Country Paper 3.
HANDICRAFTS IN THAILAND
SivaVong Changkasiri
Small Industry Service Institute
Department of Industrial Promotion
Ministry of Industry
Bangkok - Thailand
I.
A„
INTRODUCTION
•
Definition
1. In Thailand, the Government has not adopted any specific
definition for handicrafts.
The term "handicrafts" has so many
different connotations, one of which is any skilful occupation
using mostly hands or manual dexterity, and concerning with
artistic touches.
For example, hand -embroiderys artistic carpet
weaving, making of handbags using local fibres are considered as
handicrafts. . However, the term "cottage industries" is widely
used in Thailand for indicating household manufacturing activities
in rural areas which are equivalent to the traditional village .
industries and artistic crafts as defined in the Memorandum for
the purpose of this Expert Meeting.
"Servicing crafts", defined
in the Memorandum, are mostly known in Thailand, as servicing
industries, most of which could be classed as small-scale industries.
B.
Present Position
2. Using.only the sheer number of three types of crafts in
existence in Thailand as a criterion,;.traditional village industry is the most important sector of handicrafts in Thailand.
Unfortunately,, statistical figures have not been compiled to
indicate their annual production and employment so as to make it
possible to give.rough estimates of the contribution of this
sector to the economy of Thailand. • ..- The. predominant village
industries in the up-country areas are handloom weaving, pottery,
blacksmithy and/or manufacture of.simple agricultural implements
by hand forging, bamboo basketry, rattan;.works,, hand-made, paper
making, and umbrella making. .All these, village industries,
by and.large, manufacture consumer, goods to satisfy local or
regional, markets.
3. Contrary to the village industries, the population of
artistic crafts is much smaller.. •- These artistic crafts are
mostly located in specific areas-where these crafts were originated
and do seldom move to other areas.
Only in some rare cases, these
crafts have spread to another area.
For example, Nakornsrithammaraj,
a province in the southern part of Thailand, is famous for
Small-scale industry, for lending operations, is defined
as any establishment having fixed assets not exceeding US$100,000.
For extension services, small-scale industry is also defined as
any industrial establishment in which there is an absence of
management specialisation.
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- 2 her nielloware production, which was originally introduced by the
first group of Portuguese who came to Thailand for trading activities. Although niellowares are now being produced in Bangkok as
well, the quality of niellowares produced in Nakornsrithammaraj is
still considered the best. Chiengmai, a province in the North, is
still, among other things, famous for her lacquerware and silverware production. Bronzeware is being widely produced in Bangkok
and Thonburi areas. Woodcarving in Chiengmai, Lampang and Tak of
the Northern Region are considered the best in Thailand.
4.
Brocade weaving can only be found in two locations in
Thailand, namely Lampoon in the North and Roi-et in the NorthEastern Part. Silver and gold smithy are predominant in Bangkok
and are undertaken by craftsmen, mostly of Chinese origin.
5.
On the other hand, servicing crafts exist in practically
every province in Thailand. In every province, there will be, according to general observation, at least a machine shop to repair
buses and trucks as well as to manufacture spare parts required for
replacement, a foundry to manufacture parts for existing industries
in such area, such as saw mills, sugar mills etc., and many radio
and T.V. repair shops. The number of these service crafts in general- increases in direct proportion with the number of population
in the area.
C.
Problems of Development
6.
The general problems encountered by handicraft industries
are mostly due to their resourcelessness. These problems can be
summarized as follows :
(a)
there is in general shortage of capital. Hence, they cannot
enlarge their production capacity and cannot store finished
products and keep adequate amount of raw materials for a
longer period. They cannot buy raw materials in bulk quantity so as to reduce the raw material cost. As a result, they
have no bargaining power in dealing with middlemen to obtain
higher price for their finished products;
(b) lack of organizational ability in coping with sales
finished products is another problem faced by them.
example, there are many artisans producing the same
products in the same village. They cannot organize
ves into a marketing cooperative in order to have a
power in selling their products;
of their
For
type of
themselbargaining
(c) lack of regular supply of raw materials can sometimes be one
of the problems faced by artisans. Most of the time, this is
linked with the shortage of working capital;
(d)
in general, most artisans are using traditional methods of
production which should be modernised so as to increase the
production capacity and to upgrade the quality standards of
their products.
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- 37.
The disintegration of the community interests between
rural artisans and farmers due to external forces such as employment provided by foreign troops at air bases or by larger- industries has not taken place. This is mainly due to the surplus of
labour force in the rural areas. A majority of people in the area
are underemployed.
