Thailand’s economy has been performing well since the early 1980s. It is now the second biggest in Southeast Asia, only trailing Indonesia. This solid growth has transformed the country from an agricultural society into an industrialised nation.
A quickly evolving Asian hub
In the past few years, Thailand has become an interesting market for investments by foreign businesses. In addition to a lucrative domestic market, Thailand also enjoys a strategic location in the middle of Asia and functions as an important centre for the entire region. The technology-driven manufacturing sector contributes significantly to Thailand’s GDP. Moreover, the continuous infrastructure investments, a growing middle-class consumer market, and a favourable business climate create plenty of opportunities for Swedish businesses.
The retail industry is developing at a fast pace, driven by e-commerce, economic development and the increasing population. As mentioned in the interview below with Carl Lindwall, it is also Thailand's ambition to become a world leader in the Internet of Things. This creates opportunities for Swedish companies in the telecom industry. Other promising industries are healthcare and renewable energy.
Potential growth for Swedish companies
Sweden has a long trade tradition with Thailand that goes back more than 100 years. Swedish export consists primarily of telecommunication equipment and engineering products such as machinery and equipment, paper products, transport equipment, and steel and forestry products. Still, export to Thailand is rather modest, which leaves a lot of untapped potential for further growth. Today, around 70 companies from or related to Sweden are active in Thailand.
How we can help
Business Sweden has been present in Thailand since 2008, offering Swedish companies strategic advice and operational support when entering the Thai market. Our Bangkok office also covers other countries in the emerging Mekong region such as Myanmar, Cambodia and Laos.
Kacper Pierzynowski
Trade & Invest Commissioner ThailandWhat are the main advantages of expanding in Thailand?
In addition to its local market potential, Thailand boasts a strategic geographical location, serving as both a business and startup hub for the region. Investments in infrastructure and digitalisation, coupled with a demographic shift, are driving demand for innovation and technological solutions. Opportunities in healthcare and medical tourism are on the rise, fuelled by a growing middle class and ageing population. Thailand also has ambitious goals to become the regional leader in the Internet of Things (IoT).
What are the risks and challenges to be prepared for in Thailand?
While Thailand is relatively stable for international business, regional geopolitical tensions can impact the business environment. Despite progress in improving the business climate, bureaucracy remains a challenge, particularly for Swedish companies looking to establish local subsidiaries or branches. Companies often face challenges related to price sensitivity, competition, and the recruitment of skilled staff. Corruption and political uncertainty should also be considered. Success requires a clear strategy, deep market understanding, a differentiated offering, and a robust local network.
What cultural differences should be considered in Thailand?
Establishing a local presence through staff or partners is essential when doing business in Thailand. Having allies who understand the culture and language strengthens market insights and enables companies to develop a relevant, localised offering for Thai customers. Business culture is heavily relationship-based, with regular face-to-face meetings being crucial for building trust and maintaining customer relationships.
