Thailand's competitiveness

National Strategic Goals & Competitive Strategy | Sustainable development strategy | Social development, poverty solving, and quality of life upgrade strategy | National security, foreign affairs, and judicial system administrative strategy | Public administration

National Strategic Goals

Ø Sustainable economic growth
Ø Poverty reduction
Ø Better quality of life
Ø Sound public administration

Budgetary allocation framework for FY 2004 includes the following agendas:

  1. Competitiveness strategy

    • Strategic objectives

      • Increase productivity of manufacturing and service sector
      • Enlarge market share of Thai exports in the world market from 0.9% in 2002 to no less than 1.0% in 2004.
      • Exports growth not to fall below 5%
      • Revenue from tourism of both Thai and foreign travelers to exceed 3% and 8% respectively.

    • Measures for budget allocation

    • 1.1. Agricultural development

      • 1.1.1. Lay the foundation for Thailand to become producer of agricultural products with competitive edge and international standard quality assurance e.g. Kitchen of the World and Flower Center of Asia
      • 1.1.2. Promote efficient production process, increase productivity, lower the cost of production, support biotechnological development research, post-harvest technology and packaging
      • 1.1.3. Increase value added in products, maintain quality assurance and safety of agricultural products with emphasis on every stage of production process
      • 1.1.4. Adjust and develop the quality of factors of production
      • 1.1.5. Increase the capability of workforce in marketing, management, asset acquisition in rural areas as well as promote effective corporation in agricultural sector

    • 1.2. Support the tasks under Royal initiative project

      • 1.2.1. Develop manufacturing sector as well as small and medium enterprises (SMEs)
      • 1.2.2. Prepare structural adjustment strategy for manufacturing sector, develop competitive edge in manufacturing production, monitor production process and ensure safety standard to minimize pollution and trade barriers
      • 1.2.3. Promote investment abroad to extend market network and encourage investment of efficient and marketable domestic industry with emphasis on 3 types of products namely global niche, regional and domestic industry, and basic and strategic industry.
      • 1.2.4. Develop production efficiency, increase productivity, lower cost of production, upgrade the standard and design of products, establish trademark and Thai brand names, undergo extensive product inspection and provide quality assurance, heighten the standard of raw materials, and raise workforce’s capability
      • 1.2.5. Strengthen industry-specific institutions
      • 1.2.6. Promote new businesses with emphasis on SMEs; develop market for manufacturing products by concentrating on industry clustering and linkages; enhance technological transfer, increase productivity; and obtain benefits from ICT

    • 1.3. Upgrade trade and services

      • 1.3.1. Develop revenue generating capacity and enlarge the market for trade and services with potential both domestically and internationally
      • 1.3.2. Ensure fair competition between retail and wholesale businesses; develop businesses in service sector; enhance e-business, rules and regulations of e-commerce as well as consumer protection; and monitor the fairness of consumer price, producer price, and agricultural product price Promote SMEs to incorporate themselves into trade registration
      • 1.3.3. system; construct a reliable database of various businesses so they can employ their assets as loan collaterals for business expansions

    • 1.4. Exports promotion

      • 1.4.1. Promote aggressive export campaign; endorse export products that utilize domestic raw materials; find new markets; preserve existing market; encourage trading in credit system; and facilitate the representatives of international trade
      • 1.4.2. Facilitate exporters via one-stop service, communication information services; and utilize e-commerce for exports products
      • 1.4.3. Enhance the efficiency of medium-size private firm exporters to be able to compete internationally

    • 1.5. Tourism campaign

      • 1.5.1. Promote tourism industry with emphasis on new attractions; create new activities that would enhance spending and duration of stay of visitors; develop Thai tourism functions; and prepare event marketing
      • 1.5.2. Re-innovate quality of tourist sights especially nationally acclaimed places with a focus on the role of Thai citizens to manage and to continuously promote tourism; establish tourism network with neighboring countries to enhance economic cooperation and tourism industry while maintaining Thailand as central district of tourism in the region
      • 1.5.3. Heighten the quality and standard of services with emphasis on safety of tourists; eliminate exploitation of tourists; prevent accidents and preserve wellbeing of tourists; facilitate the entry of tourists; and enhance the capability of personnel in tourism industry to international standard

