Thailand and Myanmar are separated by a single river. The Thais call it the Moei River, while the Burmese refer to it as the Thaungyin River. Standing in Mae Sot, Thailand, you can gaze across to Myawaddy, Myanmar. The border river is neither wide nor deep, and crossing it on foot is almost effortless.
This is the physical distance between Thailand and Myanmar—so short, so accessible.
In recent weeks, the incident concerning Chinese actor Wang Xing’s disappearance has drawn unprecedented attention to the Thailand-Myanmar border. Out of safety concerns, many people have canceled their planned Lunar New Year trips to Thailand.
Tourism is a pillar industry for Thailand, and Chinese tourists are its largest source of income. According to the Tourism Authority of Thailand, 6.74 million Chinese tourists visited Thailand last year, contributing RMB 95.3 billion (USD 13.3 billion) in tourism revenue, which accounted for 28% of the country’s total tourism income.
Unsurprisingly, Thailand’s tourism industry is poised to take a significant hit.
Beyond tourism, trade between China and Thailand is also highly active, and the two countries share close investment ties. By 2023, China had become Thailand’s largest source of foreign direct investment (FDI), accounting for 24% of the country’s total FDI.
In recent years, there have been numerous cases of Chinese companies investing in factories in Thailand, launching startups, and bringing Chinese brands into the Thai market. During the expansion phase of these ventures, numerous Chinese employees have been dispatched to work in Thailand.
However, a review of online accounts from Chinese citizens scammed into crossing from Thailand into Myanmar reveals a common thread: many were deceived by the promise of lucrative job opportunities.
As negative news related to Thailand continues to dominate trending topics, it has sparked a pressing question: Is it still safe to do business in Thailand?
36Kr interviewed several individuals who have invested, launched businesses, or worked in Thailand. The general consensus is that current negative public opinion has not significantly dampened enthusiasm or confidence in expanding to Thailand. However, regardless of location, compliance with local laws and regulations is necessary—not just as a legal obligation but also as a safeguard.
Beyond this, in the face of persistent fraud in Southeast Asia, there are many details to which companies venturing abroad must pay close attention.
The following sections provide insights into Thailand’s business landscape through the perspectives of three Chinese individuals, referred to by their English names: Max, Lina, and Jeff.
Thailand: An investment hotspot
Drawn by a preference for Thailand’s culture and lifestyle, Max decided to invest in building a factory in Thailand. On a more practical level, compared to the potential tariff risks in Vietnam, Thailand has emerged as a safer market for exporting to Europe and the US.
Since 2024, Max has noticed a sharp increase in Thailand’s land prices—doubling, in fact. Previously, an acre of land cost between RMB 200,000–300,000 (USD 28,000–42,000), but now it ranges from RMB 500,000–600,000 (USD 70,000–84,000), putting the cost on par with prices in China. Even so, many factory owners in his circle continue to flock to Thailand for site inspections.
Investing in and building factories in Thailand is no longer a novel concept.
Chinese companies have made substantial investments in Thailand across a range of key industries. For example, Chinese automakers have heavily invested in positioning Thailand as a major electric vehicle (EV) production hub within the ASEAN region. In 2023 alone, BYD and Great Wall Motor committed over USD 1.44 billion to establishing new production facilities in the country. Chinese investments in Thailand extend to industries such as electronics manufacturing, semiconductors, and smart manufacturing as well.
Thailand is also becoming the largest overseas manufacturing hub for Chinese home appliance companies. Haier plans to establish its largest overseas manufacturing base in Thailand, while Midea’s air conditioning factory in Chonburi has become the company’s largest digitalized factory outside of China.
In fact, Thailand has become the second largest producer of white goods globally, after China.
More and more Chinese companies are choosing to set up production bases and R&D centers in Thailand, driven in large part by the Thai government’s policy incentives.
To support economic transformation and upgrading, Thailand has implemented initiatives such as the Eastern Economic Corridor (EEC) development plan and the Thailand 4.0 strategy, which aims to attract foreign investment into high value-added industries. These initiatives include tax breaks, land discounts, and infrastructure support. Additionally, the Thailand Board of Investment has streamlined approval processes to make it easier for foreign companies to establish operations.
Max shared with 36Kr: “Setting up a wholly foreign-owned company in Thailand depends on the industry. For sectors the government favors, approvals are generally straightforward. Buying land for investment is also relatively easy. If you purchase land within an industrial park, the government provides additional policy support.”
When it comes to the specific process of investing in a factory, Max usually begins by researching different industrial parks, comparing market prices, and contacting park management teams to understand land costs. Once he identifies a potential site, he schedules onsite visits to inspect the area. After forming a tentative plan, he entrusts the legal work to a professional team to handle the subsequent processes.
“Lawyers can help you investigate whether the land is mortgaged or carries other risks and can also handle all the operational paperwork you’ll need. Legal systems vary significantly between countries, so hiring a reputable and professional law firm is essential. Well-known firms care about their reputation and will avoid engaging in anything underhanded,” Max said.
