Both titans of industry and think tanks believe Thailand should accelerate its economic restructuring to improve its competitiveness, which faces challenges on many fronts.
Narit Therdsteerasukdi, deputy secretary-general of the Board of Investment, said Thailand's key challenges involve competitiveness in science and technology, its ageing demographics, the capability to maintain and expand export markets, and legal and bureaucracy reform.
"Thailand must use the Covid-19 crisis to accelerate the restructure of the Thai economy to take the next big step," he said.
"After the pandemic is controlled, Thailand is expected to see stiffer competition in attracting talented workers and anchoring investors in targeted industries. A tussle is also forecast in the export market, as competitors look to lure quality investment to rehabilitate their countries affected by the pandemic as well as build up their long-term competitiveness."
According to Mr Narit, over the past decade Thailand was quite slow in infrastructure and human resource development as well as free trade agreement (FTA) expansion. Other countries in the region rapidly geared up for such issues.
"Thailand desperately needs to upgrade to high technology, innovation and creativity industries, as well as build an ecosystem that supports new investments," he said. "The country can no longer compete in labour-intensive industries."
The slowdown caused by the crisis is an opportunity to restructure the Thai economy, spanning human resource development, legal amendments, bureaucratic reform, and building an ecosystem to support new investment and shift industry to a more digital and green economy, said Mr Narit.
He said investment incentives are insufficient to draw foreign investors, especially for tech-based companies looking for a new production base.
Instead, the vital factors for investors are the quality of the employee pool, infrastructure, logistics, the supply chain, rules and regulations, environmental standards, and FTAs with trade and investment partners.
Mr Narit said Thailand needs to focus on five urgent tasks to make the country a more attractive venue for investment. They comprise: human resource development to meet demand in the fields of high technology, digital and innovation; amending laws and regulations to facilitate foreign investment and immigration procedures; infrastructure development, notably in the government's flagship Eastern Economic Corridor (EEC) to create investor confidence; as many additional FTAs as possible; and supply chain development for new S-curve industries such as smart cars, smart electronics, the medical industry, aviation and robotics.
AI FOCUS
The tepid development of advanced technology sticks out in Thailand's declining competitiveness.
Tech experts said various technologies can be developed by people here, with education in schools and universities key to digital skill development.
Thanachart Numnonda, executive director of IMC Institute, a local research and tech training firm, said Thailand needs to emphasise technologies that have potential to grow, such as big data, artificial intelligence (AI), machine learning, natural language processing, blockchain and quantum computing.
"These emerging technologies will play an important role in many sectors. We have the talent to develop human resources in these fields," said Mr Thanachart.
Digital technology is popular in Thailand and insight can be gained through data analysis, he said. The country may benefit from exporting data analytics services, said Mr Thanachart.
"If we invest 10 billion baht in research on semiconductors or space technology, we might gain nothing as the amount is too small. However, the same amount invested in applications and AI could yield a meaningful result," he said.
Mr Thanachart insists there is enthusiasm amongst Thai youth about AI and blockchain technology in the country.
At the global level, the US is strong in AI research, while China is powerful in data and AI-based apps.
"Thailand can forge its own path for AI technology regarding analytics and apps," he said.
Michael Araneta, associate vice-president for IDC Financial Insights, a finance research unit of IDC, said Thailand's economic policies are geared towards the service sector.
"There is no doubt why we have fewer experts in advanced technologies," he said.
Vietnam has lower labour costs and a larger pool of technologically capable workers, said Mr Araneta.
Thailand can marry technology with the service sector by providing data as a service in specific industries, such as hospitality and healthcare, he said.
"Teaching data skills at schools and universities is key," said Mr Araneta.
BCG BOOSTER
While admitting Thailand's move towards high-tech industries has lost steam, the Federation of Thai Industries (FTI) believes the government can add lustre through its bio-, circular and green (BCG) economic model.
BCG promotes a wiser use of resources with a minimal impact on the environment and processes that add value to products and leftovers from manufacturing.
FTI vice-chairman Kriengkrai Thiennukul suggested the government blend BCG, part of a global trend towards sustainability, with EEC projects that seem to be struggling in finding backers.
The EEC scheme aims to build a high-tech industry hub with 12 targeted S-curve industries at its core in Chon Buri, Rayong and Chachoengsao provinces on the Eastern Seaboard.
"These projects are not seeing as much promotion after Deputy Prime Minister Somkid Jatusripitak resigned," said Mr Kriengkrai.
One consideration for the EEC is the Joe Biden administration in the US had the country rejoin the 2015 Paris Accord, a global effort to deal with climate change by reducing carbon emissions. Better environmental management should make Thailand a more attractive investment destination, he said.
"The government should encourage investors to develop BCG projects in the EEC. Many BCG projects are outside industrial estates in the EEC, though projects in the corridor are granted investment privileges," said Mr Kriengkrai.
He said stronger support is needed for BCG projects in key categories, such as agriculture and food, healthcare, energy, biochemistry and tourism.
Medical and wellness tourism are among the 12 targeted S-curve industries. Boon Vanasin, chairman of Thonburi Healthcare Group, believes Thailand has a chance to become a leader in healthcare businesses related to tourism.
Hospitals and hotels can join hands to seek new business opportunities in wellness, he said.
Dr Boon suggested Thailand needs to downsize its state agencies to make them more agile and better able to handle work.
OUTDATED STRUCTURE
According to the July article of KKP Research from Kiatnakin Phatra Financial Group, the main contributor to the Thai economy -- the export sector -- is losing its appeal in many respects.
While regional exports this year are expanding, in line with the global economic recovery, the Thai export sector is not growing as fast as its regional peers. More local investors are flocking to invest overseas while foreign direct investment in Thailand is declining, said the research unit.
KKP Research said one issue is the country's outdated economic structure, as development of the export sector over the past 25 years has been heavily concentrated on resource-based manufacturing and not the high-tech products that are increasingly in demand.
The article suggested the government promote improved export products, slash unfavourable business regulations and bolster related infrastructure to build up the country's economy.