Thai govt to revive Otop and Village Fund schemes

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BUSINESS
Govt to revive Otop and Village Fund schemes
ERICH PARPART
THE NATION



Somkid says he will focus on domestic economy, boost small business and more

BANGKOK: -- THE GOVERNMENT will revive the One Tambon One Product (Otop) scheme to kick-start the grassroots economy while boosting multiple business and industrial clusters with new incentives, according to deputy premier Somkid Jatusripitak.

Somkid, head of the new economic team, met yesterday with leaders of the private sector for the first time to explain his policies and measures. Besides the Otop scheme, the Village Fund scheme would also be revived with fresh cash.

Both schemes were popular in the early 2000s during the tenure of former premier Thaksin Shinawatra when Somkid was deputy premier and finance minister.

Originally, Otop was designed to promote indigenous entrepreneurship for locally made and marketed products of each Thai tambon or sub-district. It was inspired by Japan's successful One Village One Product program.

Somkid said yesterday that the government would also promote at least six to seven business and industrial clusters, such as processed food and value-added agriculture products, automobiles and parts, electronics, and petrochemical products that are environmentally friendly, along with the use of Internet technology as part of the digital economy policy.

Somkid told business leaders at a seminar held by the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) that the economic situation is not yet a "crisis" but there has been a lack of private confidence plus a slowdown in the global export demand.

"Since Thailand is an export-led economy, we have to re-balance by shifting our focus to domestic activities and SMEs (small and medium enterprises) to strengthen our economy.

"Otop and domestic tourism drives will come back under the guidance of this economic team. I am in charge of all seven economic and related ministries and Board of Investment so we will all work together to provide more incentives for Thai and foreign companies to invest in the six or seven business and industrial clusters," he said.

One of the clusters is the so-called "Rubber City" - a special economic area that utilises local resources, namely, natural rubber, and expertise to be provided by established companies in the industry.

The government will also boost incentives for leading domestic and foreign educational institutions to play a key role in providing human resources, especially skilled workers.

"All details on incentives and BOI's privileges for business clusters should be done within a month for Cabinet approval," he said.

Somkid's policies are welcomed by Boontuck Wungcharoen, chairman of the JSCCIB and Thai Bankers' Association, as well as Supant Mongkolsuthree, chairman of the Federation of Thai Industries.

Supant said helping low-income earners and promoting SMEs would be effective in lifting the economy up, especially in terms of boosting domestic consumption.

For decades, the Thai economy depends heavily on the export sector to drive growth as it accounts for as much as 70 per cent of GDP.

However, exports in the first seven months contracted by nearly 5 per cent year-on-year due to the sluggish global demand.

Boontuck said it would take about three to six months for the new policies to bear fruit. But he said Somkid should listen to the private sector's viewpoint before introducing or amending any rules and regulations to implement the policies.

Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand, also expressed support for the new policies, especially extra incentives for foreign businesses in the education sector, as that would encourage the transfer of know-how and expertise, plus decentralising and giving more importance to local small businesses.

Still, he said implementation was more important, plus injecting money into the grassroots had to be done. Upgrading and modernising infrastructure in Map Ta Phut and Laem Chabang was also important.

Source: http://www.nationmultimedia.com/business/Govt-to-revive-Otop-and-Village-Fund-schemes-30267627.html


-- The Nation 2015-08-28

[15Peter20]

So they're replacing Thaksin policies with....Thaksin policies. The longer the junta stays in power the more similar to the Great Bogeyman it becomes.

[MAJIC]

So they're replacing Thaksin policies with....Thaksin policies. The longer the junta stays in power the more similar to the Great Bogeyman it becomes.

Perhaps it's just me,but I never could figure out why a mile of bananas or coconuts stalls was stimulating business,the reality was: pickup applies brakes,and end up in the middle or out of position,so half of the vendors get no business,and the only thing they have to sell is the same as everyone else,which does nothing for competition.

Hair brain idea or what?

[GiantFan]

Does every tambon make T-shirts, flip flops, etc? Every OTOP I go to has loads of junk on sale. The name is also being used incorrectly. The OTOP market in Patong has beer bars.

[BSJ]

Yes yes yes, stimulate the economy with old ideas that didn't make sense back then and don't make sense now!

What about something new? There isn't a craft brewery in the tambon where I live....how about letting me start one....the Johnny Farang Brewery Co.

Oh, that's right, can't have Johnny Farang doing that can we!

[resimi]

So they're replacing Thaksin policies with....Thaksin policies. .

When the co-founder of Thaksin's Thai Rak Thai party and Thaksin's deputy premier is the current deputy premier, it's not surprising.

according to deputy premier Somkid Jatusripitak

[arthurboy]

So they're replacing Thaksin policies with....Thaksin policies. The longer the junta stays in power the more similar to the Great Bogeyman it becomes.

A long time ago, on a distant planet, I recall a certain coup instigator and junta general decrying Thaksin's populist policies as not helpful for the country's economy.

Sigh...

[johna]

I thought the word "grassroots" had been banned by Prayut

[NongKhaiKid]

Do I remind you of Bruce Lee or the recent enraged taxi diver ?

[Eric Loh]

So they're replacing Thaksin policies with....Thaksin policies. The longer the junta stays in power the more similar to the Great Bogeyman it becomes.

I will give Prayuth some credit for eating lots of humble pies. He did criticized and spoke bad about Village Fund and OTOP. The thing about him which do not make a good leader is that he is impulsive and easily gets irate and said the wrong things most of the time.

