Why Thailand

Over the past four decades, Thailand has made significant progress to move from a low-income to an upper middle-income country. The country has a strong foundation for future progress as it transitions from an economic model focused on goods export to growth driven by manufacturing, tourism, services, technology and investment.

As one of the most open economies globally, Thailand has 14 Free Trade Agreements with 18 countries, including Australia. The two countries have long-standing and deep connections and formal diplomatic relations were established in 1952. Australia and Thailand cooperate in a broad range of areas, including trade and investment, defence, law enforcement, counterterrorism, education, agriculture, migration, tourism, energy and climate change.

Australia and Thailand enjoy a substantial commercial relationship, underpinned by the Thailand-Australia Free Trade Agreement (TAFTA). Since TAFTA came into force on 1 January 2005, trade in goods has more than doubled. Two-way trade in goods and services was worth approximately $33.7 billion in 2023-24, making Thailand Australia's 2nd largest trading partner among Southeast Asian countries and 9th largest overall.

Thailand is also a member of the Regional Comprehensive Economic Partnership (RCEP), which came into force early 2022. This trade agreement with 14 other Indo-Pacific countries will enable Thailand to deepen its economic integration within the broader region.

Thailand has been identified as a key market for two-way trade and investment in the Australian Government’s Southeast Asia Economic Strategy to 2040. More information on the bilateral relationship is available in Section 5.1 and from the Department of Foreign Affairs and Trade’s Thailand Country Brief.

Comparing key indicators: Thailand and Australia

Thailand’s GDP growth is projected to reach 2.1 per cent in 2028, up from 1.8 per cent in 2025. Key factors driving this growth include increased momentum from government expenditure and public investment, continued recovery of the tourism sector after Covid-19, favourable growth in private consumption, and expansion of exports in line with the global trade recovery.

The middle class is projected to grow rapidly as economic development in the country sees income levels rise and higher value-added jobs become more available. By 2040, the middle class is projected to account for 37 per cent of the total population, up from 36.3 per cent in 2024. Thailand hopes to further grow its middle class by transitioning its traditional manufacturing-base to a digital economy.

The Thai government has implemented key policies to improve its digital infrastructure, grow its ICT skills base and expand the digitisation of key industries beyond services. It is also partnering with technology companies and regional partners to grow investment in the digital sector. This presents opportunities for Australian businesses to invest and participate in Thailand’s economic future.

Figure 1: Real GDP Growth - Thailand and world average (2016-2030f), %

Thailand’s growth trajectory presents opportunities for Australian trade and investment, particularly in sectors that align with the country’s economic development priorities and its growing consumer class. This section provides a short overview of prospective sectors.

Education

Thailand’s push to digitise its economy is creating additional demand for high-quality education. The country has low English proficiency, which the government is trying to address by adopting an international curriculum and growing the availability of foreign teachers. There is strong potential for Australia to collaborate with Thailand to improve the calibre of its English teachers and curriculum. Australia’s education system is well-regarded in Thailand and the country ranks at number 12 of source countries for international students in Australia, with over 18,000 students. Vocational education will play a significant role in the government’s policy to transition to high value services. In the next decade, over eight million workers in Thailand will be required to shift from traditional manufacturing jobs to ‘green jobs’ that require a higher professional skill set. The Australian Government has a long-standing education and training partnership with Thailand focused on vocational education and training (VET), innovation and digital tools for online capacity- building, and research. Austrade has identified opportunities in higher education, vocational education and training, and English language intensive courses for overseas students.

Food and agribusiness

As disposable incomes grow, Thailand is experiencing increasing demand for international foods, including Australian-made products. This is especially prevalent in the packaged food and beverage segment, where the emerging middle-class consumer base is keen to spend on small indulgences for premium categories like ice cream, chocolate, 100 per cent fruit juices, coffee and crackers. Demand for high-quality, imported fresh produce and wine is also growing and Australian companies have a good reputation as suppliers of clean, healthy, premium products. Thailand’s Bio-Circular-Green Industry (BCG) sector presents opportunities for Australian businesses in areas such as smart farming, plant factories, precision agriculture, aquaculture, and healthy food production (including prebiotics, probiotics and nutraceuticals). Austrade has identified key market opportunities in dairy, horticulture, meat and livestock, packaged foods, seafood, and wine and beverages.

Health and medical

Healthcare in Thailand is high quality, and the country currently ranks 31st on the 2023 Legatum Prosperity Index. Since 2002, Thailand has had a universal public healthcare system that offers mostly free medical treatment to 98 per cent of the population. The country’s ageing population will spur further growth of the health sector. A compound annual growth rate of 22.7% is expected of Thailand digital health market from 2025 to 2030. Dietary supplements are also popular in Thailand, with well over half of the population regularly using vitamin and mineral supplements. It is anticipated that the value of Thailand’s nutrition and supplements market will reach AUD 1.3 billion (THB 28.75 billion) by 2030, up from AUD 815 million (THB 17.97 billion) in 2022, growing at a compound annual growth rate of 6.64 per cent. Austrade has identified key areas of opportunities which include complementary medicine, biotech and digital health.

