Thailand Urged to Unlock Secondary Cities' Potential for High-Income Growth

Thailand can accelerate its transition to a high-income nation by unlocking the full economic potential of its secondary cities, according to a new World Bank report titled “Thailand Cities of the Future: Urban Foundations for a High-Income Economy.” The report notes that Thailand’s economic growth is primarily driven by urban areas; approximately 89% of GDP growth between 2010 and 2020 originated from urban centers. However, for Thailand to achieve high-income status by 2037, it requires an average annual GDP per capita growth rate of around 5.4% over the coming decades. Efficient urban operations are crucial for boosting productivity, attracting investment, and creating jobs to bridge this gap. While Bangkok remains key, secondary cities must also contribute. Stephen N. Ndegwa, division director for Thailand and Myanmar at the World Bank, stated, “Building Thailand’s cities of the future is not simply an urban planning agenda. It is an agenda for growth, competitiveness, jobs, and resilience. Unlocking the potential of secondary cities as stronger engines of productivity and investments with economic roles that complement Bangkok will be central to Thailand’s next phase of growth.” Thailand’s urban system is heavily concentrated in Bangkok, which generates close to half of national output and is nearly 27 times larger than Chiang Mai, the country’s second-largest city. This concentration has supported economic development but comes with rising costs. Congestion costs 7 to 10 percent of Bangkok’s Gross Regional Product (GRP) annually, while climate risks and infrastructure pressures increase expenses. Meanwhile, secondary cities have yet to reach their full potential. The report advocates for a stronger urban network, rather than choosing between Bangkok and other cities. It proposes Bangkok as the national anchor, supported by secondary cities with complementary economic roles. The success of this network hinges on complementary specialization, productive density, strong connectivity and institutions, and resilient infrastructure. “The key is to invest more strategically,” said Assoc. Prof. Dr. Poon Thiengburanathum, deputy director for planning and strategic management at the Programme Management Unit for Area Based Development (PMU). He suggested that to gain more from urban investments, resources should be concentrated in areas that reinforce a city’s economic strengths, rather than spreading them too thinly. The report proposes three parallel tracks: reinforcing Bangkok as a productive national anchor; putting stronger urban foundations in place across Thai cities; and preparing selected secondary cities to take on larger economic roles. Translating these priorities into coordinated city investment programs will require aligning infrastructure, land use, resilience, and financing with local economic strengths, while strengthening the institutions needed for planning and delivery across agencies and government levels.