A new report from the global research and consultancy firm Oxford Business Group (OBG) shines a spotlight on the Thailand 4.0 initiative and the development of the Eastern Economic Corridor (EEC), which together have helped foreign investment levels to recover.
The Report: Thailand 2018 examines the country's efforts to escape the middle-income trap by promoting advanced manufacturing and high-value services. It offers detailed coverage of the emerging "S-curve" industries that have been identified as priorities for expansion, such as robotics and digital technologies, alongside traditional sectors that are enjoying a revival under the Thailand 4.0 programme, including food and automotive manufacturing.
The report is available in print and online.
Having already established itself as a regional leader in information technology, Thailand is pursuing further IT industry expansion by investing in innovation and related infrastructure. The report maps out the next phase of the country's plans, which include creating 100 smart cities nationwide and making the transition from 4G to 5G technology.
OBG also analyses the drive to upgrade infrastructure to improve productivity and attract high-value investments in the traditional industrial base along the Eastern Seaboard, as well as improving connectivity to regions that have been previously underserved.
In particular, it considers the key role that public-private partnerships are set to play in bringing projects to fruition, particularly in the EEC, which operates under its own incentive scheme laid out in the EEC Act.
It also explores the viability of transnational infrastructure projects undertaken in partnership with China, which has linked the high-speed China-Laos-Thailand rail project to its flagship Belt and Road Initiative.
With Thailand experiencing record tourist arrivals and exponential growth in the Chinese market in particular, the country is moving to broaden its tourism products and further develop luxury offerings. Segments that hold the potential for further development include meetings, incentives, conferences and exhibitions (Mice); wellness, honeymoons and medical tourism.
The Report: Thailand 2018 contains a contribution from Prime Minister Prayut Chan-o-cha, together with a detailed sector-by-sector guide for investors.
It also features a wide range of contributions from other high-profile personalities, including: Duangjai Asawachintachit, secretary-general of the Board of Investment; Kanit Sangsubhan, secretary-general of the EEC Office; Predee Daochai, chairman of the Thai Bankers' Association; Pierre Jaffre, president of Airbus Asia Pacific; and Anutin Charnvirakul, former president of Sino-Thai Construction Plc.
While the country struggled with falling levels of foreign investment in the aftermath of the 2014 military coup, new initiatives are clearly yielding results, with FDI commitments surpassing national targets in 2017, noted Oliver Cornock, OBG's editor-in-chief.
"Political uncertainty inevitably continues to weigh on Thailand, as the country prepares for a return to democratic rule, while other challenges, such as the US-China trade dispute, remain problematic," he said.
"The country's development strategies are moving forward at a good pace, signalling a positive outlook for the remainder of 2018 and beyond."
Patrick Cooke, OBG's regional editor for Asia, said the country's efforts to reignite investor interest came against a backdrop of rapid regional development and intense competition, which could bring further benefits.
"China's Belt and Road Initiative is set to reshape Southeast Asia, at a time when regional integration among the Asean members is also accelerating," he said.
"Although competition is fierce in the next-generation industries targeted under Thailand 4.0, the country has strong foundations and diverse strengths, which will stand it in good stead as its bids to transition into a high-income country."
The Report: Thailand 2018 has been produced in collaboration with the American Chamber of Commerce. Contributions have also been made by BDO Thailand, KT Zmico and Tilleke & Gibbins. It is available in print and online. See http://www.oxfordbusinessgroup.com/country-reports