The struggle to lure investment

“They simply postponed their investment plans,’ said Mr Apichit.

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Baht appreciation, which makes Thai products more expensive than those from rivals such as Vietnam and Indonesia, has also dealt a blow to investment.

He said foreign investors looking for export bases are discouraged from venturing into Thailand based on concerns about profits.

“It is not completely clear why the baht keeps strengthening against the US dollar. Many foreigners are worried about this, saying they have not seen the government take concrete measures to deal with the problem,’ said Mr Apichit.

According to the FTI, Thailand has 30,000 exporters, compared with 100,000 exporters in Vietnam.

“Our country has no new exporters, raising doubts over whether state investment incentives and measures to help exporters are adequate, compared with those in neighbouring countries,” he said.

There are also many outdated laws and regulations that hinder business operations in Thailand, said Mr Apichit.

“The FTI and Joint Standing Committee on Commerce, Industry and Banking have been calling on the government to change or abandon these laws for a long time, but the problem remains,” he said.

While the manufacturing sector is worried about investment trends, the Bol said last year it believes Thailand has the potential to attract more investment.