Thailand’s trading strategies and market promotion to support the BCG economy

Thailand’s trading strategies and market promotion to support the BCG economy

          The BCG economic model is used as part of the determination of products for the promotion of exports, in accordance with the country’s development direction under the strategy of driving Thailand’s development. These products can be divided into four groups, as follows:

         1)  Products that create added value to domestic resources and production inputs, promote the utilization of domestic raw materials, and generate income for the grassroots economy through the use of the knowledge of technology and innovation, to enhance the processing of agricultural products into higher-value products;

         2) Products that need to improve the use of raw materials and/or production processes to ensure their eco-friendliness and reduce the impact of trade barriers;

         3)  Products that require science, technology, and innovation in the production of products to meet the market demand and current consumption trends, especially agricultural and food products;

         4)  Products in the targeted industries within the BCG economic model.

Therefore, the promotion of production and marketing of each group of products under the BCG model to promote exports has to incorporate many elements:

1.  Agriculture and food: Organic and functional food, focusing on niche markets with demand for healthy products and products, tend to have a higher price than general products. Most of the consumers have relatively high income and the market is less competitive. Organic food production has pushed the manufacturers to produce quality products with international standards in order to develop the potential of SMEs and startup entrepreneurs to become players in this market. As for functional foods, SMEs are encouraged to use technology and knowledge in science and nutrition to create value-added products;

2.  Bio-chemicals and biomaterials, including oleochemical products and bio-plastic. The markets for these products have the opportunity to expand exports, based on the market size and the continuous growth rate of imports concurrently. As for manufacturing, the government should support medium-sized businesses that have good potential in the production of chemical and biomaterials products, in order to ensure better distribution of income to businesses of various groups and sizes, through funding, knowledge, research, and development. This ensures the capability of the manufacturer to produce products that respond to the market, economies of scale, and competitiveness with other countries;

3.  Plant extracts. The public and private sectors have cooperated to enhance the production of high-value agriculture by supporting upstream research and development and promoting scientific personnel in public and private organizations to play an important role in the development of the plant extract industry, in terms of both product quality and raw material standards. This is done to build confidence among consumers or suppliers. This also includes providing support to the business sector or startups with expertise in the industry during the market entry. Doing this will make Thailand an important exporter and promote the plant extract industry as an export industry in the long term.