Thailand’s Latest Move to Facilitate Foreign Direct Investment: Proposal to Delist 10 Restricted Businesses Under the Foreign Business Act

1. Introduction

The Thai government’s proposed amendments to the Foreign Business Act B.E. 2542 (1999) (the “FBA”) mark one of the most consequential regulatory developments for foreign investors in these recent years. With plans to delist 10 business categories from foreign investment restrictions, Thailand is signaling clear commitment to attracting foreign direct investment and strengthening its competitiveness in the global market.

This article outlines the current regulatory framework, summarizes the proposed changes, and highlights their practical implications for businesses considering investment or expansion in Thailand.

2. Background

The FBA is the principal legislation governing foreign investment and business activities engaged by foreigners in Thailand. For nearly 25 years, the FBA has functioned as a cornerstone of Thailand’s foreign investment regime, balancing market access while protecting Thai business operators from foreign competition. Under the FBA, foreigners, foreign entities, and Thai-incorporated entities with a certain level of foreign shareholding (including companies in which 50% or more of the share capital is held by foreigners/foreign entities) are subject to restrictions on certain business activities classified under the 3 Annexes to the FBA.

Business activities listed in Annex 1 (e.g., newspaper publishing, radio broadcasting and land trading) are strictly prohibited to foreign participation, while those listed in Annex 2 (e.g., domestic land transportation, antique trading and salt farming) and Annex 3 (e.g., retail, wholesale and service businesses) may generally be carried on by foreign entities only upon obtaining the requisite foreign business license from the Department of Business Development, Ministry of Commerce (the “DBD”).

As part of its strategy to attract foreign direct investment and reinforce Thailand’s global competitiveness, the government has proposed removing certain business activities from the restrictions under the FBA to better align the regulatory framework with current economic conditions and technological developments.

3. Contents and Progress of the Proposed Amendment

Following the Cabinet’s approval in principle on 22 April 2025 authorizing the DBD to proceed with amendments to the FBA, the DBD announced at its public seminar titled “Shaping the Future of Foreign Business Facilitation in Thailand”, held on 29 January 2026, that 10 business activities are being considered for delisting from the Annexes of the FBA, as follows:

1. Telecommunication services for Business Type 1;
2. Treasury center business under the exchange control laws;
3. Software development business;
4. Management services for affiliated or group companies;
5. Domestic credit guarantee business for affiliated or group companies;
6. Leasing space for installing electronic financial service devices and vending machines;
7. Petroleum drilling service business;
8. Lending business in various forms secured by collateral, as permitted under the law governing securities and exchange and the law governing derivatives contracts;
9. Business of providing services as agent, dealer, consultant, or fund manager for derivatives contracts whose underlying commodities or variables are not subject to the Derivatives Act B.E. 2546 (2003); and
10. Domestic trade related to traditional agricultural products.

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