The global economic slowdown has bitten into the revenue of Small and Medium Enterprise or SME entrepreneurs in the northern city of Chiang Mai. With their sources of income rapidly dwindling, the entrepreneurs have been struggling to stay afloat.
Famous finest Celadon wares at the House of Celadon in Chiang Mai are currently on sale in an attempt to attract more buyers, after the products remained in stock due to a sharp drop in foreign customers.
Thatsanee Yaja, owner of the House of Celadon, admitted Celadon exports had decreased 80 percent, after main exporting markets like the United States and Europe were hit hard by the financial crisis.
"I’ve never been under such a situation since I started to run this business twenty years ago. In the past we still had some opportunity in crisis but this time we face both internal and external factors. Given that we used to sell 100 pieces of Celadon, now only 40 of them are bought, " said Thatsanee Yaja, the House of Celadon owner
According to a report by the Chiang Mai Chamber of Commerce, the city’s SME businesses cover handicraft, textile and tourism sectors. Some 200 factories and businesses, out of 30,000 in Chiang Mai, have already closed down. The rest are trying to adjust their operations to survive.
"Workers’ lay-off is not an option now. Companies, especially those in the hotel and service business, try to survive by reducing the overtime hours, working days and hours of their employees, " said Arkom Supangpao, Chiang Mai-Lamphun SMEs Association President.
The Federation of Thai Industries, Chiang Mai Chapter, reported SME business in Chiang Mai was valued at approximately 110 billion baht each year. But for 2009, it’s projected the figure might shrink by 20 percent as most businesses rely on exports.
Business operators have urged concerned authorities to take the matter into account as it could affect the overall city economy.
"Our business will survive if a loan with low interest rate funding is provided, as well as the extending payback period of a Non-Performing Loan," said Veerayuth Sukwattako, Chairman of the Federation of Thai Industries, Chiang Mai Chapter.
Another solution is exploring new markets such as Southeast Asian and Middle Eastern nations, to replace the US and Europe which are under critical circumstances and might take a while to recover.