' >
D.
Organization
8.
The Department of Industrial Promotion is responsible for
the promotion and development of cottage industries in Thailand.
This. Department has been functioning since 1948, although only
recently a more systematic approach has been made in the promotion
and development of traditional village industries. In particular,
the Cottage Industries Section has sent out technical staff to
investigate the production, techniques of- existing traditional village industries and to suggest new techniques of production with
a view to increasing their productivity and upgrading the quality
standard of their products. In addition, a market study for the
products of specific traditional village industry is concurrently
undertaken. The type of traditional village industries which the
Department has rendered technical assistance are s
(a
pottery;
(b
bamboo basketry.;
(c
rattan works;
(d
hide curing and leather tanning;
(e
handloom weaving including handloom ;jacquards;
(f
dyeing of hard and soft fibers;
(g
handmade paper making;
(h
blacksmithy.
9.
In addition, in the area of artistic crafts, the Department has operated a Bangkok Handicraft Workshop, a production-eumtraining workshop, which maintains a large number of personnel to
manufacture many artistic articles such as ladies handbags, slippers,
artistic rugs and carpets, etc. This group of personnel acts as
instructors for the three-month training course organized twice a
year by the Workshop. The participants attending this training
course have been sent from various government agencies such as the
Vocational Education Department, the Public Welfare Department,
the Mobile Development Unit and the Community Development Department.
10.
Aside from the above-mentioned, the Department operates
a retail shop, similar to a handicraft emporium, called "Karayanaphand" which sells locally as well as export products of handicraft industries. Recently, more attention has been given to the
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- 4 export of handicraft products by Narayanaphand. Export showroom
of Narayanaphand has recently been completely constructed in the
same, premises.
11.
Another government agency keenly interested in the promotion of cottage industry as a means of raising additional income
for the villagers is the Community Development Department. Most
of the time, request is made to the Department of Industrial Promotion to make a study to identify potential cottage industry in a
certain area or to introduce new method of production to existing
cottage industries. Also, on their own initiative, the Department
has tried to encourage the villagers, particularly women and children to utilize their free time. For example, in a province in the
Nort-eastern part of Thailand, where there was an abundance of
kenaf, a training program on kenaf handbag making was conducted by
the CD way workers who were trained at the Bangkok Handicraft Workshop. Besides, sericulture, handloom weaving, mat weaving, earthenware manufacturing and cement jar making have been introduced to
the villagers by the CD workers.
12.
Cooperative movement in Thailand has not met with any
success as one would expect partly because of the lack of proper
cooperation education. There are only three producers* cooperatives in the whole country, namely Arunyik Knife Producers' Cooperative at Ayudhia, Bamboo Basketry Producers' Cooperative at
Rajburi and Umbrella Producers' Cooperative in Chiengmai. The
first cooperative has altogether 154 members. It is located in an
area where there are around 320 households manufacturing household
knives by hand forging. It should be noted that only half of the
total producers belong to this producers' cooperative and the rest
will normally deal with the middlemen whose action has always been
destructive to the cooperative movement. The second and the third
cooperative mentioned above have around 160 and 250 members at
present.
E.
Government Policy
13.
The Government's policy toward handicrafts is at present
uncertain and fluid. One can find in the National Economic Development Plan that reference has been made regarding cottage industries.
For example, reference was made in the policies and objectives in
industrial development contained in the National Economic Development Plan 1961-1966 (Second Phase 1 1964-1966) as follows :
" To promote and assist small-scale industries and cottage
industries by provision of technical and extension services, and
by creating and finding markets for their products. The aim is
to build these cottage industries into a base for the future de- .
velopment of medium and large-scale industries5'.
14.
However, no cottage industries development project as
such has been listed in the Plan as development projects and no
budget appropriations have been made with the exception of 2.93
million baht (US$ 145,000) allocated for the project.called "Marketing" service for Thai Handicrafts during the years 1964-1966" .
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- 5 Most of the budget for technical and extension services have been
allocated to the Department of Industrial Promotion under ^administrative budget" (not.a development project budget) which is too
suc.ll for the task to be performed. To..give an indication of the
amount of budget allocated for the Cottage Industries Section, the
table below gives an annual budget in baht andpUSS allocated to
the Section for the fiscal years 1964 to 1968.TH . M I v^ar-o
iisca_L xears
1964
1965
1966
1967
1968
Budget allocated to the
Department of Industrial Promotion
t h @ p r o m o t i o n o f cottage
fQV
industries (in Baht)
166,800
236,000
287,300
343,820
594,200
15.
