How to enter the Thai market

Thailand was Australia’s fourteenth largest export destination in 2024, with total exports reaching AUD 8.7 billion. Resources and agricultural products dominate Australia’s exports, but emerging trends are presenting opportunities for a range of sectors, including food and agribusiness, education and skills, hospitality and METS. Over 3,000 Australian companies export to Thailand and around 200 maintain a physical in-country presence.

Market entry models for exporting goods and services

Choosing an appropriate market entry model is essential for businesses looking to export to Thailand. Any choice should be informed by factors such as the overarching business strategy, target sector, and business size and maturity. It is important to note that market entry models frequently evolve over time.

A. Direct exporting

In direct exporting, businesses sell directly to a Thailand customer from Australia. Exporting directly to Thailand requires a significant level of involvement in the export process, including market research, marketing, distribution, sales, product registration and approval, import-export licencing and receivables.

Direct exporting has some advantages, including:

• Greater control of commercial processes, including sales
• Better margins, as middlemen are avoided
• More direct customer relationships

While there are benefits, direct exporting can ultimately involve higher establishment costs in Thailand. It may be necessary to employ dedicated in-house staff and other resources to manage the complexities of exporting and sales. Businesses that use this model may need to consider ways to offset these costs, including employing an agent or distributor to handle local product registrations, while maintaining control over other aspects of the business such as marketing and supply chain management.

A direct export approach should be supported by references, brochures, catalogues and other product and business information. It also requires businesses to engage with customers regularly to build awareness and understanding of the products they are selling on an exporter’s behalf. In return, a retailer’s understanding of the Thailand market can help with product development, pricing and marketing. Selling directly to local retailers can generally cut commissions, reduce travel costs and create an effective conduit to market.

B. Agents and distributors

Many Australian firms doing business internationally rely on agents or distributors. The roles of agents and distributors differ, and they can vary across industry. It is therefore critical that roles and responsibilities are clearly defined early in any agreement.

Agents: Agents act as representatives of suppliers and do not take ownership of the products they sell. They are usually paid on a commission basis, which provides an incentive for them to drive sales. Being based in Thailand, they will often represent several complementary products or services. They can be retained exclusively as the sole agent for a company’s goods or services or as one of several agents for the exporter.

Distributors: Unlike agents, distributors buy the goods from exporters and then resell them to local retailers or direct consumers. In some cases, a distributor may sell to other wholesalers who then on-sell to retailers or consumers. Distributors may carry complementary and competing lines and usually offer after-sales service. They earn money by adding margins to product prices. Distributor margins are generally higher than agent fees because distributors have costs associated with carrying inventory, marketing and extending credit for customers.

Choosing an agent or distributor: Whether a business decides to use an agent or distributor, building a close working relationship is essential. Due diligence when selecting an agent or distributor is important. Companies should ask for trade references and seek a credit check through a professional agency. It is best to meet any potential agents or distributors in Thailand. This will give them an opportunity to demonstrate knowledge of the market and build a business relationship.

C. Online Sales

The rapid growth of Thailand’s e-commerce market – it is now the dominant sales channel in the country – makes it an attractive and essential channel to sell products and services online. Thailand’s e-commerce landscape continues its upward trajectory and is poised for substantial growth to 2028, with an anticipated compound annual growth rate of 11.2% in transaction value to reach AUD 159 billion (THB3.5 trillion) in 2028. It is presently the second largest e-commerce market in Southeast Asia after Indonesia.

Government policies to support the digital economy are assisting this growth. Thailand is working to provide free broadband internet to all villages, growing its digital economy from the current 12 per cent of GDP to 30 per cent by 2027. A development plan is underway to increase domestic network bandwidth by upgrading existing international submarine cable systems. Many new companies are entering Thailand’s e-commerce market, which is expected to drive competition and widen the cross-border e-commerce opportunities in the future.

Accessing digital consumers: The COVID-19 pandemic helped grow online sales and a growing middle class and strong internet and mobile phone penetration have maintained the momentum. Over 91 per cent of the population now has access to the internet. The country also has over 99 million active cellular mobile connections, equivalent to a mobile phone penetration rate of 139 per cent. Over 92 per cent of consumers in Thailand shopped online in the past six months. Effective marketing is vital to establish trust and brand loyalty, particularly among young consumers and those discovering online retail for the first time.

