Prime Minister Prayut Chan-o-cha has said Thailand must do more to bolster trade competitiveness in key commodity products.
The value of agricultural produce must be lifted and more factories should use locally procured raw materials, he said, adding that the country must conduct better assessments of its economic strengths and weaknesses.
Speaking in his weekly televised address, the premier said the Board of Investment will have granted investments worth 800 billion baht in 2014.
But the country is pursuing the production of goods without knowing how to sell them, Gen Prayut said.
He argued that relying too much on the private sector is not the solution and said he has assigned relevant agencies to set up markets for the direct sale of some products. "In the future we might have more markets for fish and other agricultural items," he said.
The premier said the country's competitiveness in farming can be maintained through improved exports. He said India, for example, is showing an interest in Thai fruit, but there have been problems with marketing and trade agreements.
"We need to improve on these issues and open timely negotiations. Then, we can access the market," the premier said.
Gen Prayut said the government cannot dictate the world trading environment, so the country must improve the quality of products, so they meet standards that are acceptable to overseas customers.
"We need to determine the areas we excel in and build on them, in order to foster new innovations that are in demand by the market," he said.
But he warned the 300-baht daily wage is high compared with neighbouring countries, which hurts the country's trade competitiveness.
The prime minister said some of Thailand's main exports are under threat. He cited the example of Hom Mali rice, once hailed as the best rice in the world.
"Many countries have been trying to cultivate Hom Mali rice to compete with us. Our neighbours have been making progress to the point of matching or almost matching our quality, while having lower production costs. This is important. Their products are cheaper than ours," he said.
"We need to raise the bar of our products. We need to retain the uniqueness of our Hom Mali rice," he said.
Rubber is also facing increasingly stiff competition.
"We need to process the rubber with innovations. We are exploring the markets for very large tyres and aircraft tyres. Companies have pledged to develop these products within half a year," he said.