Phuket Tropical Realestate

THAI COMPETITIVENESS CONTINUES TO RISE

Despite the political turmoil, Thailand continues to have one of Southeast Asia’s most competitive economies. Thailand rose one place to 26^th in the latest IMD World Competitiveness Yearbook (WCY), a ranking of the world’s 57 most competitive economies.

Thailand’s improved ranking in the WCY comes on the heels of the ‘2009 World Bank Ease of Doing Business Report’, in which Thailand moved up two spots from 15^th to 13^th. This is consistent with the IMD ranking, for ease of doing business is a key factor in a country’s competitiveness.

The WCY, compiled by the Switzerland-based Institute for Management Development (IMD), is considered the benchmark in ranking the global competitiveness of nations. The annual rankings are based on 329 criteria, two-thirds of which are based on statistical indicators and one-third executive opinion survey.

IMD’s definition of competitiveness is not limited to economic performance; it also includes ‘soft factors’, such as a country’s environment, quality of life, technology, knowledge.

Thailand outperformed most of its regional neighbours in the annual competitiveness rankings, coming in third in the region. Singapore dropped one spot to 3^rd while Malaysia rose one spot to 18^th. Indonesia (42^nd) and the Philippines (43^rd) were the only other Southeast Asian nations to rank among the world’s 57 most competitive economies. Among the major economies that Thailand was deemed more competitive than were Korea (27^th), France (28^th) and India (30^th).

This year, the IMD also administered the ‘Stress Test’, which analyzes which countries are better equipped to make it through the crisis and improve their competitiveness in the near future. In other words, the test is future orientated – it focuses on exposure, readiness, and resilience in a period of world recession.

Thailand fared very well in the ‘Stress Test’, coming in 19^th. In the Test’s four key categories, Thailand ranked 11^th in Economy Forecast/Perspectives, 19^th in Government, 17^th in Business, and 30^th in Society.

With regards to other ASEAN countries, Singapore scored extremely well, coming in 2^nd overall, while Malaysia was ranked 10^th. The only other ASEAN countries to rank among the top 57 were the Philippines (32^nd) and Indonesia (33^rd). china was ranked directly ahead of Thailand at 18^th and Japan was ranked 26^th. Denmark was the top performer on the Stress Test, while the USA came in only 28^th.

The Thailand Management Association, which provided commentary for the local survey, said the areas that Thailand needs to work on are further addressing the challenges of globalization and moving towards a ‘creative knowledge economy’.

Source: www.boi.go.th

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