Connect with us
industrialpolicyofthailand1000x600 industrialpolicyofthailand1000x600

Thai Country Studies

Industrial Policy of Thailand

The Thai industrial sector was under the supervision of seven governmental agencies. The Ministry of Finance administered taxes and duties and provided tax refunds on exports. It was involved in large-scale industrial projects in the role of deciding on government equity participation, arranging public foreign borrowing to support the project, and extending protection through tariffs.


The Board of Investment provided investment incentives, and the Ministry of Commerce controlled prices and international trade. The Ministry of Industry issued factory licenses, drew up industrial regulations, and enforced zoning laws. It also provided technical assistance, management training, and financing for small and mediumsized enterprises. The Industrial Finance Corporation of Thailand lent long-term funds to medium and large-scale firms from credit given by the government. The Bank of Thailand provided foreign exchange and rediscount facilities to selected industries and exporters at concessionary terms. Finally, the National Economic and Social Development Board established policy guidelines and targets for the industrial sector. In 1982 the Industrial Restructuring Committee was created to coordinate the various agencies and to formulate detailed policy proposals in line with economic development plans. Import tariffs were the most important protective measure used for the industrial sector. In the 1960s, the nominal tariff rates were low, ranging from 25 to 30 percent. In the 1970s, the rate went up to a range of 30 to 55 percent for consumer goods. By the end of 1978, nine import categories had tariff rates above 90 percent, including alcoholic beverages, shoes, perfume, cosmetics, and automobiles. In the early 1980s, the government attempted a more uniform tariff structure and lower protectionism in conformity with the Fifth Economic Development Plan.

The adjustments included a reduction in tariffs to 60 percent on 270 categories of imported commodities; a change in tariffs to 30 percent for 1,970 items; and an increase in rate to 5 percent for those nonessential items that had been exempted. Goods considered essential, such as milk for infants or fibers used in textiles, remained exempted. Other protective measures included price controls, which were quite pervasive in the 1970s but were relaxed at the beginning of the 1980s, except on petroleum products, white sugar, and sweetened condensed milk. Quantitative restrictions on imports were increased in the early 1980s to cover forty-six products. Regulations requiring a certain percentage of domestic content in manufactured imports included 30 to 40 percent for commercial vehicles, 45 percent for automobiles, and 70 percent for motorcycles. In order to encourage investment, the Board of Investment provided incentives, such as guarantees against nationalization and price controls, tax exemptions of up to 8 years, and tariff surcharges of up to 50 percent to protect against competing imports. The basic objectives of the board were to promote labor-intensive industries, exports, and regional decentralization of industry. Agriculture Much of the impressive economic growth recorded by Thailand in the 1970s and the early 1980s was owed to the steady expansion of the agricultural sector. This sector provided adequate food for the rapidly growing population and produced substantial surpluses of some commodities for export. The Thai farmer’s ability to adapt to changing market conditions contributed to the country’s agricultural success, but even more important was the availability of large areas of virgin land for cultivation.

Between 1950 and 1980, agricultural holdings nearly doubled to an estimated 22 million hectares, of which about three quarters were farmed annually, and much of the rapidly growing population was absorbed in the expansion. By the early 1980s, however, most of the arable land had been occupied, except in the South, and continued growth of the agricultural sector became increasingly dependent on the acceptance of new technologies and the adoption of more intensive cultivation. Observers feared that without these changes growing domestic demand — both from increasing population and from rising expectations — would seriously affect the nation’s balance of payments position through the reduction of exportable surpluses of vital major foreign exchange earners, such as rice and sugar. Agriculture — crops, livestock, forestry, and fisheries — employed about three-quarters of the labor force, and it was estimated that some four-fifths of the total population was dependent on the sector for its livelihood. During the mid-1980s, agriculture accounted for an average of about 25 percent of GDP, and agricultural commodities accounted annually for over 60 percent of the value of all exports. The type of agriculture engaged in — whether cash crop, subsistence, or a combination thereof — varied from region to region and within regions. In the central plain, there were farmers whose sole activity was the raising of such cash crops as maize, sugarcane, vegetables, and fruit. In the rice bowl region of the central plain, farmers grew rice for sale as a main crop. Elsewhere, rice was raised basically for subsistence purposes, but many farmers also cultivated secondary crops for the market. In areas without developed access roads and services, such as parts of the upper Northeast, participation in the market economy was limited. Farmers in these areas practiced subsistence cultivation, selling only an occasional surplus locally.

