Thailand's Secondary Cities Key to High-Income Goal

Thailand can accelerate its move towards high-income status by developing the economic potential of its secondary cities, a new World Bank report says.

The report, Thailand Cities of the Future: Urban Foundations for a High-Income Economy, says urban centres generated about 89% of Thailand's GDP growth between 2010 and 2020. To reach high-income status by 2037, the country would need average annual GDP per capita growth of about 5.4% over the coming decades.

Bangkok remains the national anchor

Bangkok will remain central to the economy, but the World Bank says other cities need stronger and complementary roles if Thailand is to close the growth gap.

"Building Thailand's cities of the future is not simply an urban planning agenda. It is an agenda for growth, competitiveness, jobs, and resilience," said Stephen N. Ndegwa, division director for Thailand and Myanmar at the World Bank.

"Unlocking the potential of secondary cities as stronger engines of productivity and investments with economic roles that complement Bangkok will be central to Thailand's next phase of growth."

Bangkok generates close to half of national output and is nearly 27 times larger than Chiang Mai, Thailand's second-largest city. While that concentration has supported national development, the report says its costs are increasing.

Congestion alone costs between 7% and 10% of Bangkok's Gross Regional Product each year, while climate risks and pressure on infrastructure are also raising costs. Secondary cities have not yet achieved their full potential, it says.

Stronger links and targeted investment

The report follows the World Bank Group's Building Thailand's Future Today flagship report, launched at the Bangkok Business Summit 2026. That report identified four areas for action: industries of the future, firms of the future, the future workforce and cities of the future.

Thailand Cities of the Future sets out reforms and investment needed to make urban areas stronger drivers of growth. It calls for Bangkok to act as the national anchor, supported by secondary cities with complementary economic roles.

According to the report, that network would rely on complementary specialisation, productive density, strong connectivity and institutions, and resilient infrastructure.

"The key is to invest more strategically," said Assoc. Prof. Dr. Poon Thiengburanathum, deputy director for planning and strategic management at the Programme Management Unit for Area Based Development (PMUA), under the Research and Innovation Acceleration Agency for Competitiveness and Area Development (RCAD).

"Thailand can get more from its urban investments by concentrating complementary infrastructure and services in places where they reinforce a city's economic strengths, rather than spreading resources too thinly."

The report proposes three parallel tracks: reinforcing Bangkok's productive role; improving urban foundations across Thai cities; and preparing selected secondary cities for larger economic roles. It says this will require infrastructure, land use, resilience and financing to be aligned with local strengths, alongside stronger institutions able to coordinate across agencies and levels of government.

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25 September 2026

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