Bangkok: The Ministry of Industry kicks off 'GMT SMEs' to establish Thai production standards, equipping Thai entrepreneurs to cope with new global trade rules and prevent trade fraud.
According to Thai News Agency, the Department of Industrial Promotion (DIPROM) has launched the "Good Manufacturing Practices of Thailand for SMEs (GMT SMEs)" project, integrating cooperation from 15 agencies to enhance the capabilities of Thai SMEs in the manufacturing sector. The initiative aims to create "promotional standards" rather than "controlling standards" to accommodate diverse businesses, connect them to markets and economic opportunities, and prepare them for new global trade regulations. It is expected to generate approximately 40 million baht in direct economic value in the first year and expand to export-oriented SMEs in the medium term, potentially boosting the added value of the Thai industrial sector by billions of baht annually.
Mr. Thanagorn Wangboonkongchana, Minister of Industry, revealed that the Thai industrial sector is facing challenges on all sides, including pressure from global competition and stricter trade measures. This has shifted from price competition to competition based on the origin of goods, transparency of production processes, and the ability to trace back to the actual source of production-where and how it was produced. Previously, the Ministry of Industry focused on raising national production standards by developing tools and mechanisms that help businesses operate legally, maintain quality, and gain international acceptance. This includes verifying the origin of goods, implementing traceability systems, and leveraging digital technology to support oversight-all part of an effort to create a transparent and traceable production system.
The Ministry of Industry is accelerating the restructuring and strengthening of the manufacturing sector, particularly small and medium-sized enterprises (SMEs), which form the foundation of the country's manufacturing and export sectors. However, many SMEs have lacked appropriate standards tailored to their specific contexts, making it difficult to provide sufficient empirical evidence to global partners. Therefore, the Ministry has tasked the Department of Industrial Promotion (DIPROM) with urgently upgrading the capabilities of entrepreneurs to address pressing issues such as costs, liquidity, and the development of production systems. This will be achieved through the creation of a Good Manufacturing Practice of Thailand for SMEs (GMT SMEs) standard. This standard will serve as a "starter standard" to verify the credibility of Thai production, mitigate the risk of unforeseen trade barriers for Thai SMEs, and pave the way for future international standards. It is expected that this will improve production efficiency, reduce losses, increase market opportunities, and generate approximately 40 million baht in direct economic value in the first year. In the medium term, it is anticipated that the program will be expanded to include export-oriented SMEs, potentially boosting the added value of the Thai industrial sector by billions of baht annually.
Ms. Nattiya Netayasupa, Director-General of the Department of Industrial Promotion, stated that the department is ready with a plan for 2026. Operating under the policy 'DIPROM FLEXi - Adapt, Upgrade, and Embrace Change,' DIPROM focuses on enhancing business capabilities in all dimensions. This includes management, efficient resource utilization, improved production processes, adherence to international trade standards and regulations, and the promotion of domestically produced goods and services, coupled with the creation of business networks and collaborations both domestically and internationally. DIPROM integrates cooperation with 15 agencies: the Office of the Permanent Secretary of the Ministry of Industry, the Department of Industrial Works, the Thai Industrial Standards Institute, the Department of International Trade, the Comptroller General's Department, the Office of the Consumer Protection Board, the Office of the Small and Medium Enterprise Promotion, the Small and Medium Enterprise Development I nstitute, the Food Institute, the ISO Certification Institute, the Small and Medium Enterprise Development Bank of Thailand, the Federation of Thai Industries, the Thai Chamber of Commerce, the Thai SME Federation, and the Thai Bankers Association. This collaboration aims to advance and promote the 'Good Manufacturing Practices of Thailand for SMEs (GMT SMEs) Project.' The goal is to collaboratively establish GMT SMEs standards covering raw materials, production processes, product standards, and ethical and socially responsible business practices. This mechanism will elevate 'Made by Thais' products, reflecting the quality, transparency, and true value generated by Thai manufacturing.
The GMT SMEs project will be a 'promotional standard,' not a 'controlling standard.' It will be a flexible standard that accommodates diverse businesses and connects to future markets and economic opportunities. At the same time, it will serve as a tool for Thai entrepreneurs to gain a holistic view of their business operations, from raw materials and production processes to product standards, and dimensions of governance, labor, society, and the environment. It will take into account the context and limitations of Thai SMEs and will have a three-phase framework to 'create good production standards for Thai SMEs': Phase one involves establishing good manufacturing practices (GMP) criteria for Thai SMEs by laying the foundation for a suitable, practical, and non-burdensome standard system. Phase two focuses on creating mechanisms to drive and promote the adoption of the standard in Thai SMEs, enabling them to maintain production quality consistently over the long term. Phase three involves expanding and scalin g up the project to elevate Thai SME production to excellent standards and achieve international competitiveness.
In the initial phase of this project, "Dee Prom" collaborated with the ISO certification body to focus on the first phase, which involved studying, surveying, collecting, and analyzing data related to Good Manufacturing Practices (GMP) for Thai SMEs. This data will be used to develop appropriate standards and certification criteria. A pilot GMT SMEs project will be implemented in 20 businesses to assess, inspect, provide consultation and guidance, improve, and certify GMT SMEs standards, as well as award recognition to businesses demonstrating good manufacturing practices.