Throughout the interview with 36Kr, Max repeatedly highlighted the importance of compliance with local laws and regulations. “Some of my friends end up paying ‘protection fees’ each month because their operations aren’t fully compliant. In those cases, it’s common for some local officials to demand kickbacks. But if you’re fully compliant, you don’t have to worry about those issues.”
Is Thailand a hub for entrepreneurs?
Thailand’s appeal to Chinese businesses isn’t limited to factory investments.
Pop Mart, a leading Chinese toy brand, reported a year-on-year revenue increase of over 400% from Southeast Asia in the first half of 2024, with the region now contributing more than 40% of the company’s total overseas revenue.
This remarkable growth underscores the vast potential of the Southeast Asian market. In July 2024, Pop Mart’s Labubu-themed store in Thailand experienced heavy foot traffic, generating over RMB 10 million (USD 1.4 million) in single-day revenue—a new record for the brand’s overseas daily sales.
Despite Pop Mart products in Thailand being priced 5–10% higher than in China, the brand continues to thrive. In Bangkok’s malls, Pop Mart vending machines frequently draw long lines of eager customers waiting to make their purchases.
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Gancube, a Chinese company specializing in Rubik’s Cubes, also achieved notable results in the Thai market. In its early days of entering Southeast Asia, Gancube ranked as the third most popular toy brand in Thailand, trailing only Lego and Pop Mart. The company’s founder, Jiang Ganyuan, was stunned by these results, especially considering that Gancube’s average price point is in the hundreds of RMB.
Lina, who works in Thailand, told 36Kr: “There’s a Chinese factory selling storage boxes through e-commerce in Thailand, with individual items priced at RMB 200–300 (USD 28–42). They can sell 200–300 units daily. The Thai market isn’t just about competing on price—high-quality, niche products can also fetch premium prices.”
Having lived and worked in Thailand for many years, Jeff concurs. “Thailand’s spending power is strong, and the proportion of high-net-worth individuals is high. Commercial maturity here also exceeds that of neighboring countries. The market is highly unified, unlike other Southeast Asian nations where diverse ethnicities and languages create fragmentation. It’s relatively easier to break into the Thai market,” Jeff said.
“Product prices in Thailand are generally transparent, so it’s hard to compete solely on low prices. Success now depends on building supply chains, ensuring localized operations, and delivering after-sales services. If you just focus on cutting prices, you’re on a dead-end path,” Jeff added.
Thailand’s economic standing is among the upper echelon of Southeast Asia. In 2024, Thailand’s per capita GDP reached USD 7,810, ranking fourth in the region. It is also the second largest ASEAN economy.
Thailand benefits from a relatively stable political environment. China has been Thailand’s largest trading partner for years, and the two governments maintain friendly relations. These factors make Thailand an attractive destination for many Chinese companies looking to expand globally.
Is doing business in Thailand risk-free?
While Thailand’s favorable business environment makes it an attractive destination, challenges persist for those venturing abroad.
Max, for instance, intentionally avoids engaging with the local Chinese business community in Thailand. His company’s employees are predominantly Thai locals. Similarly, Jeff mentioned that most of his business partners in Thailand are local, with no Chinese collaborators. “Working with Thai partners is less costly and involves fewer social obligations. Relationships here are simpler to maintain,” Jeff said.
Notably, a report from WeChat outlet Zhengmian Lianjie shed light on an issue that emerged during the pandemic: some Chinese businesspeople in Mae Sot had allegedly set up systems to bribe immigration officials, police, and border guards. These networks reportedly facilitated smuggling and illegal activities, supporting Chinese individuals involved in cross-border fraud.
Although such reports may represent isolated incidents, both Max and Jeff agreed that the Chinese community in Thailand can sometimes be complex. For those seeking to establish legitimate businesses, it’s best to remain cautious about whom to associate with.
Lina also stressed the importance of securing a proper work visa before moving to Thailand for employment. “Some Chinese companies ask employees to enter Thailand on a tourist visa, then convert it to a business visa after they start working, and eventually switch to a work visa. This is not compliant with Thai labor laws. Signing a labor contract after entering the country on a tourist visa has no legal standing. If the government discovers this, employees may face deportation and a ban on reentry,” she said.
Jeff noted that obtaining work visas used to be a cumbersome process, sometimes requiring under-the-table payments to officials. “In the past, you had to give small bribes to get a work visa approved, which made the process expensive. Thankfully, this is no longer the case,” he said.
Nonetheless, various factors continue to cause delays in obtaining work visas for employees. Even Lina, who works for a relatively large company in Thailand, faced issues when her work visa was not processed in advance.
The question of whether expanding to Thailand is a safe move ultimately depends on individual circumstances. However, one universal truth applies: conducting business in compliance with local laws and regulations is indispensable for achieving long-term success.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Leslie Zhang for 36Kr.