Top product categories for online sales include electronics, food, beverages, fashion, beauty care and hardware. The Thailand mobile payments market size stood at AUD 39.2 billion in 2024 and is forecast to compound at a 14.9 per cent CAGR and reach AUD 92 billion by 2030.

Mobile wallets are swelling at nearly 17 per cent CAGR and could expand the Thailand mobile payments market size by AUD 22 billion between 2025 and 2030.

Search engines: Search engines are a key tool for product and service research in Thailand. Over 86 per cent of internet users use search engines each month and 44.3 per cent visit social networks to look for information about brands and products. Google is the dominant search engine, followed by Bing, Yahoo and DuckDuckGo.

Figure 2: E-commerce spending on consumer goods (2025), AUD billion

Online sellers and marketplaces: Online marketplaces have become a popular way to enter the Thai market. Shopee is the dominant marketplace, followed by Lazada and Amazon. Other well-known e-commerce sites are Kaidee and AliExpress. These sites provide access to an existing customer base, online infrastructure, logistics capabilities and marketing services. Businesses should take time to evaluate and compare fees, competition and customer reviews of Thailand’s online marketplaces

Social media: Over 88 per cent of Thailand’s internet users use social media and Thailand has over 51 million active social media identities, equivalent to 71 per cent of the population. Of the country’s social media users, 35 per cent are using it to find inspiration for things to do and buy, 34 per cent are finding products to purchase and 23 per cent use it to see content from their favourite brands. The most used social media platforms in Thailand include Facebook, Line, TikTok, Facebook Messenger and Instagram.

Investment environment

Thailand’s government has numerous policies that support foreign direct investment (FDI). Along with its strategic location, high quality infrastructure and excellent digital connectivity, this makes it an attractive market for foreign investment. However, companies should be aware of the Foreign Business Act (FBA), which prescribes a number of business sectors like communications, transportation and deposit-taking banking that are not open to foreigners without additional licenses or exemptions.

FDI inflows accounted for 2.01 per cent of Thailand’s GDP in 2024 and total FDI stock stood at AUD 509.8 billion (THB 11.24 trillion). This is likely to grow as Thailand expects to secure at least AUD 45.4 billion (1 trillion baht) worth of investment applications in 2025, as it seeks to attract more investors to help boost Southeast Asia's second-largest economy. In 2024, investment applications rose 35% annually to AUD 51.7 billion (1.14 trillion baht), a 10-year high, led by foreign investment in data centres and cloud services, the Thailand Board of Investment said.

Much of the new investment is in the five sectors the Thai government has prioritised for advanced development. These are bio-circular-green industries, electric vehicles, smart electronics, digital industries, and creative industries. Singapore was the top FDI source with 305 projects, mostly in digital services and electronics manufacturing. China was the second largest source of FDI applications with 810 projects led by printed circuit boards, automotive, and metal products manufacturing businesses.

Thailand’s Board of Investment (BOI) is the main government agency responsible for promoting foreign investment into the country. It provides incentives, services and information for foreign companies. The Eastern Economic Corridor Office (EECO) can also offer similar incentives for investors in the EEC.

• Incentives for research and development, semiconductors and smart packaging: A range of tax and non-tax incentives are available for businesses in these sectors. Tax incentives include:

Additional years of tax exemption may also be added to these standard tax incentives. Incentives are outlined in the BoI’s investment promotion guide at: https://www.boi.go.th/upload/content/BOI_A_Guide_EN.pdf.

• Non-tax incentives: These are available to some companies and include permission to own land, permission to bring in skilled foreign workers, permission to remit money abroad in foreign currency and permission for foreign nationals to enter Thailand to study investment opportunities.
• Tax incentives for investments in local startups: This includes individual income tax or corporate income tax (CIT) exemption for profits derived from the transfer of shares in Thai startups. The startup must operate in one of the 12 government promoted industries.
• Incentives on decentralisation: The Thai government provides added incentives to companies that have operations in one of 20 regional provinces including Nakhon Phanom, Surin and Sakhon Nakhon.
• Incentives for establishing an international business centre: As part of Thailand’s policy to make Thailand a regional business hub, a range of tax benefits are offered to companies in the International Business Centre (IBC) regime. These depend on a company’s size.

