Adopting technology is ‘key to survival for businesses in digital era’

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https://www.nationthailand.com/business/econ/40019786


Cooperation with stakeholders and the application of technology to business operations are key to survival in the digital era, logistics and e-commerce experts said at the “Trade Logistics Symposium 2022”.

Adopting technology is ‘key to survival for businesses in digital era’

The event, organised by the Department of International Trade Promotion, was held on September 2 and 3 at Lido Connect in downtown Bangkok and online via the Zoom application.

The event’s aim was to help personnel in logistics and related sectors exchange knowledge on the trends and directions of the industry so they can enhance their operations to meet international standards.

The event also aimed to boost the regional and international competitiveness of Thai logistics providers and international tour operators.

Up to 330 logistics providers, importers, exporters, students and other interested persons joined the event both online and in person.

The event comprised five discussions and one seminar, namely:

Cross border trade: Challenges of multi-transportation logistics

Kevin Zhang, founder and CEO of Philippines logistics provider Interluck, said Thailand plays a key role in cross-border trade in Southeast Asia as it is close to Myanmar, Laos, Cambodia, Vietnam, Malaysia and China.

However, he said, there are four challenges, namely change in customers’ expectations, customs delays, accurate and transparent landing cost calculation and global supply chain shortage.

Adopting technology is ‘key to survival for businesses in digital era’

He advised businesses to be transparent and use technology in business operations to boost efficiency and gain customer confidence.

“The key is to connect all segments in logistics in response to challenges and difficulties in cross-border trade,” he said.

Fulfilment and warehousing in 21st century

Nattapume Pavaratn, executive committee member and senior vice president at JWD InfoLogistics, said there were many pain points in doing business, including finding the right sales channel and managing operational costs.

Nattapume, who is also president of Warehouse Silo and Cold Storage Business Association, said consumers’ feeling toward brands poses a challenge to businesses.

Adopting technology is ‘key to survival for businesses in digital era’

To tackle these challenges, he advised entrepreneurs to improve warehouse management and be flexible so they can fulfil consumers’ demands effectively. He also advised small business owners to adopt technology as it can solve their pain points effectively.

“Even though technology can help entrepreneurs with warehouse management, they should pay attention to many factors, such as business size and investments,” he said.

He also asked entrepreneurs to pay attention to the environment as green economy is part of the 21st century’s megatrends, along with robotic automation, fintech, data-driven business and e-commerce.

Tips to start door-to-door services

Jamie Ko, director of regional public affairs and policy at Grab, said the digital economy has brought benefits and opportunities to entrepreneurs, especially when it comes to seeking customers.

Adopting technology is ‘key to survival for businesses in digital era’

Since Southeast Asia’s digital economy has grown significantly during the Covid-19 crisis, she said, entrepreneurs should collaborate with partners to gain maximum benefits from the digital economy.

“The question is how do we work together across all stakeholder groups to gain benefits from the digital economy,” she said.

E-commerce, cross-border impact on Asean logistics industry

Cecile Barayre-El Shami, chief of United Nations Conference on Trade and Development (UNCTAD)’s Digital Economy Capacity-Building Section, said many e-commerce platforms had benefited during the pandemic.

She explained that e-commerce sales have increased exponentially from US$2.5 trillion in 2019 to $3.9 trillion in 2021, with the top three platforms being Alibaba, Amazon and jd.com.

Adopting technology is ‘key to survival for businesses in digital era’

She went on to say that Asean countries are working on e-commerce development, focusing on cross-border trade, business facilitation and consumer satisfaction by 2025.

However, she added, many countries in the region are less ready to engage in and benefit from e-commerce, such as internet access, logistics, skills availability and government strategies.

To make digital trade more sustainable and inclusive, she said, Asean countries should develop affordable and reliable ICT connectivity, build digital skills to ensure everybody can access digital trade, and improve regulatory framework and measurement.

“E-commerce ecosystem needs cooperation from every sector, such as government, digital commission and non-governmental organisations,” she said.

Collaboration at the heart of e-commerce logistics

Behzad Goudarzian, logistics manager of the United Arab Emirates supply chain solutions provider ISS Global Forwarding, said collaboration is the heart of e-commerce logistics.

