One of Thailand’s major goals is to overcome the middle-income trap. Upon a closer look at Thailand’s economy, SMEs have significantly contributed to creating added economic value, accounting for 35.2% of the national GDP (according to the Ministry of Commerce, 2022). Furthermore, SMEs provide employment opportunities to 70% of the national workforce.

Therefore, promoting and enhancing the capabilities of SMEs to adapt to digital transformation and create added economic value has become a crucial mission for various sectors. Preparing SMEs for the digital era is a key to driving Thailand toward sustainable success…

But where should we accelerate SMEs' transformation? This has become a critical question. Developing SMEs nationwide requires substantial time and resources. According to the Office of Small and Medium Enterprises Promotion (OSMEP) in 2023, there are 3.2 million registered SMEs in Thailand. Thus, focusing on SMEs in high-potential areas to drive economic growth has become a strategic approach adopted by various organizations.

When asked which areas should be prioritized, two regions often come to mind: SMEs in the Eastern Economic Corridor (EEC) and the Southern Region. These areas are pivotal to Thailand’s economy and have garnered attention from numerous sectors, including ETDA (Electronic Transactions Development Agency). As both a regulator and promoter, ETDA not only oversees digital service businesses but also promotes digital adoption across government agencies, SMEs, communities, and citizens. This year, ETDA has targeted the development of SMEs in these two areas due to their strategic importance.

The EEC, a key economic zone, serves as a hub for advanced industrial investments, while the Southern Region boasts diverse economic potential, encompassing trade, services, agriculture, and tourism—key revenue sources for Thailand. These align with policy objectives to develop mechanisms and measures that promote technology transfer to entrepreneurs in these regions.
This article will delve into the readiness of SMEs in the EEC and Southern regions, highlighting the pathways for digital transformation to unlock success and drive even greater “SMEs GROWTH.”

Insights into SMEs in the ‘EEC-Southern Region’: How far have they transformed?
A survey conducted by ETDA in early 2024, covering 400 SMEs in the EEC (Chonburi, Chachoengsao, and Rayong) and 449 SMEs in the Southern Region, revealed that entrepreneurs in these two areas continue to face challenges in adopting technology into their businesses.

SMEs in the EEC primarily face limitations such as a lack of digital skills, high technology costs, and insufficient information on digital transformation. Despite these challenges, SMEs in the EEC have started incorporating technology to enhance business efficiency. Popular technologies include accounting and finance systems, e-Commerce platforms, CRM systems, ERP systems, automation, IoT, and social media. These tools address both production and service sector needs.

On the other hand, SMEs in the Southern Region have some experience using digital technology and have achieved partial goals. However, they face challenges such as the complexity of digital technology, limited digital skills, and inadequate technological infrastructure. Although SMEs in this region show interest in adopting technologies like accounting and finance systems, e-Commerce platforms, and CRM systems, their usage remains constrained by limited expertise and access to necessary funding.

According to ETDA’s Digital Maturity Index, SMEs in both the EEC and Southern regions are categorized as "Digital Followers," indicating moderate readiness for digital transformation, similar to SMEs across the country.

While not fully ready, SMEs in ‘EEC-Southern Region’ express a strong desire for transformation
Despite the challenges, SMEs in both regions recognize the benefits of technology adoption and are eager to integrate it into their operations. In the EEC, SMEs prioritize CRM systems, ERP systems, and accounting software. Meanwhile, Southern SMEs focus on accounting software, ERP systems, e-Commerce platforms, and CRM solutions.

Overall, SMEs in both regions agree that digital technology can enhance operational efficiency, reduce costs, and increase revenue. SMEs in the EEC view digital transformation as a means to accelerate growth, improve internal processes, and enhance customer experiences. Similarly, Southern SMEs see digital technology as crucial for improving customer satisfaction, expanding revenue opportunities, and driving overall business growth.

From insights to success: ETDA bridges the gap with the ‘SMEs GROWTH’ project
ETDA’s in-depth study of SMEs in the EEC and Southern regions has led to the development of a model to bridge the gaps and meet the needs of SMEs through the ‘SMEs GROWTH’ project. Launched for the first time this year under the theme ‘Transforming Thai SMEs for Sustainable Growth,’ the project aims to prepare SMEs for the digital era, enhance competitiveness, and create sustainable revenue streams.

‘SMEs GROWTH’ goes beyond knowledge transfer, offering diverse activities, including training, digital consultations, and tailored solutions for SMEs. Collaborating with tech providers, the project introduces ERP, CRM, and e-Commerce systems to improve efficiency, reduce costs, and boost sales. The project’s success not only enhances SMEs’ agility through technology adoption but also helps tech providers expand their customer base in niche markets, driving local economic growth.

This year’s ‘SMEs GROWTH’ project has successfully concluded, serving as a model example developed by ETDA for Thai SMEs. It not only fosters collaboration among SMEs, tech providers, and various stakeholders but also plays a crucial role in driving Thailand’s digital economy toward stable and sustainable growth.
For those interested, visit the ETDA website or follow updates on the ETDA Thailand Facebook page.