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RightExtraterrestrial

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National Economics University

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Thailand history economy politics

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This document provides an overview of Thailand's history, politics, culture, and development, including its early days, the Tai people, and kingdoms like Sukhothai and Ayutthaya. It also touches upon Thailand's 19th and 20th centuries, as well as its development background.

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THAILAND 1, Overview: Indicate historical, political, cultural and development background Watch video: Thailand Culture | Fun Facts About Thailand => Sum up: ​ Thailand - 'the land of the free', is a diverse country with a rich history and a strong economy. Bangkok, its capital, is...

THAILAND 1, Overview: Indicate historical, political, cultural and development background Watch video: Thailand Culture | Fun Facts About Thailand => Sum up: ​ Thailand - 'the land of the free', is a diverse country with a rich history and a strong economy. Bangkok, its capital, is a bustling city known for its vibrant nightlife and business opportunities. ​ Thailand's unique political history as an uncolonized country with a constitutional monarchy sets it apart in Southeast Asia ​ Thailand, once a top rice exporter, now lags behind India and Vietnam. Tourism, contributing 6% to the economy, attracts visitors with temples, beaches, and diverse foods ​ Thailand's religion with Buddhism being the dominant religion, plus a significant Muslim population, adds to the cultural richness and diversity. ​ Agriculture employs about 50% of the workforce, Thailand was once the largest rice exporter but now follows India and Vietnam. Key exports include coconuts, electronics, vehicles, and seafood. 1.1. Historical Background Early Days: Thailand’s history dates back 5,000 years, with archaeological evidence of rice cultivation and bronze casting in the northeast. Early tribal groups ruled the region, with the Mon and Khmer establishing influential kingdoms. These kingdoms absorbed South Asian religious, political, and cultural ideas, shaping Thailand’s early culture and identity. The Tai People The Tai people migrated from southwest China to Southeast Asia over centuries. First mentioned in a 12th-century Angkor Wat inscription, they were referred to as "syam" (dark brown people), leading to Thailand being called Siam. Sukhothai Kingdom (1238-1438) In 1238, a Tai chieftain declared independence from the Khmer and established the Sukhothai Kingdom in central Thailand. Ayutthaya Kingdom (1351-1767) The Sukhothai Kingdom was succeeded by Ayutthaya, which became a powerful state in the 14th and 15th centuries, defeating the Angkor Kingdom in 1431. The kingdom endured conflicts with Burma, culminating in Ayutthaya's destruction in 1767. Thai heroes Taksin and Chakri expelled the invaders, reunifying the country. In 1782, Chakri established Bangkok as the capital and became Rama I, founding the Chakri Dynasty. 19th Century During the 19th century, Thailand preserved its independence as a buffer state between British and French colonies. King Mongkut (Rama IV) and King Chulalongkorn (Rama V) adopted reforms to modernize the country. However, Siam ceded control over Cambodia, Laos, and parts of the Malay Peninsula to European powers. 20th Century By 1910, Thailand's territory had significantly diminished. In 1932, a bloodless coup ended absolute monarchy and introduced constitutional governance. In 1949, the country changed its name from Siam to Thailand. The Modern Era Since 1932, Thailand’s journey toward stable democracy has been tumultuous, marked by frequent military coups and political instability. While parliamentary institutions exist, military influence has been dominant. Today, Thailand is a fledgling democracy, watched over by the military and the monarchy. 1.2. Political Background Thailand is a parliamentary democracy with a constitutional monarchy. Governance is led by an elected prime minister, a bi-cameral legislature, and an independent judiciary. Its policies emphasize peaceful solutions, open-market economics, regional cooperation, and sustainable development. Strong private and civil sectors ensure policy continuity, fostering stability and growth. 1.3. Cultural Background Values and Beliefs ​ A strong social hierarchy: respect to certain groups, such as the royal family, monks, elders, and benefactors. ​ Collectivism Philosophies and Religions: Thailand is renowned for its Buddhist heritage. Modern Thai culture is diverse and open-minded, incorporating influences from other religions and beliefs, particularly Taoism and Confucianism due to the Thai-Chinese community. 1.4. Development Background Thailand has undergone a remarkable transformation from an agriculture-based economy to a modern, industrialized, and export-led one. From 1960 to 1996, the economy grew at an average annual rate of 7.5%, and income per capita increased from $740 in 1980 to $7,080 in 2019. This growth contributed to improved living standards, with the national poverty rate dropping from 42.5% in 2000 to 6.3% in 2021. However, after the Asian Financial Crisis, growth slowed to 5% annually between 1999 and 2005. The recovery since then has been slow, with average annual growth of just 2% from 2021 to 2023, primarily due to weak global tourism and trade. Thailand’s economic recovery has lagged behind its ASEAN peers. Growth is projected to be 2.4% in 2024. 