A shortage of skilled labour has emerged as another obstacle that could delay crucial new investment, a key engine driving the economic recovery, say the Federation of Thai Industries (FTI) and investors.
The need for labour in major industries at a time when the number of jobless people is rising implies that the Thai educational system has failed to produce the workforce necessary to match the needs of growing industries, they said.
The FTI's vice-chairman Vallop Vitanakorn said the shortage of skilled labour has hit several industries, adding that it is seen as a major factor for foreign investors when deciding on whether to continue or expand their businesses in Thailand.
"Several hundred thousand skilled labourers are needed in several factories on major industrial estates," he said.
The skilled labour needed the most are mechanical, electrical and automotive engineers and well as information and technology professionals.
"The labour shortage problem has been going on for a while, but it's becoming more serious as the government is accelerating efforts to attract more foreign investment to support the country's economy, increasing the demand for skilled labour," said Mr Vallop.
Foreign investors, especially the Japanese, have also voiced concerns over their labour shortage problem in Thailand.
According to the Survey of Business Sentiment on Japanese Corporations in Thailand for the first half of 2016 by the Japan Chamber of Commerce Bangkok (JCCB), personnel shortages ranked as a major problem among Japanese investors, who have demanded solutions from the government.
The JCCB's survey reiterated that the most wanted human resources are engineering staff, including mechanical engineers, electrical engineers, information and technology engineers, chemical engineers and automotive engineers.
Meanwhile, the need for professional workers corresponds with a rise in the unemployment rate. According to the National Statistical Office, the unemployed -- half of whom are university graduates -- number 370,000 this year.
"This has shown that our educational system has failed to produce the right people for the right jobs," said Mr Vallop.
To help solve the problem at a time when the country needs more investment, he said the FTI is working with the Education Ministry and universities to create new courses of study to help create the workforce needed to match demand.
Amata, Thailand's largest industrial estate developer, has also started investing in education in order to help create the necessary workforce for factories in order to retain its clients on its estates.
The private developer has also cooperated with King Mongkut's Institute of Technology Ladkrabang (KMITL) to push forward the first phase of the Amata Education Town by creating the KMITL Amata City campus.
Amata's president and chief executive, Vikrom Kromadit, said the project, which he described as a "major one", is set to be developed as an international-quality education centre in Thailand.
Poj Aramwattananont, vice-president of the Board of Trade of Thailand, urged the government to accelerate the upgrade of Thai workers to cope with the government's "Thailand 4.0" initiative, which focuses on technological and digital development, while also working out measures to offset the effects from foreign workers potentially leaving Thailand as the economies in their home countries grow.
He added the government also needs to make it easier for highly-skilled foreign workers to come to the country, while also convincing high-quality Thai expatriates to return home.
Amendments to fix laws and regulations hindering the mobility of highly-skilled foreign workers need to be pushed through, Mr Poj said, adding that the registration of more foreign, unskilled workers also needs to be sped up to ease the labour shortage.
Thanavath Phonvichai, vice-president for research and director of the UTCC's Center for Economic and Business Forecasting, said the latest survey on 600 business operators found that only 18.5% of them employed foreign workers.
Some 55% were found to be moderately satisfied with the government's attempts at handling foreign workers' issues, although most of them said the related regulations remain complicated.