The service sector will propose strategic plans to the government in a move to have Thailand well prepared for regional economic integration.
Pongsak Assakul, chairman of the Thai Chamber of Commerce, said a development plan is essential for sectors such as tourism, construction, logistics and information technology that are expected to face stiff competition once the Asean Economic Community (AEC) is implemented in 2016.
Without prudent preparation and strategic planning, Thailand will lose its market share in those sectors, he said.
The service sector is one of the driving forces of economic growth, accounting for 45% of gross domestic product (GDP), even higher than manufacturing (43%).
Revenue from the service sector is expected to amount to 50-60% of GDP after the AEC launches.
"The government needs to accelerate the strengthening of the service sector, particularly human capital," said Mr Pongsak. "Language development, labour skills, occupational standards, technology transfer and educational reform to supply graduates that match demand from the private sector are a must to boost Thailand's competitiveness to cope with future competition."
Mr Pongsak said the service sector still lacks a direct supervisory body that helps to address problems, while existing regulations lag behind changing situations and technology. A shortage of skilled labour persists.
The public and private sectors should seek closer cooperation and integration in the service sector's development.
"Thailand now has no choice but to transform its economy into a value-added one in order to avoid the middle-income trap," said Mr Pongsak.
Thailand has an ageing society and sluggish workforce growth, while per capita income remains stagnant.
Chatchai Mongkolvisadhkaiwon, chairman of the Board of Trade's trade and services committee, said Thai businesses are expected to lose their market share in sectors such as logistics to stronger rivals such as Singapore and Malaysia if the government has no strategic plans for the private sector.
"Construction is the area where we are potentially the strongest in the region," he said. "But the key hurdles remain a labour shortage, unfair contracts, language skills, research and development and, above all, corruption."