What To Know
- This Bangkok Business News report highlights how SMEs must overcome rising costs, certification hurdles, and market disparities while also learning to tell stronger stories to compete on a global stage.
- At the same time, demographic shifts, such as an ageing population and smaller household sizes, are pushing companies to rethink product design and explore new markets.
Bangkok Business News: Rising Challenges for Thai Entrepreneurs
Thailand’s economy is facing mounting pressure as businesses are forced to adapt to global price wars, shifting supply chains, and volatile currency trends. The Thai Chamber of Commerce has warned that small and medium enterprises (SMEs) risk being left behind in what many are calling a “Red Ocean” era. This Bangkok Business News report highlights how SMEs must overcome rising costs, certification hurdles, and market disparities while also learning to tell stronger stories to compete on a global stage.
Thai SMEs face mounting pressures from global price wars, rising certification costs, and the urgent need to adapt branding strategies.
Image Credit: AI-Generated
Price Wars and Market Adaptation
One of the most pressing issues is the fierce competition that is reshaping industries like automotive, food, and consumer goods. Price cuts once thought impossible are now commonplace, as seen in the car market where million-baht vehicles are now sold for less. Businesses are urged to adapt as quickly as consumers change preferences, mirroring trends seen in mobile technology. At the same time, demographic shifts, such as an ageing population and smaller household sizes, are pushing companies to rethink product design and explore new markets.
Cost Barriers and Certification Struggles
For SMEs, certification costs remain a major obstacle. Organic food exports, which are in demand globally, require certification fees ranging from 100,000 to 200,000 baht. For smaller firms with limited turnover, these costs are nearly impossible to bear. Industry leaders stress that without supportive policies and standards tailored for SMEs, many could be excluded from lucrative trade opportunities.
Government and Private Sector Roles
The Ministry of Industry acknowledges three main hurdles facing SMEs: lack of capital, limited access to international standards, and insufficient information on market requirements. While government banks and funds exist, lending remains conservative, often favouring large companies. However, new initiatives are being designed to help SMEs align with international benchmarks and become part of global supply chains. The private sector also plays a role in mentoring smaller firms to help them adapt to shifting regulations and consumer demands.
Storytelling and Reputation Management
Beyond production and pricing, Thailand’s entrepreneurs are being urged to master storytelling and reputation management. While the country excels in agriculture and industrial output, it lacks global recognition for its branding. Experts warn that negative or misleading stories about Thailand often go viral online, damaging industries such as tourism. Without stronger efforts to shape positive narratives, Thai businesses may struggle to gain global traction even when their products meet international standards.
A Critical Time for Thai SMEs
Thailand’s reliance on exports means competitiveness cannot rely solely on cost efficiency but must also embrace quality, branding, and adaptability. For SMEs, this is both a challenge and an opportunity. If they can overcome barriers to certification, secure better access to capital, and tell compelling stories, they may not only survive but thrive in the Red Ocean economy. Without swift adaptation, however, many risk being permanently sidelined in the global market. The stakes are high, and the next few years will define whether Thai SMEs can secure a lasting role in international trade.
For the latest on the Thai economy, keep on logging to Bangkok Business News.