Agriculture was dominated by smallholders, most of whom had either outright title to the land or effective possession of it; tenancy was significant only in parts of the central plain. In the early 1980s, the average holding for the whole country was about 5.6 hectares, but considerable size differences existed within different regions and locales that related in part to terrain, soils, rainfall, and other natural factors. In the North, where nearly a quarter of the nation’s more than 4.5 million agricultural households were located (1983 estimate), over half the land is mountainous. In the upper part of the region, which is characterized by narrow valleys, average holdings were only about 2.2 hectares. In the parts of this upper area that had controlled irrigation, the typical farm only had slightly more than one hectare. A farm on non-irrigated land consisted of about two hectares, part of which was rain-fed paddy and part upland. The lower part of the region had areas similar to those in the central plain. Farms were considerably larger, the typical one having close to five hectares. Both paddy and upland crops were grown, and maize had become an important secondary cash crop for many farmers (see table 12, Appendix). In the Northeast, the generally infertile soil required larger holdings to meet subsistence needs. Over half the farms had between 2.4 and 7.2 hectares, and the typical farm had an area of about 4 hectares. In the early 1980s, about 40 percent of the country’s agricultural households lived in this region. Holdings in the Center, which contained about 20 percent of the nation’s agricultural households, varied considerably.

How useful was this post?

Click on a star to rate it!

Average rating 4.5 / 5. Vote count: 4521

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Pages ( 1 of 14 ): 1 234567891011121314Next »

Advertisement



Thai Covid-19
3,998
Confirmed
21
Confirmed (24h)
60
Deaths
0
Deaths (24h)
1.5%
Deaths (%)
3,803
Recovered
3
Recovered (24h)
95.1%
Recovered (%)
135
Active
3.4%
Active (%)
In Thailand, the health authorities reported 21 new corona infections by the Centre for Covid-19 Situation Administration within 24 hours. Since the beginning of the pandemic, the CFCSA has counted a total of 3,998 infections with Sars-CoV-2 in Thailand. The number of deaths related to the virus rose 0 to a total of 60.

HM King Bhumibol Royal Jazz Composition

HM King Rama IX Royal Composition

Thailand

Central Thailand5 hours ago

Bangkok Expat Travel Guide

Bright lights, big city, where tradition merges effortlessly with the megalopolis that Thailand’s capital has become, be prepared to be...

rangsit1000x600 rangsit1000x600
Central Thailand1 day ago

Rangsit Expat Travel Guide

Rangsit (รังสิต) is an exurb 40 km north of Bangkok. Understand Memorial Hall, Wat Dhammakaya Effectively a suburb of Bangkok, Rangsit...

udonthani1000x600 udonthani1000x600
Northeast Thailand1 day ago

Udon Thani Expat & Tourist Guide

Udon Thani (อุดรธานี, also Udorn Thanee) is a city in the Isaan region of Thailand. Often referred to as simply Udon or Udorn (อุดร), the city should not be...

mai-khao-3 mai-khao-3
Thailand3 days ago

2 Hours Nonstop Mega Hits 2020🌱 including Krabi, Phi Phi, Chumphon and many other Travel Destinations

Latest Tracks during the first lockdown covering Belize, Bahamas, Ibiza, Bali, NSW, Rhodes, Phi Phi Islands, etc. How useful was...

huahin1000x600 huahin1000x600
Central Thailand5 days ago

Hua Hin Cha-am Expat Travel Guide

Hua Hin Travel Guide Hua Hin is a district in the Prachuap Khiri Khan Province of Thailand, 295 kilometers from...

Ko Si Chang1000x600 Ko Si Chang1000x600
Central Thailand5 days ago

Ko Si Chang Expat Travel Guide

Ko Si Chang (เกาะสีชัง) is a small island, population 4,500, near Si Racha and near Pattaya. Understand In the Gulf of Thailand,...

khaolak1000x600 khaolak1000x600
Southern Thailand5 days ago

Khao Lak Expat Travel Guide

Khao Lak (เขาหลัก) is a 20 km long strip of coastal resorts in Phang Nga Province on the Andaman Sea...

Chaiyaphum1000x600 Chaiyaphum1000x600
Northeast Thailand5 days ago

Chaiyaphum Expat Travel Guide

Chaiyaphum (ชัยภูมิ) is a town in Isaan, Thailand. Understand Chaiyaphum is a place where many periods of civilization have overlapped...