He said all sectors, including consumer, marketplace, vendor, international freight, customs clearance, fulfilment and delivery, should work together, otherwise the operation would face difficulties.

“All gears should relatively move on the same page. If one gear stops, all gears will stop,” he said.

He also advised related agencies in e-commerce and logistics industries to focus more on data integration, ease customs procedures, streamline processes and use trusted digital payments.

Adopting technology is ‘key to survival for businesses in digital era’

Meanwhile, Pravin Shetty, ISS Global Forwarding’s regional IT manager, said technology also plays an important role in the e-commerce and logistics industries as they can facilitate many issues, such as system integration, secure transactions and risk mitigation.

He advised related agencies to apply four technologies to e-commerce and logistics operations, namely application programming interface, blockchain, internet of things and big data.

“Related agencies should optimise rules, improve delivery, ensure that the country’s infrastructure is in place and make use of equipment and resources,” he said.

Time for logistics marketplace platform in Mekong region

Piyanoot Sumrith, president of the Thai Transportation & Logistics Association, said the Mekong region is well prepared for adopting the logistics marketplace platform.

She added that people were now familiar with online shopping, thanks to the Covid-19 crisis over the past two years, as well as the government’s incentives, such as the Khon La Khrueng (Let’s Go Halves) co-paying scheme.

Piyanoot, who is also managing director of the delivery service WeMove Platform, expects the logistics marketplace platform to meet customers’ demand once factors like logistics and customs procedures are made smoother.

“It’s a good time to build the logistics marketplace platform as everything is ready, especially technology,” she said.

Adopting technology is ‘key to survival for businesses in digital era’

James Marchant, chief logistics officer for Lazada Express (Thailand), said even though the Covid-19 crisis changed customers’ behaviour, their expectation of the best service never changes.

He said it is only a matter of time before technology will play an important role in providing a different experience to customers, such as drones and robots.

“There are many trends that continue accelerating, such as how fast and how cheaply you can deliver and how strong is your return process,” he said.

Rachelle Alexis Lim, executive director of strategy and business development of payments platform 2C2P, said people preferred online shopping not just because of convenience but also because their demands have changed.

Echoing Marchant, she said online adoption will help boost the marketplace’s efficiency to provide experiences to customers, adding that many people preferred online payment instead of cash on delivery.

“Many businesses have shifted from traditional commerce to e-commerce even after the pandemic,” she said.

The panellists also urged the government to collaborate with related agencies to develop a logistics marketplace platform in the Mekong region and address it from various aspects, such as easing customs procedures and promoting technology adoption for sustainable growth.

Published : September 06, 2022

By : THE NATION

Suchart to push for Cabinet okay on new daily wage rate

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https://www.nationthailand.com/business/econ/40019783


Labour Minister Suchart Chomklin said on Tuesday that he will ask the Cabinet to approve the new daily minimum wage rates next week so they can go into effect on October 1.

Suchart to push for Cabinet okay on new daily wage rate

He said if approved, unskilled labourers should get an average daily wage hike of 5.02 per cent instead of the 8 per cent labour unions had demanded to keep up with inflation.

This is the first time that daily wages are being increased since January 2020.

The Labour Ministry is pushing for the new rates to go into effect from October, even though employers’ representatives on the tripartite national wage committee want it to be implemented in January and be no more than 3 per cent.

Employers have expressed concern that hikes from October would place too much of a financial burden on companies still reeling from the Covid-19 crisis.

The wage panel last week approved nine rates for nine zones in the country.

The zone covering Chonburi, Rayong and Phuket will enjoy the highest rate of 354 baht per day, while the lowest rate, 328 baht, will apply to Yala, Narathiwat, Nan and Udon Thani. Workers in Bangkok and adjacent provinces will get 353 baht daily.

