FTI urges Thailand to act before being overtaken on all fronts
Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), told Krungthep Turakij that Vietnam is undergoing a major adjustment, taking advantage of changes in US tariffs and global trade rules. Vietnam is far more dependent on the US export market than Thailand, with over 30% of its exports going to the US compared to Thailand’s 18%. At the same time, Vietnam has had to contend with transshipment tariffs rising as high as 40%.
“Vietnam knows the world has changed, so it must rely more on itself and push through structural reforms,” Kriengkrai said. “They’ve started with bureaucratic reforms, cutting ministries and expenses to reduce redundancy. They know if they don’t restructure, they’ll lose out in global competition. This is a good example Thailand should follow.”
He warned that if Vietnam succeeds first, Thailand will inevitably be affected. “Vietnam already has stronger competitiveness, better skills, higher GDP growth and export figures. That’s why they’re moving urgently. If we only talk but don’t act, or move too slowly, Thailand will lose ground and find it harder to compete.”
Still, Kriengkrai stressed it is not too late for Thailand, provided it learns from Vietnam and acts decisively. “This crisis could be a turning point, an opportunity to reform ourselves, just as Vietnam has. Thailand still has strengths and advantages, but if we fail to act, we will keep falling behind. We must cut obstructive laws and all sectors must cooperate, with the government leading reforms for sustainable progress.”
Poj Aramwattananont, Chairman of the Thai Chamber of Commerce, noted Vietnam’s heavy investment in infrastructure as a strategy to sustain growth and counter Trump-era tariffs. “It’s a significant move. The Thai government must also act quickly on economic restructuring and infrastructure projects, like high-speed rail, which has been delayed and still lacks airport connections. Economic stimulus measures must also be accelerated.”
He acknowledged Vietnam’s effort to attract investment through infrastructure, but maintained Thailand still holds appeal, with strengths such as its location at the centre of CLMV, its role as a link between two oceans, robust manufacturing and exports with strong upstream, midstream and downstream industries, as well as its push into new sectors.
“But investors are hesitant because they don’t see clear government policies. The private sector is ready to cooperate with the government, but we need stability and confidence,” Poj said.
He cautioned that Thailand’s GDP has slowed after years of strong growth, much like China, which once grew at double digits but is now decelerating. “Vietnam is growing from exports and rolling out major infrastructure projects. We are too slow. We need faster execution, clear policies, and political stability.”
Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC), said Thailand already has a long-term infrastructure plan in place, covering transport, water management and energy, with investments steadily rolled out for decades.
“This makes Thailand better prepared compared to Vietnam, which is rushing to catch up now because many of its infrastructure systems were still problematic,” Danucha explained.
Thailand’s infrastructure remains a strength, though investors are increasingly demanding expansion in clean energy (RE100). Investors, especially in the Eastern Economic Corridor (EEC), are seeking more renewable energy options. “Thailand has sufficient overall power reserves, but the private sector’s demand for clean electricity is still growing.”
He stressed that Thailand’s infrastructure investment plans are already established, but must be implemented in line with budget availability, the public debt-to-GDP ratio, and remaining fiscal space.
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