    • 1.6. Promote R&D and innovation to enhance country’s competitiveness

      • 1.6.1. Enhance the country’s competitiveness through knowledge-base learning by promoting innovation, intellectual property rights, and laying foundation for R&D; encourage public and private sector cooperation and provide services to private sector to employ applied knowledge particularly in quality and standard of products

    • 1.7. Foster Thailand’s role at international forum

      • 1.7.1. Maintain sustainable socio-economic development; elevate Thailand’s position in negotiations; and increase the country’s role in related international rules and regulations settings
      • 1.7.2. Increase bargaining power and international competitiveness with emphasis on ASEAN countries; and encourage Thailand to be the regional center in various fields as well as promote bilateral trade agreements.

    • 1.8. Adjust financial and fiscal system to support country’s competitiveness

      • 1.8.1. Modify the structure of tax system and upgrade tax collection agencies to provide efficient services, and eliminate complications by employing computers; and develop equity market for fund raising and investment purposes

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  1. Sustainable development strategy

    • Strategic objectives

      • Strong grass-root economy
      • Possess strength in science and technology
      • Increase competitiveness in information and communication technology industry
      • Renovated and efficient basic infrastructure
      • Protection of natural resources
      • Efficient use of energy

    • Measures for budget allocation

    • 2.1. Renovate and develop grass-root economy

      • 2.1.1. Enhance efficiency of Village Fund and develop One Tambon One Product (OTOP) through knowledge transfer of production process
      • 2.1.2. Promote SMEs, rural businesses; savings of rural population and credit issuance of rural businesses
      • 2.1.3. Develop property rights system in order to assist asset capitalization scheme, especially for the low-income households

    • 2.2. Strengthen science and technology

      • 2.2.1. Undergo research and development and knowledge transfer in science and technology
      • 2.2.2. Promote science communication with the general public
      • 2.2.3. Utilize scientific methods to enhance knowledge and technology in rural areas

    • 2.3. Develop information and communication technology system

      • 2.3.1. Promote and develop information and communication technology industry and telecommunication services
      • 2.3.2. Develop basic infrastructure of information technology industry for private sector and establish internet network in every tambon

    • 2.4. Increase the efficiency and upgrade the quality of transportation system and basic infrastructure

      • 2.4.1. Reduce transportation and traveling cost alongside upgrade waterway and rail transportation system
      • 2.4.2. Improve and maintain inland transportation system

    • 2.5. Preserve natural resources and environment

      • 2.5.1. Enhance the optimal usage of natural resources by balancing the use and preservation of natural resources as foundation for socio-economic development
      • 2.5.2. Preserve natural resources and environment through participation from the public and related agencies
      • 2.5.3. Provide services in environmental issues; implement measures and eliminate pollution, reduce toxic waste from its origin, and encourage recycling
      • 2.5.4. Build knowledge; underline the importance of research; develop technology for natural resources and environmental management; enhance the database network that provide news and information services; and improve geographical information system

    • 2.6. Develop and promote efficient energy usage

      • 2.6.1. Inspect, develop and find optimal domestic and international energy sources
      • 2.6.2. Promote efficient energy usage and nourish R&D in alternative energy sources for commercial purpose
      • 2.6.3. Strengthen cooperation with neighboring countries for synchronized development and efficient use of energy

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  1. Social development, poverty solving, and quality of life upgrade strategy

    • Strategic objectives

      • Poverty reduction, provide job opportunities and create access to capital for low-income households and small agricultural producers as well as granting them with better access to basic public services.
      • Unemployment reduction and increase capability of workforce
      • Establish Thailand as a knowledge-based society
      • Thai citizens to remain in good health and ensure equitable access to health insurance programme for people of all ages and social classes
      • Life and wealth security for all Thai citizens
      • Alleviate the issue of prohibited drugs

    • Measures for budget allocation

    • 3.1. Resolve poverty problem

      • 3.1.1. Create more potential and opportunity for the poor

        • 3.1.1.1. Create learning system and encourage community forum to open more opportunity to gain access to new technologies and innovations for rural people.
        • 3.1.1.2. Encourage the formation the poor and under privileged group to a local organization and network for development. Also encourage local administrative to takes part in solving the problem

      • 3.1.2. Resolve farmer’s debt problem; promote debt repayment suspension for small scale farmer and rehabilitation for project joiners

      • 3.1.3. Encourage the measure to avoid the lost of farmed land.

