Thailand could see capital and supply chains shift to neighboring countries unless it accelerates efforts to simplify its regulatory environment, according to a senior official on 9 June 2025.
Chula Sukmanop, Secretary-General of the Eastern Economic Corridor (EEC) Office, warned that despite a rise in foreign direct investment (FDI) in early 2025, the country faces long-term risks if burdensome administrative procedures persist. He pointed to the need for regulatory streamlining to ensure Thailand remains competitive in the region.
Between January and April 2025, Thailand attracted 57.86 billion baht in investment, marking a 5% increase over the same period last year, based on data from the Department of Business Development. While this indicates a short-term boost, Chula noted that sustainable growth depends on easing business operations for foreign investors who are eager to begin revenue-generating activities without administrative delays.
Although some companies may consider relocating operations, Chula expressed confidence that Thailand can continue drawing high-value investments, especially in sectors such as energy, advanced manufacturing, and services tailored to emerging consumer needs. The shift towards these industries is seen as a buffer against potential capital outflows.
Global supply chain shifts, influenced in part by rising US tariffs, present an opening for Thailand to strengthen its investment appeal. Investors have shown growing interest in the region, Chula said, adding that Thailand’s appeal includes not only infrastructure but also lifestyle considerations that remain attractive to foreign businesses.
Chula’s comments came after a series of meetings with prospective investors. He underscored the urgency of regulatory reform and highlighted the importance of maintaining the quality of life to secure the country’s investment standing.
