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 centres.
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. This places cities at the heart of bridging this gap, as more efficient urban operations can boost productivity, attract investment, and create more jobs.
Bangkok remains key, but secondary cities must also contribute
“Building Thailand’s cities of the future is not simply an urban planning agenda. It is an agenda for growth, competitiveness, jobs, and resilience,” said Stephen N. Ndegwa, division director for Thailand and Myanmar, World Bank. “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.”
The report builds on the World Bank Group’s Building Thailand’s Future Today flagship report launched at the Bangkok Business Summit 2026, which sets out four key areas for action to support Thailand’s transition to high-income status: industries of the future, firms of the future, the future workforce, and cities of the future. Thailand Cities of the Future takes a deeper look at the urban foundations of this agenda and the reforms and investments needed to make Thailand’s cities stronger drivers of growth.
Thailand’s urban system remains 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 Thailand’s economic development, but its costs are rising. Congestion costs 7 to 10 percent of Bangkok’s GRP (Gross Regional Product) each year, while climate risks and infrastructure pressures are increasing costs. Secondary cities, meanwhile, have yet to reach their full potential.
Rather than choosing between Bangkok and other cities, the report calls for a stronger urban network: Bangkok as the national anchor, supported by secondary cities with complementary economic roles. A successful network will depend on complementary specialisation, 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, Programme Management Unit for Area Based Development (PMUA) under the Research and Innovation Acceleration Agency for Competitiveness and Area Development (RCAD).
“Thailand can get more from its urban investments by concentrating complementary infrastructure and services in places where they reinforce a city’s economic strengths, rather than spreading resources too thinly.”
The report proposes action along three parallel tracks: reinforce Bangkok as a productive national anchor; put stronger urban foundations in place across Thai cities; and prepare selected secondary cities to take on larger economic roles.
Translating these priorities into coordinated city investment programmes will require aligning infrastructure, land use, resilience and financing with local economic strengths, while strengthening the institutions needed to plan and deliver across agencies and levels of government. This can help ensure that major public investments reinforce one another and create stronger conditions for private investment, jobs and productivity.
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Top and Front Page: The World Bank report title overlaid on scenes of Bangkok. Credit – PPTVHD36
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