      • 3.1.4. Social work and welfare

        • 3.1.4.1. Develop social services which are consistent to the need of under privileged group
        • 3.1.4.2. Build up various job training to suite local needs, level of disability, and potential of the poor
        • 3.1.4.3. Manage to have social welfare that conform to community problem, target groups, the under privileged, by create standard community database
        • 3.1.4.4. Develop social protection system network which focus on unregistered workforce and farmers

      • 3.1.5. Utilities and infrastructure for the poor

        • 3.1.5.1. Expand basic infrastructure to the target poverty areas and improve living quality in slum area
        • 3.1.5.2. Develop housing project to lessen housing expense burden for people with low income and the poor

    • 3.2. Unemployment diminution and labor force development

      • 3.2.1. Improve potential and skills to the poor and unskilled workforce; create efficient job searching system and alien workforce management
      • 3.2.2. Construct a well-organized workforce management system by elevating workforce standard, Thai workforce protection, workforce security, and workforce relation system

    • 3.3. Education system reform and social knowledge enrichment

      • 3.3.1. Improve teaching and learning system by using new curriculum which integrate knowledge of country development significant subjects
      • 3.3.2. Develop the society that encourage creativity of people in order to prepare Thai society for being the knowledge-based, live time learning and the R&D in response with government critical policies and country development strategies
      • 3.3.3. Encourage Thai people to read, learn different languages through medias, as well as the translation of references and textbooks for easy access to new knowledge
      • 3.3.4. Promote the use of IT for education especially the development f ICT system
      • 3.3.5. Generate resource and skill mapping in each university responsibility area in order to form the knowledge set that necessary for each area. Also, accelerate the development of scientific and technology personnel which are necessary to country development.
      • 3.3.6. Encourage resource sharing among every education institution in the area
      • 3.3.7. Improve the development of education personnel
      • 3.3.8. Increase knowledge in society by create more learning source as well as the transfer of technology from research and development

    • 3.4. Culture and recreation

      • 3.4.1. Promote and develop religious; sustain Thai culture and tradition; learn and exchange good culture and tradition with other countries
      • 3.4.2. Restore, maintain, and develop religious places, historical sites, artifacts, museum, library and cultural heritage to be the knowledge and income sources.
      • 3.4.3. Build up appreciation of being Thai and Thai identity as well as encourage the education on national and local history
      • 3.4.4. Elevating moral by develop religious personnel that knowledgeable in teaching systematically through all types of medias
      • 3.4.5. Promote sport and recreation activities at community, national and international level

    • 3.5. Public health and health insurance

      • 3.5.1. Improve health development, protection and control of diseases, and consumer health protection
      • 3.5.2. Educate people on the consumption of food, healthcare products and healthy habits. Promote regular exercising activities in both central and rural areas.
      • 3.5.3. Develop health information system, especially on healthcare products, medicine use, medical technologies, and price of health related products and services, with easy access for everyone.
      • 3.5.4. Improve health insurance and public health management system to be efficient, up to standard and equitable
      • 3.5.5. Create personnel; promote researches on medical and public health; develop registration and protection system for medicine patents; develop alternative medication and local health related products as well as the use of the products in health services.

