IMPROVING ECONOMIC, ENVIRONMENTAL, AND SOCIAL PERFORMANCE OF SMES IN AUTOMOTIVE SUPPLY CHAINS IN THAILAND

Thailand has long been recognized as a highly competitive Asian base for vehicle production. The industry has experienced rapid growth over the past decades and this growth has had environmental consequences. SMEs represent a large proportion of the auto and automotive parts sector in Thailand.

 

Furthermore, Thai industries are facing increasing completion from other Asian countries (e.g. Malaysia and China). Environmental management and sustainable supply chain management are seen as key components of improving the industry’s future competitiveness through reduced production costs, increased profitability, capacity to meet increasingly stringent international standards, and by reducing environmental supply chain risks.

 

Four key interventions for sustainable development in the automotive sector

The objective of the project is to improve sustainable production among SMEs in the Thai auto and automotive parts supply chains.

 

There are four key components of this project:

• Productivity and environmental improvement in Thai automotive industry clusters
• SME specific financial support packages
• Strengthening SCP related services
• Dissemination of examples of good-practice and policy recommendations

 

Expected project results include:

• Increase productivity and product quality for 250 SMEs partners and reduced unit environmental impacts
• Increased number of SMEs that are in compliance with international environmental regulations
• Provision of new financial mechanisms for SMEs to make investments in improvement proven technologies
• Enhanced alliances to facilitate a greening the supply chain of Thai automotive industry
• Promotion of best practice and related policy

 

The project will extend from February 2012 to January 2015.

 

Role of the CSCP

As international partner the CSCP is providing methodological, technical, and policy advice based on global best practice – especially in the phases of developing materials and defining effective communication mechanisms. Furthermore, the CSCP will contributes to the effective implementation of training courses and multi-stakeholder processes.

 

Project sponsor

Financial support for this project is generously provided through the EU Switch Asia Program.

 

Project consortium

• German International Cooperation (GIZ) (lead)
• Thailand Automotive Institute (TAI)
• Federation of Thai Industries (FTI)
• Small and Medium Enterprises Development Bank of Thailand (SME Bank)
• Collaborating Centre on Sustainable Consumption and Production (CSCP)