Several industries remain unprepared and lack the supporting industries for the upcoming Asean Economic Community (AEC) slated for 2015, says the government's planning agency.
Steel and plastics industries, for instance, have high export potential but are short of raw materials, noted a study by the National Economic and Social Development Board (NESDB) that was recently released at a workshop chaired by Prime Minister Yingluck Shinawatra.
The study also pointed to jewellery as another industry facing shortages of raw materials and skilled labour, especially in design and cutting.
Rice and rubber also have export potential, but productivity is a key concern, with the report suggesting Thailand needs to invest more in research and development.
Language skills, meanwhile, are needed for workers in the tourism and services sectors.
Poor infrastructure, especially rail services and inadequate facilities at key border checkpoints such as Nong Khai, Sadao, Padang Besar, Aranyaprathet and Mae Sot, as well as at airports and deep sea ports, make Thailand less competitive against certain countries.
The study also found customs procedures and border trade regulation improvements were somewhat delayed.
Thailand's food security is also at risk as farmers have shifted to grow energy crops, noted the report.
The study showed actual technology transfers have yet to appear, while measures to promote investments abroad and R&D are a bit slow.
Government agencies also lack unity and synergies in management, it said.
Nonetheless, the study found there are still eight industries and two crops that are competitive and ready for regional integration. They comprise sugar, canned fruits and canned vegetables, frozen food, paper and printing, automotives and auto parts, houseware and office supplies, processed meat, cosmetics, and longan and durian.
The agency also proposed the government establish an Asean investment information centre.