National Strategy Thailand 4.0 - a New Era for Thai Economy

Highlights:

• Thailand 4.0, the government’s ambitious 20-year strategy to accelerate the country’s development to a more advanced level, became a formal and certified national policy.
• The new move towards Thailand 4.0 is designed to promote and support innovation, creativity, research and development, higher technologies, and green technologies.
• It aims to achieve economic prosperity, better social well-being, human values, and environmental protection.

What’s Thailand 4.0?:

Prior Thailand jumped into the 4.0 era; there was Thailand 1.0 based on the agriculture sector, Thailand 2.0 focused on light industry and then moved to the heavy industry of Thailand 3.0 which caught the nation in a common income trap, with growing income inequality and imbalanced development. Currently, the government has launched a 20-year National Strategic Plan to strengthen the local economy through "Thailand 4.0" model.

Source: Aware, Technology for solutions and businesses

Thailand 4.0 is an economic model that aims to pull the Thai economy out of various economic challenges to “High-Income, Innovative and Dynamic Country.” Critical parts of Thailand 4.0 emphasize on Value-Based Economy which is driven by innovation, technology, and creativity. The model aims to increase Research and Development (“R&D”) expenditure to 4% of GDP, expects to boost economic growth rate to full capacity rate of 5-6% within five years, and raise national income per capita to 15,000 USD by 2032.

Source: Aware, Technology for solutions and businesses

The focus industries are a next-generation automotive, intelligent electronics, advanced agriculture and biotechnology, food processing, medical, tourism, digital, robotics, logistics, biofuels and biochemicals.

Furthermore, the Eastern Economic Corridor (EEC) will help attract the FDI into Thailand. The government creates those zone for green living with smart, environmentally friendly cities and towns.

Industry, infrastructure, and investment, however, tend to be more headlines. In Rayong province, the government is renovating and expanding U-Tapao airport into the third main international airport. This development will support the flagship Eastern Economic Corridor (EEC), and aviation flows throughout Asia. Multinational corporations such as Rolls Royce and Air Bus are partnering with THAI Airways in the development of an advanced aircraft maintenance, repair and overhaul facility at U-Tapao that should ensure the Kingdom is the premier center for aviation in the region.

Aviation and aerospace are among the ten Thailand 4.0 industries that the government and the Board of Investment are supporting with special incentives and privileges to draw investors.

Protecting the environment is integral to both security and sustainability. Education and human resource development are also necessary. Policymakers say these development will lead to reducing social and economic disparities.

Thailand 4.0 Infographic:

Source: Deputy Ministry of Commerce