It can be seen from the above table that the annual budget for the promotion of cottage industry has increased fourfold
within the period of 5 years. This indicates that the government
is attaching more and more importance to the promotion of cottage
industries, especially in the sensitive areas or the Communist
infested areas.
16.
With regard to credit facilities for village industries
artistic crafts and servicing crafts, the Krung Thai Bank, a government-owned commercial bank, gives loan to small-scale industries where as the Loan Office for Small Industry Development of
the Department of Industrial Promotion, established in 1963, is
responsible for processing loan applications for Bank. Actually,
the fund of 10 million baht was annually allocated to the Department which in turn lends this fund to the Bank at the rate of interest of 3 percent.
17.
The Bank matches an equal sum for the participation in
this program to provide credit facilities for small-scale industries.
The Bank is responsible for evaluating collateral as well as look
after the repayment of capital and the payment of interest. The
interest charged by the Bank is 9 percent per annum which is comparatively lower than the prevailing rate in the market.
18.
Since the establishment of the Loan Office, loans have
been granted to handicrafts up to 31 July 1968 as follows ••;
Thai fiscal year is from October to September.
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- 6 -
Type of
industries
1.
2.
Village industries
Artistic crafts
3. . Servicing crafts
F.
Number of
borrowers
16
Total
amount of loans
granted
Bant
(US $
843,000
42,400)
Remarks
11 are located in
the rural areas
22
Bant
(US $
3,762,000
188,000)
Of this 2,730,000
was given in
Chiengmai, a
pocket of artistic
crafts in Thailand
21
Baht
(US $
5,697,500
235,000)
Of this, 6 are
located in the
provincial areas
Protective Measures
19.
The Government has no intention of providing any protective measures to protect rural industries or village industries.
Many articles produced by cottage industries are being replaced by
products of local manufacturing industries. For example, pottery
made by villagers are being replaced by aluminumware produced by
local metal industries. The Government has not taken so far any
step.in protecting village industries, although the Department of
Industrial Promotion, in sending their extension personnel to give
technical assistance to cottage industries, have tried to channel
the villager's effort into manufacturing artistic products so as to
avoid competition they may have from the larger industries.
II.
A.
ARTISTIC CRAFTS
Problems of Development
20.
Aside from what have been stated under the same item of
village industries, it should be noted that most of the persons
engaged in artistic crafts do not have sufficient knowledge in the
design of their artistic products to suit the market requirement
for their products, especially in the case of export articles.
Another difficulty this crafts normally encounters is. that when a
large order is placed for one or more items of their production,
they are usually unable to supply these products in time to meet
the customer's requirement. If they could, most of the time, the
quality of this artistic products will vary so much that they are
unacceptable to the customers.
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- 7 B.
Organization
21.
The organizational set up for the promotion and development of artistic crafts has already been mentioned in item (d) on
page 2.
22.
So far as marketing organization is concerned, expansion
of Narayanaphand has been considered to cope with other marketing
functions on behalf of the entrepreneurs engaged in artistic craft
production. An expert has been requested from UNIDO under the SIS
program to consider the possibility of expanding "Narayanaphand" to
become a full-flodged marketing organization for handicraft products.
C.
Government Policy
23.
No specific government policy has been issued for artistic crafts.
III.
SERVICING CRAFTS
A.
Modern Servicing Crafts
(1)
Scope of Activities
24.
Servicing crafts will always come into being when a
certain community, either situated in the metropolitan areas or in
the rural areas, has been established.These service crafts normally
repair household appliances or household durables. Some deal with
the repair of transport equipment or factory equipment, depending
on their location.
25.
Recently, with the expansion of some air.bases, in Thailand
to accomodate the American troops such as those in Ubol, Udorn,
and Nakorn Phanom in the North Eastern part of Thailand, existing
servicing crafts have modernised themselves by -purchasing new
modem machine tools and equipment for repairing various spare
parts required by those air bases. Contracts have been obtained
by these modern servicing crafts to undertake various maintenance
works at the air bases. In addition, these modern servicing crafts
normally produce spare parts which are not available and cannot
be delivered to the bases on time, Thus the Vietnam war has created
an impact in the development of modern servicing crafts in Thailand.
