THAILAND, with its population of 66 million, stands at the heart of the ASEAN Economic Community, a 10-nation Southeast Asian common market of 676.6 million consumers. It has the 2nd largest economy in Southeast Asia. The International Monetary Fund (IMF) projected Thailand's GDP per capita based on purchasing power parity (PPP) to be approximately $26,416 for the year 2025. In addition to its excellent connections with the fast-growing neighboring CLMV (Cambodia, Laos, Myanmar and Vietnam) countries, the powerhouse economies of nearby China and India are also easily reachable from Thailand by virtue of its world-class infrastructure for air, land, sea and rail transportation. It also boasts excellent digital connectivity, a highly skilled labor force and an excellent standard of living, making Thailand an outstanding value when considering its overall cost effectiveness. These factors, together with the Thai government’s comprehensive policies and investment incentives, make Thailand the preferred investment location in the region.
TRADE SPOTLIGHT
Thailand is one of the leading export hubs in the ASEAN region, holding a prominent position as a major global supplier of food and agricultural commodities, particularly rice and natural rubber. In 2024, the country's international trade experienced steady growth, reaching $607 billion—a 5.89% increase from 2023. According to the Ministry of Commerce, exports totaled $301 billion, rising by 5.42% due to strong demand in key markets. Meanwhile, imports amounted to $307 billion, reflecting a 6.34% increase driven by higher raw material and energy costs. Despite a trade deficit, the overall expansion underscores Thailand’s resilience and deepening integration into the global economy. The country’s top five export categories in 2024 were motor vehicles and parts, automatic data processing machines, precious stones and jewelry, rubber products, and machinery and parts. Thailand’s top ten trading partners, in order of trade volume, were China, the United States, Japan, Malaysia, Taiwan, Vietnam, the United Arab Emirates, Indonesia, Australia, and Singapore.
LOCATION & MARKET ACCESS
Thailand is well-connected to the fast-growing CLMV sub-region by excellent transportation infrastructure, including rail, road, water and airways. Businesses based in Thailand have access to a domestic market of 66 million people, with 52 million middle class consumers. Additionally, the CLMV region includes 181.5 million consumers located within 1,000 kilometers, ASEAN provides 676.6 million consumers all within 3,000 kilometers, while all of Asia within 5,000 kilometers includes 4.8 billion consumers. Ongoing national investment in and rapid development of Thailand’s logistics systems are helping to integrate the country’s transportation system with those of other emerging economies. This brings vast opportunities for cross-border trade and investment, making Thailand an ideal investment destination.
DIGITAL INFRASTRUCTURE
The Thai government has been prioritizing digital development for years through the Thailand 4.0 economic model, which aims to transition the country from traditional economic models—agriculture (1.0), light industry (2.0), and advanced industry (3.0)—toward a value-based digital economy. The four key objectives of Thailand 4.0 are economic prosperity, social well-being, human capital development, and environmental sustainability.
In terms of digital infrastructure, Thailand has made significant technological advancements, particularly in smartphone and broadband connectivity. The government invested THB 15 billion to launch the Net Pracharat Project, expanding high-speed internet access to over 25,000 villages nationwide, ensuring digital inclusivity across urban and rural areas. Thailand also ranks among the top in ASEAN for fixed broadband speeds and has extensively deployed 5G networks, strengthening its position as a regional leader in digital connectivity.
Another major initiative is Digital Park Thailand, a 284-acre development in Chonburi province on the eastern seaboard, designed to support the digital economy. The park provides access to international submarine cable networks, landing stations, and data centers, reinforcing Thailand’s global digital connectivity. Additionally, the Software Park Thailand, established by the National Science and Technology Development Agency (NSTDA) in Nonthaburi, enhances Thailand’s software industry by facilitating technology transfers, training IT professionals, and supporting local and international collaborations.
To further drive innovation, the Thailand Board of Investment (BOI) has introduced enhanced incentives to attract investment in research and development (R&D), human resource development (HRD), and the rapidly growing semiconductor and digital industries. Furthermore, the government's Cloud First Policy promotes cloud adoption across public institutions, improving efficiency and data security.
Through these initiatives, Thailand is reinforcing its position as a digital hub in ASEAN, fostering economic growth and technological advancement while ensuring sustainable and inclusive development.
THE EASTERN ECONOMIC CORRIDOR (EEC)
Building on the success of the Eastern Seaboard, the Thai government is presently developing the Eastern Economic Corridor (EEC), a flagship megaproject that aims to become the ASEAN-leading economic zone for industrial, infrastructure, and urban development. Spanning over 13,000 sq.km. across the three provinces of Chonburi, Rayong, and Chachoengsao, the EEC has designated areas including the Eastern Airport City (EECa), the Eastern Economic Corridor of Innovation (EECi), Digital Park Thailand (EECd), Thammasat Integrated Medical Innovation Center (Pattaya) (EECmd), and additional promoted industrial estates/industrial zones. During the first five years, approximately US$ 50 billion of combined public and private investment projects are expected in the EEC. To further support innovation-led business within the EEC, the investment environment features numerous tax and non-tax incentives.
COMPETITIVE BUSINESS COSTS
Prime office space in Bangkok, Thailand’s capital, is an outstanding value. As compared to other leading cities in the region, Bangkok is nearly half of the cost of Ho Chi Minh City, only 40% of the cost of Seoul and Singapore, and a quarter of the cost of New Delhi, Tokyo and Beijing. Wages are also quite reasonable for such a highly trained and educated workforce. As wages across the ASEAN region rise due to economic growth, the wage inflation rate in Thailand is among the lowest in the ASEAN region.
