Factbox: Main parties contesting Thailand's election

(Reuters) - Forty parties will contest a July 3 general election in Thailand, with the ruling Democrat Party and opposition Puea Thai Party jostling for first place and others vying for stakes in what is expected to be a coalition government.

Below are the main contestants (Seats in recently dissolved parliament in square brackets).

DEMOCRAT PARTY

Prime Minister Abhisit Vejjajiva's party has not won a general election in two decades and only came to power in a parliamentary vote in 2008 after the previous ruling party was dissolved by the courts.

The Democrats have strong support in the south and Bangkok and are popular with middle-class voters. It is seen as the most capable party for handling the economy and the $25 million it earned at a recent fundraiser suggests business is behind it.

While the Democrats enjoy backing from conservative elites and the military's top brass, they have struggled to win over the poor, the majority of Thai voters. Hence, the party has launched a series of populist programmes to try to broaden its support.

PUEA THAI PARTY (For Thais Party)

Puea Thai is the latest incarnation of ousted former premier Thaksin Shinawatra's Thai Rak Thai Party, which won election landslides in 2001 and 2005. Thaksin controls Puea Thai from self-imposed exile in Dubai and its campaign is built around his populist policies. His sister, Yingluck, 43, is its candidate to be prime minister.

Puea Thai's stronghold is the vote-rich north and northeast and it has the backing of the powerful "red shirts", a protest movement of the rural and urban poor. However, that association may be a turn off for swing voters and those fed up with political upheaval.

Early opinion polls suggest it has the edge over the Democrats, but the party has powerful enemies among the conservative and military elites and might have difficulty forming a coalition.

BHUMJAI THAI PARTY (Pride of Thailand Party)

The second-biggest partner in the ruling coalition, Bhumjai Thai is controlled by influential power-broker Newin Chidchob, a right-hand-man to Thaksin before turning against him. The party has formed an alliance with the Chart Thai Pattana Party to gain political leverage in anticipation of a new coalition.

Bhumjai Thai politicians were implicated in numerous corruption scandals that dogged Abhisit's government. It has a fierce rivalry with Puea Thai. Many of its lawmakers are former Thaksin allies who defected.

Its policy pledges include a 2 percentage point cut in value-added tax (VAT), a crop price guarantee fund for farmers and monthly payments to elderly and medical volunteers.

CHART THAI PATTANA PARTY (Thai Nation Development Party)

Controlled by banned politician Banharn Silpa-archa, Chart Thai Pattana enjoys solid support in the central region and is promoting national reconciliation to appeal to Thais fed up with constant political upheaval. With Banharn's deal-making skills and the party's alliance with Bhumjai Thai, it will be central to any horse-trading if another coalition is on the cards.

CHART PATTANA PUEA PANDIN PARTY (Nation Development for the Homeland Party)

A new party that is effectively an amalgamation of two coalition members, Ruam Jai Thai Chart Pattana and Puea Pandin and run by banned politician Suwat Liptapanlop, a former Thaksin ally. It is using fuel subsidies, sports development and a drive to take Thailand to the soccer World Cup to draw voters, fielding soccer stars and former Olympic medalists as candidates.

MATABHUM PARTY (Motherland Party)

Led by 2006 coup-maker General Sonthi Boonyaratakalin, Matabhum's target voters are ethnic Malay Muslims in the south, home to a violent separatist movement. It is aiming for eight of the 11 seats available, which would be a blow to the Democrats.

RAK SANTI PARTY (Peace Lovers Party)

Ex-policeman Purachai Piumsombun, who co-founded Thai Rak Thai with Thaksin, has made a comeback and could garner some support with his clean image. Purachai fell out with Thaksin in 2005 and denies this new party is a nominee for Puea Thai.

RAK PRATHET THAI PARTY (Love Thailand Party)

A new party led by former massage parlor tycoon and anti-graft crusader Chuwit Kamolvisit, perhaps Thailand's most colorful politician. His charisma and celebrity status has earned his tiny party a good showing in recent opinion polls.

SOCIAL ACTION PARTY

Part of the current coalition with one portfolio, the party has kept a low profile in early campaigning. (* = combined seats)

(Compiled by Martin Petty; Editing by Jason Szep)