Confidence in this year's continued economic growth has risen, according to the latest survey by the Federation of Thai Industries (FTI) and the National Institute of Development Administration (Nida).
The survey on the economic and industrial outlook in 2017 covered 45 major industries and 10 industrial institutes with respondents from more than 1,000 companies.
Kamphol Panyagometh, Nida's vice-president for research and consulting services, said 34.7% of the respondents were confident that the economy will continue to grow in 2017.
In a previous survey, only 25% of respondents thought the economic expansion would continue.
Major positive factors that were expected to support the Thai economy to grow in 2017 are the government's investment in infrastructure projects as well as other government policies to promote tourism and investment, Assoc Prof Kamphol said.
The government's policy to promote investment in special economic zones, especially the Eastern Economic Corridor (EEC), and the project to drive Thailand into the high-tech era of Thailand 4.0 are likely to have the most impact in creating economic growth.
The EEC is expected to increase investment in eastern Thailand, where there is strong potential to create technology transfers and improve industry.
The project will also create demand for logistics and warehouse solution services, the new business areas will create jobs and support the domestic economy.
The EEC spans the provinces of Chon Buri, Rayong and Chachoengsao, which will be designated as a high-tech industry cluster with an eye towards becoming Asean's leading economic zone for industrial, infrastructure and urban development.
The 10 targeted industries for the EEC are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
Assoc Prof Kamphol said the massive investment on transport infrastructure into the EEC areas is also expected to facilitate tourism industries and raise the number of tourists in the regions substantially.
"Political stability and the rising prices of farm products that will help increase purchasing power are also expected to support the economy," he said.
Rising exports this year are also expected to boost industrial production, bringing it up from the current level of 60% of full capacity.
Some 16.3% of survey respondents still believed that the Thai economy may contract in 2017 due to persistent negative factors, Assoc Prof Kamphol said.
Some businesses are still concerned about various risks, such as the possible economic slowdown in China, the fluctuation of global capital and financial markets, the United States' economic policy, as well as the Brexit effect.
"Moreover, some businesses still believe that the attempt to push Thailand forward into Thailand 4.0 can backfire as manufacturers need to investment more to upgrade machines and production lines, which may cause financial problems," Assoc Prof Kamphol said.
Other risks that would weigh on the Thai economy are the bank's strict regulations on loan lending that could force Thai manufacturers into a liquidity crunch.
The lack of existing technology that prevents Thailand from pushing into the 4.0 era with new innovations is also a drawback.
As a result, the private sector still wants the Thai government to continue to provide support to businesses in several aspects.
The respondents said they want the state to continue its investment promotion policy with more investment privileges to attract foreign investors, and speed up state investment in infrastructure projects to build confidence among Thai and foreign investors, Assoc Prof Kamphol said.