BUILD: Promoting linkages to benefit foreign assemblers and Thai SMEs

(BOI Investment Review, May 2005)

BUILD helps international firms find appropriate parts suppliers quickly, while assisting SMEs with finding customers. "We try to make life easier for both parties," said Dr. Wisan Tanthawichian, head of BUILD.

The award-winning BOI Unit for Industrial Linkage Development (BUILD) conducts several programs to assist foreign assemblers and manufacturers with sourcing quality parts and components from Thai SME’s. These programs, in turn, strengthen supporting industries and boost Thailand’s industrial competitiveness.

BUILD, named the best business linkage program by the World Association of Investment Promotion Agencies in 2004, helped generate industrial trade worth US$ 155 million between 2001-2004.

Dr. Wisan said, “Large enterprises need to source parts and components locally to be competitive in world markets, as this can reduce inventory and transportation costs. We established BUILD ten years ago to aid these firms with sourcing local parts in addition to helping Thai SMEs find markets for their products.”

BUILD’s current linkage programs include Vendors Meet Customers, the Market Place and various sub-contracting services. These programs focus on the automotive and electronics and electrical appliances supporting industries because Thailand still imports parts in these sectors. However, Dr. Wisan expects to expand the programs later this year to include SMEs in garments, agriculture and food processing industries. Thai-based SMEs operating in the targeted supporting industries are eligible to participate in BUILD’s programs.

Vendors Meet Customers Program

The Vendors Meet Customers Program was established to stimulate domestic consumption of parts and components. BUILD, acting as an intermediary, matches SME parts and components manufacturers with customers / assemblers.

“We take the supporting industry SMEs to visit assembly plants and meet with procurement officers. As a result, the manufacturers gain a better understanding of assemblers’ needs and requirements, while assemblers benefit from the ability to source parts locally,” Dr. Wisan said.

The program has expanded overseas as Thai parts suppliers have been invited to travel to meet international customers in Japan, Germany and the U.S.

The BUILD Market Place

Assemblers seeking to localize the manufacture of parts and components can use the BUILD Market Place to access suppliers. Approximately once a month, the BOI invites assemblers to exhibit samples of parts and components at Market Place meetings, providing an Buyers connecting with suppliers at the electronic and automotive parts and components Market Place at the Central Sofitel Hotel. SMEs meet Hitachi procurement officers in the Vendors Meet Customers program. opportunity to meet manufacturers and discuss parts specifications, quality, volume, price, procurement policy and production capabilities.

Many Thai SMEs are capable of competing for clients internationally, and as part of the Market Place program, the BOI assists them with exhibiting in international events such as the Hannover Fair in Germany and the China Sourcing Fair in Shanghai. “A Thai delegation recently participated in the Hannover Fair, and one of our SMEs found three new customers there,” Dr. Wisan said.

Sub-contracting Services

According to Dr. Wisan, many international firms approach BUILD for assistance with sourcing parts and components. BUILD can access the ASEAN Supporting Industry Database, which contains detailed information about Thai SMEs to help identify appropriate suppliers. BUILD then organizes a sourcing seminar for the international firm, inviting SMEs that match the company’s requirements.

 — By Susan Crawford

For more information, please contact BUILD via e-mail at build@boi.go.th or see www.boi.go.th.

 

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