The nine daily wage rates for the next fiscal year approved by the panel are:

• 354 baht: Chonburi, Rayong, Phuket

• 353 baht: Bangkok, Nonthaburi, Nakhon Pathom, Pathum Thani, Samut Prakan and Samut Sakhon

• 345 baht: Chachoengsao

• 344 baht: Ayutthaya

• 340 baht: Prachinburi, Nong Khai, Ubon Ratchathani, Phang Nga, Krabi, Trat, Khon Kaen, Chiang Mai, Suphan Buri, Songkhla, Surat Thani, Nakhon Ratchasima, Lopburi and Saraburi

• 338 baht: Mukdahan, Kalasin, Sakon Nakhon, Samut Songkhram, Chanthaburi and Nahon Nayok

• 335 baht: Phetchabun, Kanchanaburi, Bueng Kan, Chai Nat, Nakhon Phanom, Phayao, Surin, Yasothon, Roi Et, Loei, Phatthalung, Uttaradit, Nakhon Sawan, Prachuap Khiri Khan, Phitsanulok, Ang Thong, Sa Kaew, Buri Ram and Phetchaburi

• 332 baht: Amnat Charoen, Mae Hong Son, Chiang Rai, Trang, Si Sa Ket, Nong Bua Lamphu, Uthai Thani, Lampang, Lamphun, Chumphon, Maha Sarakham, Singburi, Satun, Phrae, Sukhothai, Kamphaeng Phet, Ratchaburi, Tak, Nakhon Si Thammarat, Chaiyaphum, Ranong and Phichit

• 328: Yala, Pattani, Narathiwat, Nan and Udon Thani

Suchart said the Cabinet will also consider other measures to minimise the economic impact of the daily wage rate hike, which will be handed down to other relevant agencies to enforce.

Published : September 06, 2022

By : THE NATION

Baht opens stronger but may get volatile over Europe energy crisis

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https://www.nationthailand.com/business/econ/40019772


The baht opened at 36.51 to the US dollar on Tuesday, strengthening from Monday’s close of 36.56.

Baht opens stronger but may get volatile over Europe energy crisis

The currency is expected to move between 36.40 and 36.60 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the baht is highly volatile amid concerns over Europe’s energy crisis, which is pressuring the euro and supporting the dollar.

Moreover, he does not expect investors to adjust their possession of assets until the European Central Bank’s meeting on Thursday, so the baht will swing sideways until there is a new factor.

Poon said the baht may possibly weaken during the day if the market is still in a risk-off state and investors sell off more Thai stocks.

However, he expects the stock sales to slow down as some investors are waiting for the stock index to drop and the baht to weaken before they buy more stocks.

However, the baht may strengthen from a bearish divergence technical sign, especially since it strengthened more than expected on Monday.

The strategist advises investors to use hedging tools such as options to manage risks in a highly volatile currency market.

Published : September 06, 2022

By : THE NATION

1112 Delivery app offers best price guarantee to combat food crisis

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https://www.nationthailand.com/business/econ/40019763


Minor Food’s 1112 Delivery app has launched a best-price guarantee to combat the cost-of-living crisis, forecasting a 30 per cent growth in sales.

1112 Delivery app offers best price guarantee to combat food crisis

The company expects the delivery market to grow further this year despite the return of restaurant dine-in services after Covid-19, Minor Food Group CEO Thunyachate Ekvetchavit said on Monday.

1112 Delivery app offers best price guarantee to combat food crisis

Patt Pongwittayapipat, general manager of 1112 Delivery, said the app’s business was expected to grow 56 per cent this year and 50 per cent next year. The service currently has 2.5 million downloads across 75 provinces, he added.

1112 Delivery app offers best price guarantee to combat food crisis

The “Best Price Guarantee” campaign is designed to boost the app’s growth by appealing to customers burdened by rising living costs.

1112 Delivery app offers best price guarantee to combat food crisis

“We are the first and only delivery company in Thailand where customers can be confident of getting the best price when they order food,” Patt said.

1112 Delivery app offers best price guarantee to combat food crisis

“If the same food item is discovered cheaper on another platform, the customer will get a discount of up to 100 baht on their next 1112 Delivery,” he added.

1112 Delivery covers seven brands operated by Minor Food – The Pizza Company, Bon Chon, Sizzler, Burger King, Swensen’s, Dairy Queen and The Coffee Club – alongside partner brands such as S&P, Urban Pizza, BreadTalk, Song Fa, Sergeant Kitchen and Esan Zaap Zaap.

1112 Delivery app offers best price guarantee to combat food crisisThe price-guarantee campaign will run from tomorrow to October 5.