More information on these can be found on the website of the Thailand Board of Investment.

Investment rules and regulations

As a member of the World Trade Organization, Thailand adheres to the national treatment principle and provides equal treatment for local and foreign investors. However, foreigners may be restricted from engaging in certain business activities under the Foreign Business Act (FBA).

This Act, and related sections of other legislation, prohibits FDI into certain sectors and limits foreign ownership to 49% in others. The foreign investment limitations in the FBA can be waived for companies that obtain Board of Investment (BOI) sponsorship in sectors covered by a BOI remit. Full details are listed by the BOI, but restrictions include:

• Business activities that are strictly prohibited to foreigners because of special reasons, such as newspaper, television broadcasting and land trading.
• Business activities that concern national security or safety, or could affect arts, cultures, traditions, customs, folklore handicrafts or natural resources and environment, such as the production and trading of firearms, domestic transportation and mining.
• Business activities that Thai nationals are not yet ready to compete in with foreigners, such as retail, wholesale and provision of certain services.

In addition to the FBA, foreigners may also be subject to other specific laws that impose foreign investment restrictions. For example, the Financial Institution Business Act (FIBA) requires a financial institution operating financial businesses in Thailand to have at least 75 per cent of its total number of issued shares with voting rights held by Thai nationals and at least three-quarters of its directors be of Thai nationality.

The Land Transport Act 1979 imposes similar requirements for a company applying for a licence to operate fixed route transport, non-fixed route transport and transport by a small vehicle. Foreigners are also prohibited from owning a plot of land in Thailand under the Land Code and may be restricted from engaging in businesses that require land ownership in Thailand.

Market entry models for investing

Choosing an appropriate market entry model is essential for businesses looking to invest in Thailand. A business’ size, sector and growth strategy will help determine which market entry model fits best. Investment models frequently evolve over time as businesses enter and expand in a market.

A. Limited partnership

A limited partnership is a simple way to establish a business presence if a company has a trusted Thai partner. Under a limited partnership, one or more partners must have limited liability, and one or more partners must have unlimited liability. Limited partnerships must be registered, and the contributions from the partners with limited liability must be in money or property.

The managing partner must be an unlimited partner. If the managing partner is a foreigner, they must obtain a valid, non-immigrant business visa and a work permit. Limited partnerships can be up to 49 per cent foreign owned without a Foreign Business License. However, a Foreign Business License is required if the foreign partner invests more than 49 per cent of the capital.

B. Representative office

Opening a representative office (RO) can be a useful and economical first step to explore business opportunities in Thailand. Representative offices cannot conduct direct commercial or revenue generating activities such as the execution of contracts, receipt of funds, sale or purchase of goods, or provision of services. However, representative offices can provide a wide range of support activities to head offices back in Australia. A representative office is often easier to establish than a branch office. They are a common form of presence in Thailand for foreign companies, particularly those in the early stages of a market entry strategy.

A representative office is not liable for Thai taxation but must receive a subsidy from its head office to cover all in-country expenses. A representative office is still required to obtain a Corporate Tax Identification number and submit income tax returns along with audited financial statements to the Revenue Department and the Department of Business Development.

Establishing a representative office in Thailand

C. Regional office

Under the Thai Foreign Business Act (FBA), A.D. 1999, foreigners who engage in certain business sectors, including any service business, require a Foreign Business License (FBL). Companies that fall under this classification that want to explore business opportunities in Thailand may open a Regional Office. These are considered the same legal entities as their head offices and perform business in Thailand on behalf of a head office abroad. Similar to a RO, Regional Offices are restricted from earning income, purchasing, selling and negotiating.

Establishing a Regional Office in Thailand

D. Branch office

Establishing a branch office (BO) in Thailand allows a 100 per cent foreign-owned company to establish a trading entity that can engage in the commercial activities that are prohibited for ROs and regional offices. A BO can buy and sell products and services and enter into contracts. BOs are also allowed to earn income, open bank accounts, raise local financing and hire employees. A BO’s liabilities that arise from its business activities in Thailand will not be limited within Thailand but extend to the head office overseas.

