Speaking at seminar held by Bangkok Bank, Kosit said businesses should improve their internal management and productivity, in order to compete with China and India.

"Aside from developing a knowledge base, it's important for us to understand the changes in those countries," he said.

Kosit added that while Thailand has more opportunity to compete with other countries, it would also face more difficulties if it cannot adapt to the current situation.

China and India, which have a combined population of about 2.5 billion, have both reported annual economic growth of 8-9 per cent.

Kosit said that while Thai entrepreneurs must improve their businesses and develop innovative products in order to compete with India and China, they must also try to export to the two global giants.

"If we don't improve our productivity, we will lose the opportunity to expand our business in global market," he said.

Chalida Ekvitthayavechnukul

The Nation