Thailand’s Digital Competitiveness Declines in Global Ranking
Thailand has dropped one position to 38th out of 69 economies in the World Digital Competitiveness Ranking 2025, as reported by the International Institute for Management Development (IMD). This decline is partly due to a drop in the country’s technology ranking, which fell from 23rd to 29th. The Thailand Management Association (TMA) attributes this decline to weak private investment in artificial intelligence (AI).
The ranking evaluates 69 economies, including Kenya, Namibia, and Oman for the first time. It considers three main factors—knowledge, technology, and future readiness—and nine sub-factors across 61 criteria. Switzerland topped the list, followed by the United States and Singapore. According to the IMD, global trade tensions are influencing national digital strategies, and both firms and nations must adapt to remain competitive.
Technology Factors in Decline
For Thailand, all sub-factors under the technology category—such as regulatory framework, capital, and technological infrastructure—showed declines. The TMA noted that the technology factor was once a strength for Thailand, ranking 15th in 2023. However, private sector investment in AI fell to 53rd place.
In terms of the knowledge factor, Thailand ranked 37th, an improvement of three spots from the previous year. This progress was driven by gains in talent, training, and education criteria. However, the country still lags in scientific and technical employment (57th) and AI-related publications (53rd).
Future Readiness and Challenges
Thailand’s future readiness dropped from 41st to 45th. Specific areas of concern include tablet ownership (54th), software piracy (58th), government cybersecurity capacity (55th), and privacy protection laws (58th). The TMA explained that the lower technology ranking does not necessarily mean that technological development is stagnant, but rather that other economies have adopted emerging technologies and innovation at a faster pace.
Thailand has experienced low growth in several areas, including research and development (R&D) investment, innovation (with few unicorn startups), and the adoption of advanced technologies like AI and automation.
Persistent Skills Gap
Another significant weakness is the persistent skills gap in science, technology, engineering, and mathematics (STEM). There are shortages in both the quantity and quality of talent, with educational output still misaligned with modern labor market demands. Despite having solid IT infrastructure, the environment for fostering technological innovation remains constrained by bureaucratic hurdles and policy implementation challenges.
The TMA emphasized the need to shift from basic digital adoption to an innovation-driven economy. The association recommended that the government introduce targeted measures to enhance digital competitiveness, intensify R&D investment, address the skills gap through education reform and training initiatives, and streamline regulatory frameworks to attract private investment and encourage innovation.
Increasing Uncertainty and Complexity
The IMD World Competitiveness Center warned that rising uncertainty and complexity will pose increasing challenges for both businesses and governments. According to the TMA, Thailand needs to understand how digital factors impact different industries to better analyze its situation.
The country’s global digital competitiveness is influenced by three key factors: infrastructure, competent personnel, and a favorable regulatory framework. These elements support effective technology adoption and application, as highlighted by the association.