The National Economic and Social Development Board (NESDB) of Thailand has presented the draft 12th National Economic and Social Development Plan to provide directions for a 20-year national strategy to reach developed nation status.
NESDB Secretary-General Porametee Vimolsiri said the draft plan, which has adopted the theme “Sufficiency Economy Philosophy,” will pave the way for the launch of specific development programs in line with the 20-year development thrust, said a report by the National News Bureau of Thailand.
The board aims to drive Thailand to ultimately achieve developed country status in keeping with the Sufficiency Economy Philosophy. This entails increasing the average yearly per capital income to US$13,000 and annual GDP growth to 5% to 6%.
The new economic plan also aims to develop 15 new industrial cities and areas, realize THB1 trillion (US$29 billion) in income from the tourism industry, see a 40% increase in forest areas, expand irrigation areas by 350,000 rai (with each rai equal to about 1,600 square meters) of farmland, and hike capacity for community waste management by 75%.
Under the new blueprint, the military capacity is to be enhanced, along with efforts toward closer military cooperation with neighboring countries. Other goals seek to promote good governance and transparency in government, infrastructure development, adoption of innovation and technology, higher environmental awareness, and balanced development across Thailand.
As this developed, Thai Deputy Prime Minister Somkid Jatusripitak said the government is expediting economic reforms to strengthen the foundations of the country.
The official revealed that reforms will involve expediting investments in mega infrastructure projects, promoting domestic spending, and consolidating grassroots economies through various measures, such as the government’s “Village Fund” and an entrepreneurial scheme for farmers.
Director of the National Village and Urban Community Fund Natee Klipthong said around THB204 billion in Village Fund has already been allocated to communities across the country to strengthen the small and medium enterprises sector.
Industry 4.0 ambitions
For its part, the Ministry of Industry said the Thai industrial sector is being prepared to transition into Industry 4.0.
Industry Minister Atchaka Sibunruang said Thailand is currently undergoing various changes in its economic structure as the country strives to transform into Thailand 4.0.
As the industrial sector is a key mechanism for driving the economy forward, it should be developed into Industry 4.0 version by upgrading innovation, creativity, technology, and culture to enhance the sector’s competitiveness, she said.
She added that the ministry will encourage entrepreneurs to conduct increased innovation and research so they can manufacture new high-quality products at more competitive costs.
Q2 growth outlook
Meanwhile, the Fiscal Policy Office (FPO) has maintained this year’s economic growth forecast at 3.3% following positive indications in public spending and tourism expansion.
FPO Director Kritsada Chinawicharana said Thailand’s economic growth in the second half of 2016 would show improvement over the first half, estimating the growth to be between 3.0% and 3.6%, owing mainly to the government’s policy to fast-track spending.
As for tourism, the first six months of the year saw more than 16.6 million foreign tourists stream into Thailand, an increase of 12% year-on-year. Meanwhile, private consumption will likely increase by 2.3%.
The FPO also predicts that investment in the private sector will overtake last year’s by 2.6%. However, this year’s exports are likely to contract by 1.9% due to the global economic slowdown.
Photo: Mark Fischer
