Skills Development for SMEs in Thailand

Session III: Skill Development for SMEs in Thailand

Wannee Gomongawin, Director of Skill Standard Setting Division,

Department of Skill Development, Thailand

The 6th ESSSA meeting,Bangkok Thailand

6th ESSSA, Bangkok Session III by Wannee G. DSD

Agenda

Overview of the SMEs in Thailand

Department of Skill Development (DSD)

DSD Role in SMEs Skill Development Activities

Challenges

Skill Development Network

Skill Development Projects


Overview of the SMEs in ThailandOverview of the

SMEs in Thailand

Department of Skill Development

(DSD)

DSD Role in SMEs Skill

Development Activities

Challenges

Skill Development

Network

Skill Development

Projects

1.43 Agricultural

12.0%

10.47 Non-agricultural 88.0%

5.48 LEs 46.0%

4.45 SMEs 37.4%

0.54 Others 4.5%

GDP Structure in 2013 (Trillion Baht)

Source: NESDB



SMEs in Thailand


DSD Role in SMEs Skill Development

Activities

Challenges



Thai Labour Market

Source: NESDB, 2012

Working age Population (over 15): 54.9 m.

Labour force 38.7 m.

Not in Labour Force: 16.2 m.

Homeworkers

4.8 m.Students

4.4 m.

Others7.0 m.

Employed38.4 m.

Unemployed0.29 m.

Seasonal-unemployed

0.01 m.



SMEs in Thailand



Activities

Challenges



Source: NESDB, 2012

Sector Number of Enterprises

Labour Force

Manufacturing Sector

472,195 (17.84%)

3,251,834 (29.557)

Trade and Retails

1,176,330 (44.45%)

3,822,415 (34.76%)

Services 997,664 (37.70%)

3,920,118(35.65%)

Total 2,646,189 10,994,367


Main responsibilities of DSD are:• Conduct skills training and enhance

skill development system• Develop National Skills Standard and

Testing system• Promote workplace learning and

create skill development network




(DSD)


Activities

Challenges



VISIONWorkforce with World class

Competency

Skill Development Promotion Act B.E.2545 aims to encourage private sectors or employers to play a vital role in upgrading the skills of the workforce, career change training, and pre-employment training.



(DSD)


Activities

Challenges



Skill Development Promotion Act

B.E. 2545 (A.D. 2002)


Rights and Benefits

1. Income tax exemption• Enterprises/companies with at least 100

employees have to provide training for the employees at the rate of 50% of the total number of employees.

• A 200% of Training expenses will be exempted from corporate income tax.

2. Consultation service from the DSD involving skill development activities.



(DSD)


Activities

Challenges




Rights and Benefits

3. Assistance granted by DSD;• Training for Instructor • Training for Skill standard testing provider • Developing Training Curriculum and

Equipment • Etc.

4. other privileges• Exemption on import duty and Value

Added Tax (VAT) for tools and machinery brought into Thailand for training purpose.• Deductions on utility charges for

electricity and pipe water bills in the amount of two times of the training expenses.



(DSD)


Activities

Challenges




• Lack of interested in skill development

• Turnover rate of Skilled labour• Enterprises are Limited in

resources



(DSD)


Activities

Challenges



Challenges


• Ministry of Labour ▫Department of Skill Development▫Department of Employment

• Ministry of Social Development and Human Security

• Local offices▫Bangkok Metropolitan Vocational School



(DSD)


Activities

Challenges





Under Workforce and EntrepreneurshipsDevelopment Division

• Productivities boosting in Production Sector

• SMEs foreman training• E-commerce



(DSD)


Activities

Challenges





Q&A

Economy & Finance

Skills Development for SMEs in Thailand