In addition to capital infrastructure, the Thai government is committed to capacity building in human resource development, especially in a Science, Technology, Engineering and Mathematics (STEM) education as part of its comprehensive strategy to become a regional leader in ASEAN. Thailand’s Ministry of Education partnered with the Southeast Asian Ministers of Education Organization (SEAMEO) to host the first two SEAMEO regional centers for STEM education and for Sufficiency Economy Philosophy for Sustainability.
As well, the government has designed a wide range of vocational education programs, including Dual Vocational Education and Training, Cooperative Education, Work-Integrated Learning (WiL) and Talent Mobility (TM), to ensure that Thai workforce has the right skills and is able to meet the requirements of future jobs, especially in emerging technologies such as robotics, automation and AI.
THE SECOND HOME OF INTERNATIONAL COMPANIES
As a regional economic center, with all its numerous advantages, it should come as no surprise that Thailand has become the second home for numerous global MNEs, and a supply chain hub for major industries. These foreign investment activities have been enabled by streamlining of government legislation, a growing domestic market, and access to resources such as finance and technical knowledge.
Source: Why Thailand Brochure, Office of National Economic and Social Development Council, Information Technology and Communication Center, Ministry of Commerce, ASEANstats and The IMF
As of March 20th, 2025
Gateway to Asia
Thailand enjoys a strategic location and serves as a gateway into the heart of Asia – home to
what is today the largest growing economic market.
The country also offers convenient trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), and easy access into the Greater Mekong sub-region, where newly emerging markets offer great business potential.
Hub of ASEAN
Thailand was one of the founding members of ASEAN and has been instrumental in the formation and development of the ASEAN Free Trade Area (AFTA).
AFTA entered into force on 1 January 2010 for the six original ASEAN (ASEAN-6) members (Thailand, Singapore, Malaysia, Indonesia, Philippines, and Brunei) thereby reducing import duties to zero; the so-called CLMV countries (Cambodia, Laos, Myanmar and Vietnam) will follow suit in 2015.
Thailand has forged close economic cooperation with other ASEAN member nations, and Thai manufactured products and services have access to their markets, which includes all 10 ASEAN countries. ASEAN is home to more than half a billion people GDP in excess of US$1.5 trillion and total trade of well more than US$1 trillion per year.
Social and political stability
Thailand is a foreigner friendly and welcoming Buddhist country. The country's form of government is a constitutional monarchy, with a high reverence for the Thai Monarchy, and devotion to the teachings of Buddhism. And although the vast majority of the people in Thailand are Buddhist, all religions are welcome, and His Majesty the King is the patron of all religions.
Growing economy
Economically, this country of 67 million people is characterized by steady growth, strong exports and a vibrant domestic consumer market. Abundant natural resources and a skilled and cost-effective work force help attract foreign investors, and enable them to prosper and develop industry in Thailand.
Sufficient infrastructure
Thailand has good infrastructure with modernized transportation facilities, as well as upgraded communications and IT networks that ensure optimum business and living conditions. World-class industrial estates boast sophisticated facilities and support services to meet the needs of multinationals and SMEs alike.
FDI policies
The country's well-defined investment policies focus on liberalization and encourage free trade. Foreign investments, especially those that contribute to the development of skills, technology and innovation are actively promoted by the government. Thailand consistently ranks among the most attractive investment locations in international surveys, and the World Bank’s 2010 Ease of Doing Business report places Thailand as the 12th easiest country in the world in which to do business.
Government support and incentives
Numerous government agencies support investors. Through the Board of Investment, the government offers a range of tax incentives, support services and import duty exemptions or reductions to an extensive list of promoted activities.
Companies receiving investment promotion privileges from the Board of Investment are not subject to foreign equity restrictions in the manufacturing sector, and there are no local content requirements nor export requirements, as Thailand's investment regime is in total compliance with WTO regulations.
The Board of Investment also coordinates the activity of the One-Stop Service Center for Visas and Work Permits, which enables foreign staff of BOI-promoted companies to obtain work permits and long-term visas within three hours or less.
The BOI also administers the One Start One Stop Investment Center, which opened in November 2009 to facilitate a full range of services and streamline investment procedures by bringing representatives from more than 20 government agencies under one roof.
In addition to the activities of the BOI, other government organizations, such as the Department of Export Promotion and international chambers of commerce, provide invaluable support and a host of other important services.
Long–established and newly emerging industries
With steady economic development and strong support industries, the country's industrial production has grown and diversified rapidly both in long–established and newly emerging industries.
The government has emphasized attracting investment in six sectors that have been determined to be key to the country's developmental objectives. These six target industries include: agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services including entertainment, healthcare and tourism.
Friendly and rich culture
Thailand has gained a well-deserved reputation throughout the world for its gracious hospitality. The friendliness of its people and the diverse nature of Thai culture make visitors feel safe and at home in Thailand.
Education and healthcare services
The education standards in Thailand are accepted by many international examining bodies, and a great number of international schools and colleges offer world-class education, while its universities are outstanding.
In terms of healthcare, the country has developed an excellent reputation globally, due to its internationally-certified doctors and medical staff, and modern facilities and equipment. It is so good that one of the fastest-rising tourism sectors is medical tourism, with international patients visiting Thailand to take advantage of Thailand's world-class and extremely affordable health care system.
