Corruption needs to be addressed, foreign chambers chair says

Foreign investors consistently examine a country's anti-corruption efforts before making investment decisions, according to Joint Foreign Chambers of Commerce in Thailand (JFCCT) Chairwoman Vibeke Lyssand Leirvåg warns.

According to the Corruption Perceptions Index (CPI), Thailand has remained near the bottom of global rankings for years, falling to 116th out of 180 countries in the latest assessment.

Leirvåg said Thailand continues to offer a strong business environment and remains an attractive destination for foreign companies. 

However, some existing and potential investors are beginning to reconsider moving their operations due to concerns over transparency, regulatory uncertainty and inconsistent law enforcement.

"Most international companies follow international standards, and they have to maintain those standards when investing in Thailand. There is no space for doing business in a different way. Transparency and zero tolerance are key for anybody to succeed," she said.

The Joint Foreign Chambers of Commerce represents 31 foreign chambers of commerce and around 8,000 companies operating in Thailand.

Speaking on The Next Move, Leirvåg said anti-corruption remains one of the most important issues considered by foreign direct investors, not only for companies looking to enter Thailand but also for those already operating in the country.

"When investors evaluate a destination, they don't only look at investment incentives.” 

"They also examine whether regulations are predictable, whether they are implemented consistently and whether the rule of law is upheld. Those factors are equally important when making long-term investment decisions,” she said.

Leirvåg said that while Thailand has actively promoted investment through incentives and industrial policies, declining performance in international governance indicators sends a negative signal to global investors.

The JFCCT chair also pointed to Thailand's ongoing accession process to the Organisation for Economic Co-operation and Development (OECD) as an opportunity to improve governance and align the country with international standards.

"I think the government's commitment to joining the OECD is an important step. The way business was conducted in the past may no longer meet international expectations, so adopting transparent business practices is essential,” she said.

However, Leirvåg argued that introducing new laws alone would not solve the problem, saying effective implementation remains Thailand's biggest challenge.

Citing discussions she attended at the OECD headquarters in Paris earlier this year, she said Thailand scored relatively well in terms of regulatory design but performed poorly in implementation.

"Thailand scored around 78% on regulations but only 11% on implementation. That shows where the real problem lies," she said.

She called for comprehensive regulatory reform, including updating outdated laws, removing unnecessary regulations and ensuring that new legislation is practical for businesses to comply with.

According to Leirvåg, regulations are sometimes introduced without sufficient consultation with the private sector, resulting in rules that are difficult or even impossible for businesses to implement.

She said stronger cooperation between the government and businesses would help create regulations that are both effective and practical while improving transparency and investor confidence.

"If we have strong, transparent laws that are properly enforced, I believe Thailand remains one of the most attractive investment destinations in Southeast Asia," she said.

Leirvåg also shared the JFCCT's message to Prime Minister Antin Charnvirakul following a recent luncheon attended by the premier, calling on the government to accelerate regulatory reform by establishing a dedicated team to review existing legislation and work closely with the private sector.

"We don't only need reform. we need implementation. Regulations should help Thailand move forward, be practical to comply with, and be enforced consistently,” she emphasised.

She added that government agencies responsible for enforcing regulations should receive adequate training and resources, while businesses should also be informed and educated about new legal requirements to ensure effective compliance.

Asked what could accelerate Thailand's reform agenda, Leirvåg underscored that collaboration between the public and private sectors would be the key to success.