Bangkok made a significant leap in the 2024 Global Cities Index (GCI), climbing 11 spots to 34th — the largest gain among the top 50 cities — driven by improvements in business activity, cultural experience and information exchange, according to consulting firm Kearney.

Chanchai Tanatkatrakul, country head of Kearney Thailand, said Bangkok’s advancement in business activity was driven by a substantial rise in its sea freight ranking.

“In a year when many cities faced disruptions and challenges with sea shipping, Bangkok’s strategic location supported resilience in this dimension,” he said.

“The city also increased in terms of top global services firms, further boosting its overall business activity ranking.”

The rise in the number of top global services firms in Bangkok highlights its robust and attractive business environment, reflecting its growing reputation as a hub for international business, driven by its ease of doing business and financial appeal, noted Kearney.

The GCI evaluates cities based on business activity, human capital, information exchange, cultural experience and political engagement, using 31 metrics.

This year introduced new measures, such as digital readiness and human mobility, reflecting evolving global challenges and contributing to rising average scores across cities.

Thailand ranked ninth in Kearney’s Global Services Location Index, up one spot from the previous index, thanks to its financial competitiveness and favourable business environment.

“This underscores Thailand’s appeal as an offshore destination for business services,” said Mr Chanchai.

In terms of information exchange, a new internet speed metric benefited Bangkok, which ranked eighth globally in this category. The removal of the “access to TV news” metric also contributed to the higher ranking.

For cultural experience, metrics such as international travellers, culinary offerings and visual and performing arts all improved.

Economic landscape

As the capital of Thailand, Bangkok’s economic landscape evolved through investments in infrastructure, rapid digital transformation and targeted government incentives, he said.

In addition, Thailand is reaping benefits from the China+One strategy as companies diversify their operations to regional markets, said Mr Chanchai.

“This diversification has spurred growth in the manufacturing sector,” he said.

“Thailand’s economic landscape is expected to expand further, creating more opportunities for foreign firms to invest and establish operations in the country.”

David Uhlenbrock, a partner of Kearney, said Bangkok climbed from 45th place last year, but still trailed cities such as Singapore, Tokyo and Hong Kong, which consistently ranked higher.

“To improve its ranking, Bangkok must address two key challenges: enhancing citizen welfare through improved environmental performance and social equity, and strengthening its innovation capabilities,” he said.

Singapore overtook Beijing for fifth place this year thanks to its strong business activity, success in human capital, near-perfect ease of entry scores and robust digital capabilities.

Shanghai’s leap to eighth place was attributed to new information exchange metrics, with the Chinese tech hub ranked second globally for internet speed and eighth for data centre presence.

“While Bangkok performed well, it faces significant environmental challenges exacerbated by climate change,” said Mr Uhlenbrock.

“To counter this crisis, the city should adopt a systems-oriented and proactive approach, focusing on regeneration.”

This includes implementing collaborative decision-making, integrated governance, empowering future generations, and developing a comprehensive sustainability strategy, he said.

Credit : https://www.bangkokpost.com/business/general/2934052/bangkok-jumps-in-global-city-ranking