Doing Business in Thailand: Market Entry, GTM Strategy & Growth Potential

The population of Thailand is 71,559,615, and is growing at the rate of -0.09%. The GDP per capita, which represents the potential spending power of the people, is $27,441, measured on a purchasing power parity (PPP) basis to allow comparison with other countries.

63.72% of Thailand’s population lives in urban areas. 62.44% of the population is of working age (15-59). 92.26% of the population has internet access and 95% has 5G mobile coverage. These factors are important for digital-first businesses to keep in mind.

The Accuracast International Growth Index ranks Thailand #4 overall for market attractiveness, up 1 place from last year.

How we can help you grow in Thailand:

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How Digitally Mature is the Market in Thailand

The digital search demand score for Thailand is 57.73.

One of the top 20 highest search volumes per 1,000 people and lower competitive intensity make Thailand an interesting expansion target for businesses that use digital channels primarily for marketing. Combine that with the low advertising costs – the average cost per click for our benchmark keyword set was $0.49, compared to $1.10 for Japan – and you can see why Thailand ranks #4 globally for digital search demand, behind only Taiwan, Japan and Iceland.

Go-To-Market Strategy Considerations for Thailand

The purchasing power score for Thailand is 59.2, and the country scores 85.52 for digital readiness.

Thailand’s GDP per capita (PPP) can’t compete with that of Japan and South Korea or many European and North American countries, but it’s still within the top third globally.

Thai consumers are well connected, with 95% covered by 5G mobile connections.

Financial & payment infrastructure

In terms of financial infrastructure, Thailand scores 68.99.

The country’s financial ecosystem is fairly bank-led and interoperable. There are a number of commercial banks, card schemes, e-money providers and payment gateways, rather than being dominated by a handful of closed wallets. It has pretty well-developed digital payments infrastructure, with one of Southeast Asia’s strongest real-time payment systems.

Conventional credit cards are not the prevalent payment method. Thai businesses are quite dependent on account-to-account payments, which represent 44% of transactions. PromptPay, developed by the Bank of Thailand, is a real-time payment system that allows consumers and businesses to transfer money using a mobile number, national ID or bank account.

Thai QR Payment is standardised and used widely. It’s an important payment option for small businesses, restaurants, taxis and market stalls, where credit card terminals would’ve been difficult to implement.

Businesses entering the market should consider supporting PromptPay and Thai QR to improve customer acquisition.

Regulatory & business setup friction

From a business expansion point of view, Thailand scores 57.26 for regulatory complexity and legal restrictions. This is reverse-scored, meaning the higher the score, the easier it is to navigate local regulation.

The regulatory environment is reasonably business-friendly, but it is more administratively complex for foreign companies than markets such as Singapore or the UK. The biggest issue is foreign-ownership restriction. The Foreign Business Act (FBA) lists sectors where foreign businesses are prohibited or severely restricted, or need a Foreign Business License (FBL) if they’re more than 49% foreign-owned.

This means companies cannot simply assume setting up a wholly-owned Thai subsidiary will be straightforward. There are some exceptions for technology, digital services, and certain high-value activities.

Sector-specific licenses, tax compliance and employment rules also increase the regulatory burden for international business in Thailand. Digital assets and fintech are very tightly controlled.

The Personal Data Protection Act (PDPA) is comparable to GDPR.

The score of 41.96 indicates the costs and friction associated with setting up a business presence in Thailand.

Company registration costs as little as US $150 (THB ฿5,000). But the FBL and Foreign Business Certificate can cost anywhere from US $1,200 to $8,500. Work permits can additionally cost $1,000 per employee.

Setting up a company requires more than incorporation. Once established, businesses may need several registrations and permits depending on the sector they operate in. The Board of Investment (BOI) of Thailand states that foreign businesses might require VAT registration, taxpayer identification, commercial registration and the FBL.

Thailand restricts jobs available to foreigners, which means companies entering the market should check whether current staff will be allowed to work there when helping set up in the new market.

Thailand market attractiveness change

Compared to last year, the overall International Growth Index score for Thailand has changed 1.12 points, moving the country up one place from 2025, to rank #4 in 2026.

The economy has been stable, but relatively weak over the past 12 months. It has benefited from strong exports and investment in electronics and data centres. However, domestic consumption and tourism haven’t grown much.

Thailand has relatively high household debt and an ageing population. The current economy could make business entry challenging, but is offset by the high digital search demand buoyed by low costs and low competition.

Most Popular Social Media Platforms in Thailand:

1. Facebook
2. LINE
3. YouTube
4. TikTok
5. X
6. Instagram
7. Lemon8
8. Pinterest
9. Telegram
10. WhatsApp

The national language is Thai. English is spoken comfortably by only 10-15% of the population. Marketing teams should consider localising website content for search, and social media and advertising content into Thai to engage the local audience effectively.

What Are the Risks of Expanding into Thailand

While new market expansion can be exciting, it is important to also consider the risks when entering a market like Thailand.

The three main risks to keep in mind are:

1. Regulatory complexity and foreign-ownership restrictions.
2. Weak domestic demand and longer-term economic issues that could impact B2C companies.
3. Exposure to geopolitical shocks, especially for the tourism and energy industries.

How Does Thailand Compare to Other Top Markets?