Thailand's competitiveness ranking rises to 27th

THURSDAY, MAY 30, 2013
Thailand's competitiveness ranking rises to 27th

Thailand's overall competitiveness ranking rose to the 27th spot this year from No 30 last year, according to the 25th-anniversary world competitiveness rankings of 60 economies released today by IMD, a top-ranked global business school based in Switzerl

The challenge in 2013 for Thailand is to accelerate regulatory reform to reduce bureaucracy and stimulate Asean investment, expedite Bt2 trillion worth of transport-infrastructure mega-projects to enhance national and regional competitiveness, and boost national energy security and promote renewable energy, IMD said.
Thailand’s economic-performance ranking this year moved up to the ninth spot from No 15, while business efficiency moved up to 18th from 23rd. The infrastructure ranking moved up one level to 48th.

Among the 15 biggest improvements in the overall performance of the company  which contributed to the higher ranking included the extraordinary economic growth rate in 2012, when Thailand's economy expanded 6.4 per cent against 0.1 per cent in 2011. Other improvements involve the faster Internet bandwidth speed, exchange rate stability, social security contribution rates by employers and employees, inflation, investment in overseas stocks, and adaptability of government policy. 
Among the 15 biggest declines were long-term unemployment, current account balance, scientific research, corruption, science in schools, real short-term interest rate and social cohesion.
From a list of 15 indicators, respondents of the Executive Opinion Survey perceived that Thailand's dynamism of the economy is the most important attractiveness factor of the economy. Others in the top five are business-friendly environment, open+positive attitudes, cost competitiveness and skilled workforce. 
In a breakdown, Thailand's global competitiveness ranking in productivity & efficiency rose significantly from 57th to 44th in 2013. Yet, ranking health and environment fell 3 places to 55th.  
It is the most competitive in the areas of employment (though this ranking fell from the 2nd place to the 3rd in 2013), fiscal policy (which rose from 6th to 5th), and labour market (from 4th to 2nd). 
 
The ranking is based on information supplied by the Thai partner, Thailand Management Association. Pornkanok Wipusanawan, Director, TMA Centre for Competitiveness, said that Thailand will need to devise new strategies to take advantage of its strong points and improving the weaknesses.
Having been the partner of IMD for 15 years, TMA in 2009 kicked off the annual event called "Thailand Competitiveness Enhancement Programme". In cooperation with the National Economic and Social Development Fund and Thai Chamber of Commerce, the programme wins supports from senior leaders in the public and private sectors who share their views on how to improve the overall performance. Their suggestions were included in the government's competitiveness strategies announced in January 2013. 
This year's event is scheduled for September 11-12.
 

Global ranking
Among highlights of the 2013 overall ranking, the United States regained the No 1 spot, thanks to a rebounding financial sector, an abundance of technological innovation and successful companies. China (21) and Japan (24) are also increasing their competitiveness. In the case of Japan, Abenomics seems to be having an initial impact on the dynamism of the economy.
In Europe, the most competitive nations include Switzerland (2), Sweden (4) and Germany (9), whose success relies on export-oriented manufacturing, diversified economies, strong small and medium-sized enterprises, and fiscal discipline. Like last year, the rest of Europe is heavily constrained by austerity programmes that are delaying recovery and calling into question the timeliness of the measures proposed.
The BRICS economies have enjoyed mixed fortunes. China (21) and Russia (42) rose in the rankings, while India (40), Brazil (51) and South Africa (53) all fell. Emerging economies in general remain highly dependent on the global economic recovery, which seems to be delayed.
In Latin America, Mexico (32) has seen a small revival in its competitiveness that now needs to be confirmed over time and by the continuous implementation of structural reforms.
Professor Stephane Garelli, director of the IMD World Competitiveness Centre, said: “While the euro zone remains stalled, the robust comeback of the US to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate. Structural reforms are unavoidable, but growth remains a prerequisite for competitiveness. In addition, the harshness of austerity measures too often antagonises the population. In the end, countries need to preserve social cohesion to deliver prosperity.”

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