Thailand is a country located in the Southeast Asian region having 76 provinces with a total population of over 68 million inhabitants, where the capital of the country is Bangkok. Thailand is neighboring to countries like Malaysia, Cambodia, Vietnam, India, and Myanmar.
In pestle analysis of Thailand, we’ll discuss macro factors like political, economical, social, technological, legal and environmental issues, and their impact (positive and negative both) on the country. They’re as follows;
Table of Contents
Political Factors
Fight between Two Political Parties
As we all know that Thailand is very famous because of its tourism industry. Her transparent beaches, beautiful agricultural landscape, hills and mountains attract the attention of tourists across the world. But her tourism industry is very badly affected by the conflict between two local political parties.
Redshirts and yellow shirts are two major political parties in Thailand, and they have a stronghold in the country. However, they have a conflict over some local domestic issues which escalated back in 2010. The yellow shirt party started protesting near the international airport, Suvarnabhumi Airport, the government, and the security officials have got no other choice, but to shut down the international flights. Years of planning and hard work had put the whole Thai tourism industry at stake.
Yellow shirts party, on the other hand, started protesting at two points in retaliation; first, at the main intersection of the capital, Bangkok, and second, at the political summits in Pattaya. When all the major roads were blocked, food supplies and stores were shut down. Closing food stores seemed to be a good choice under such circumstances. But when red shirts ran out of the food supplies, they started bombing the stores.
Also Read: SWOT Analysis of Thailand
When all the international flights are off, and main highway roads are closed. Then Asian and European governments of different countries asked people not to visit Thailand under such circumstances, or until things go back to normal. Consequently, the tourism industry stopped at once because foreigners redirected their focus to other neighboring countries. It took approximately 10 years for Thailand to re-establish her peaceful image.
System of Government
The Kingdom of Thailand has a system of parliamentary democracy and constitutional monarchy. Monarch is the head of the state, his authorities and powers are limited, but he’s above criticism. If anyone criticizes the monarch, then he has to face 15 years of imprisonment. The elected prime minister is the head of government, and he has more power over governance and administration.
Membership & Alliances
Thailand is the founding member of ASEAN organization (association of Southeast Asian nations). Not only that, she has developed close relations with all the member countries. Among them, China is one of her favorite ally. However, she has a conflict with Cambodia, Laos, and Myanmar over the country’s border.
Political corruption
According to the corruption index ranking of Transparency International, Thailand ranked at the 99 positions out of 180 countries in 2018. Although, it’s not as high as some other countries but it exists; if the country doesn’t deal with it, then soon it’ll rot every administrative department of the country.
Economic Factors
Volatile Currently (Baht)
As we know that economic development, fall, and recession in the international market can affect the local currency of a country. Thailand is no exception from it. However, the thing that differentiates Thai currency from the rest is her high level of volatility.
What it means if her currency gets down, then she has to borrow money from other countries in order to restore the economic crisis. If the money doesn’t come from the international monetary funds, then companies can go bankrupts. Profit is the main concern of many private businesses when an economy can make their business bankrupt, then they won’t invest their capital in such a country.
The country has been facing the volatility of currency issues since 1997. Thailand has made a lot of progress over the years, and it has improved a lot since then.
Attractive Investment Policies
The admiring and appreciating thing about the Thai government is developing attractive policies for private investors to take initiatives. The country has devised a transparent framework and simple procedure for private businesses, the purpose is to attract young entrepreneurs and foreign investors to invest in the economy. As a result, it would create an atmosphere of competition, demand, and supply, the market would keep flourishing.
Lower Unemployment Rate
When foreign investors and local entrepreneurs are investing their capital and resources in the economy, then it results in the form of a lot of job opportunities. Therefore, the unemployment rate of the country is lower, and that is praiseworthy.
Unequal Education
The unequal system of education is the main hurdle in the way of the country’s economic progress. A child is supposed to get approximately 12.5 years of education before turning into 18 years of age. When you add other factors like quality of education and learning, then it results in lowering the total number of education years like 8.5. Imagine 18 years of old teenager having 8.5 years of education, he’d have lesser job opportunities to avail in his/her adult life.
Thai’s Global Ranking
According to the report of the World Bank that Thailand has progressed in a short time moving from lower-income to upper-income countries in 2019. According to the statistics of Times, the nominal GDP (gross domestic product) of the country in 2018 was 455.378 billion US dollars.
The Standard of life has improved a lot and the poverty level has decreased. Now, Thailand ranks among the world’s 25th largest economies.
Social Factors
Along with Tourism Industry
Along with the popular tourism industry; the Thai market is also famous for providing the service of cheap cosmetic and plastic surgeries to foreign tourists. Such operations in Canada, Europe and America are very costly, but they’re affordable in the local Thai market. There’s no restriction on such operations, even plastic and cosmetic doctors host TV shows for their service of safe treatment.
Agrarian Land
Agriculture is the first popular profession of middle-aged and old people in Thailand; tourism comes in the second position. Almost half of the country’s population is working in the farms and fields, growing and cultivating crops, and experimenting with different techniques of improving the processes of production. Young people, on the other hand, are interested in technical fields.
Relaxed Mindset
Almost 90% of Thai people follow the ideology of great Buddha. Their social and culture is comprised of mixed ideologies of ancient civilizations and religion (Buddhism), which makes them to live life with the philosophy of ‘mai phen rai.’ What it means in English that it doesn’t matter what you do or didn’t do, it doesn’t. The fascinating sight and the architect of the Buddhist temple is the other reason that attracts tourist to find inner peace in such shrines.
Social setup
As we know that the majority of Thai people are Buddhist, but the country doesn’t have any official or state religion. Hindu, Muslim, and Christians also live there in close harmony with the majority religion. According to the report of the BBC, the average life expectancy of Thai people is 71 among males and 79 among females. Thai people are hard-working by nature, and they follow the ideology to live free and let others live freely.
Technological Factors
Adopting Latest Technology
The reason for Thai’s increasing productivity is because of adopting a research and development mindset. Implement cutting edge technology in the agriculture field; it results in the form of new harvesting and cultivating style and methods. The purpose is to increase productivity and growth.
Higher Growth Rate
It doesn’t mean that Thailand is only using technology in the agriculture field. Her young people are becoming more tech-savvy than any other neighboring country. The cybersecurity profession is also becoming a new trend because she’s the leading user of social media (Facebook, Instagram, Youtube, Line, and Twitter) in the region. That’s why people are learning and joining cybersecurity to protect them, and also use it to make it a profession.
The interesting thing to note here that technology and cybersecurity are very common only in the capital; the government should spread tech culture across the country.
Legal Factors
Can’t Criticize Royal Family
Just like any other country, she also has a constitution and laws. But some of her laws are very strict like defaming, insulting or criticizing the royal family. If anyone does it, then it could lead him/her into the prison. Therefore, people are afraid of talking about the king in the public.
Alcohol Drinking Laws
Thailand has very strict laws against underage drinking; one should be more than 20 years old. Even Thai police check social media accounts of people that no one should be drinking below 20. One can’t drink in the temples, pharmacies and at the petrol station.
Environment Factors
Deforestation
According to an estimate, she has approximately 10000 species of plants and home to monsoon rain forests, and mangrove forest. But this amazing biodiversity is under attack by deforestation and the expansion of cities and roads. The government should take some steps to avoid deforestation.
Conclusion: PESTLE Analysis of Thailand
Thailand is a country with beautiful landscapes and beaches, but deforestation can ruin everything. Therefore, it must stop. Production is good for the economy, but it shouldn’t be at the cost of nature.
