Inconsistent government policy, widespread corruption, complicated regulations and a lack of research and innovation are the root causes of Thailand's low competitiveness, according to the International Institute for Management Development (IMD).
Commerce Minister Apiradi Tantraporn yesterday acknowledged that the country had not invested enough in human resources and labour development, while educational access and use of high technology remain low.
She was speaking after a joint workshop held by the Commerce Ministry and IMD to seek ways to raise Thailand's competitiveness.
Thailand ranked 30th out of 61 economies in IMD's 2015 world competitiveness index. The country's ranking fell the past two years, from 27th in 2013 and 29th in 2014.
Mrs Apiradi said IMD suggested the government and private sector work together more closely in launching each policy and tackling existing problems, as well as jointly working out a roadmap with an appropriate time frame.
To draw foreign investment, IMD proposes Thailand revamp existing laws and regulations deemed obstacles, improve the working procedures of state agencies to facilitate investment and amend regulations concerning foreign worker employment.
In agriculture, the government must focus on upgrading the farm sector, applying more high technology and encouraging young people to enter farming.
Thailand was also urged to stay focused on specific sectors such as agriculture, food and tourism.
"IMD says Thailand should focus on things in which we excel," Mrs Apiradi said. "For instance, in farm products, the institute suggests we make people around the world come to Thailand when they think of the farm sector."
Next-generation chief executives and national brand development are other key issues for speeding up development.
All proposals from IMD will soon be submitted for the cabinet's acknowledgement.
"We do hope that Thailand's world competitiveness ranking improves in the years to come once we succeed in patching up the weaknesses pointed out by IMD," Mrs Apiradi said.
Prime Minister Prayut Chan-o-cha has called for companies to cooperate in government reforms to upgrade Thailand's competitiveness.
The government is committed to continuing reforms of tax, ease of doing business, education, productivity and human resource development, Gen Prayut said earlier.