Published : September 05, 2022

By : THE NATION

DTAC sees mobility data harvesting as boon for tourism

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https://www.nationthailand.com/business/econ/40019764


Mobility data is a key secret to long-term recovery and boosting Thailand’s tourism industry following the Covid-19 pandemic, says a joint research by DTAC, ONDE, Chula, and Boonmee Lab.

DTAC sees mobility data harvesting as boon for tourism

Sharad Mehtora, CEO of Total Access Communication Plc (DTAC), told a press conference on Monday that the mobile operator’s data harvesting will unlock the country’s data-driven economy strategy.

It demonstrates how mobility data is used for public policymaking and addressing various social challenges, in this case, Thailand’s tourism, which he describes as “one of the core engines driving our economy”.

DTAC sees mobility data harvesting as boon for tourism

He pointed out that there are several advantages to managing and exploring mobility data. It provides timely human context to other data and insight, as well as measures consumer activity over time, allowing analysts to respond to and predict trends with accuracy.

“With this insight data, it means that all parties in the tourism industry can seize an opportunity to reset their businesses in order to increase their strength, attract more tourists, and find more methods to create resilience and sustainable tourism,” Mehrotra explained.
 

DTAC has collaborated with the National Digital Economy and Society Commission (ONDE), Chulalongkorn University, and Boonmee Lab to conduct a study of tourist behaviour from June 2020 to October 2021, using mobility data supported by DTAC, focusing on secondary provinces area.

It found that 6.4 million trips happened during that period. Some 67 per cent stayed at destinations overnight, while 35 per cent were day travellers.

DTAC sees mobility data harvesting as boon for tourism

Nattapong Punnoi, head of the Urban and Regional Planning Department at Chulalongkorn University’s Faculty of Architecture, said that this in-depth data not only shows where people prefer to travel, but also how they travel, the time they spend there, and which local events or festivals they prefer to stay overnight and attend.

The findings also prompted the research team to develop three key policy recommendations for secondary province tourism promotion: micro-tourism, experience-based overnight tourism, and tourism clusters.

Micro-tourism will encourage local SME operators to create and integrate tourism activities into the production process of goods and services. Their target tourists are nearby neighbourhoods.

Overnight tourism based on experience aims to increase overnight stays, and a tourism cluster is a group of highlighted tourism attractions within a limited geographic space that is equipped with high-quality equipment and services.

DTAC sees mobility data harvesting as boon for tourismNattapong noted that each of the 55 secondary provinces has its own strengths and potential to lure more tourists. They need to be able to access this type of data in order to understand how tourists behave while spending time in each province so that they can plan and add more services and activities to make it more appealing to visit there.

“Mobile data lets you know who you are, what you have, and how to use what you already have to gain benefits; it is a cost-effective investment; it is a low-investment but high-impact return,” Nattapong said.

He expected that more joint research into the use of mobility data would be conducted in order to find the best solutions to other social and economic issues.

ONDE’s secretary-general, Putchapong Nodthaisong, said that data is the foundation of the digital economy. Data in digital form provides numerous benefits that allow the government to address social issues more effectively, such as water irrigation, city road traffic, and disaster management.

DTAC’s head of communications and sustainability, On-uma Rerkpattanapipat, said that the study was conducted because DTAC wants to find the best way to use data to benefit more than 10 million users in their database.

She insisted that all data would be used strictly under personal data protection in accordance with the Personal Data Protection Act.

The full report of the study will be published in October, she added.

Mobility data will assist researchers in fully understanding tourist movement patterns and concentration, advancing academic research methodology and finding solutions to other challenges, Mehrotra said.

Published : September 05, 2022

Thailand to start collecting entry fee from foreign tourists early next year

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https://www.nationthailand.com/business/econ/40019753


Tourism and Sports Minister Pipat Ratchakitprakan said on Monday that the Cabinet may be requested in October to approve collection of entry fees from foreign tourists, expected to be implemented early next year.

Thailand to start collecting entry fee from foreign tourists early next year

Pipat said the Naresuan University is studying the appropriate entry fee rate for foreign tourists arriving by land and the study should be done within this month.

“Then, the entry fee rates will be submitted to the Cabinet for approval in October,” Pipat said.

“Once approved, the rates will have to be published in the Royal Gazette and they will take effect 90 days later.”

Pipat said the enforcement of entry fee rates on foreign tourists will take effect early next year.

