Prime Minister Prayut Chan-o-cha has instructed state agencies to step up efforts to propel economic growth and win back investor confidence.
In a recent World Bank report, Thailand fell three places to 49th out of 189 countries for ease of doing business and business-friendly regulatory systems.
Gen Prayut on Friday chaired a meeting to lay down policies and guidelines for state agencies to attract investors and facilitate business and trade.
Deputy Prime Minister Somkid Jatusripitak, who oversees economic policies, attended the meeting, along with cabinet ministers handling economic affairs and private sector representatives.
Gen Prayut stressed that improving trade and investment policies was an urgent priority for Thailand to boost its economic competitiveness.
He also said it was key to driving economic growth under the "Pracharath" model which would strengthen the economy at the grassroots level and empower local communities and local enterprises.
"Pracharath" refers to a partnership between the government, the private sector and the public.
The model is in line with the government’s recently-approved 136-billion-baht stimulus package and measures to help small and medium-sized enterprises gain access to loans, the premier said.
Gen Prayut said facilitating business and cutting bureaucratic red tape was also important, and vowed the government would try its best to improve Thailand's World Bank ranking.
Gen Prayut urged all sides to put aside their political differences and help rebuild the country's stability. He said political conflicts have impeded government efforts to accomplish its tasks.
Mr Somkid said the government will amend state regulations that obstruct business transactions within this quarter in a bid to facilitate investment next year.
The government has also recently approved investment and tax measures to encourage private sector investment and jump-start the economy.
With the amendments, the process of companies registering with the Commerce Ministry will take only one day, instead of one month as is sometimes the case now.
Mr Somkid said the process of conducting an environment impact assessment (EIA) and health impact assessment would also be shortened from two years to one year.
"If the process is not shortened, it will create a bottleneck in investment," Mr Somkid said.
The Food and Drug Administration also needs to improve the process of approving applications for manufacturing medicines and medical equipment, he said. This is because the manufacturing of medical equipment is one of the six industrial clusters where investors get special privileges.
"Improving state regulations to facilitate business transactions is key to propelling industrial development and the Thai economy," Mr Somkid said.
Foreign Ministry spokesman Sek Wannamethee said Thai ambassadors and consuls worldwide will convene next week and discuss ways to promote the government's policies, especially in economics, overseas.
Gen Prayut will chair the meeting on Friday to set out guidelines for restoring investor confidence and boosting the country's image.