Nakhon Nayok1000 Nakhon Nayok1000
Central Thailand5 days ago

Nakhon Nayok Expat Travel Guide

Nakhon Nayok (นครนายก) is a city in the Chao Phraya Basin region of Thailand. Understand Nakhon Nayok is a tourism...

chiangmai1000x600 chiangmai1000x600
Thailand5 days ago

Chiang Mai Expat Travel Guide

Thailand doesn’t only need to be about beaches and nightlife; Chiang Mai, the cultural centre of the north of the...

kochang1000x600 kochang1000x600
Central Thailand5 days ago

Ko Chang Covid-19 Safe Travel Trat Thailand

Ko Chang (เกาะช้าง) is an island in Trat Province, Eastern Thailand. Understand Ko Chang is Thailand’s second largest island, and the biggest in...

ko lanta1000x600 ko lanta1000x600
Southern Thailand5 days ago

Ko Lanta Expat Travel Guide

Ko Lanta (เกาะลันตา) is an island off the Andaman Coast of Southern Thailand. Like many other destinations in Krabi Province,...

kalasin1000x600 kalasin1000x600
Northeast Thailand5 days ago

Kalasin Expat Travel Guide

Kalasin (กาฬสินธุ์) is a town in the Isaan region of Thailand, population ~38,000 (2020). Understand Historical evidence points to the...

nonthaburi1000x600 nonthaburi1000x600
Central Thailand5 days ago

Nonthaburi Coronavirus Covid-19 Outbreak Central Thailand

Nonthaburi (นนทบุรี) is Thailand's second largest city, being a part of the Bangkok Metropolitan Region. Understand Due to its close...

Central Thailand5 days ago

Pattaya Expat Travel Guide

The City of Pattaya on the East coast of the Gulf of Thailand is a self-governing region about 165km Southeast...

kohmak1000x600 kohmak1000x600
Central Thailand5 days ago

Ko Mak Covid-19 Safe Travel Trat Thailand

Ko Mak is an island in Trat Province, Eastern Thailand. It is fairly undeveloped and natural. Understand There are very few islands in...

Southern Thailand5 days ago

Ko Phayam Expat Travel Guide

Ko Phayam is an island in Ranong Province, Thailand. Contents 1 Understand 2 Get in 2.1 Ferries 3 Get around...

Maha-Sarakham1000x600 Maha-Sarakham1000x600
Northeast Thailand5 days ago

Maha Sarakham Safe Expat Travel Guide

Maha Sarakham (มหาสารคาม, also spelt Mahasarakham) is a city and province in Isaan. Understand Maha Sarakham means "city of great...

phatum1000x600 phatum1000x600
Central Thailand5 days ago

Pathum Thani Safe Covid-19 Travel Bangkok

Pathum Thani (ปทุมธานี) is a city in the Bangkok Metropolitan Region in Thailand. Understand Pathum Thani has been a residential...

kohkood1000x600 kohkood1000x600
Central Thailand5 days ago

Ko Kut Covid-19 Safe Travel Koh Kood Trat

Ko Kut (also Koh Kood), Thailand’s 4th largest island (25 km long and 12 km wide), is in Trat Province in the Gulf of...

koh yao1000x600 koh yao1000x600
Southern Thailand5 days ago

Ko Yao Expat Travel Guide

Ko Yao, with Phuket to the west and Krabi to the east Ko Yao (เกาะยาว), sometimes written Koyao, is a...

yasothorn1000x600 yasothorn1000x600
Northeast Thailand5 days ago

Yasothon Expat Travel Guide

Yasothon (ยโสธร) is a town and province in the Isaan region of Thailand. Understand Get in By car Use Hwy...

Thailand5 days ago

Koh Samui Expat Travel Guide

Nestled on the east coast of Thailand in the Gulf of Thailand, lies Koh Samui which has become known as...

Similan Islands1000x600 Similan Islands1000x600
Southern Thailand5 days ago

Similan Islands Expat Travel Guide

The most famous rock at the Similan Islands of Thailand. This beach and viewpoint are often visited by Similan diving...

wattatphanom1000x600 wattatphanom1000x600
Northeast Thailand5 days ago

Mukdahan Covid-Expat Travel Guide

Mukdahan (มุกดาหาร) is a city and province in Isaan. Understand Mukdahan is the 73rd province of Thailand. Its history dates...

Advertisement

Thai Travel Warning

1. Anti-government student protests have occurred in Bangkok and other areas of Thailand. The security environment can be unpredictable and turn violent. Those attending protests can face arrest or other legal consequences. Monitor media reports from thaienquirer.com for information on protest locations and avoid public gatherings. As a foreigner take official warnings seriously.

2. Thailand has high levels of air pollution. Air pollution can make bronchial, sinus or asthma conditions worse.

3. If you can't afford travel insurance, you can't afford to travel to Thailand. This applies to everyone, no matter how healthy and fit you are.

Visitor’s Today

Free counters!
P