Thailand 4.0 Policy to Transform the Thai Economy

Deputy Commerce Minister Suvit Maesincee has given a policy briefing on Thailand 4.0 to a gathering of 58 directors of Thai Trade Centers in various countries. The policy will lead to the restructuring of the Thai economy.

He pointed out that the global economic situation has changed significantly. The service trade has continued to grow and Thailand should push for further development of service trade. Thailand is moving toward an innovation-driven economy, under the Thailand 4.0 policy, through "Pracharat,” or the "Public-Private-People Partnership” mechanism. The results of the implementation of this policy are expected to be seen clearly in the next four to five years.

Mr. Suvit also talked about Thailand 4.0 at a press briefing, organized by the Foreign Office of the Government Public Relations Department (PRD) on 8 September 2016 in Bangkok. Participating in this event were members of the foreign media, diplomatic corps, and international organizations. The objective was to create a better understanding of this policy, emphasized by the Thai government.

The Government is taking serious steps to move the country toward "Thailand 4.0,” which is a new economic model, aimed at pulling Thailand out of the middle-income trap and developing it as a high-income country.

From the past up to the present, Thailand has passed through three economic development models. In the first model, "Thailand 1.0,” emphasis was placed on the agricultural sector. The second model, "Thailand 2.0,” focused on light industries, which helped upgrade the country’s economy from the low-income to middle-income status. In the third model, "Thailand 3.0,” the country is currently emphasizing heavy industries for continued economic growth. During this period, Thailand has become stuck in the middle-income trap and faces disparities and imbalanced development.

Thailand 4.0 focuses on a value-based economy, as the country needs to deal effectively with disparities and the imbalance between the environment and society. Prime Minister General Prayut Chan-o-cha explained that Thailand 4.0 has three elements, which mark a significant change in the country’s economy and production.

The first element aims to enhance the country’s standing to become a high-income nation through developing it as a knowledge-based economy, with an emphasis on research and development, science and technology, creative thinking, and innovation. In the second element, Thailand will move toward an "inclusive society” with equitable access to the fruits of prosperity and development. The third element focuses on "sustainable growth and development,” in order to achieve economic growth and sustainable development without destroying the environment.

The Thailand 4.0 economic model will change the country’s traditional farming to smart farming, traditional SMEs to smart enterprises, and traditional services to high-value services.