In an era where international connectivity is crucial for economic development, Thailand stands at a critical juncture in developing its border areas. The 31 provinces bordering Myanmar, Laos, Cambodia, and Malaysia are highlighted in the latest “Unlocking Thailand’s Border Potential” report from the World Bank, which identifies challenges and opportunities in developing Thailand’s border provinces. The report emphasizes the strategic importance of these areas as gateways for trade, investment, and cultural exchange with neighboring countries, as well as approaches for creating sustainable economic growth alongside addressing infrastructure, social services, and environmental protection issues in border regions. Development under the framework of the 20-Year National Strategy and the 13th National Economic and Social Development Plan will serve as key mechanisms to make these border areas full of potential for sustainable and resilient development.

Currently, Thailand’s border provinces continue to face significant economic disparities, with GDP per capita 34% lower than inland areas and population density at only half the national average. This reflects problems of poverty, infrastructure limitations, aging society, and youth migration to major cities. However, their strategic position as border trade gateways opens opportunities for accessing affordable labor and raw materials from neighboring countries, particularly border provinces conducive to trade in the Greater Mekong Subregion countries. With appropriate infrastructure development, this would help strengthen Thailand’s economic connectivity with important regional markets. Additionally, border areas play a crucial role in promoting cultural exchange. Despite facing environmental and security challenges, investment in these areas is vital for economic development, social stability, and environmental sustainability.

• Key Findings from DPAI: Analysis of Thailand’s Border Province Potential

The latest “Unlocking Thailand’s Border Potential” report from the World Bank presents study results through the “Development Potential Assessment Index (DPAI)”, a tool previously used in India and the European Union, adapted for Thailand’s context to assess the potential and economic opportunities of 31 border provinces. The report categorizes Thailand’s border provinces into 4 distinct groups as follows:

1. High Potential, Low Performance group comprising 12 provinces: Trat, Sa Kaeo, Chiang Mai, Mae Hong Son, Tak, Ratchaburi, Kanchanaburi, Phetchaburi, Ranong, Songkhla, Phitsanulok, and Satun. These are areas with high economic opportunities but have not yet been developed to their full potential.
2. Low Potential, Low Performance group comprising 11 provinces: Buriram, Surin, Ubon Ratchathani, Amnat Charoen, Bueng Kan, Loei, Nong Khai, Nakhon Phanom, Mukdahan, Nan, and Narathiwat, reflecting the urgent need for targeted assistance measures.
3. Low Potential, High Performance group comprising 5 provinces: Sisaket, Uttaradit, Phayao, Chiang Rai, and Yala, demonstrating efficient resource management under constraints.
4. High Potential, High Performance group comprising 3 provinces: Chanthaburi, Chumphon, and Prachuap Khiri Khan, serving as models of development
   that can fully utilize their potential.

This demonstrates significant economic disparities, with border provinces having gross domestic product per capita (GDP per capita) 34% lower than central provinces while having only half the population density.

• Challenges in Developing Thailand’s Border Provinces

This report identifies key challenges that obstruct the development of Thailand’s border areas, with important issues as follows:

Aging Society: Labor Crisis in Border Areas By 2017, the elderly population will comprise 31% of Thailand’s total population, resulting in a labor force reduction of approximately 14.4 million people. This will impact long-term economic growth and burden public services, particularly in the northern and northeastern regions experiencing aging society problems at a faster rate than urban areas. For example, Chiang Rai province has 15.3% of its working-age population over 65 years old, meaning that for every 100 working-age people in Chiang Rai, 15 are elderly who must continue working despite being beyond retirement age. Additionally, youth migration to major cities leaves border areas with only elderly workers with limited skills, which not only reduces labor productivity but also increases the burden on health infrastructure and social services that are already limited in these areas.

Educational and Skill Development Limitations Many border provinces face human capital challenges, with lower education levels and higher school dropout rates than the national average. Key factors include remoteness, inadequate transportation, and educational institutions lacking resources. Songkhla is an exception, having strong educational institutions with 19.3% of workers holding higher education degrees, while Mukdahan has only 12.4% of working-age population with education above upper secondary level, and approximately 45% of youth aged 18-24 have not completed upper secondary education.

