Thailand

Thailand Overview

Prior to the 1960s the Thai economy was based primarily on the production of rice and other foods and goods for domestic consumption and of rice, rubber, teak, and tin for export. The government then began to promote a shift from agriculture to the manufacture of textiles, consumer goods, and, eventually, electronic components for export. By the 1980s Thailand had embarked on a solid path of industrialization; even the economic crisis of the late 20th century only slowed, but did not halt, this economic transformation.

From 1963 until 1997 the Thai economy was one of the fastest growing in the world. The adoption of the first national development plan in 1963 spurred the shift from agriculture to industry. During the 1980s and ’90s numerous export-oriented industries emerged, primarily in the areas surrounding Bangkok. The large-scale migration of young women and men from rural communities to the greater Bangkok area drained labour from the countryside. Those continuing to pursue agriculture turned increasingly to machines to make up for the shortage of workers, bringing about a shift in the rural economy from subsistence to market-oriented agriculture. Most of the investment in new technology in the agricultural sector came from the savings of family members who had gone to work in the cities.

Export-oriented industries and financial institutions, especially those created in the 1980s and ’90s, have relied heavily on foreign capital, making the Thai economy more vulnerable to changes in global economic conditions. In 1997 a sudden and rapid decline in the value of the Thai currency, the baht, triggered a financial crisis that quickly spread to other Asian countries. The crisis not only exposed the overdependence of Thailand on foreign capital but also focused attention on the consequences of unequal development and on weaknesses in several sectors of the economy. By the beginning of the 21st century, the economy had begun to recover, but the economic crisis and the emergence of a more democratic political order caused economic policies to become the object of intense public debate. A coup in September 2006 rekindled uncertainties about the future of the Thai economy. While announcing, rescinding, and subsequently reimposing various restrictions on foreign investment, the interim government promoted the king’s philosophy of “sufficiency economy,” an ideal emphasizing self-reliance and moderation in consumption, without rejecting capitalist investment.

Source: britannica.com

Landscape and growth

Global State of the Market Report

In 2022, the Advisory Board Centre mapped professionals currently serving on Advisory Boards. This assessment identified over 1,500 professionals on Advisory Boards in Thailand.

Advisory Board Landscape

The assessment has identified low numbers of Advisory Board professionals in Thailand. Minimal participation in the market may indicate:

  • That Advisory Board structures engaged in the country are informal in nature;
  • Advisory Boards are referred as a different name, such as committees, councils or think tanks;
  • Traditional sourcing of advice is more customary for Thailand’s current business environment; or
  • There is a language barrier stemming from the search for Advisory Board professionals being in English.

Future Growth Opportunities

As an emerging sector in Thailand, connection and collaboration with the global Advisor community will present strong future growth opportunities. Further, focusing on key market sectors – automotive, tourism and manufacturing – as well as acknowledging start-up and emerging industries are essential. It will also be important for Advisory Board professionals in market to be credentialed to best practice and ethics as this sector grows over time.

Key Statistics

Population 70.27 million
GDP $505,947 USD million
Labour Force by occupation
Agriculture31.43%
Industry22.84%
Services45.73%
GDP by sector
Agriculture8.53%
Industry34.78%
Services56.69%
Import $295,718 USD million
Export $294,506 USD million
Global ease of doing business rank 26th
Global ease of doing business score 77.44/100