October 9, 2025Oct 9 File photo for reference only Thailand's ambition to transition from a middle-income to a high-income nation by 2037 faces significant hurdles, as highlighted by the World Bank. To achieve this goal, the country must sustain an average GDP growth of 5% annually; however, the economy is projected to grow only by 2% this year. This stagnation poses challenges to escaping the "middle-income trap," a concern underscored by World Bank Country Director Melinda Good. Over the past decade, Thailand's structural transformation has stalled, with little progress toward higher value-added industries. Historically, Thailand evolved rapidly from an agriculture-based economy to an upper-middle-income country, but the engines of this past growth are now insufficient. The economy has not fully embraced technology and innovation-led growth, a critical factor for countries like South Korea that have successfully escaped the middle-income trap. Good points out that Thailand must leverage its geographical position, digital infrastructure, and the global reputation of its products to develop future industries such as Digital Services, Advanced & Green Manufacturing, and Agribusiness. Opening up the service sector to competition, as exemplified by Vietnam’s approach to foreign direct investment, could drive growth and new entrepreneurial opportunities. Simplifying approval processes for tech businesses and investing in critical infrastructure could create a conducive environment for innovation. Thailand’s education system and workforce skills need reform to adapt to a changing economic landscape. While the country has strong healthcare and basic education, it lacks advanced skills crucial for future economies. The World Bank emphasizes the importance of human capital development and decentralizing growth opportunities beyond Bangkok to foster inclusive growth. Looking forward, Thailand has an opportunity, especially with the upcoming 2025 election, to leverage political and economic stability to implement reforms. Prioritizing "Quick Wins," such as removing barriers to business entry and investment, could position Thailand as a regional digital hub. By reducing legal hurdles and fostering a supportive business environment, Thailand can attract high-value jobs and technologies, fueling future economic progress. Key Takeaways Thailand aims for high-income status by 2037, needing 5% GDP growth. Stagnation in structural transformation hinders economic progress. Reforms can reposition Thailand as a leader in digital and innovation sectors. Related Stories Thai tax tangle: Expats warned of new rules on overseas income Young Thais Save Little Amid Rising Costs and Limited Income Adapted by ASEAN Now from The Nation 2025-10-09
October 10, 2025Oct 10 Get rid of the all students must mentality. This will remove manu useless students (academically) from getting into the universities. The quality will increase.
October 11, 2025Oct 11 Thailand will not make it. Even though I like Thailand very much over a long period, I am not optimistic about it. Reasons way too long to list out.
October 11, 2025Oct 11 The other problem is that you have many very old men in decision-making positions that hold such positions until their last breath, everyone from university rectors to businessmen to politicians and senators etc. These types dislike change as if they hold their positions, then the can protect their wealth and power... progress or change are dirty words to them.
Create an account or sign in to comment