A BO structure in Thailand is similar to a limited company. Both are allowed to engage in trading activities and earn income in Thailand. However, a BO has no shareholders or directors. Foreign businesses seeking to establish a branch office have to meet the requirements specified under the FBA and must verify that its business activities in Thailand fall within the scope of regulations and laws. Establishing a BO can be time consuming and has high establishment costs.

Establishing a branch office in Thailand

E. Private limited company

A private limited company is the most popular business structure in Thailand among foreign businesses, entrepreneurs and investors looking to expand into the country. It provides a variety of opportunities, including the ability to purchase property, live or work in Thailand. Foreign investors seeking to establish a private limited company need to navigate a number of restrictions under the Foreign Business Act (FBA). Foreign ownership of a limited company is capped at 49 per cent, so a Thai national or nationals must own the majority of the company’s shares. The FBA also reserves some business activities exclusively for Thai nationals and prohibits various business activities to foreigners. Some exceptions to the restrictions set out in the FBA so allow foreigners to own a private limited company in Thailand where they would otherwise be prohibited. These include if a company obtains a Foreign Business License, gains Board of Investment promotion, obtains a license from the Industrial Estate Authority of Thailand or obtains a Certificate of Business Operations (this is only applicable to Americans, Australians, Japanese and nationals from ASEAN countries engaged in specific businesses).

Establishing a private limited company in Thailand

F. Joint venture

A joint venture (JV) is commonly used by foreign investors who wish to engage in business in Thailand, although it can be complicated to establish. It is an agreement between two or more parties to work together on a short-term or long-term project. A JV is a profit-seeking business and in Thailand it can be jointly established by:

• A company and another company, or 
• A company and a juristic partnership (a partnership registered under Thai law), or
• A juristic partnership and another juristic partnership, or
• A company and/or a juristic partnership with an individual, an ordinary partnership, a juristic person or a group of people.

JVs can be an effective way to undertake research and development, create a new product or provide a new service. A local Thai partner can provide knowledge and contacts, as well as a realistic assessment of risk.

Each party is responsible for the profits, losses and costs associated with the activity. However, a JV is an independent entity, separate from the parties’ other businesses. Under Thai law, JVs are established by a contractual legal agreement between the parties. A typical agreement should include details on the:

• Legal basis for the agreement
• Purpose of the joint venture
• Structure, governance and obligations of the joint venture
• Division of profits and losses
• Ownership of intellectual property
• Disagreement or dispute resolution processes
• Leave or termination conditions.

A JV can be unincorporated or incorporated. If it is incorporated, a JV must apply for a tax identification number to make joint tax submissions. If the JV has a majority of foreign shareholders, it must also obtain a Foreign Business License, be registered under the Foreign Business Act, and create a branch office in Thailand.

Establishing a joint venture in Thailand

G. Public-Private Partnership

A Public-Private Partnership (PPP) is a contractual arrangement between the Thai Government and the private sector. Under a PPP, the private sector can build, operate and maintain public infrastructure facilities and provide services traditionally delivered by government. These projects must require private sector funding and be valued at over THB5 billion (AUD206 million). Examples of these are roads, airports, bridges, hospitals, schools, railways, and water and sanitation projects.

Thailand has implemented measures to grow PPPs in the country to help develop an ambitious pipeline of mega infrastructure projects to increase connectivity and support economic development in the region. These projects include multiple rail developments, expressways, hospitals and ports. 

The Public-Private Partnership Act was enacted in 2019 to improve the investment framework for PPP projects in Thailand. The PPP Act aims to increase transparency, grow domestic and international investment and streamline the PPP review and approvals process. Thailand presently has 139 PPP projects with a total investment value of AUD 41.8 billion (921,157 million baht). Most of these projects are presently in the electricity sector, water and sewerage and railways.

Establishing a PPP in Thailand

Success in Thailand requires businesses to tailor their product or service to the Thai market. This should be based on detailed analysis of consumer trends, price consciousness, branding, marketing and advertising, and payment methods.

