Bangkok: Dr. Niwet Meewachiravarakorn has recommended that the government accelerate efforts to restore investor confidence in the Thai stock market.
According to Thai News Agency, Dr. Niwet acknowledged the current lack of appeal of Thai stocks and stressed the urgent need for government intervention to boost confidence in safety, crack down on call center gangs, and fight corruption. He emphasized the importance of addressing these issues to create a more favorable environment for investment and tourism.
Dr. Niwet, a value investor, shared his insights at the “Share Investment Experiences and Portfolio Building Tips” forum, part of the 2025 Economic Reporters’ Development Project organized by the Economic Reporters Association. He highlighted the negative impact of domestic issues, trade wars, and border conflicts on investor confidence in Thailand. However, he sees potential in Thailand’s recent agreement to reduce US tariffs to 19%, which could be a significant opportunity if implemented effectively.
He urged the government to take immediate measures to ease these problems, particularly the border conflict, by transforming conflict zones into marketplaces. Building confidence in tourist safety, cracking down on call center gangs, and combating corruption are vital steps to create a positive image and stimulate tourism and economic growth. Dr. Niwet warned that prolonged political instability could hinder economic recovery efforts.
The Thai stock market is currently losing its appeal due to an aging society, a lack of new-generation workers, and the absence of new businesses to drive growth. However, Dr. Niwet believes that with restored confidence, there’s hope for economic recovery. He noted that investment decisions now consider not only the stock itself but also the broader economic and political environment. In this context, even a strong stock may struggle if the country’s overall situation is unfavorable.
For investors exploring international opportunities, the Vietnamese stock market is emerging as an attractive option. Vietnam is entering a critical capital market transition period known as the “Immunity Stage,” where it begins to recover from economic and political volatility. The country is preparing to transition from a money market to a stable and robust market, with the potential to be classified as a strong market or included in a major index within the next two to three months.
Mr. Watchara Kaewsawang, a major investor, echoed concerns about the current lack of charm in Thai stocks. He noted that the rules were crafted by a new generation of investors who differ from the baby boomers. While fossil fuels were once booming, funds have shifted away from fossil-related stocks in pursuit of profit and growth. Despite these challenges, Mr. Watchara sees potential in Thai stocks if deep valuations occur and attract foreign investors.
He advised investors to focus on stocks with strong business fundamentals, growth prospects, and comparable financial data, such as P/E ratios and Return on Equity (ROE). He also recommended diversifying investments by considering foreign securities warrants (DRs) as an interesting option.