Bangkok has made a notable advancement in the 2024 Global Cities Index (GCI), moving up 11 spots to 34th place—the largest increase among the top 50 cities. This improvement is attributed to enhancements in business activity, cultural experiences, and information exchange, as reported by consulting firm Kearney.
Chanchai Tanatkatrakul, the country head of Kearney Thailand, pointed out that Bangkok’s rise in business activity is largely due to a significant improvement in its sea freight ranking. He noted that while many cities dealt with disruptions in sea shipping, Bangkok’s strategic location helped it maintain resilience in this area.
The growth in the number of leading global services firms in Bangkok further enhanced its overall business activity ranking, highlighting a strong and attractive business environment and its growing status as an international business hub, as emphasized by Kearney.
The GCI assesses cities based on various factors, including business activity, human capital, information exchange, cultural experiences, and political engagement, using 31 metrics. This year brought new criteria, such as digital readiness and human mobility, to reflect current global challenges, contributing to higher average scores across cities.
Thailand improved its position to ninth in Kearney’s Global Services Location Index, moving up one spot from the last index due to its financial competitiveness and favorable business environment. Mr. Chanchai stated that this underscores Thailand’s appeal as an offshore business services destination.
In terms of information exchange, Bangkok benefited from a new internet speed metric, allowing it to rank eighth globally in this category. The removal of the “access to TV news” metric also aided in its improved ranking. For cultural experiences, metrics such as the number of international travelers, culinary offerings, and visual and performing arts all showed improvements.
As Thailand’s capital, Bangkok’s economy has evolved through investments in infrastructure, rapid digital transformation, and targeted government incentives. Mr. Chanchai mentioned that Thailand is capitalizing on the China+One strategy, as businesses diversify operations into regional markets, leading to growth in the manufacturing sector.
Looking ahead, there are expectations for further expansion in Thailand’s economic landscape, presenting additional opportunities for foreign investment and business establishment in the country.
David Uhlenbrock, a partner at Kearney, highlighted that despite climbing from 45th last year, Bangkok still lags behind cities like Singapore, Tokyo, and Hong Kong, known for consistently higher rankings. To improve further, Bangkok needs to tackle two critical challenges: enhancing citizen welfare through better environmental performance and social equity, and bolstering its innovation capabilities.
This year, Singapore surpassed Beijing to secure fifth place due to strong business activity, success in human capital, near-perfect ease of entry scores, and robust digital capabilities. Shanghai’s rise to eighth place was attributed to the new information exchange metrics, with it ranking second globally for internet speed and eighth for data center presence.
Mr. Uhlenbrock noted that while Bangkok has performed well, it faces significant environmental challenges that are worsened by climate change. To address this crisis, he advised adopting a proactive and systems-oriented approach, focusing on regeneration efforts. This would involve collaborative decision-making, integrated governance, empowering future generations, and creating a comprehensive sustainability strategy.
