OTOP (One Tambon One Product) Movements in Thailand

Presented by: Miss Nisakorn Jungjaroentham

Department of Industrial Promotion

Ministry of Industry Thailand

1.   Background

In 2001, Thai government adopted Japan’s principle, well-known as One Village One product (OVOP) which was started in Oita prefecture in 1969 by the initiation of Mr.MorihikoHiramatsu, the governor of Oita. In that time, the Sufficient Economy Philosophy has been initiative since HisMajesty King Bhumibol Adulyadej had been brought up in the speech throughout 68 years of the thrones.

The OTOP concept isregarded about the usage ofusing capacity of local communities, producing from local wisdom, and applying raw materials locally availableat concept will assist to create community business, to reduce migration of rural people, and to encourage the local communities not to their communities.OTOP product does not mean only physical product but it also mean concerning about natural resources and environment conservation, Thai local wisdom preservative tourism, art and culture, norm, knowledge exchange for producing OTOP quality product.

As declared to the Thai parliamentin 2001, the OTOPimplementation has the following objectives:

1.  To create jobs and increase income to the communities.
2. To strengthen communities towards self-reliance;
3.  To promote local wisdom, use of local materials and local as main resources;
4. To promote human resource development and capacity-cultivation of people in communities;
5. To promote creative thinking of communities in product development in live with local lifestyle and objectives.

The Sufficiency Economy Philosophy framework comprisesthree components and two underlying conditions First, Sufficiency entails three components: Moderation, Reasonableness, and requirement for a Self immunity system, i.e. the ability to cope with shocks from internal and external changes.Second, two underlying conditions necessary to achieve.

Sufficiency are Knowledge andMorality. ‘Sufficiency Economy’ requires breadth and thoroughness in planning,carefulness in applying knowledge, and the implementation of those plans. As for theMoral/Ethical condition, ‘Sufficiency Economy’ enforces the conditions that people areto possess -- honesty and integrity -- while conducting their lives with perseverance,harmlessness and generosity.

2.  Organizational Structure

By virtue of the Prime Minister’s regulation on the National OTOP administrative committee 2001 (NOAC) and amendment in 2002 was established in order to implement the OTOP project/program in line with the policy. A Deputy Prime Minister was assigned by the Prime Minister to be the Chairman of the NOAC. The ministers and representative of all related parties are committees. The Perm anent Secretary of Prime Minister’s officer is committee and secretary and the director General of the Community Development Department is committee and assistant secretary. Main duties of NOAC are establishing policy, setting strategic, cooperative with all related parties, support local Administrative Agencies to join OTOP, and supporting Community Enterprise work.

Later on, there are driving mechanisms including 6 sub-committees and ad hoc working groups to undertake activities in cooperation of public and private sector, and academia of several fields, such as:

1.    Marketing Promotion Subcommittee

2.   Food and Beverage Development Subcommittee

3.   Fabric and Apparel Development Subcommittee

4.   Decorative items and Souvenirs  Development Subcommittee

5.   Herbal Product Development Subcommittee

6.   Regional One Tambon One Product Subcommittee (at regional and Province )

3.  Important implementation of OTOP Promotion

The Thai Government has been rearrange, improve and develop the various program for OTOP production Through NOAC and Sub committees The office of the permanent Secretary of The Prime Minister’s office has cooperated with other government agencies in order to integrate all activities and organize as the operational plan for each fiscal year such as

3.1.                    OTOP product Champion

Currently, NOAC has performed OTOP Product Champion Project, assigned The Minister of Interior as the chairman of the project,the objectives, of this project consist of providing opportunity for local product be developed in quality, and standardization for expanding via selection of best OTOP product from provincial, regional, and nation level. Furthermore, creation of the local link-global reach is amast.

           

The OTOP product Champion of 2012 was organized with 10,090 products sent to take part in the contest of which the largest group of 2,762 products or 27.38 % was appraised at the level of 3 star while 3,448 products or 34.18 % was appraised at the level of 4 star 1,628 products or 16.14 % was appraised at the level of 5 star.