“I see it’s appropriate to start collecting entry fees in early 2023 because it would still be in the high tourism season,” Pipat said.

The National Tourism Policy Committee approved the Tourism and Sports Ministry’s proposal to collect a 300-baht fee from every tourist entering the country in January.

But Pipat later said it would not be fair to use the same rate for tourists who arrive by different modes of transport, so he had assigned the university to study the appropriate rate to be collected from tourists arriving by land.

Pipat said on Monday that tourists who arrive by land tend to stay for a shorter duration than those arriving by air.

He said the entry fee would be used to buy insurance for foreign tourists so that the government would not have to solely shoulder costs of treatments of foreign tourists injured in accidents.

He revelaed that the government spent about 300 million to 400 million baht each year for treating injured foreign tourists before the Covid pandemic.

Published : September 05, 2022

By : THE NATION

AOT to start managing Udon Thani, Buri Ram, Krabi airports from 2023

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https://www.nationthailand.com/business/econ/40019746


Udon Thani, Buri Ram and Krabi airports will be put under the jurisdiction of Airports of Thailand (AOT) from early next year, Transport Minister Saksayam Chidchob said on Monday.

AOT to start managing Udon Thani, Buri Ram, Krabi airports from 2023

He said the Cabinet had agreed in principle on August 30 to shift the management of the three airports from the ministry’s Department of Airports to AOT as of 2023.

Saksayam added that the Transport Ministry will consider the Finance Ministry’s opinions on transferring the airports’ management before it submits a final report to the Cabinet.

Airports of Thailand Plc is a public company with the Finance Ministry as its major shareholder.

“Basically, Airports of Thailand will manage the three airports,” the minister announced.

However, he said, the three airports will remain the property of the Treasury Department, while AOT will only be licensed to manage and use them for commercial purposes.

Before taking over, AOT is expected to deposit the value of all moveable assets in the three airports in the Department of Airports’ revolving fund, which will finance the management of other airports, Saksayam said.

He added that AOT has yet to come up with an operation plan for the three airports that is in line with the law and takes public interest into account.

Saksayam added that he has instructed AOT to come up with ways of directing passengers to other airports to prevent congestion in Bangkok’s Suvarnabhumi and Don Mueang airports.

“For instance, all domestic flights do not have to take off from Don Mueang Airport. New routes like Korat-Hua Hin or Korat-Chiang Mai can also be introduced,” he said.

A source from the Transport Ministry said AOT is planning to spend 3.52 billion baht to develop Udon Thani airport and has earmarked 460 million baht for Buri Ram airport.

The development budget for Krabi airport will be 5.22 billion baht if signs indicate that Phang Nga airport can start operating by 2031. If not, then the budget for Krabi airport will be increased to 6.49 billion baht, the source added.

The three airports will be upgraded into regional airports before they are turned into secondary flight hubs in the future, the source added.

Published : September 05, 2022

By : THE NATION

Risk-off market may make baht fluctuate, even weaken

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https://www.nationthailand.com/business/econ/40019734


The baht opened at 36.72 to the US dollar on Monday, strengthening from Friday’s close of 36.74.

Risk-off market may make baht fluctuate, even weaken

The Thai currency will likely move between 36.65 and 36.85 against the greenback during the day and between 36.35 and 36.95 during the week, Krungthai market strategist Poon Panichpibool predicted.

He added that the baht might fluctuate and weaken as the market is in a risk-off state. The baht might also strengthen from a bearish divergence technical sign soon, he said and suggested monitoring foreign investors’ transactions and gold prices.

Meanwhile, the dollar could fluctuate and swing sideways due to demand for safe-haven assets.

He said that if the European Central Bank increases the interest rate and sends a signal to increase it continuously, it might support the euro and pressure the dollar.

The strategist advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.

In the previous week, investors were in a risk-off state due to concerns that the US Federal Reserve might increase the interest rate, the lockdown measure in China and the energy crisis in Europe.

He said the market is waiting for the result of the European Central Bank’s meeting this week and a statement from the Fed’s chair or officials, to predict the direction of the monetary policy of central banks.

