EXIM Thailand has responded to the Ministry of Finance's policy and joined force with three trade-related organizations, namely BoT, FTI and TNSC together with CMMU to build entrepreneurs for the export value chain. Ecosystem is to be developed to enhance financial liquidity for entrepreneurs, making available credit facility with lowest interest rate of 4.5% p.a., no asset collateral required, Free! front-end fee, and Plus! export insurance policy to hedge risk of non-payment by buyers overseas in conjunction with comprehensive knowledge development courses for Thai exporters to keep up with global trends in the Next Normal context.
Mr. Arkhom Termpittayapaisith, Minister of Finance, witnessed the signing of Memoranda of Understanding (MOU) on the cooperation program to support entrepreneurs throughout the export value chain between Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), Mr. Sanan Angubolkul, Chairman of The Thai Chamber of Commerce and Board of Trade of Thailand (BoT), Mr. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI) and Dr. Chaichan Charoensuk, Chairman of Thai National Shippers' Council (TNSC), and on the academic cooperation program for development of entrepreneurs' potential with skills and competencies of the new world of trade between EXIM Thailand, BoT, FTI, TNSC and Assoc. Prof. Dr. Wichita Raktham, Dean of the College of Management of Mahidol University (CMMU), at Vayupak 4 Room, Ministry of Finance, on June 6, 2022.
The Minister of Finance said that at present Thai SMEs exporters account for less than 1% of the total around 3.1 million SMEs in the country. Meanwhile, approximately 17 million labor force is employed across the country, 12 million of whom or 70% are employed by SMEs. Therefore, support of Thai entrepreneurs shifting to exporters and being able to compete in the global markets would contribute to creation of job opportunities and higher income for SMEs, greater value to the export sector, and hence benefits to the overall national economic system as part of the driving force toward sustainable development in economic, social and environmental dimensions.
This collaboration between EXIM Thailand and its alliances would integrate operations of the government, banking and finance sector, business sector and educational institutions in strengthening businesses at all levels throughout the export value chain in multiple dimensions, i.e. capital, knowledge base and tools, in order to help Thai entrepreneurs build immunity amid the ever-changing world of today and beyond. This aims to rejuvenate the export sector as the key engine of Thai economy this year and build strong fundamentals for long-term development of Thai export value chain in the areas of infrastructures, maritime business, logistics and upstream to downstream basic industries, which are instrumental to national development. Such move is also in line with the government's multi-faceted policies, such as national development under the concept of bio-circular-green economy (BCG economy), development of public sector systems and mechanisms and environment for higher efficiency in the support for entrepreneurs, creation of value added to business particularly agricultural products, proactive move to propel new economy, and enhancement of the country's strength by the bottom-up approach.
Cooperation program to support entrepreneurs throughout the export value chain: Thai entrepreneurs who are members of BoT, FTI and TNSC may apply for a credit facility from EXIM Thailand, particularly for those who wish to be export start-ups, producers for exporters, or air-land-sea logistics service providers, with lowest interest rate of 4.5% p.a. (-0.5% p.a. from normal rate) in the first year, no asset collateral required, Free! front-end fee and Plus! export insurance policy under EXIM for Small Biz program (Free! insurance premium of 3,000 baht), credit approval within 7 business days, and availability period from today until December 31, 2022.
Academic cooperation program for development of entrepreneurs' potential with skills and competencies of the new world of trade: Thai entrepreneurs who are members of BoT, FTI and TNSC may apply for attendance of training courses jointly developing by EXIM Thailand and CMMU for development of exporters in the third quarter. Training contents are understandable and training period is short. There will be sharing of first-hand experiences from exporters who have been successful in their adaptation toward the Next Normal business arena.
Both programs would accordingly contribute to business matching further on. EXIM Thailand will work with Team Thailand in bringing Thai entrepreneurs to the Next Normal global markets through both online platforms and penetration of new frontiers, now fully covering the CLMV with EXIM Thailand representative offices duly established in Cambodia, Lao PDR, Myanmar and Vietnam. This would pave way for creation of trade ecosystem conducive to Thai export and economic growth on a sustainable basis in linkage with social and environmental development at national, ASEAN and global levels looking forward.