The concept of the “BCG Economy” Bio-Circular-Green Economy – has become a key strategy in Thailand’s economic development, particularly under the 13th National Economic and Social Development Plan, which aims to drive Thailand towards sustainable growth. Amid this BCG trend, one group worth special attention is SMEs, or small and medium-sized enterprises. While these businesses face various limitations, they are highly flexible and can adapt more quickly than large corporations if they understand the direction of change correctly.

This article will discuss the BCG Economy model and what opportunities it offers to Thai SMEs, as well as why “those who adapt first” will “gain the advantage first” in the competitive landscape of the modern economy in 2025. Let’s explore the answers together in this article. 

Understanding the BCG Economy An Economic Model for Sustainable Development

BCG Economy, or Bio-Circular-Green Economy, is an economic model for sustainable development that integrates science, technology, and innovation to enhance sustainable competitiveness in four main target industries (S-curves): the agriculture and food industry, the energy and materials industry, the health and medical industry, and the tourism and services industry. Science, technology, and innovation will help improve the efficiency of existing producers and support entrepreneurs in creating higher value-added products and services.

1. Bio Economy It involves utilizing biological resources for the “most efficient production,” by applying technologies from various fields to maximize efficiency and create the highest possible value. 

2. Circular Economy It is about using “resources as efficiently as possible,” where each production process must allow for reuse and recycling. 

3. Green Economy The green economy system focuses on creating innovations and managing social conditions to minimize environmental impact (Zero-Waste), emphasizing pollution control to reduce the long-term impact on the planet sustainably. 

How do businesses in Thailand gain an advantage amidst change and competition ? 

As seen from the management approach that focuses not only on the economy but also integrates social development and environmental balance towards sustainability, Thailand’s clear advantage lies in its existing biodiversity and cultural diversity. As many have said, Thailand is the kitchen of the world. Developing biological resources to become competitive through innovation will help drive a growing BCG economy capable of competing on a global scale. 

Opportunities for SMEs to grow alongside the BCG Economy – How to adapt and stand out?

Although SMEs have limited capital and production capacity, they are highly flexible and can effectively adapt the BCG concept to their own context, leading to several important opportunities that can arise. 

1. Create market differentiation with sustainable products.

Today's consumers, especially the younger generation, are increasingly prioritizing environmentally friendly products, such as organic products, packaging made from bio-based materials, or products that help reduce carbon emissions. SMEs that can establish a unique selling point in this area will gaina market advantage and can set higher prices with consumers willing to pay (premium pricing) for products that are differentiated and promote environmental and social sustainability, including support for local communities.

2. Reduce long-term costs through Circular Process.

Designing circular production processes is not only good for the environment but also helps reduce long-term costs,especially by maximizing resource utilization. For example, using waste from one process as raw material for another process, such as a processed food factory using vegetable and fruit scraps to produce organic fertilizer or dietary supplements.

3. Easier access to funding sources.

Many government agencies and financial institutions are increasingly prioritizing investments in businesses that apply the BCG concept, offering various benefits such as: 

• Tax exemptions from the BOI (Board of Investment)
• Low-interest loans from the Small and Medium Enterprise Development Bank of Thailand (SME D Bank)

4. Expand into international markets more easily.

Global markets, especially in Europe and America, are increasingly focusing on ESG (Environmental, Social, Governance)and products that reduce their carbon footprint. Therefore, Thai SMEs that adapt to the BCG Economy approach will gain greater opportunities for export. For example, community-based tourism businesses that promote eco-tourism are attracting interest from international “eco-travel” tourists and are perceived as more appealing than conventional tourism options. 

Recommend strategies: Where to adapt to gain an advantage ? 

1. Start by changing small points that create a broad positive impact.

For example, switching to bio-based packaging or increasing the use of solar energy and clean energy in certain parts of the production process. 

2. Study BCG business models that are similar to your own business.

To find adaptation approaches that do not require high investment and can be tested by adjusting them to fit your business as much as possible, including studying models from other businesses to adopt well-developed and low-cost practices for your own operations. 

3. Join training or incubation programs to build networks and receive guidance from experts with specialized knowledge. 

You can join as a member and request consultation from various agencies that offer free BCG-related training, such as TISTR, NSTDA, and the National Innovation Agency (NIA).

4. Use online media for brand communication and marketing through storytelling to help consumers genuinely understand and connect with the brand’s operations. 

Building a brand and communicating its environmentally friendly image can help increase sales in the long term. More importantly, it also focuses on products, goods, and services that meet consumer trends, where customers prioritize and support environmentally friendly products.

                               Let’s build a green and sustainable society together. 

Greenhouse Gas Management Consulting Services

FDI Accounting & Advisory As an environmental and sustainability consultant, we are fully equipped to support all business organizations that share our commitment to environmental and sustainable goals. We offer advisory services tailored to help businesses operate under comprehensive conditions that align with government policies, while also embracing genuine transformation toward environmentally and socially responsible practices—ultimately leading to true sustainability. 

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