Investors in Thailand may shift their supply chains and capital to neighbouring countries if laws and regulations are not streamlined swiftly, said Chula Sukmanop, Secretary-General of the Office of the Eastern Economic Corridor.
While foreign direct investment surged in the first four months of 2025, Chula noted that the government should prioritise regulatory reform, to prevent investors from relocating to other countries.
“To maintain Thailand’s position in the region, the government must act now to streamline regulations. For investors, it consumes time to complete administrative procedures. Once they decide to invest in Thailand, they want to see factories generating revenue as soon as possible,” he said.
According to the Department of Business Development, investment value in the first four months of this year reached 57.86 billion baht, representing a 5% increase, compared to the same period last year.
Despite the positive investment figures, Chula stressed that attracting higher-end investments is crucial in counterbalancing capital outflows being caused by potential supply chain shifts.
“Some companies may leave, but others will come. I believe that incoming capital will exceed the outgoing and the new investments will be higher-end, such as in energy, advanced manufacturing and businesses shifting from production to services, offering solutions tailored to the lifestyle of the new generation,” he explained.
He remains confident, though, in Thailand’s competitiveness in attracting future investment, while US tariffs are upending global supply chains.
Following discussions with potential investors, he emphasised that Thailand has a significant opportunity, as many companies are accelerating investment in the region, adding that Thailand’s unique environment, particularly its work-life balance, is irreplaceable.
He suggested that Thailand must uphold its position through rapid regulatory reform and maintain a high quality of life to meet regional challenges.
By Franc Han Shih, Thai PBS World
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