Thailand Changing Perception of Economic Growth

This small piece of writing is for those Indians who regard Thailand as the cheaper version of European destinations for nightlife, boozing, sex life. The country is going to emerge unicorn destination and land of  innovation. 

The World Bank has recently called Thailand “one of the great development success stories with sustained strong growth and impressive poverty reduction” on its website.

During its biggest growth period from 1985-1995, during which the country posted an average 7% rise in growth domestic product annually, the Thai economy was driven by cheap labor and light industry such as electronic manufacturing and assembly. Construction was booming, and Thailand became the world’s top rice exporter and Southeast Asia’s largest auto producer.

In 2017, Thailand’s GDP was US$475.9 billion, registering growth of just under 4% from a year earlier, and was the 8th largest economy in Asia. During the pandemic time , Thailand also faced the slow motion in economy. The country is now posed to bounce back and to grab top notch position in ASEAN economies. 

To achieve this, the country’s government and business leaders have set in motion a transformation plan known as Thailand 4.0, the next stage of long-term growth after progressing through export dependent 1.0 agriculture, 2.0 light manufacturing and 3.0 heavy industry. Thailand 4.0 will be characterized by a digitized integrated business and social system and an advanced infrastructure.

The plan emphasizes technological innovation and education, assisting digital entrepreneurs, boosting internet access and retraining workers through the Digital Economy Promotion Agency (DEPA). The government is also cooperating with small and midsize companies and large businesses to ensure that fast-changing industries, such as the financial and telecom sectors, are up to international standards.

A key component of Thailand 4.0 is the Eastern Economic Corridor (EEC), an area of more than 13,000 square kilometers straddling the three provinces of Chonburi, Rayong and Chachoengsao southeast of Bangkok. The government has earmarked US$45 billion to build extensive road, rail, aviation and shipping infrastructure and assist in developing so-called smart cities, which provide an efficient, self-contained environment for fostering production and innovation. Two smart cities in the region developed by Thai industrial estate developer Amata already generate more than 10% of the country’s GDP.

As well as linking to the south of Thailand and beyond to Malaysia and Singapore and bridging the South China Sea and the Bay of Bengal, the new transport infrastructure will also connect with China’s ambitious Belt and Road Initiative that will link China with Southeast Asia, India, Russia, Europe and Central Asia, opening unprecedented access to new markets.

To attract more skilled  people Smart Visa is  specially designed to attract highly skilled manpower, investors, executives and startups entrepreneurs wishing to work or invest in the following targeted industries in Thailand. Smart Visa holders will be granted maximum 4-year permission to stay, exemption from the work permit requirement and entitled to additional privileges. Thailand has also   approved  new smart visas that would allow ‘digital nomads’ to work legally in the Kingdom, a bold move in response to the changing ways in which people work in the digital age.

Over the long term Thailand will continue to move forward and grow, and with this ambitious 4.0 plan, it is set to become a competitive developed country. Success will require cooperation between public and private sectors, as well as attracting considerable domestic and foreign investment.

Thailand’s major corporate players recognize this and are adapting their strategies and operations to help build Thailand’s future in line with the 4.0 vision, expanding their presence both within Thailand and abroad.