The total value of exports is up by 3.9% for June 2014, as compared to the same period in the previous years, with improvements in both intra-ASEAN and European trade, according to a report issued by the Ministry of Improvements.
Thailand has led this process of economic integration and, since 2010, has benefited from the near elimination of tariffs between Indonesia, Malaysia, the Philippines, and Singapore (the original ASEAN-5).
Compared to Singapore, Thailand still has a relatively low base in terms of digital infrastructure but this is rapidly changing and improvements will have a significant impact on education, financial services and manufacturing. In Thailand and Malaysia, where labor costs are higher, this will contribute to the more sophisticated manufacturing capabilities needed to offset these costs.
Thailand already has a strong record on integration in the global economy, ranked a respectable 36th on the MGI Connectedness Index and a strong 12th in the Goods category, which quantifies participation according to flow intensity and share of world total. Thailand is exempt from many of the vulnerabilities which McKinsey highlights across the ASEAN region.
While Thailand has moderate restrictions placed on the levels of foreign ownership of equity in new investment projects, for instance, it has some of the highest levels of access to manufacturing.
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