Community Product Standards

In 2003, Thai Industrial standards Institute, Ministry of Industry set up Thai Community product Standard (TCPs) and mark to serve as qualification requirements for the product. In addition, consultation is provided to support.

3.2.                   Ps Development Program

The government of Thailand has been supporting the OTOP development related with 3Ps (People, Product, and Process) by technical assistance/experts in quality control, product or package design, education and training, case study and consultation. This program has been set up by 4 subcommittee (Food and Beverage Development Subcommittee,Fabric and Apparel Development Subcommittee, decorative items and Souvenirs Development Subcommittee and Herbal Product Development Subcommittee)

3.3          Marketing Promotion

1.      OTOP midyear and OTOP City Trade Fair this major even of the country under the theme of Thai wisdom wore Organized to be an exhibition and trade fair for OTOP products which were selected as excellent OTOP or OTOP Product Champion (OPC) of 77 provinces sub districts nationwide.

2.     Establishing outlets for OTOP products including outlets in central “OTOP in the City”, regional areas.

3.     Setting up OTOP kiosks, shelves, and corners in department stores shops gas station and airport.

4.     Organizing trade fairs consisting of more domestic and international trade fairs of local and oversea events.

3.4          OTOP Village Champion (OVC)

Implemented in 2006, the project of OTOP Village Champion contest was based on the concept that OTOP products, as part of locality’s identity culture, tradition and way of life, they could be linked with tourism and related services.

                  

The OVC contest was composed of 4 categories with criteria as follows;

1.      Community Excellence (P-people)

2.     Product Development Excellence (P-product)

3.     Tourist Destination Excellence (P-place)

4.     Uniqueness Preservation Excellence (P-preserve)

3.5          Network Building for Communities’ strength

Entrepreneur Network started in 2004, OTOP producer network was implemented. By promoting and supporting the establishment of the OTOP NetworkCommittees at the level of district, province, region, and country. Network of Community Knowledge was promoted to create the linkages of communities’ body of knowledge.ie, local educational Institutes, local agencies with special expertise, local intellectuals so that they could support one another.

4. Result of Implementation

1.      Economic Dimension.

Before commencing OTOP,people earned income from the sale of community-bases products in year 2001 with the amount of 215,549,534 Baht (us$ 6.74 million approximately,1 us$=32 Baht) after launching of the OTOP program in September 2001,people earned more income from the community-based product. The sale of year 2002 reached 16,837,140,742 Baht (us$526.16 million approximately) and the sale of year 2012 reached 4,112 billion Baht (us$ 131,584 billion approximately).

Moreover,OTOP program was a great help in creating jobs and occupations to communities of more than 22,762 villages nationwide as it created 36,236 OTOP producers and they were over 1,268260 employees, especially housewives and the OTOP members elders that enjoyed the increase of their household’s earnings.

2.     Social Dimension

People have greater sense of Thai values; cherish identity, culture, local wisdom, as turning to use more Thai product and consuming more communities-based products. Besides, people in communities are able to think/develop local wisdom, and usage of local materials and labor in developing community-based product. So, they will have a lot more chances to talk and confer and exchange their ideas such constructive atmosphere brought along good community relationship with excellent spirit of interdependence leading to the building of community networks.

3.     Environmental Dimension

People are aware of environmental issues and participate more in natural resources and environmental conservations.

4.     Development Dimension

The OTOP program create an integrative working approach, multilateral cooperation and coordinated effort not only among the government agencies but also among educational institute, private sector, local public sector and people to develop community-based products as prescribed in the goals and objectives of this program.

Key successful Factors

1. Effective mechanism system and strong integrative management of budget/work/human resource plans are observed by all government agencies
2. Provision for education, skills and quality as well as products development are channeled to communities with the aim of helping them to be able to perform individual thinking and action.
3. Network of Communities are very strong and create the linkages of communities’ body of knowledge,i.e. local educational institutes, local agencies with special expertise and local intellectuals.
4. Co-working among the public agencies both in central and local, private sector, educational institutes and people in the communities.