THAILAND 4.0 AND ECONOMIC COOPERATION WITH CHINA
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1 THAILAND 4.0 AND ECONOMIC COOPERATION WITH CHINA SOMSAK TAMBUNLERTCHAI, PH.D. The Sixth Thai-Chinese Strategic Research Seminar Xiamen, China November 8-9, 2017
2 Outline Introduction Thailand 4.0 China s Belt and Road Initiative Thailand-China Economic Relations How Cooperation with China Can Contribute to Thailand 4.0 Concluding Remarks
3 Thailand 4.0 Objectives: Security, Prosperity, Sustainability Policy: Move towards value and innovation-based economy
4 Thailand 1.0 Before 1960 Agriculture and cottage industries Thailand 2.0 Since 1960 Industrialization based mainly on import-substitution and light industries Thailand 3.0 Around Present Export-oriented and machinery-related industries Thailand 4.0 New model for economic development to gear the country towards longterm growth and prosperity, well-being and sustainability. Transforming all sectors of the economy to innovative- and value-based industries.
5 Thailand 4.0 Agriculture: From traditional farming to smart farming Manufacturing: "Smart factories" utilizing modern technology Services: High value-added services
6 Thailand 4.0 : Target Industries First S-curve: 1.Next generation automotive 2.Smart electronics 3.Affluent, medical and wellness tourism 4.Agriculture and biotechnology 5.Food for the future New S-curve: 1.Robotics 2.Aviation and logistics 3.Biofuel and petrochemicals 4.Digital industries 5.Medical hub
7 Thailand 4.0 : Policy Measures Promotion of R&D and innovation Promotion of domestic and foreign investment Creation of special economic zones (SEZs) Enhancing technological and human-resource capabilities Taking advantage of Thailand's geographical location to connect with other countries and regions of the world
8 Thailand 4.0 : Policy Measures Special Economic Zones (SEZs) SEZs along the border Eastern Economic Corridor(EEC): Extension of the Eastern Seaboard Development Program implemented in the 1980s EEC Development Plan Promoting investment in industries with advanced technology Upgrading infrastructures: airport, deep-sea port, railways, highways, industrial estates, etc.
9 Thailand 4.0 : Policy Measures Parallel Plans 20 years National Strategic Plan ( ) 12th National Economic and Social Development Plan ( ) Thailand 4.0 policies are commendable, but much effort is needed for successful implementation
10 Thailand 4.0 : Constraints and Challenges Limitations on technology and manpower capabilities Existence of large numbers of small enterprises and farms with low technology and innovation capabilities Past experiences: lack of concrete measures, continuity, and coordination in policy implementation
11 China s Belt and Road Initiative (BRI) Two major segments: Silk Road Economic Belt 21st Century Maritime Silk Road Benefits: Promotion of economic growth, trade and investment, infrastructures building, connectivity and cultural exchange; enhancing better policy cooperation and coordination among countries in different parts of the world
12 Other Related Initiatives by China Asian Infrastructure Investment Bank(AIIB) Silk Road Fund New Development Bank by BRICS States All these initiatives are helpful in promoting world economic growth and development
13 BRI : Benefits to China More productive utilization of accumulated foreignexchange reserves to build infrastructures, railways and other construction projects overseas Help to secure raw materials and to find market outlets for China's products, while also benefit other countries' economic development
14 BRI and the Marshall Plan There are differences, but Both are programs for win-win international cooperation Nonetheless, suspicions and criticisms on BRI are not lacking
15 Thailand-China Economic Relations China is Thailand's major trade and investment partner and the largest source of tourist arrivals There are numerous official cooperation projects, some through ASEAN, GMS platforms
16 How Cooperation with China Can Contribute to Thailand 4.0 Trade, investment, tourism and economic growth Industrial upgrading and technology transfer Enhanced connectivity
17 How Cooperation with China Can Contribute to Thailand 4.0 Learn from China Study China's economic reform experiences e.g. rural and urban development, upgrading industrial structure Cooperation in science and technology, human resource development, alternative energy development, and environment protection China 13th Five-Year Plan and Made in China 2025 policies are worth particular attention
18 Concluding Remarks How to study China? Learn from China's experiences More in depth analysis of Thailand-China relations Study China by province and region Following China's development trends Thailand needs to create more China experts and better coordinate studies on China. NRCT can play a role
19 Thank You For Your Attention! Somsak Tambunlertchai, Ph.D. Contact Info: Faculty of Economics, Thammasat University, Bangkok, Thailand
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