Thailand's Suphajee Details Four-Pillar Plan: Diversification, SMEs, Value Creation

Addressing Trade Uncertainty

Deputy Prime Minister and Commerce Minister Suphajee Suthumpun presented Thailand's four strategic priorities for sustained economic growth. Her plan addresses increasing global trade uncertainty, driven by geopolitics, technology shifts, trade barriers, and evolving supply chains. Ms Suthumpun spoke at an anniversary forum on Friday.

Thailand must adapt to an increasingly multipolar global economy by pursuing an open, diversified, and balanced trade policy. She identified three key gaps for Thailand to address: a value gap, a market gap, and a participation gap for smaller businesses.

Market Diversification and Value Creation

Thailand aims to diversify its export markets, moving beyond two major partners that currently account for about one-third of its export value. The country needs to accelerate access to new markets and strengthen cooperation through free trade agreements (FTAs), trade missions, and negotiations.

Ms Suthumpun also stressed shifting from simply increasing export volume to creating greater value. This involves leveraging branding, intellectual property, design, standards, and unique experiences.

Production should become more market-driven, asking "What does the world need?" Thailand possesses strengths in agriculture, food, manufacturing, tourism, healthcare, culture, and the creative economy to build upon.

Empowering SMEs and Building Trust

Empowering small and medium-sized enterprises (SMEs) forms a crucial priority. SMEs contribute approximately 35% of Thailand's gross domestic product (GDP) but only about 12% of total export value, a share that has remained largely unchanged.

The government must support entrepreneurs by streamlining business processes and providing better access to resources, knowledge, and skills. Building resilience and trust with trading partners is also vital amidst rising trade barriers.

Ms Suthumpun stated that trust is one of the most valuable assets in economic relations, helping Thailand elevate cooperation into higher-level partnerships. Thailand's strategic location in Asia offers potential as a key regional trade and logistics hub.