FTI further strengthens ‘Made in Thailand’ project to boost local supply chain, businesses

The memorandum of understanding (MoU) was signed on Monday by FTI chairman Kriengkrai Thiennukul and state agencies that have close dealings with the private sector.

They are the Industrial Estate Authority of Thailand, the Stock Exchange of Thailand, the Eastern Economic Corridor Office and the Board of Investment.

At the MoU ceremony, Kriengkrai highlighted the significant progress made by the “Made in Thailand” (MiT) project since it was conceived in 2021. Now it has evolved from a voluntary consensus to a regulated initiative under the Comptroller General’s Department.

Under the MoU, Thai manufacturers using “Made in Thailand” products and services will get tax benefits compared to those using imported products.

“We can’t be strong and self-sufficient if we don’t support each other. The money that circulates in the domestic economy will assist Thai entrepreneurs in further improving their products and services,” Kriengkrai said.

“This strength will undoubtedly help the country develop its own national brands, similar to those of other major economies like the United States, China and Japan.”

Thai small and medium-sized businesses participating in e-bidding procurement now receive a 5% subsidy, giving them a competitive edge against foreign firms. The same benefit extends to foreign companies manufacturing their products in Thailand.

Petcharat Eksangkul, FTI vice chairperson, said there are currently more than 5,000 businesses registered to the MiT project thanks to the support provided by the government.

In fiscal 2022, companies certified under MiT won more than 1,600 procurement and contracting jobs worth 102 billion baht or roughly 15% of the government’s total procurement budget of around 1 trillion baht.

“This helps distribute money within the supply chain at both the SME and grassroots level, which helps accelerate economic recovery,” she said.

Kriengkrai, meanwhile, said he anticipates growth in MiT businesses, aiming to secure 400 billion baht in procurement projects by 2024. Additionally, FTI plans to expand benefits from government procurement to the private sector supply chain and boost Thai business participation in procurement to 80% in the long term.

These efforts are expected to boost the local economy, empower entrepreneurs and strengthen the country’s supply chain.