Industrial contraction arrives early

Tech disruption a major pressure point

- SOMRUEDI BANCHONGDUANG

Thailand's industrial sector has entered a contraction phase earlier than expected, pressured by intensifying global competition and the country’s declining competitiveness.

According to the Kiatnakin Phatra Financial Group’s (KKP) research centre, Thailand’s industrial sector is experiencing a period of contraction or “premature deindustrialisation”, occurring earlier than anticipated and ahead of the country achieving high-income status.

This deindustrialisation trend has increasingly weighed on the economy, preventing growth from returning to its previous trajectory, particularly during the post-pandemic period. Thailand is among the countries now confronting this structural shift.