The proposed law will also mandate companies operating in Thailand to identify, prevent, and address human rights and environmental threats, a move that comes amid global scrutiny of the country’s human rights record.

In 2021, an estimated 401,000 individuals in Thailand lived in modern slavery, highlighting the urgency for effective oversight in supply chains.

Several driving factors motivate Thailand's introduction of the mHREDD law:

1. International Trade and Investment: The Pursuit of OECD membership necessitates demonstrated dedication to responsible business conduct.

2. Reputation and Global Standing: Enhanced human rights protections could improve Thailand’s image as a premier business destination.

3. Alignment with Global Standards: The urgency to meet increasing international expectations as more nations implement similar due diligence laws. ompliance.

The proposed law is expected to feature a combination of penalties and incentives to facilitate compliance including civil penalties, tax benefits and public contracts.

Thailand previously established the National Action Plan (NAP) on Business and Human Rights in 2019 and is now working on its second iteration (2023–2027), which supports the development of human rights due diligence measures.