Thailand is betting its future on a dramatic OECD-driven economic overhaul. In Paris, Sihasak unveiled plans to boost skills, innovation and competitiveness as Bangkok seeks global standards, stronger institutions and a bigger role in the world economy.
Thailand is seeking to use OECD membership as a catalyst for one of its biggest economic shifts in decades. Speaking in Paris this week, Deputy Prime Minister and Foreign Minister Sihasak Phuangketkaew said the accession drive is part of a broader strategy to strengthen competitiveness, modernise institutions and prepare the economy for a world where investors increasingly value skills, innovation and regulatory quality over tax incentives alone. His remarks place the OECD process at the centre of Thailand’s effort to reposition itself for a more demanding world.
Deputy PM Sihasak says OECD membership is central to Thailand’s economic overhaul, helping boost competitiveness, modernise institutions and attract future investment. (Source: Ministry of Foreign Affairs)
Thailand’s drive to join the OECD is intended to support a broad economic transformation, Deputy Prime Minister and Foreign Minister Sihasak Phuangketkaew said in Paris this week.
Speaking on June 3 at the OECD Ministerial Meeting 2026, Sihasak outlined how industrial policy is evolving amid changing global conditions. He delivered his remarks during a plenary session on “Balancing the Goals and Impacts of Industrial Policy” at OECD headquarters.
Sihasak said industrial policy has been a core element of Thailand’s development strategy since the 1960s. During that period, policymakers sought to strengthen domestic industrial capabilities. Initially, Thailand relied on import-substitution policies. Later, the country shifted towards an export-oriented model.
Industrial policy transformed Thailand from an agricultural economy into a leading regional manufacturing hub
As part of that strategy, governments introduced targeted investment incentives. They also pursued policies aimed at attracting foreign direct investment. In parallel, authorities worked to build domestic supply chains and expand industrial capacity.
Those measures reshaped the economy. Thailand moved beyond its agricultural foundations and became a regional manufacturing centre. The automotive industry expanded significantly. Electronics production also accelerated. Notably, petrochemicals emerged as another major industrial sector.
Sihasak said the environment that enabled that growth has changed substantially. Investors now assess a wider range of factors before committing capital. Tax incentives remain important. However, they are no longer decisive on their own.
Instead, investors increasingly focus on workforce quality, innovation capacity and regulatory standards. Equally important are ease of doing business and policy stability. As a result, countries face stronger competition for investment than in previous decades.
Thailand says future industrial policy must prioritise competitiveness, resilience and workforce skills
At the same time, governments must address several objectives simultaneously. They are expected to create quality jobs while maintaining growth. They must also strengthen economic resilience and support sustainability goals.
Against that backdrop, Sihasak argued that industrial policy remains highly relevant. However, its purpose must evolve. Rather than concentrating on specific sectors, policymakers should focus on wider economic transformation.
“This means investing in human resources through skills development and lifelong learning, and increasing investment in innovation ecosystems, digital infrastructure, and green technologies,” he said.
In practice, that requires a broader policy framework. Skills development has become increasingly important as industries adapt to new technologies. Lifelong learning is also gaining importance as labour markets evolve. Separately, investment in innovation is becoming a key competitive factor.
Regional integration gains importance as supply chains, technology and investment become interconnected
Digital infrastructure forms another part of the equation. Modern industries depend increasingly on digital connectivity and advanced technologies. Meanwhile, green technologies are becoming more important to future industrial growth and competitiveness.
Sihasak also highlighted the growing importance of regional integration.
“It also means strengthening regional economic integration, as current supply chains, technology, energy, and investment are increasingly interconnected and implemented across borders,” he said.
Cross-border networks now play a larger role in economic development. Supply chains span multiple jurisdictions. Technology partnerships increasingly operate across national boundaries. Energy systems are becoming more interconnected. Likewise, investment flows are more international than before.
Consequently, national competitiveness is increasingly linked to regional cooperation. Countries are no longer competing solely through domestic policies. They are also competing through their ability to connect with regional and global networks.
OECD membership is seen as a practical tool to drive reform and strengthen Thai institutions
According to Sihasak, these realities are already shaping Thailand’s policy agenda. The government is pursuing reforms aimed at improving competitiveness. It is also seeking to strengthen economic resilience. On another front, policymakers are preparing the economy for future structural challenges.
Those efforts are closely linked to Thailand’s OECD ambitions.
“Therefore, membership in the OECD is important for Thailand. We view membership not as an end goal, but as part of the overall economic transformation process,” Sihasak said.
He said membership would provide practical benefits beyond international recognition.
“Membership will allow Thailand to compare its standards and policies with international best practices, enhance policy consistency, and strengthen institutions to prepare for the future.”
Such benchmarking could help policymakers assess existing frameworks and identify areas for improvement. It could also support efforts to align regulations and institutions with international standards.
Thailand says the accession process offers benefits both for the OECD and emerging economies
Importantly, Sihasak stressed that Thailand’s engagement with the OECD predates the accession process.
“In fact, cooperation between Thailand and the OECD did not begin with the membership process.”
Over many years, Thailand has participated in OECD programmes, committees and policy instruments. Through that engagement, officials have studied international approaches and adapted them to local conditions.
In response to suggestions that accession mainly benefits Thailand, Sihasak said the relationship works both ways.
“We believe that the OECD itself can also benefit from Thailand’s experience.”
He noted that Thailand’s status as an upper-middle-income economy provides a distinct perspective. The country has practical experience managing industrial development and economic transition. That experience could contribute to discussions within the organisation.
Moreover, Thailand could help strengthen the OECD’s engagement with emerging economies. As global economic influence becomes more diverse, such exchanges are becoming increasingly relevant.
Sihasak says global cooperation remains vital as economies face rapid structural transformation
“In this sense, membership is not only about Thailand learning from the OECD, but also an opportunity for Thailand to contribute to strengthening the role and importance of the OECD on the expanding global stage,” he said.
Looking ahead, Sihasak said policymakers face a shared challenge.
“I believe the most important question we should collectively consider is how industrial policy can help societies navigate significant economic transformations while ensuring that economic growth remains competitive, resilient, and sustainable.”
That challenge extends across both developed and emerging economies. Economic structures are changing rapidly. Technologies are evolving. Global competition is intensifying. At the same time, governments are seeking greater resilience against future shocks.
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For that reason, Sihasak said international cooperation remains essential.
“That is why forums for cooperation like the OECD continue to play a crucial role in helping to ensure that our policies are prepared for the economy of the future that we are building together.”
His remarks positioned OECD membership as part of Thailand’s wider effort to modernise its economy, strengthen institutions and prepare for a more competitive global environment.
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