Published : September 05, 2022

By : THE NATION

Upward trend in travel a boon for tour, hotel-related businesses, says report

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https://www.nationthailand.com/business/econ/40019714


The Business Development Department expects hotel booking and tour businesses to experience growth this year after suffering a massive drop in revenue for two years.

Upward trend in travel a boon for tour, hotel-related businesses, says report

In its recent report, the department said these two types of businesses saw their combined revenue of 123.79 billion in 2019 fall by 70.42 per cent to 36.42 billion in 2020 and again by 61.08 per cent from the previous year to 14.25 billion baht in 2021.

The department attributed this drop to the Covid-19 pandemic and subsequent lockdowns that kept tourists away.

This year, however, the department is upbeat about the two businesses enjoying growth, especially with several indicators pointing to an upward trend in travel.

The report also cited a forecast from the University of Thai Chamber of Commerce, which said some 6 million to 8 million tourists can be expected to visit Thailand in the second half of this year and this would generate revenue of up to 50 billion baht per month.

Another indicator is the registration of new tourism and hotel-booking businesses this year, the report said.

From January to July this year, 549 new tourism-related companies have been registered with a capital of 988.53 million, marking a 169.12 per cent increase year on year.

The report said the lifting of travel restrictions and the fact that Thailand has destinations that can be visited all year are factors that will encourage foreign arrivals and encourage travel by local people, thus boosting the growth of related businesses.

Published : September 04, 2022

By : THE NATION

NIA envisages Thailand as innovation-driven Food Silicon Valley

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https://www.nationthailand.com/business/econ/40019674


Thailand’s National Innovation Agency (NIA) has set the goal of transforming the country into the world’s Food Silicon Valley. It is part of the agency’s policy to transform Thailand into an innovation-driven economy.

NIA envisages Thailand as innovation-driven Food Silicon Valley

NIA executive director Pun-Arj Chairatana said during the “Thailand Global Innovation Forum 2022” on Friday that innovation is the key engine propelling the country forward in this post-pandemic era.

He said that the country’s innovation is already above average in comparison with other countries. However, Thailand is not in a good position because there are still many disadvantages to overcome.

Thailand’s progress is hampered by a lack of clear regulations, insufficient financial support and funding, and fewer outstanding startups. According to the most recent Global Innovation Index (GII), the country has remained ranked 43rd or 44th since 2020.

“If we don’t come out with practical policies and strategies, other countries will overtake Thailand. We cannot let that happen,” said Pan-Arj.

He suggested that all parties involved start by focusing on the food industry, as it is one of Thailand’s core businesses.

NIA envisages Thailand as innovation-driven Food Silicon Valley

Many of the world’s leading food companies are Thai, indicating that the country already has a global supply chain and production. Hence, simply increasing efforts to improve food innovation will assist Thailand in leapfrogging others.

Besides, as Thailand is very competitive and well-known in the food industry, this will help to attract leading food innovation nations like the Netherlands, France and Israel to invest and collaborate with Thailand.

“We have more chance than other competitors when it comes to the food business,” said Pan-Arj.

Pan-Arj stated that the NIA, as the agency in charge of facilitating all parties in adopting and developing innovation, will help incubate and accelerate startups, connect these small startups with big names in the markets, and mitigate risks to the greatest extent possible.

The agency also will encourage the government to implement supportive policies and a sandbox, establish a financial innovation system, and collaborate with universities to groom talents.

NIA envisages Thailand as innovation-driven Food Silicon Valley

Speaking on the topic of “Global Foresight: Futures of Innovation Nation”, René Rohrbeck, director of the Chair for Foresight, Innovation and Transformation, EDHEC Business school, France said there are four factors that will drive change in Thailand.

The first factor is Thailand’s 4.0 policy, which aims to transition the country from a manufacturing-based to a technology-based economy. Then there’s the expansion of international services, from solely relying on tourism to offering professional services with indirect businesses all the way up the value chain.

The next factor is to transition to innovation and knowledge-driven economy, which will provide skilled labour to the country. The final factor is that Thailand places a high priority on a green economy and sustainable development.

Thailand Global Innovation Forum 2022 is being held to commemorate the NIA’s 13th anniversary as a public organisation. To commemorate the occasion, the agency has set the goal of propelling Thailand into the top 30 Global Innovation Nations by 2030.

Published : September 03, 2022

By : Nongluck Ajanapanya