In fact, the Government has not done anything to stimulate the
growth of this sector.
(2) Problems of Development
26.
The first problem that will come to the attention of any
person interested in the growing role of this sector is shortage of
skilled people. They are.required for operating new and modern
machine tools and equipment. Due to the urgency of the business
dealings, skilled personnel will have to be taken from the metropolitan areas to operate those new equipment . In general, although
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- 8 there are some trade schools in the area, graduates of such trade
schools do not have enough working experience to cope with such
modern equipment, since such modern machine tools are not available
at those trade schools.
27.
The second problem is that the public authorities have
not foreseen the development of this modern servicing craft due to
the expansion of the air bases. Thus, planning of development
program tailored for this particular sector has not thought of.
Consequently, trade schools in the area have not been upgraded and
the public authorities have not been able to assist these modern
servicing crafts in any way with the exception of granting loans.
(3) Possible Lines of Action
28.
Some possible lines of. action which could be undertaken
by the Government are suggested as follows s
(a)
a comprehensive manpower requirement survey for this modern
servicing craft sector should be undertaken to forecast the
manpower requirement for every major province where the expansion of air bases or sea bases have been indicated by the
Defence Department5
(b)
the staff of existing vocational training schools or trade
schools in the area where a forecast for manpower requirement
has indicated an additional need for skilled personnel in
different trades should be strengthened. The machinery and
equipment required for the production of additional skilled
personnel should be provided by the Government agency concerned
according to the urgency of the situation^
(c) program for upgrading vocational instructors in those areas
should be planned. Fellowships should be given to those
vocational instructors to undergo upgrading training courses
in the training institutions and private industrial firms
both within and outside the country;
(d)
common facility services should be established in such areas
to make available to the servicing crafts costly machinery
and equipment which they could not purchase. Moreover, these
common facility services could be used as an additional
training ground for upgrading skilled craftsmen in the areas.
B.
Rural Servicing Crafts
(1)
Scope of Activities
29.
In the rural areas, many blacksmiths* will be found. They
either organize themselves in a group of five or six people to
manufacture knives and agricultural implements or repair used
knives or used agricultural implements. Their methods of works
as well as their equipment are rather primitive. Haw materials
used are mostly scraps consisted mainly of broken truck or bus
semi-elliptical springs.
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- 9 30.
There are also craftsmen engaged in manufacture of
cement products such as calverts for road buildings, water drainage,
big water jar and kitchen stoves. They use masonry cement mixed
with limestone and pour them in a rows of Calvert moulds. These
cement products are widely used throughout the rural areas.
(2) Problems of Development
31.
Technological guidance for rural smiths is
since they do not have proper tools and equipment for
day work. Aside from this, working methods will have
as the present way of doing work will never give rise
badly needed
their day-toto be changed
in productivity.
32.
In caseswhere there are many groups of rural smiths in
the same area, common facility services, providing central heat
treatment and grinding as well as finish operations, should be .
made available.
33.
Financial assistance is also badly needed in practically
every rural servicing crafts for both modernization of the workshop
and working capital required for storing raw materials and finished
products.
(3) Possible Lines of Action
34.
Some possible lines of action which could be undertaken
are suggested as follows :
(a)
since most of the rural servicing crafts are located in far
away from the center of each province, not easily accessible
to outsiders, attempt should be made by the officers in charge
of assisting these rural servicing crafts to reach there. A
mobile demonstration van equipped with various modern tools
and equipment should be sent to these various pockets of servicing crafts to show them how a small tool and equipment could
be used in their activities which can give rise in productivity.
However, this van should be especially designed to cope with
the existing pathways or roads which lead to the area where •
these servicing crafts are located. Before sending in this
mobile van, special attention should be made as to which type
of tools and equipment should be introduced;
(b) in case that there are many artisans operating the same type
of service crafts, the government agency concerned should
consider establishing rural workshops as a place for upgrading
skills of rural artisans and wherever possible for providing
workshop facilities for artisans as common facility services.
- 25.4 -
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IV.' GENERAL ASPECTS
A.
Research
(1)
Technological Research.
35.
In Thailand, there are only two established technological
research institutions, namely the Department of Science and the
Applied Scientific Research Corporation. Universities have not
been included here because of minimal research being undertaken at
the present time.3 These two institutions are concentrating their
efforts mostly in the field of indigineous raw material utilization
and agricultural produce processing. None of these institutions are
engaged in undertaking technological research and testing of improved tools and equipment of handicrafts.
