Thai-German Programme for Enterprise Competitiveness

Programme description

Title: Thai-German Programme for Enterprise Competitiveness: Enhancing the Competitiveness of small and medium-sized enterprises by Improving the Sector of Business Development Services and Introducing Eco-Efficiency in Industry
Commissioned by: Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
Country: Thailand
Lead executing agency: Thai International Development Cooperation Agency (TICA)
Overall term: Januar 2004 to December 2012


Thailand and Germany have been cooperating in the field of technical assistance for over 40 years. On the Thai side this technical cooperation is coordinated by the Thailand International Development Cooperation Agency (TIDCA) and on the German side by the German Federal Ministry for Economic Cooperation and Development (BMZ) with GTZ as the German implementing organisation. Attention is currently focused on enterprise competitiveness with particular emphasis on promoting small and medium-sized enterprises (SMEs) using a market development approach.

The focus on competitiveness and SME promotion takes into account the advanced development of the Thai economy. As a consequence of increasing globalisation, Thai SMEs have forfeited their previous competitive advantage in the world market. Moreover, the inadequate resource management capability of many SMEs has caused environmental problems, which negatively affect the Thai economy. It is therefore essential that new competitiveness strategies be developed which are tailored to creating higher value added, as well as meeting the demands of eco-efficiency.


The programme is aimed at enhancing the competitiveness of Thai SMEs in a number of selected sectors.


The programme consists of two components:

  • Improving the Access of SMEs to Business and Financial Services and
  • Stimulating the Eco-Efficiency of Industry

It provides advice to relevant ministries and business associations with regard to the development and implementation of SME promotion policies and works with a wide range of intermediaries, especially in the fields of management and eco-efficiency, so that they can improve their capacity to offer more relevant services to SMEs. At the outset, the programme will focus on agro-industry sectors. At a later stage, this focus may be extended to cover services in other sectors.

The programme monitors its performance by building results measurement into its day-to-day operations. The impact on competitiveness will be measured by monitoring four types of changes in SMEs included in the programme. These include:

  • Improved productivity of labour, capital and energy
  • Better business performance in terms of increased market share and profitability
  • Introduction of successful innovations
  • Increased use of environmentally sustainable production processes.

All programme measures aim to achieve results in these areas.