2, Analyze Thailand economy 2.1. Analyse basic economic indicators (GDP, Trade, FDI, growth...) and economic structure (industries) 2.1.1. GDP Fig. 1. Thailand’s GDP in the period from 2019 to 2023. Source: By the authors using data from the World Bank. 2.1.2. Trade Fig. 2. Thailand’s Trade in the period from 2019 to 2024. Source: By the authors using data from the World Bank. Despite these positive trends in figure above, challenges persist such as the trade deficit, geopolitical tensions. Addressing these challenges will require Thai exporters to focus on reducing costs and diversifying markets to sustain growth and competitiveness. 2.1.3. Investment Chỗ này thêm pie chart như m bảo nhé Thailand continues to strengthen its investment ecosystem through policy support and infrastructure development. The BOI has been actively assisting existing investors in adapting to changes in the global investment landscape, while the government has committed to fostering a competitive and resilient business environment. As global production relocations intensify, Thailand aims to position itself as a preferred destination for sustainable and long-term investments. 2.2. Strengths and comparative advantage; weakness 2.2.1. Strengths and comparative advantage a, Strengths ​ Regional Hub and Connectivity to Fast-Growing Asian Markets -​ Proximity to Emerging Markets: Thailand's location in the heart of Southeast Asia offers logistical advantages for trade with China, Vietnam, and Malaysia—countries experiencing robust economic growth. (chỗ này cho map xong nói cũng được) -​ Infrastructure Supporting Trade: A member of the Regional Comprehensive Economic Partnership (RCEP), xxport corridors like the Eastern Economic Corridor (EEC) link Thailand to these dynamic markets -​ Growing Digital Economy ​ Rich Agricultural Resources -​ Global Leadership: Thailand is the world’s largest exporter of natural rubber and among the top three exporters of rice. -​ Supply Chain Integration: Agro-industries benefit from robust supply chains. ​ Diversified Exports -​ Tourism -​ Automotive Hub: Thailand is a significant production base for Japanese carmakers like Toyota and Honda. -​ Electronics: Exports of electronic components (e.g., semiconductors) are essential for supply chains ​ Robust Banking Sector -​ Financial Stability -​ Digitalization. b, Comparative advantage (more specifically revealed comparative advantage - comparative advantage index) To better understand RCA, comparative advantage (RCA) is used for calculating a country’s relative advantage or disadvantage in a certain industry as evidenced by its trade flows. For example, Thailand has a RCA in an industry if it exports relatively more in that industry compared to the rest of the world. RCA is calculated for a total of almost 100 sub-sectors in ten broad manufacturing sectors. This, combined with the strengths listed above, shows that Thailand has a comparative advantage in the food sector. Thailand has a RCA in 10 out of 17 sub-sectors in the food industry of which 2 sub-sectors are emerging; namely production, processing and preserving of meat and meat products; and soft drinks and production of mineral waters. The chemicals and transport equipment sectors have also been improving comparative advantage over recent years. Transport equipment had a comparative advantage in 2 sub-sectors in the late 2010s, and was losing RCA in one sector (bicycles) more recently while gaining competitiveness in 2 other sub-sectors (parts and accessories for motor vehicles; and motor vehicles). The ICT, electronics and medical device sector traditionally had a comparative advantage in 7 of 15 sub-sectors but has been losing ground in 2 sectors (watches and clocks; optical instruments). c, Reasons why Thailand can have comparative advantages and strengths in these aspects ​ Abundance of Natural Resources ​ Rich Biodiversity and Tourism Assets ​ Strategic Geographical Location ​ Favorable Climate for Agriculture ​ Skilled Workforce in Key Sectors ​ Cultural Richness and Heritage ​ Access to Renewable Energy Potential ​ Foreign Direct Investment (FDI) ​ Renewable Energy and Green Economy ​ Geographical and Trade Advantages 2.2.2. Weakness ​ Inadequate Infrastructure -​ Challenges in Connectivity -​ Energy Constraints: ​ Aging Population and Shortage of Skilled Labor -​ Demographic Shift -​ Labor Shortage -​ Government Initiatives ​ Political Instability -​ Rural-Urban Divide -​ Investor Concerns ​ Corruption and Informal Economy -​ Perception Issues -​ Informal Sector Dominance ​ High Household Debt -​ Debt Levels -​ Impact on Growth 2.3. Thailand's economic development policy (Over the last 10 years) Two most important policies are 4.0 Initiative and EEC 2.3.1. Thailand 4.0 Initiative​ The Thailand 4.0 program is a national strategy aimed at transitioning from an industry-based economy to an innovation-driven economy. The Thai government has invested heavily in high-tech industries. For example, in 2020, the National Robotics and AI Center was established to drive research and the application of advanced technologies. As a result, by 2023, the technology sector contributed approximately 6% to the national GDP, or around $36 billion, and is expected to reach approximately 11 percent of GDP in 2027. 