Vikrom, who is also vice president of the Thailand-China Business Council, urged the government to revise laws relating to foreign direct investment in order to attract more investors from overseas.

"The Thai government should look at Singapore's foreign investment laws and use its entire power to improve our laws," he said, adding that Vietnam has grown rapidly because of progressive laws copied from Singapore.

He said the Kingdom was losing competitiveness to neighbouring countries, particularly Vietnam. Total investment in Vietnam was worth US$70 billion (Bt2.44 trillion) last year, of which $12 billion was foreign direct investment from 27 countries.

In a recent move, Vietnam changed its laws relating to foreign direct investment by allowing foreigners to own 100 per cent of companies operating in any type of business.

Due to the open law, Taiwanese investors recently spent $10 million on business expansion in Vietnam, and the country's gross domestic product is expected to grow 8-9 per cent this year.

Vikrom forecast that Vietnam would enjoy double-digit growth over the next 10 years, because of skilled labour, plentiful resources, energy sources and a stable political situation. If it speeds up free-trade talks, he believes export growth will soon rise from 20 per cent a year to 30 per cent.

"If Thailand's interim government or coming governments keep administrating the country conservatively, most Thais will soon move their businesses to Vietnam," he said.

Vikrom added that Thai companies should seek Chinese partners to jointly expand their businesses.

Chalida Ekvitthayavechnukul

The Nation