Green economy

Thailand has committed to achieve a 40 per cent reduction in emissions by 2030, carbon neutrality by 2050 and net zero by 2065. Thailand also aims to be a regional hub for the production of electric vehicles, which provides scope for two-way trade and investment to expand battery manufacturing capacity. Thailand has revised its National Adaptation Plan to enhance climate resilience in water resource management, agriculture and food security, tourism and a range of other sectors. Thailand’s clean energy transition presents opportunities to provide project engineering, design, construction and advisory services, and technology. There is strong growth in data centres in Thailand and these are also looking for power-saving technology. This market could be worth up to AUD 16.3 billion (THB 359.4 billion) per year by 2030. Austrade has identified renewable energy solutions as a key opportunity for Thailand.

Infrastructure, transportation and cities

The Thai government has made improving infrastructure a priority and it has invested close to AUD 181.49 billion (THB 4,000 billion) over the last two decades. Of this, AUD 45.4 billion (THB 1.0 trillion) was invested in infrastructure projects under Public-Private Partnerships (PPPs). Thailand’s Eastern Economic Corridor (EEC) project aims to develop three eastern provinces (Chonburi, Rayong and Chachoengsao) into a leading ASEAN economic zone and technological manufacturing hub. The country also aims to develop 105 smart cities by 2027. Despite progress, Thailand still faces an infrastructure gap and the Global Infrastructure Hub estimates a further AUD 163 billion (THB 3.59 trillion) in infrastructure investment is required by 2040. Over the short-term, this presents opportunities for Australian investors in the early stages of PPP infrastructure projects, including highways, airports and waterways. Over the medium- to long-term, opportunities are likely across architecture, consultancy and engineering services, construction and project management Austrade has identified infrastructure as an opportunity, including sustainable building solutions for Thailand.

Technology

Under Thailand’s National Digital Blueprint and Thai 4.0 policies, which target industrial-scale digital transformation and development of a digital economy, technology will play a crucial role in shaping Thailand’s economic future. Establishing a Government Data Centre and Cloud (GDCC) facility is a cornerstone of this strategy. Designed to be a secure and reliable data storage and processing facility, it will provide critical infrastructure for the initiative. The country’s digital industry includes five main sectors: software, hardware and smart devices, digital services, telecommunication and digital content. Digital services showed the highest demand, driven by a growth in the value of fintech and health tech businesses in line with global trends. This presents opportunities for IT consulting, legal support, digital content, software and infrastructure development. Thailand’s growing cybersecurity market also presents opportunities for businesses across software, telecommunications and hardware. The Thailand cybersecurity market size is estimated at AUD 785 million in 2025, and is expected to reach AUD 1.52 billion by 2030, at a CAGR of 14.1% during the forecast period. Austrade has identified critical technology solutions as opportunities for Australian businesses.

Professional and financial services

Thailand’s professional and financial services sector is undergoing a period of transformative change post COVID-19 as the country embraces a shift to a digital economy and grows its position as a regional hub. The Thai government continues to streamline its financial sector, aiming to make it open and sustainable Issuances of virtual bank licenses, debt restructuring and digital capability enhancement are all being driven by regulatory and policy support. The Bank of Thailand is harnessing digital technology to promote open competition, open infrastructure, and open data through its “3 Opens” strategy. In June 2025, the central bank approved three virtual bank licenses—not the previously expected 30. These licenses were granted to consortia led by SCB X, Krungthai Bank, and Ascend Money Group. A one-year grace period will allow these entities to refine their operations, with official launches expected in 2026. This presents opportunities for Australian companies to provide consulting and legal support, accounting services and fintech development.

Mining equipment, technology and services (METS)

Thailand’s mining sector is undergoing a period of growth and national GDP from mining in Thailand increased to AUD 2.21 billion (THB 48.73 billion) in the second quarter of 2025 . The Thai government is also actively pushing for lithium exploration and production to become a regional hub for EV production and battery development, both for vehicles and energy storage. It plans to start producing lithium from a new mine as early as 2026. It has also signalled the potential for growth through further exploration. Thailand permits majority (60%) Australian ownership of mining operations under TAFTA. An Australian company presently operates a gold mine in Thailand while another is planning to construct and operate a nickel sulphate plant. METS export and investment opportunities for Australian companies are likely to grow, especially given limited in-market capability in mining technology and services in Thailand.

Tourism

Tourism is a key sector for Thailand’s economy. In 2025 it is expected to contribute nearly 15 per cent of GDP with around 33 million visitors. Thailand has implemented policies to recover its tourism sector after the pandemic including loosening visa requirements and changes to foreign exchange rules. Sustainable tourism is also gaining traction in Thailand and the government has set a goal to earn AUD 235 million (THB 5.17 billion) from sustainable tourism. There are opportunities for Australian businesses to provide training, investment and consulting services in the tourism sector. The Thailand-Australia Free Trade Agreement (TAFTA) also allows majority (up to 60 per cent) Australian ownership of major restaurants or hotels in Thailand over a certain size and value.