Thailand’s New Economic Model: Thailand 4.0
The Thai government is working to implement the new economic model “Thailand 4.0”, which will raise the country to a new level in the global economy.
The new economic model is aimed at the movement of Thailand towards a holistic-oriented economy based on innovations and achievements of science and technology. More attention will be paid to the service sector and the development of international transport networks.
What is Thailand 4.0?
Image by Thailand Business News
- The Thailand 1.0 initiative has focused on the agricultural sector.
- The Thailand 2.0 initiative has been focused around light industry; The country used cheap labor and local natural resources.
- The Thailand 3.0 initiative focused on more complex industries to attract foreign investment, which made Thailand a successful manufacturing hub for exports. However, during the period of such an economic model, the country was faced with the so-called “middle income trap”, growing inequality and unbalanced development. These problems prompted the government to turn Thailand’s economic structure into Thailand 4.0.
Thailand 4.0 is an economic model that will allow Thailand to overcome the main problems by turning the country into an “innovative economy” with a stronger and more balanced economic base.
Transforming to Thailand 4.0, the government seeks to make changes in three main areas:
- Specialization in the production of goods with higher added value.
- The development of human capital, technology, innovation and creative thinking.
- The development of the service sector.
Which industries are key to the new strategy?
The Thailand 4.0 development plan focuses on several industries that can be divided into two segments:
– Existing industrial sectors that need to be developed further, adding value to them through advanced technologies: agriculture and food, tourism, automotive, electricity and electronics, and petrochemistry.
– New industries that need development: automation and robotics, aerospace technology, bioenergy and biochemicals, the digital industry, medicine and health care.
One example of a new concept is “Thailand will work to add value in creating an environmentally friendly agricultural industry, and not for pure agriculture, as in previous eras.”
According to a 20-year national strategic plan, the government plans to strengthen the local economy and further link Thailand with various world markets based on the principles of “economic sufficiency” in cooperation with the public, private sectors and academic institutions.
Based on the potential of Thailand, as part of ASEAN, and rich economic opportunities in the region, the country has every chance of achieving new goals.
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