Dependence on Migrant Workers Thailand’s border provinces particularly rely heavily on workers from neighboring countries, with approximately 2.4 million registered migrant workers contributing significantly to Thailand’s GDP at 6.6%. These workers are mainly concentrated in border provinces such as Tak, Songkhla, and Nakhon Phanom. Although the government has policies allowing registered workers to access health and education services, complex and expensive registration processes force many workers into the informal labor sector. Despite agreements with neighboring countries on migration control, informal recruitment networks continue to charge high fees, resulting in these workers being vulnerable to difficult working conditions, below-standard wages, and limited access to healthcare.

Inadequate Infrastructure Deficiencies in transportation systems, utilities, industrial areas, and logistics are significant constraints on economic growth in border areas. Some provinces, such as Kanchanaburi, have road density at only 4% of the national average. Additionally, there are problems with incompatibility of transportation systems with neighboring countries, making regional integration difficult. For example, Thailand’s single-track railway system cannot efficiently connect with Laos’s new high-speed rail network.

Governance Limitations Despite decentralization efforts, Thai institutions remain centralized in nature, with the Ministry of Interior maintaining strict control over local administration. Provincially appointed governors have limited authority and capacity to address local problems. This situation forces provinces to rely on central government budgets and prevents effective response to area-specific needs, creating significant obstacles to local economic development.

• Policy Implementation Mechanisms: Key to Unlocking Thailand’s Border Potential

This report presents four important policy recommendations to fully unlock the potential of Thailand’s border provinces as follows:

1. Establishment of a Border Development Policy Committee Proposes establishing a high-level committee using the same approach as the Eastern Economic Corridor (EEC) Policy Committee, with the Prime Minister as chairman. This committee would comprise Cabinet members, representatives from border provinces, and private sector leaders to drive policy reforms, assess policy implementation impacts, and enhance coordination efficiency among relevant agencies.
2. Strengthening Regional and International Cooperation Beyond developing existing Special Economic Zones (SEZs), Thailand should promote broader regional integration by pushing cross-border cooperation on shared challenges, adopting flexible approaches to accommodate new development models, and creating incentives to attract investment and stimulate economic activities in the areas.
3. Investment in Infrastructure and Human Capital Development of both physical and human capital must be conducted simultaneously, comprising: enhancing efficiency of existing infrastructure, addressing social and demographic challenges such as aging society and teenage pregnancy, implementing Active Labor Market Policies (ALMP) to develop workforce potential, and continuous investment in healthcare and education systems.
4. Promoting Inclusive Development Sustainable development must ensure that all stakeholders, particularly vulnerable populations and low-income groups, benefit from economic and social growth by emphasizing the use of local materials, labor, and resources, providing opportunities for community participation in planning and decision-making processes, and establishing targeted support programs and mechanisms for equitable resource distribution.

• Conclusion: Laying the Foundation for Sustainable Development of Thailand’s Border Provinces

Thailand’s border provinces are important as regional gateways for trade and investment, but face complex challenges that obstruct sustainable development, including aging society, human capital limitations, inadequate infrastructure, and overlapping policy systems. These problems require comprehensive and targeted solutions. Truly unlocking border area potential requires cooperation from all sectors, including seamless policy coordination, visionary investment, and cooperation with neighboring countries. Creating an atmosphere that attracts private investment, developing workforce skills that meet market demands, and upgrading infrastructure are key to economic and social transformation in border regions.

Sustainable and inclusive development in border provinces is not merely about improving the quality of life for local people, but also strengthens the country’s competitiveness, strengthens international relations, and creates security and prosperity for Thailand as a whole. Carefully implementing policy recommendations will lay the foundation for sustainable growth and economic resilience for Thailand in an era full of challenges and changes.

Strategy and International Cooperation Coordination Division
National Economic and Social Development Council

References

World Bank. (2025). Unlocking Thailand’s Border Potential. Retrieved from https://www.worldbank.org
/en/country/thailand/publication/unlocking-thailand-s-border-potential

World Bank. (2025). Unlocking Thailand’s Border Province Potential. Retrieved from https://www.worldbank.org
/th/country/thailand/publication/unlocking-thailand-s-border-potential

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