wednesday, March 30, 2011 (Cont’d)

13:30-15:30 Session III: Presentation (Continued) • Tourism (tbc) • Agriculture/Food (tbc) • Industry (tbc) • Energy (tbc) • Human Resource Development (tbc)

15:30-15:45 Coffee Break

15:15-15:45 Business and Investment Opportunity of Thailand by Secretary General of the Board of Investment

15.45-16.30 Forum Wrap-up

16.30-17:00 Press Conference

18:30-20:30 Visit SMEs Pavilion & Welcoming Dinner

DAY 2: Thursday, March 31, 2011

08:30-09:00 Registration

09:00-11:30 Meeting of CICA Sub-Economic Dimension Group

09:00-11:30 B to B Business Matching and Possible MOU Signing

11:30-13:00 Luncheon

13:00-17:00 Industrial Site’s Visit / Excursions • Food Factory • Spa • Machinery Refitting

Draft Agenda CICA Business Forum and SMEs Networking

InterContinental Bangkok Hotel30-31 March 2011, Bangkok

AdministrativeArrangements

VENUE & Facilities

InterContinental Bangkok Hotel, a 5-

stars located at the center of the

business and commercial districts of

Thailand’s capital. The place is fine

with a wide range of shopping and

other facilities within easy walking

distance, while access to other parts

of Bangkok is fast and efficient by

Skytrain, the nearest station being

steps from the hotel’s entrance.

Meeting Venue InterContinental Bangkok Hotel

973 Ploenchit Road, Bangkok 10330, Thailand • Tel - -6626:+

560444

• - - 6626560555Fax:+ • [email protected]

Conference Hall

Technical capabilities include category 6 infrastructure, LED Intelligent Lighting system that projects up to 16 million colors, 70 pin spotlights, video streaming and recording throughout the hotel, chiffon pillars, satellite, video-conferencing, moving projection systems, and centrally controlled computer enhanced display LCD screens.

GUESTROOMS offered at Grande Deluxe (Single) : Baht 5,300 net /room /nightor € 130 net /room /nightNUMBER OF ROOMSInterContinental Bangkok provides 381 guest rooms, including Club

TYPES OF ROOMSGrande Deluxe (45 sqm.) Executive Deluxe (45 sqm.)Club InterContinental (45 sqm.) Corner Suite (67 sqm.)Club InterContinental Suite (67 sqm.)Premier Suite (70 sqm.) Executive Suite (90 sqm.) Ambassador Suite (100 sqm.) Diplomatic Suite (150 sqm.)Royal Suite (250 sqm.)

: 225 rooms: 40 rooms: 77 rooms : 6 rooms: 27 room : 1 room : 1 room: 2 rooms : 1 room: 1 room

GUESTROOMS

offered at

Standard (Single) :

Bt 3,600 net /room /night

or € 87 net /room /night

Alternative Accommodation Holiday Inn Bangkok

(Next to InterContinental Bangkok Hotel)

Facilities & Arrangements

Participants are provided with:

Venue: • Conference Room

• Function Room

• Business Matching Booth

Transfer: • Airport – Hotel – Airport

• All Site Visits

Meals: • Breakfast of Both Days • Lunch of Both Days

• Welcoming Dinner

Excursion: • A visit to historical and tourist famous

destination with professional tourist guides

Expected Outcome

1. The participants will gain knowledge on SMEs promotion of Thailand

2. The participants can exchange experiences on SMEs development of the member states in various sectors

3. The participants will obtain opportunities for business networking among the member states of CICA

Contact Person: Mrs. Rasmi Hanvajanavong Chief of International Relations Division The Office of SMEs Promotion, Thailand Tel. (66 2) 2788800 Ext. 244 Fax. (66 2) 273 8850 Email: [email protected]

Mr. Wachira KaewkorDirector of the International Affairs BureauThe Office of SMEs Promotion

TST Tower, Fl 1821 Vibhavadi-Rangsit RdJatujak, Bangkok 10900ThailandTel. 66 2278 8800 ext.404Fax. 66 2273 [email protected]

Thank you