Swedish investment in Thailand has grown through increased investment and new business start-ups, with 25 per cent of Swedish companies established in the last decade. These investments have created approximately 19,500 direct and 76,000 indirect jobs, underscoring Sweden’s significant and lasting economic impact on Thailand.
Just over 60 per cent of respondents to our Business Climate Survey confirmed that their operations in Thailand were profitable in 2019.
Thailand has enjoyed significant economic growth, but there has been a slowdown in recent years, largely due to the financial impact of the Covid-19 pandemic. Despite this, Thailand remains Southeast Asia’s second-largest and strategically important regional hub, although it has lagged behind its competitors in growth despite ambitions to achieve high-income status.
The Thai economy is diverse, with key sectors such as tourism, manufacturing and financial services playing an important role, contributing over 59 per cent to Thailand’s GDP. As the country gradually reopens with the global economic recovery, Thailand’s economy is expected to regain its pre-pandemic strength by the end of 2024.
Despite maintaining profitability, these companies have suffered from reduced margins due to increased costs. Nevertheless, 73 per cent of the companies surveyed expect higher turnover in the coming year, reflecting cautious optimism for future growth.
Thailand has shown resilience in navigating through recent economic challenges, supported by robust sectors such as tourism and manufacturing. As the economy recovers and Swedish companies continue to invest in the market, there is optimism for continued growth and improved bilateral relations between Sweden and Thailand.
ABOUT THE SURVEY
This report aims to deepen understanding of Swedish companies’ recent performance in Thailand and explore the opportunities and challenges the Thai market presents.
Team Sweden’s 2024 Business Climate Survey in Thailand garnered insights from 114 Swedish-affiliated entities, with 64 complete responses, achieving a 60 per cent response rate. Eight companies were chosen for in-depth interviews, highlighting sustainability and innovation.
Finally, we extend our heartfelt gratitude to all participating companies and respondents whose valuable contributions made this report possible.
