Economy of Thailand

Thailand enjoys a strategic location right at the heart of Asia, home to what is regarded today as the largest growing economic market. It serves as a gateway to Southeast Asia and the Greater Mekong sub-region, where newly emerging markets offer great business potential.

Economically, the country of 65 million people is characterized by steady growth, reaching an impressive GDP of 6.7% in 2003, second only to China. Abundant natural resources and the availability of skillful workers help sustain economic confidence, resulting in the rapid growth of the country's industrial production.

With strong economic development and strong support industries, the country's industrial production has grown and diversified rapidly both in the long established and newly emerging industries. The government has emphasized 5 sectors: automotive, electronics and ICT, fashion, food and value-added services including entertainment, healthcare and tourism.

The current period of development in the Thai economy and politics began in the 1960s. During the time of Field Marshal Sarit Thanarat, Thailand drafted the first National Economic and Social Development Plan, covering a period of six years from 1961 to 1966, promoting the private sector, with particular reference to industry and commerce. The Government would operate only in those areas where the private sector was not equipped, such as the development of infrastructure necessary for the support and facilitation of trade and industries in the private sector.

Thailand has good infrastructure ready for foreign investors. Improved and modernized transportation facilities, as well as upgraded communications and IT networks, ensure optimum business and living conditions. State-of-the-art industrial estates boast sophisticated facilities and superior services.

The country's well-defined investment policies focus on liberalization and encourage free trade. Foreign investments, especially those that aim to promote skills enhancement, technology and innovation are highly encouraged by the government. A 2004 survey of the UN commission for Trade and Development named Thailand the world's fourth most attractive nation for foreign direct investment.