On June 12, 2024, Mr. Wanchat Suwannakitti, Deputy Secretary-General of the National Economic and Social Development Council presented on Thailand’s membership in the Organisation for Economic Co-operation and Development (OECD) to the Thai Chamber of Commerce Board of Directors to inform and raise awareness about the role of the private sector, which will be a crucial component in driving Thailand’s OECD membership. The presentation was attended by Mr. Pramon Sutivong, Honorary Chairman, Mr. Sanan Angubolkul, Chairman of the Board, and Dr. Krissana Vajeekarilart, Secretary-General of the Thai Chamber of Commerce and Member of the National Economic and Social Development Council, who participated in the discussion and provided relevant comments at the University of the Thai Chamber of Commerce Council Meeting Room.
The Deputy Secretary-General presented an overview of the OECD, including its structure that provides opportunities for business, labor, civil society, and academic sectors from both member and non-member countries to participate as Policy Makers and Policy Shapers to provide recommendations and exchange various opinions with the OECD. Particularly, the business sector has a specific group called the Business at the OECD (BIAC), which plays an important role in providing business recommendations or perspectives for the OECD to use in formulating comprehensive and appropriate policies for businesses of all sizes according to the changing global context. Thai private sector can participate in BIAC as Observers, with several private sector organizations from non-member countries currently participating, such as the Federation of Indian Chambers of Commerce and Industry and Singapore Business Federation. Additionally, BIAC has internal subgroups or Policy Groups that the Thai private sector can choose to cooperate on specific issues, such as emerging markets, skills and employment, and taxation.
The OECD also plays an important role in setting international standards in the form of OECD legal instruments, recommendations, and various internationally recognized practices. These standards relate to private sector business operations in various areas, such as responsible business conduct, data security and privacy, fair tax management, and investment policy frameworks. When Thailand becomes an OECD member, the private sector will also need to adjust their business operations to comply with OECD standards. The benefits that the private sector will receive include having international-level business standards, resulting in highly credible businesses and helping to enhance the capabilities of Thai entrepreneurs on the global stage.
Regarding Thailand’s current OECD membership status, it is awaiting consideration by the OECD Council on whether to accept Thailand into the OECD accession process. If approved to enter the process, Thailand will need to adjust laws, policies, and practices to comply with OECD standards. NESDC expects this may take approximately 5 years, which is less than other developing countries that have become OECD members, such as Colombia and Costa Rica, which took approximately 9 years. This is because Thailand and the OECD have had strong cooperation for a long time and have already adjusted various standards to comply with the OECD to some extent through the implementation of the OECD-Thailand Country Programme Phase 1 (2018-2021) and Phase 2 (2023-2026).
The Deputy Secretary-General stated that throughout the OECD membership process, cooperation and support from the private sector is essential to successfully drive membership. There are three areas requesting private sector cooperation: (1) Study and comply with OECD standards relevant to the private sector, such as good corporate governance, (2) Cooperate with the government to push Thailand toward OECD membership, such as serving as representatives on subcommittees, working groups, or advisory committees, and (3) Create a role for the Thai private sector in international forums through BIAC, as BIAC plays an important role with business networks in other international economic cooperation groups such as ASEAN-BAC and B20-G20. The private sector can contact NESDC to coordinate with OECD officials to begin cooperation with BIAC immediately.
On this occasion, representatives of the Thai Chamber of Commerce Board shared their opinions on the role of the private sector in driving Thailand’s OECD membership. They recommended that the government accelerate communication with various sectors including the private sector, citizens, and civil society to create knowledge and understanding about membership and the benefits the private sector will receive, as well as establish clear processes for the private sector to work effectively with the government.
Finally, the Deputy Secretary-General emphasized that all sectors are important components in driving Thailand’s OECD membership and wanted the private sector to realize that OECD membership does not add burden to business operations, but rather the OECD is a standard that will help elevate Thai businesses to grow robustly and sustainably.
Information about Business at OECD can be found at https://www.businessatoecd.org/
Progress on Thailand’s OECD membership can be followed at bit.ly/43SdmE0
