Reinvent Thailand plan targets B5.4tn from 7 industries

Reinvent Thailand, the government's new investment drive, aims to bring in an extra 5.4 trillion baht in revenue by 2030 from seven target industries, including tourism, health and wellness, cars and smart electronics. Finance Minister Ekniti Nitithanprapas outlined the targets on Monday, 9 November, according to the Bangkok Post.

Mr Ekniti spoke after meeting the Joint Standing Committee on Commerce, Industry and Banking, the main private-sector business group, along with representatives from each of the seven industries.

What the Reinvent Thailand plan wants to achieve

The minister set out three headline goals for 2030:

• Lift GDP growth above 3% a year.
• Raise Thailand's global competitiveness ranking to the top 20, from 26th now.
• Increase investment to 30% of GDP, from about 23% today.

Growth has been sluggish for several years, and recent forecasts have stayed below that 3% mark, as covered in our report on the latest Thailand GDP forecast.

Each industry must now put forward three "Quick Big Win" projects. Their plans will go to a joint meeting of government and private-sector leaders, chaired by the prime minister, on 2 December.

Mr Ekniti said the growth should be stronger and more inclusive, rather than limited to a few sectors or regions. That means training Thai workers in new skills and bringing small and medium-sized enterprises (SMEs) into the supply chains of new industries. He added that the world is looking for safe places to invest, and Thailand is in the spotlight and must take the chance.

Targets for each of the seven industries

Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI), gave the revenue goals for each sector:

• Health and wellness: 1.1 trillion baht, by expanding medical and wellness services abroad and developing Thai herbal products. Revenue from foreign patients should reach at least 100 billion baht a year.
• Creative economy: 970 billion baht, led by jewellery and content, higher intellectual property value and a push to make Thailand a global hub for raw gemstones.
• Agriculture and food processing: 860 billion baht from higher productivity, premium products and new high-value goods.
• Retail and trading: 800 billion baht in cumulative extra revenue, based on yearly sales growth of 200 billion baht, with imported and local goods required to meet Thai Industrial Standards.
• Automotive: 640 billion baht, supporting several vehicle technologies and more local parts, with output goals of 1.95 million vehicles by 2030 and 2.5 million by 2038.
• Smart electronics: 500 billion baht, riding demand for AI and data centres, with operators encouraged to source at least half their components locally.
• Tourism: 500 billion baht by turning Thailand into a "global living destination", supported by a smart tourism data platform and joined-up international marketing.

What it means for Phuket

Two of the seven sectors matter most for Phuket. Tourism remains the island's main earner, and the plan's focus on longer stays and better data could shape how the province markets itself. Health and wellness is the biggest single target, and Phuket already has a growing base of international hospitals, spas and retreats, a trend we looked at in Thailand's wellness tourism boom.

The electronics goal also links to the wave of data centre interest in Thailand, including talks with Google that have been in the news recently, reported in Google's plans to grow its Thai investment.

What happens next

The details of the Quick Big Win projects have not yet been released. They are expected to be discussed at the 2 December meeting, after which the government may set out funding, incentives or rule changes for each sector. Business groups will be watching whether the plan comes with clear support for SMEs, which the minister said must not be left behind.

For the full report, see the Bangkok Post.

Image: The Bangkok skyline, the centre of business for the Reinvent Thailand investment drive. Photo by Sharon Hahn Darlin via Wikimedia Commons, licensed CC BY 2.0.