[Rimmer]

A post has been removed

[Thian]

In BKK we have airconditioned malls with only OTOP stands in side. They are very expensive though!

The only normal priced shops with good products are from the Royal Project.

Banana's and mango's are cheaper in Europe these days then in BKK. And yes, in Europe they are imported from S-Amerika.

[mca]

Do I remind you of Bruce Lee or the recent enraged taxi diver ?

Altogether now "Everybody was Kung <deleted> fighting..."

[tuanku]

Does every tambon make T-shirts, flip flops, etc? Every OTOP I go to has loads of junk on sale. The name is also being used incorrectly. The OTOP market in Patong has beer bars.

Fair e-nuff thats what patong is famous for - no?

[jayboy]

In essence it can be said the Junta has slavishly adopted Thaksin's economic policies .It won't save them

http://asia.nikkei.com/Politics-Economy/Economy/Return-to-Thaksinomics?n_cid=NARAN012

[casualbiker]

In essence it can be said the Junta has slavishly adopted Thaksin's economic policies .It won't save them

http://asia.nikkei.com/Politics-Economy/Economy/Return-to-Thaksinomics?n_cid=NARAN012

No. But it could be said that the junta has adopted Somkids economic policies. I say this because it was Somkid not Thaksin who devised them and brought them to fruition. Personally I'm a little disappointed because I honestly thought that Somkid had more up his sleeve than just regurgitating old policy! Time will tell.

[FangFerang]

"Originally, Otop was designed to promote indigenous entrepreneurship for locally made and marketed products of each Thai tambon or sub-district. It was inspired by Japan's successful One Village One Product program."

The OTOP program, no surprise, was corrupted at the distributor end. The locals made products, were paid 20% of predicted price, and then the merchandise was sold at over 100% predicted levels.

OTOP only helps Old hoes at the TOP.

[billd766]

The Village Fund, if it is properly administered and is transparent (they are in a lot of rural areas) IS a good idea and it does work a lot of the time.

There is a small OTOP shop in our rural moo ban that has been there for years and I don't think I have ever seen any customers use it yet. Many of them have closed down through lack of customers.

Not every policy that Thaksin applied was always wrong, nor was every policy right either.

[PEAP]

The Village Fund, if it is properly administered and is transparent (they are in a lot of rural areas) IS a good idea and it does work a lot of the time.

There is a small OTOP shop in our rural moo ban that has been there for years and I don't think I have ever seen any customers use it yet. Many of them have closed down through lack of customers.

Not every policy that Thaksin applied was always wrong, nor was every policy right either.

Our previous "Village fund" required the NAMES of 10 locals who would become members of a local "Co-OP".

The first organised was to make and sell cakes. The Lady in charge did collect the 20,000Baht from the fund, and disappeared from the scene. No cakes ever produced.

Second was a similar scheme and amount to start a mini furniture factory. Total output was one solo Computer Desk (Mine). The sole woodworker now retains a fine set of power tools for his own personal use.

Good scheme?

[billd766]

The Village Fund, if it is properly administered and is transparent (they are in a lot of rural areas) IS a good idea and it does work a lot of the time.

There is a small OTOP shop in our rural moo ban that has been there for years and I don't think I have ever seen any customers use it yet. Many of them have closed down through lack of customers.

Not every policy that Thaksin applied was always wrong, nor was every policy right either.

Our previous "Village fund" required the NAMES of 10 locals who would become members of a local "Co-OP".

The first organised was to make and sell cakes. The Lady in charge did collect the 20,000Baht from the fund, and disappeared from the scene. No cakes ever produced.

Second was a similar scheme and amount to start a mini furniture factory. Total output was one solo Computer Desk (Mine). The sole woodworker now retains a fine set of power tools for his own personal use.

Good scheme?

quote

"The Village Fund, if it is properly administered and is transparent (they are in a lot of rural areas) IS a good idea and it does work a lot of the time."

I rest my post.

[DM07]

...and so we come full- circle on that!

Next stop: the war on drugs!

[tominbkk]

Mr. Somkid demonstrates Karate chop!

[Srikcir]

"balance by shifting our focus [from exports] to domestic activities and SMEs (small and medium enterprises) to strengthen our economy."

This is a potential solution achievable in 10+ years. Economic powerhouse China had the same idea 15 years ago and is still struggling to invigorate a domestic economy to insulate export shortcomings and currency risks.

The problem for Somkid is at least two-fold:

1) His job and current regime won't last beyond 2016 and Prayut needs economic success NOW to justify continued rule of the nation.

2) Half of the agricultural sector is directed to exports and 40% of all Thai employment is in the agricultural industry. A shift away from exports will create massive unemployment of unskilled wotkers that must be shifted to skilled business sectors.

But perhaps Somkid has a long-range plan for himself. That would to make him a valuable resource for the NEXT regime.

[Thian]

Cheap as peanuts is a saying we all know right?

Then why are peanuts so expensive in Thailand? Because they are grown in Thailand!

Why not import peanuts from abroad and grow something else in Thailand?

It's the same with all products from OTOP, far too expensive. I don't care where it comes from but i won't pay inflated prices, so i don't eat peanuts in Thailand or would bring them from Europe.

[GeorgesAbitbol]

...and so we come full- circle on that!

Next stop: the war on drugs!

"Is not dead what forever sleep ..."