A Contribution of Small and Medium Enterprises (SMEs) International Joint Venture (IJV) to Sustain Thailand Economic Development

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Wanida Wadeecharoen
Athiwat Kajanavanikul
Rungsun Lertnaisat
Sombat Teekasap

Abstract

Thailand’s economic is driven dynamically through small and medium enterprises (SMEs) as apparently the number of SMEs is close to 3 million or above 99 percent of total national business. This is directly respond to 78 percent of total employment and generated over 37 percent of national GDP. International Joint Venture (IJV) represents a popular foreign entry mode used by Multinational Enterprises (MNEs) for overseas market expansion in ASEAN region. Particularly in Thailand, SME IJVs are represented as majority type in manufacturing sectors. Machinery and metal products are the major products that the IJV companies venture into. Thailand has seen an increasing in the number of IJV projects (298 IJV in 2010), an increasing of 45 companies from 2009. Countries like Japan, Europe ASEAN regions and US are the main IJV players. As of this standing point, SME IJVs are believed as an important part contributing of Thailand economic development. By analyzing of secondary data provided by Thailand government official and information related. This study has been attempted to identify the supportive reasons to confirm that “foreign investors remain confident in Thailand” and “SME IJV could play an important role to sustain Thailand economic to its original glory and strength”.

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