2.3.2. Development of the Eastern Economic Corridor (EEC)​ The Eastern Economic Corridor has been designed to position Thailand as a regional trade and investment hub. Key infrastructure projects in this area include the high-speed railway connecting three airports (Suvarnabhumi, Don Mueang, and U-Tapao).... Since launched, the EEC Development Plan (2023-2027) has attracted 500 billion baht in real investment over five years, or 100 billion per year 2.3.3. Other Policies: ​ Infrastructure Development ​ Tourism and Service Sector Growth ​ Social and Economic Inclusion ​ Sustainable Development and Green Economy ​ Trade and Regional Integration 3, Application for Vietnam 3.1. Possibilities of cooperation with Vietnam ​ Current situation and achievements of cooperation between Thailand and Vietnam Overview: After 49 years since the establishment of diplomatic relations (1976 - 2025), the Vietnam-Thailand relationship has developed well in all fields, becoming a "strategic partner" with friendly and comprehensive cooperation. Vietnam and Thailand are both members of ASEAN, APEC, and EWEC… In terms of politics and diplomacy, high-level and all-level contacts, as well as bilateral cooperation mechanisms have been effectively maintained. Relations between the legislative bodies of the two countries have also been promoted and developed well in recent times. The two sides have maintained many exchanges of delegations at the leadership, committee and parliamentary levels, making positive contributions to the friendship and cooperation between Vietnam and Thailand. In terms of trade, Thailand is one of the partners with a large import and export turnover, with the total value of trade exchanges consistently ranking among the top 10 countries with the largest trade relations with Vietnam. Vietnam's trade volume with Thailand increased sevenfold, from 2.31 billion USD in 2004 to 18.72 billion USD in 2023, with an average growth rate of over 11% per year. But in this trade relationship, Vietnam is in a state of trade deficit with Thailand. Regarding investment, Thailand's investment rate in Vietnam has always been the highest in the Southeast Asia region and currently ranks 9th out of 144 countries and territories investing in Vietnam, with 715 active projects and a total registered capital of 13.7 billion USD. Thailand invests in Vietnam mainly in the fields of manufacturing, wholesale, and retail... On the other hand, the number of projects and the capital of Vietnamese investments in Thailand are still limited. On that basis, Thailand will join hands with Vietnam to step up efforts in implementing the "Three Connects Strategy," which connects supply chains, local economies, and sustainable growth strategies between the two countries. Regarding tourism, thanks to the visa exemption policy within the framework of ASEAN, convenient air routes with many attractive incentives, close geographical proximity, and special promotional programs, Thailand and Vietnam are among the top 12 markets sending tourists to each other. Regarding cooperation in education and training, in 2004, the two countries signed a Memorandum of Understanding on educational cooperation between Vietnam and Thailand. Accordingly, educational cooperation activities have been increasingly promoted. In addition, the two countries have also cooperated to organize the Youth Exchange Program alternately in Thailand and Vietnam since 2009. The Ministries of Education and Training of both countries agreed to open training courses on Vietnamese teaching methods for Thai teachers and vice versa. ​ Possibilities for Vietnam-Thailand cooperation In terms of politics and diplomacy, the two countries continue to increase visits and meetings, exchanges at high and all levels; maintain bilateral cooperation mechanisms in signed fields; at the same time, support each other in international forums. Continue to cooperate closely in sub-regional cooperation frameworks such as GMS, build AC, promote ratification and implementation of RCEP.... In terms of trade, the two countries cooperate to promote complementary economic advantages; promote bilateral trade turnover to soon reach the target of 25 billion USD in a balanced direction. Both Vietnam and Thailand will facilitate market access for each other’s products, under Thailand’s One Tambon One Product (OTOP) and Vietnam’s One Commune, One Product (OCOP) schemes. Regarding investment, with the convenience of signed cooperation mechanisms, Thai enterprises will increase investment in Vietnam, especially in the Central region of Vietnam, to take advantage of commitments within the GMS framework. In return, Vietnam will also further promote investment in Thailand in potential sectors such as agriculture, real estate, and resort tourism. Regarding tourism, Thailand will join hands with Vietnam to explore more flight connections between the two countries and further explore seamless tourism in the region with the “Six Countries, One Destination” initiative. Regarding cultural and educational cooperation, the Ministry of Culture, Sports and Tourism of Vietnam and the Ministry of Culture of Thailand signed a Memorandum of Understanding on cultural exchange for the period 2021 - 2026. On that basis, cultural exchange relations between the two countries continue to be strengthened and developed. => Conclusion: In the long run, to deal with an unprecedented and volatile global economy, Thailand will continue to work closely with Vietnam to build shared prosperity and sustainable development by jointly implementing the policy of Industry 4.0, digital economy and green growth transformation. 3.2. Lessons for Vietnam First, developing a tourist brand Second, implementing flexible tourism policies Third, developing digital infrastructure Fourth, supporting small and medium-sized enterprises (SMEs) in digital transformation Fifth, creating favorable conditions to attract FDI into agricultural development. Sixth, providing financial support for farmers Seventh, developing and implementing a comprehensive water management policy Eighth, investing in water infrastructure and management technology Finally, developing and implementing a comprehensive social welfare policy In conclusion, Vietnam can learn a lot from Thailand's approaches to tourism, digital infrastructure, agricultural growth, water management, and social welfare. Vietnam may increase competitiveness and ensure sustainable growth by following these measures, especially in areas like improving infrastructure, enacting flexible policies, and supporting vulnerable populations.

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