At present, outward foreign direct investment has an increasing role in the economic development of Thailand. This research is thus conducted to study the problems and barriers to foreign direct investment from Thailand to potential recipient countries, specifically, Laos, Cambodia, Myanmar and Vietnam. We analyze these issues via a qualitative study based on statistical data on foreign direct investment, policies related to international investment, combined with in -depth interviews with stakeholders from both the public and private sectors. In addition, we also study the degree of outward foreign direct investment of Thailand compared to Malaysia and Singapore. In particular, we analyze factors explaining the low level of Thailand’s outward foreign direct investment compared to Malaysia and Singapore. Thus, we compute Outward FDI Performance Index of Thailand compared to Malaysia and Singapore in the year 2001 to 2011. Further, we employ the Oaxaca-Blinder decomposition method to study the factors explaining the low level of Thailand’s outward foreign direct investment compared to Malaysia and Singapore as done in Wei (2005).