Japanese investors would shift their investment to other attractive countries if the Thai government amends the heavy industrial development plan, the head of the Japan External Trade Organisation (Jetro) in Bangkok, said.
Jetro president Munenori Yamada said Japanese investors, particularly steelmakers, will consider other potential countries for their investment instead of Thailand.
Last week, the government ordered the National Economic and Social and Development Board to revise the Kingdom's industrial development master plan, to clarify its long-term direction, concerning the Southern Seaboard.
The possibility of revision has created doubts among foreign investors.
Two giant steelmakers from Japan - Nippon Steel and JFE - have shown strong interest to invest in the Kingdom.
Yamada suggested that under the revision plan, Thailand should shift its focus to value-added or knowledge-based development to compete with other countries, particularly those in the neighbourhood.
The revised industrial development plan should be based on high technology sophisticated to serve as integrated industrial base for large companies, he added.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said that investors have been worried about the unstable policies of the government. The government must have clear measures for promoting industrial development so that foreign investors can decide whether they would want to invest in the Kingdom.
To ensure that the government's industrial development policy is not changed by each cabinet, the development plan should be approved by Parliament for long-term implementation, Santi said.
In addition, he said the industrial development plans in many areas such as the Southern Seaboard, the Eastern Seaboard, and the Northeast are still needed for the long-term development. The industrial sector is one of the key sectors, employing a million workers in the country.
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