Thailand needs to prepare new economic plans, including more production of value-added products in the agricultural sector, in response to the hurdles caused by geopolitical conflicts, notably the Russia-Ukraine war, says the Employers' Confederation of Thai Trade and Industry (EconThai).
More value-added products will help the country gain more trade value than exporting only commodities, such as rice, palm oil and rubber, said Tanit Sorat, vice-chairman of EconThai.
"These agricultural products are less competitive than those sold by neighbouring countries," he said.
In the manufacturing sector, entrepreneurs also face tough competition from their rivals in China, Cambodia and Vietnam, which benefit from lower labour and logistics costs.
Mr Tanit urged the government to pay more heed to development of products in the agricultural sector.
The country is already rich with agricultural resources, but needs to modernise its farming.
"The government wants to position Thailand as a kitchen of the world, but local farmers still struggle to earn a living and deal with hardships. That should not happen," he said.
The government is aware of the importance of smart farming and value-added products, announcing it would promote the bio-economy in order to make Thailand an Asean hub in that sector by 2027.
However, Mr Tanit said more serious action is needed from authorities to help farmers and equip them with new farming know-how in order to add value to their products.
He warned the impact of geopolitical conflicts may escalate, causing countries to divide into groups that eventually affects global trade.
Mr Tanit said Thailand should brace for this unpleasant prospect.
The country cannot simply rely on its decades-long economic structure, which cannot cope with rapid changes in global economic conditions, he said.
EconThai believes the war between Russia and Ukraine, which broke out in February, is unlikely to end soon and its impact will continue to hit Thailand in the form of high energy prices.