    • 3.6. Live and property safeties and social restructuring

      • 3.6.1. Improve the crime prevention, investigation and suppression system; Develop up-to-date international crime database system with systematic networking
      • 3.6.2. Develop system for prevent, warn, and diminish damage from natural disaster
      • 3.6.3. Persuade community and private sector to take part in developing accident and disaster preparation system in public places and workplaces
      • 3.6.4. Elevating social moral and discipline

    • 3.7. Drug problem protection and resolution

      • 3.7.1. Strictly control and suppress drug traders and producers
      • 3.7.2. Encourage families, schools, temples, communities, defense institution, government and private sector to take part in prevention, curing and resolution of drug problems
      • 3.7.3. Coordinate with other countries to control and eliminate production and international trading network of drugs

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  1. National security, foreign affairs, and judicial system administrative strategy

    • Strategic objectives

      • Readiness of Thai military to effectively safeguard and develop the country
      • National ‘s interests to be protected and lessen international disputes
      • Confidence of the Thai people toward jurisdiction system

    • Measures for budget allocation

    • 4.1. Enhance national security

      • 4.1.1. Encourage efficient military preparation for protection of sovereignty and interests of the country
      • 4.1.2. Facilitate on providing security and honor to royal family
      • 4.1.3. Promote militarily and defense related industry research
      • 4.1.4. Military is to participate in country development, social services, rescue work, as well as job and skill training for retiring military personnel to be ready for labor market.

    • 4.2. Enhance international affairs

      • 4.2.1. Restore and tighten relationship and coordination with neighboring countries for development; promoting Asia Cooperation Dialogue (ACD); proceed aggressive bilateral and multilateral diplomatic actions for keeping peace and finding international resolutions
      • 4.2.2. Enhance, protect and maintain rights and interests of the country, Thai private sector, Thai labor, and Thai people abroad

    • 4.3. Jurisdiction system and process development

      • 4.3.1. Promote impartial, fast, and equitable jurisdiction system; accelerate the process of civil cases, bankruptcy, business restoration, debtor and collateral enforcement including the prevention and fighting against money laundry
      • 4.3.2. Improve, restructure and utilize information technologies; jurisdiction personnel development; research and development of laws and jurisdiction system; development of forensic science to the international level
      • 4.3.3. Improve the ability in organized and networked economic crime investigation
      • 4.3.4. Enhance people understanding in regulations, rights, and liberty; create balance between citizen rights, liberty and enforcement by the government; concentrate on enhancing children and youths protection in jurisdiction process
      • 4.3.5. Create system for rehabilitate, correction, and assist the felons

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  1. Public administration

    • Strategic objectives

      • Increase efficiency in public sector as well as appropriately adjust its size and structure
      • Establish an efficient and integrated inspection system
      • Extend the capacity of revenue collection at both central and local government agencies and support for transparent decentralization programme.

    • Measures for budget allocation

    • 5.1. Good governance

      • 5.1.1. To enhance efficiency in public governance, to promote information technology system (e-government) for management and public services. Moreover, to support and develop procurement process by using electronic devices (e-procurement)
      • 5.1.2. To stimulate capability of the management team for more understanding in newer management administration process.
      • 5.1.3. To enlarge ability in integrated management at the province level and local administrative level
      • 5.1.4. To increase potential in integrated management administration at the foreign country.
      • 5.1.5. To protect and suppress dishonesty behavior.

    • 5.2. Developing political system

      • 5.2.1. To encourage community, non-governmental organization, media, for more understanding in Thai democracy.
      • 5.2.2. To enhance efficiency of elections monitoring, facilitating system and management

    • 5.3. General management and law

      • 5.3.1. To support local administrative level plays their role in public service.Decentralize personnel from the central administrative to local administrative level. And set the pattern and steps to distribute authority to the local.
      • 5.3.2. To support performance in general public management.
      • 5.3.3. To support royal family business.

    • 5.4. To speed up financial management, fiscal and debt of the public sector.

      • 5.4.1. Developing the revenue system, managing the expense and asset of the public sector.
      • 5.4.2. To develop budget allocation system and monitor the evaluation process.
      • 5.4.3. To develop debt management system.

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The interpretations and conclusions given represent those of the authors. They do not necessarily reflect the view of the Royal Thai Government, its departments or other related institutions.


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