36.
Only recently, a new Ceramic Research and Training
Center has been established under the Department of Science. A
modern ceramic plant, operated previously by the Department of
Industrial Promotion as a public enterprise, has been transferred
to the Department of Science to house this Ceramic Research and
Training Center. Thus far, two training courses on ceramic production have been carried out by the Center, but no research
activities have yet been undertaken.
(2) Economic Research
37.
At present, no comprehensive economic research has been
undertaken with the objectives of developing and promoting handicrafts in Thailand. Step has now been.taken by the Department of
Industrial Promotion to request UNDP and ILO to send an expert to
study existing handicrafts in Thailand with a view to identifying
the particular type of cottage industries that should be developed
and transferred into modern small-scale industries. The manner of
encouragement and inducement which should be given to select village
industries to effect such transformation is requested to be indicated by the expert.
38.
It is also hoped that the expert will review the efforts
of the Department of Industrial Promotion in the field of cottage
industry development and will recommend a comprehensive and integrated prograoime for such transformation.
J
For more details, see a UNESCO report on "Science Policy and
Research Organization in Thailand1' by Wm. D. Van Vorst, Serial No.
525/BMS. RD/SP Paris, March 1963.
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- 11 39.
Techno-economic surveys are being -undertaken by the staff
of the Department of Industrial Promotion whenever other government
agencies^ such as the Community Development Department, Department
of Public Welfare and the Mobile Development Unit of the Ministry
of Defence, request the Department of Industrial Promotion to identify the possibility of promoting and developing cottage industries
in a certain area. A mixed team of economists, technologists and
engineers will be sent to undertake such techno-economic surveys.
As a result, a plan will be made as how best could cottage industries in those areas be promoted and developed.
40.
Technicians will be sent later to organize training
courses for the rural artisans. After the completion of training
courses, another evaluation will normally be sent to measure the
impact of such training courses and especially to estimate the
monetary benefits obtained by the rural artisans after attending
such training courses.
B.
Training
41.
The Department of Industrial Promotion has organized and
undertaken two main types of training courses for handicrafts in
Thailand.
42.
The first one deals with traditional village industries
or rural industries in the up-country areas. For this particular
case, extension officers and instructors will be sent to an area
where, according to the recommendations of previous techno-economic
survey, organized training is needed either for introducing new
kind of trades or for upgrading skill of existing artisans and for
introducing new and modern tools and equipment so as to raise their
quality standards and give rise in productivity. For example, in
the field of bamboo basketry and rattan works, initial appreciation
course of the duration of 30 to 45 days will be given to existing
artisans or people who wish to learn this new trade. Selection will
be made during this training course for prospective artisans, who
can attend a more comprehensive course in rattan works or bamboo
basketry. An advanced training course of the duration of 90 days
will then be given in continuation of the appreciation course.
Other training courses include pottery, brick making, silk reeling,
handloom and jacquard weaving, blacksmithy, hide curing and leather
tanning, silk and cotton dyeing. The duration of such training
courses will be tailored according to the need and requirement as
well as skills of those artisans in each respective rural areas.
43.
The second type of training course deals more specifically with artistic crafts. The Bangkok Handicraft Workshop organizes
two training courses annually in Bangkok for vocational instructors,
community development workers and government officials from various
government agencies. The duration of this training course is
normally three months. The participants will be given instructions
regarding the manufacture of handbags and slippers using banana
fibers kenaf and sisals, decorative rugs from jute, kenaf and
wools and other embroidery works.
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- 12 44.
In order to be able to undertake such, training courses
mentioned above, the Department has to build up a number of handicraft specialists, some of them are being hired on a temporary
basis and the rest are permanent staff of the Department. Since
there are many types of handicrafts which need to be developed,
development efforts cannot sometimes be fulfilled for lack of
qualified and trained instructors and artisans. For example,there
is a felt need for the development of local wood carving industries
in the Northern part of Thailand but the Department cannot develop
such handicrafts for lack of trained personnel to give adequate
technical assistance to such handicrafts.
45.
There is a real need for upgrading the skills and
knowledge of trainers or instructors in Thailand. At present,
international training facilities in this field are not available
for any specific country to send their handicraft specialists and
instructors for advanced training. The ILO can play an important
role in encouraging various countries to make available their
training facilities to participants from foreign countries and
finding ways and means in seeking cooperation of various countries
in the same region to establish a regional training institute for
the promotion and development of handicraft.
*
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