Thai SMEs driving UPS sales growth
UPS expects higher growth from its Thai business next year, driven by a stronger economy after the Dec 23 election. Thai small and medium-sized companies, which have a tendency to export more, have been key drivers for UPS growth, according to Steve Okun, Senior Vice-President for UPS Asia Pacific.
UPS has reported double-digit growth rates for four years in a row despite the strong baht, which should have had a bigger impact on its international package delivery service.
Even in the face of the economic slowdown, the company expects the growth to continue this year.
Around half of its business activities in Thailand are driven by SMEs, as well as auto-parts makers, and apparel and jewellery industries.
To expand its SME client base, UPS has joined with the US Department of Commerce to promote trade between the US and Thai SMEs through a symposium called ”Moving Thailand Forward” held yesterday.
Thailand is the first country with which Washington has initiated promotion of SME trading activities.
Business matching activities and product sourcing are provided under the programme as well.
Washington sees Thailand as one of its key trade partners. The country ranked 15th in terms of export value, at USD 20 billion per year, while imports from US stand at $7 billion per year.
The US government also aims to assist American SMEs in expanding their businesses in Thailand to reduce the US’s trade deficit with the country.
UPS had earlier expected 50 companies to join the programme but so far 150 SMEs have already registered for the programme with the US Embassy in Thailand, said Mr Okun.
By linking with the US Department of Commerce, UPS could provide additional services to its SME clients beyond shipping services.
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