Thailand has moved from a low-income to an upper middle-income country in the last four decades and the country’s middle class is expected to account for 39 per cent of the population by 2040. Understanding the characteristics, aspirations and spending habits of this emerging group of consumers is crucial for businesses looking to tap into the segment.

Thailand is expected to see a rise in its median age due to a declining birth rate and increasing life expectancy. Millennials (born between 1981 and 1996) and Gen Zs (born between 1997 and 2012) will become the predominant population cohort by 2040. These groups, with rising incomes and inherited wealth, will gain significant purchasing power and are expected to lead consumer trends. Generation Alpha (born after 2012) is also expected to emerge as a prominent consumer group as it starts to enter the job market and shape consumption patterns.

These groups are concerned about climate change and the impact their everyday actions have on the environment. They also value quality over quantity and are willing to spend more for quality items rather than increase their purchase volumes. Over two-thirds of Thai consumers are trying to lead a minimalistic lifestyle, with Gen X leading this trend.

Businesses entering Thailand should adjust their value propositions to cater to these middle-class consumer profiles. Responding to more discerning spending habits by introducing tiered product lines, differentiating product offerings and avoiding product portfolio stagnation can help businesses succeed in the competitive Thai market.

Consumer trends in 2024

Figure 3: Median disposable income per household (2016-2026f), AUD, current prices

Price consciousness

Thailand has seen strong growth in GDP per capita and it has recovered from a fall during COVID-19 to reach AUD 11,135 (THB 245,362) in 2024.

Although many Thai consumers are seeking higher quality goods, they are keen to secure better prices and shopping deals. Cost effectiveness remains a significant consideration with 37% of Thai consumers expressing a preference for finding bargains.

Businesses must remember that price points designed for the middle class in one market may be out of reach for the middle class in another - slight price modifications to an already successful product can significantly boost sales.

Branding

Branding is an essential part of product differentiation, and companies need to research and understand the specific tastes of consumers to achieve success. Thai consumers value high-quality brands. While this can be a disadvantage for new brands entering the market, targeted promotional campaigns can build a product’s reputation and reach.

In some sectors Australian businesses enjoy a branding advantage by virtue of their products being made in Australia. Thai consumers trust Australian products and Australian companies have a reputation as suppliers of clean, healthy and high-quality goods and services. An emphasis on Australian origin can be a marketing tool for businesses expanding into Thailand, particularly in the food and beverage and agricultural sectors. Austrade’s Nation Brand toolkit provides a range of free branding assets for businesses looking to export.

Marketing

A trade show can be a useful starting point for marketing in Thailand. These are productive ways to reach out to new consumer bases and potential clients, while also offering insights into the operations of competitors. Thailand hosted over 140 trade shows in 2023 and 2024, covering areas including fintech, sustainability solutions, food and hospitality and electronics.

Sales promotions may also help establish your brand with high-impact campaigns. Providing special discounts and events centred on your brand can be an effective way to build consumer loyalty and product awareness – particularly in sectors that are crowded with incumbents.

Digital marketing methods are also common given Thailand’s high smartphone penetration rate. Email, text, search engine optimisation and social media marketing are now integral parts of a comprehensive marketing campaign. Direct marketing to share information about products and services with consumers through traditional and online channels, including online advertisements, email, websites, cell phones, television, catalogues, radio and newspapers is also effective.

Any marketing and promotional efforts – at trade shows, sales promotions or anywhere else – should translate information into Thai to ensure the greatest reach.

Advertising and media

Television and print advertisements remain a trusted marketing source across Southeast Asia. However, Thailand’s digitally savvy population is driving the uptake of mobile technologies and increasing the reach of digital advertising (Figure 4). The number of social media users in Thailand is expected to reach 62 million by 2025 and advertisements on YouTube reached 70 per cent of all internet users in 2023. With companies spending a combined AUD 760 million on social media advertising in Thailand in 2023, a digital strategy is now an essential part of any advertising campaign.

Advertising regulations in Thailand are governed by several statutes, both general and specific. The Consumer Protection Board monitors all forms of advertising and labels for violations of the Consumer Protection Act (CPA).

