Thailand is the second largest economy in ASEAN, and Thailand implements a liberal economic system, with a pro-business and pro-investment policy. Exports of agricultural and industrial products are the main drivers of Thailand's economy, with China and the United States being Thailand's two largest export partners.
From 1963 to 1997, Thailand was one of the fastest growing economies in the world. The Asian financial crisis in 1997 led to a sharp depreciation of the Thai baht, and the economic growth rate returned to a sluggish state for many years. After the financial crisis, Thailand's economy began to recover, the country's economic vitality gradually became active, inflation rate decreased, unemployment rate returned to normal levels, and domestic and foreign debt levels returned to acceptable levels.
In order to maintain stable economic growth, Thailand has introduced a number of reform measures in recent years, including infrastructure construction, increased investment, attracting foreign tourists, and boosting exports. In this context, Thailand** officially proposed the "Thailand 40" high value-added economic model. Prime Minister Prayut Chan-o-cha has described the idea of reforming Thailand's economic structure on several public occasions, saying that he wants to upgrade the Thai economy to 40, promote the application of more high-tech and innovative technologies, so that innovation can truly become the main driving force for Thailand's economic growth. The investment will be in 40 plays an important role in the reform, and the national investment policy will be tilted towards the five major areas of "core technology, talent, infrastructure, enterprises and target industries". The five major industries of the new generation of automobile manufacturing, intelligent electronics, high-end tourism and medical tourism, agriculture and biotechnology, and food deep processing are Thailand's original advantageous industries, and there are five major industries that are future industries, including industrial robots, aviation and logistics, bioenergy and biochemicals, digital economy, and medical centers. These 10 target industries will become a new engine for Thailand's economic development.
In 2015, Thailand** put forward the "Eastern Economic Corridor (EEC)" plan, hoping to attract foreign investment in the Eastern Economic Corridor area, so as to improve Thailand's industrial structure, enhance the country's comprehensive competitiveness, and enable Thailand to get out of the middle-income trap. The Eastern Economic Corridor (EEC) plans to connect Thailand's three regions of Chachoengsao, Chonburi and Rayong, and improve the region's high-speed rail, highway and other infrastructure while developing 10 major industries such as new automobiles, intelligent electronics, high-end agriculture and biotechnology, food processing, robotics, biomaterials and information technology. The EEC plan calls for US$44 billion between 2017 and 2021, of which Thailand** expects 80% to come from the private sector and the rest**. Thailand has actively expressed its hope to connect with the "Belt and Road" initiative, on the one hand, it hopes to attract more Chinese investors to invest in Thailand; On the other hand, it is connected to the big market of China through high-speed railways such as the Sino-Thai railway connecting Bangkok, Thailand to the north. On May 15, 2018, the Eastern Special Economic Zone Act was officially promulgated and implemented with the approval of His Royal Highness the 10th Emperor of Thailand.
In October 2016, the Thai Cabinet approved the fourth five-year development master plan for small and medium-sized enterprises (SMEs), according to which the proportion of SMEs in the gross national economy will increase to 50% in the next five years.
Thailand and China are working closely together to combine the strengths of Thailand's Eastern Economic Corridor with the Belt and Road Initiative. In 2017, the construction of the Thai Railway, the flagship project of the "Belt and Road" initiative, began. In recent years, Chinese companies have been investing more and more in Thailand, and the two sides have also established jointly developed industrial parks. The Belt and Road Initiative to create economic zones to facilitate ** is also under consideration.
Thailand** launched its national strategy in 2018 with the core goal of turning Thailand into a developed country by 2036.