Rule of law seen as key to Thailand's OECD competitiveness push
State planning and banking leaders say legal certainty and regulatory reform are essential for Thailand’s OECD accession and long-term competitiveness.
- Thai public and private sector leaders agree that strengthening the rule of law is the essential foundation for boosting the nation's global competitiveness and successfully joining the OECD.
- A weak rule of law is identified as a root cause of a "confidence crisis" among investors, contributing to structural economic problems like a large informal economy, corruption, and regulatory burdens.
- The push for OECD membership by 2028 is being used as a catalyst to drive structural reforms, raise governance standards, and build a more transparent and accountable system to attract investment.
At the Thailand Rule of Law Leadership Forum 2026: Competitiveness and OECD Readiness, a major forum on Thailand’s future direction, two key representatives from the public and private sectors shared the stage to outline a common direction.
Representatives from the NESDC (Office of the National Economic and Social Development Council) and the Thai Bankers’ Association identified problems and laid out a roadmap for OECD (Organization for Economic Co-operation and Development) membership by 2028, presenting a picture of structural weaknesses in the Thai economy while agreeing that the “rule of law” is an indispensable foundation if Thailand is to compete sustainably on the global stage.
Structural problems laid bare: the informal economy and inequality
Payong cited data reflecting the fragility of Thailand’s economic structure, saying the country is currently driven by an informal economy amounting to 48% of GDP, according to World Bank reporting.
This has led to informal workers accounting for as much as 55% of the labour force.
The problem is also linked to a distorted tax base, with only 11.2 million people among Thailand’s total population filing tax returns, and only 4 million of them actually paying tax.
There is also a concentration of economic power, with just 1% of business operators accounting for 65% of GDP, while more than 99% of SMEs find it difficult to access opportunities and have low bargaining power in the market.
This situation has led to severe household debt, which could be far higher than official figures if informal debt is included.
These factors have caused both Thai and foreign investors to begin losing confidence, prompting some Thai entrepreneurs to seek growth overseas instead of investing in Thailand.
The rule of law is the economy’s software and spirit
The chairman of the Thai Bankers’ Association stressed that the rule of law is not only a matter of the justice system, but is also the “software” and “spirit” that sustains the economy.
If the rule of law is weak, it will lead to corruption and a lack of transparency.
He pointed to the problem of regulatory overload, or the existence of too many laws, which has become an obstacle to doing business, creating a regulatory burden and causing low public-sector efficiency as well as openings for corruption.
“Therefore, the private sector, through the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), views regulatory transformation, or the reform of regulations to make them modern and transparent, as an urgent agenda under the Vibrant Thailand proposal to create an environment conducive to fair competition,” Payong said.
Path to the OECD: holistic and data-driven work
In preparing for OECD membership, Payong proposed that Thailand adopt a holistic approach, not limited to any one sector, but built on cooperation among the private sector, the public sector and the political sector.
The country must move beyond “pointing fingers and blaming one another” and instead work on the basis of data-driven and fact-based decision-making.
Thailand must also rely on global technical agencies such as the OECD, World Bank, UNDP and World Justice Project to use international standards as tools for assessment and communication with the global community.
The key goal is to make Thailand the first choice for investors seeking trusted business partnerships that grow together sustainably.
Seizing opportunity in the age of geopolitics for a sustainable future
Payong concluded by pointing to a “window of opportunity” arising from global geopolitical conditions that have led to the relocation of production bases.
Thailand must seize this opportunity to build security in both energy and food.
“I think joining the OECD is therefore not merely a trend-driven goal, but an important milestone in reforming the country’s structure to achieve inclusive growth, leaving no one behind, and to strengthen the spirit of Thailand’s economic system so it can compete on the global stage with dignity.”
Thuttai Keeratipongpaiboon, director of the International Strategy and Cooperation Division at the NESDC, shared his views on Thailand’s reform direction through the OECD accession process and the laying of strategic foundations in the 14th National Economic and Social Development Plan.
OECD accession: “Not about joining, but about transforming”
He stressed that the ultimate goal of OECD accession is not simply to be added to the list of member countries.
Its essence is to use the process as a “catalyst” to raise standards in government operations and national administration across all systems.
“Membership will change Thailand’s role from being a standard taker to becoming one of the standard setters of the world.”
Thuttai said that, in terms of current progress, Thailand is at stage 6 of 10 on the path to membership.
After the prime minister submitted an initial memorandum last December, Thailand has now entered the most challenging stage: the technical review.
This is not merely an assessment exercise, but a process in which all parts of the public sector must prove themselves and improve their working standards to meet international requirements. The government’s key milestone is to secure full membership by 2028.
Solving the confidence crisis with the rule of law
The NESDC division director pointed to a major problem holding back the country’s growth: “confidence challenges”, including confidence in state institutions and overlapping regulations.
Building public confidence must be done through the improvement of government mechanisms, including appropriate organisational size and genuine efficiency.
The rule of law is the most important foundation for economic and social development.
If Thailand can build a transparent and accountable system, it will help bring information that was once outside the formal system into use for development and targeted problem-solving.
This will have a direct impact on investor decision-making and build confidence among both the business sector and the public.
The 14th development plan and the “TRUST” strategy
In planning the future through the 14th National Economic and Social Development Plan, the NESDC has structured its approach around four key pillars:
- Productivity
- Inclusivity
- Adaptability
- Immunity
The “TRUST” framework is at the heart of driving this transformation, as follows:
- T (Transform): reshaping the economic structure, no longer focusing only on traditional sectors that lack potential
- R (Reform): reforming the mechanisms and efficiency of various sectors, especially the public sector
- U (Upgrade): upgrading human capital so people have the skills needed for the future world
- S (Sustain): creating sustainability in every dimension, including society and the environment
- T (Transfer): transferring and developing technology to increase competitiveness
“Moving Thailand towards OECD standards cannot be done by any single agency, or by the state sector alone, under a whole-of-government approach. It must draw on the strength of every part of society, a whole-of-society approach, including the private sector, the public, farmers and small entrepreneurs,” Thuttai concluded.