A 2023 update to the CPA introduced rules to reduce misinformation in advertising in Thailand. All advertising statements must be in Thai, must be easy to see, hear or read, and must not be misleading. Any advertisements in a foreign language must also have a Thai translation. When translating from English, care should be taken to ensure cultural and linguistic sensitivities. Local interpreters can aid in ensuring the suitability of your campaign.

Companies that advertise must also ensure all information is factual. Under the CPA, any descriptions in advertisements, including volume, size or elements, must reflect the actual product or service being sold. Advertising media, such as platform service providers that allow users to share or post prohibited content, can also be held liable for false and exaggerated advertising.

There are no specific rules for digital advertising, but distorted, forged, or false online advertisements that could harm others may be subject to criminal charges under the Computer-related Crime Act. Direct marketing is governed by the Direct Sales and Direct Marketing Act, which aims to protect consumers from direct sales and marketing business operators. Sales promotions are also subject to various statutes.

Australian businesses looking to promote their products or services in Thailand can seek professional help from local and international advertising and media agencies.

Figure 4: Digital advertising audiences in Thailand (2025)

Digital payments

Digital payments in Thailand are popular. Over half of all Thais now use digital payments regularly and this number is expected to increase to two-thirds by 2028. The number of mobile wallet transactions has also grown rapidly, making up 30 per cent of all purchases in 2024. The total value of Thailand’s e-commerce industry is projected to reach AUD 90.76 billion (THB 2 trillion) by 2030.

The Thai central bank, the Bank of Thailand, has actively helped grow the digital payments market. Its PromptPay mobile banking and payments system, which allows users to transfer money using a mobile phone or national ID number, has underpinned this growth. Introduced in 2017, the PromptPay system is now being used in many markets in Asia, including Cambodia, Hong Kong, Malaysia, Japan and Singapore. Based on the success, the Bank of Thailand now aims to further grow digital payments in Thailand, and develop a cross-border digital payments system. Despite the growth in digital payments, cash on delivery is still common, especially in less developed regions of Thailand. The most popular B2C digital payment methods in Thailand include e-wallets, bank transfers, debit and credit cards, and cash on delivery (Figure 5).

The most popular e-wallets include True Money, LINE Pay, and ShopeePay. The number of mobile wallet users is forecast to reach 68 million by the end of 2025, signifying strong growth of digital payments in the country.

A substantial number of Thai consumers rely on smartphones for their internet access, which gives businesses an opportunity to broaden their e-commerce footprint and provide a user-friendly mobile shopping experience. Investing in accessible mobile applications and seamless mobile payment solutions can help boost these online sales.

Digital payments can also make financial transactions safer, cheaper and more convenient. As digital payment options continue to expand and evolve in the Thai market, businesses should integrate them into their business model.

Figure 5: Payment methods for B2C e-commerce (2025), %

A well-considered market entry strategy should take a systematic approach that supports long-term success. This section summarises the factors businesses should consider when formulating an approach to the Thailand market into a series of key questions.

Asialink Business provides advisory services and capability training programs to help organisations understand and access opportunities in Asian markets. For any questions about any aspect of a Thailand market entry strategy, please contact us. Austrade’s Thailand office also provides services and support to Australian businesses with an interest in Thailand (details can be found in Section 5.2).

Calibrating Ambition

• What is your company’s aspiration for the market?
• What are the challenges and risks you will need to mitigate?

Consumers

• What is the current or potential demand for your product or service in Thailand?
• Who are the primary customers / consumers for your product or service in the market?
• How will you tailor your product or service to local preferences?

Competitors

• Who are your competitors in the market, and what is their offering?
• How does your product or service compare to competitors on price?

Sales, Brand and Marketing

• What is your unique value proposition for the market?
• What is the ideal mix of marketing and sales channels to reach your target customers?
• Is your marketing strategy aligned with your identified consumer base and value proposition?

Mode of Entry

• What is the right market entry model for your business?
• What are the specific geographies you should target?

Delivery Partners

• Does your team have the right mix of skills and expertise to support your market entry?
• What partnerships will contribute to your business’ success in the market?
• What external advice do you need to commission?

Operating Model

• What changes do you need to make to your business across areas such as operations, HR, finance and IT?

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