Thailand, a country renowned for its high internet usage and rapid digital adoption, is currently facing a curious and pressing dilemma that experts have dubbed the "Digital Paradox." While the nation boasts some of Southeast Asia's most impressive figures in terms of internet penetration and e-commerce growth, its overall competitiveness and ability to generate sustainable value from digital transformation are lagging behind. This contradiction has become the focus of recent reports and high-level discussions, most notably highlighted by the University of the Thai Chamber of Commerce (UTCC) in a comprehensive analysis released on November 12, 2025.
According to the UTCC, the digital economy in Thailand has experienced explosive growth, particularly in the aftermath of the COVID-19 pandemic. Since 2019, the value of e-commerce in the country has surged sixfold, now serving as a key driver of the national economy. With 91% of households connected to the internet and 44 million users online, Thailand appears, at first glance, to be a digital powerhouse. But beneath these impressive statistics lies a set of structural issues threatening to undermine the country’s long-term digital prospects.
Dr. Teerakorn Udomrattanamanee, Associate Dean for Administration at UTCC’s School of Creative Business Entrepreneurship, offered a global perspective on the digital economy’s trajectory. He pointed out that, even as the world emerges from the shadow of the pandemic, digital economies continue to expand. Within ASEAN, Indonesia leads in growth rate, but Thailand is not far behind. Dr. Teerakorn explained that this rapid digital acceleration aligns with the "Creative Destruction" theory by economist Joseph Schumpeter, which posits that new innovations inevitably disrupt and replace the old. "The future doesn’t depend on how quickly we can innovate, but on how well society adapts to these innovations," he remarked, emphasizing the importance of adaptability over mere technological speed.
Yet, as Dr. Supasan Preedawivat, Dean at UTCC’s School of Creative Business Entrepreneurship, delved deeper, he identified a critical flaw in Thailand’s digital ascension: the growth has been driven more by the sheer number of users than by genuine improvements in national competitiveness. "Thailand has many internet users and online entrepreneurs, but lacks the ability to truly leverage technology for added value," Dr. Supasan stated. He identified three key gaps at the heart of the paradox, though the UTCC report did not specify these in detail.
To confront these challenges, Thai entrepreneurs are being urged to embrace the PACE Framework—a set of four core competencies designed to help businesses survive and thrive in the digital era. At the same time, the government is encouraged to shift its role from a traditional regulator to a collaborative partner in building the digital ecosystem, guided by the LEAD Framework. These frameworks, while technical in name, boil down to a call for greater cooperation, agility, and forward-thinking policy.
Dr. Kittipong Sakornsathien, Director of the Center for Sustainable Competitiveness Development at UTCC, warned that Thailand now stands at a "critical crossroads," facing what he called a "Future Gap"—a lack of readiness for what’s coming next. The nation’s declining competitiveness rankings are a stark indicator of this vulnerability. Still, Dr. Kittipong sees hope in what he terms "Integration Opportunity": if government, private sector, and digital platforms can truly join forces, Thailand could transform itself from a mere consumer of technology into a genuine creator of digital value.
This sense of urgency and opportunity was echoed in parallel discussions at the highest levels of government. On November 11, 2025, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas welcomed a delegation from the U.S.-ASEAN Business Council, which included representatives from 39 major American companies spanning industries such as energy, healthcare, digital technology, tourism, food, and finance. The visit underscored the enduring confidence of U.S. businesses in Thailand’s potential, as well as their commitment to supporting the country’s digital and economic transformation.
During the meeting, the Deputy Prime Minister outlined the government’s "Quick Big Win" economic strategy, built on five core pillars. First, immediate economic stimulus measures—like the "Khon La Khrueng Plus" co-payment scheme—are aimed at easing cost-of-living pressures and boosting grassroots purchasing power, particularly for small businesses. The long-term vision is to help local entrepreneurs adapt to the digital economy and adopt cutting-edge technologies, including artificial intelligence.
Second, the government is tackling the persistent problem of household debt, which has long weighed down Thai economic growth. Plans are in place to collaborate with the Bank of Thailand and commercial banks to separate non-performing loans from bank balance sheets, providing financial education to debtors and helping them re-enter the economy with greater discipline.
Third, there is a focus on promoting long-term savings, especially among low-income earners and the elderly. Ideas include a government lottery profit fund to boost national savings and tax-advantaged savings accounts overseen by the Securities and Exchange Commission.
The fourth pillar centers on supporting small and medium-sized enterprises (SMEs) through liquidity measures and business restructuring incentives. The aim is to help SMEs compete and transition into new markets, including green businesses, digital enterprises, and AI-powered ventures—ultimately positioning them as a new growth engine for Thailand.
Finally, the government is working to attract long-term investment by streamlining bureaucratic processes with a "Fast Pass" system, reducing red tape, and amending laws that hinder trade and investment. Underpinning all these efforts is a commitment to fiscal discipline, to ensure long-term stability and resilience.
Representatives from the U.S. business community expressed strong support for these initiatives, highlighting their decades-long partnership with Thailand in digital skills, AI, data centers, cloud computing, and cybersecurity. They also called for modern tax incentives and regulatory frameworks to help Thailand realize its ambition of becoming a regional automotive and digital hub. Others praised the government’s tourism stimulus measures and the push for contactless payment systems, which make travel more convenient and secure for visitors.
The American delegation’s visit also coincided with the recent announcement of a joint framework for a United States–Thailand Agreement on Reciprocal Trade, hailed as a major step in deepening economic ties. U.S. Ambassador Robert F. Godec emphasized the "long-standing, over 190-year relationship" between the two countries and thanked the Thai government for fostering an environment conducive to shared prosperity. Ted Osius, Senior Vice President of the U.S.-ASEAN Business Council, added, "Thailand remains a key destination for U.S. private sector investment in Asia and one of the most important markets in Southeast Asia."
As Thailand grapples with its digital paradox, the consensus among experts and business leaders is clear: bridging the gap between digital adoption and real competitiveness will require unprecedented collaboration between government, industry, and the tech sector. Only by "joining hands," as Dr. Kittipong put it, can Thailand hope to shift from being a consumer of technology to a true creator of value in the digital age. The stakes are high, but so too is the opportunity—if all parties are willing to seize it, together.
