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The World Bank has lifted Thailand's ranking for doing business from 19th to 13th out of 181 countries and believes political turmoil will not have an immense impact on direct investment.

"Doing Business 2009" - the sixth in an annual series of reports published by IFC and the World Bank - identifies 26 reforms between June 2007 and June 2008 that make it easier to do business in 24 economies across the region.

The improved place for Thailand was a result of four bureaucratic reforms and 10 upgraded perspectives, particularly those involved in registering property.

Political instability, macroeconomic policy and conflicts of groups of people were not included in the measurement.

World Bank economist Rita Ramolho said political instability may affect investors' confidence and discourage foreign investment.

However, Kirida Bhaopichitr, World Bank economist for Thailand, said foreign and Thai investors were concerned about the sequence of government policy, no matter which political party governed.

"Investors are concerned about long-term outlook rather than short-term volatility. If the main policies have not been changed, investors would not be greatly worried," she said.

Kirida believes that even if a different political party ruled a new government, there would be no somersault in main policies such as export promotion and trade liberalisation.

But some minor policies such as promoting alternative energy might be revised.

If the political conflict were resolved, foreign investors would return due to Thailand's sound economic fundamentals, she said.

Avoot Wannvong, deputy secretary-general of the Office of the Public Sector Development Commission, expects the country's ranking to improve again next year as the public sector tries to abolish obstacles and encourage investment.

Good governance will also be measured by the World Bank next year.

The Kingdom was positioned in third place in the region this year after Singapore and Hong Kong.

Thailand has reformed its customs procedure with e-customs in a bid to shorten processes and lower the number of documents involved.

It has also reduced property transfer fees and special business tax, with property transfer costing only 1.1 per cent of asset value, down from 6.3 per cent.

The amendment of the Securities and Exchange Commission Act also bolstered the country's image among investors.

The waived business tax for community-based enterprises has also facilitated doing business.