Think of Thailand; you might envision a sleepy tropical getaway to escape the modern hustle. However, the current pace of digital and tech evolution in Thailand is nothing short of breathtaking. The recent Techsauce Global Summit 2023 in Bangkok exemplified this dynamism, with both public and private sectors propelling the nation toward becoming Southeast Asia‘s digital gateway. The region’s premier tech conference showed a country succeeding in punching well above its weight, drawing 15,000 attendees from 50 countries and featuring renowned speakers like Microsoft’s responsible AI lead, Sarah Bird, and Darren Thayre, head of digital transformation at Google.
At AccelerAsia, the optimism and potential showcased at the Techsauce Global Summit 2023 came as no surprise. We’ve been focusing on Thailand, Southeast Asia’s second-largest economy, since 2010 and have a dedicated local team on the ground. Recognising its status as a mature and tech-savvy market, we identified its immense potential for B2B technology and SaaS companies in pursuit of sales growth.
While Indonesia and the Philippines have drawn considerable attention owing to their large populations and market sizes, Thailand deserves your attention. It’s a hidden gem frequently underestimated by businesses in Europe, the United States, and beyond. What’s even more noteworthy is that Thailand continues to lack the attention of major multinational enterprises. In this article, we will explore the strengths of the Thai market and discuss the benefits of leveraging the expertise of a sales-as-a-service partner with deep local knowledge and well-established industry networks.
A resilient economy
The core indicators are all good; Thailand’s economy remains robust despite global uncertainties. The World Bank forecasts GDP growth of 3.9% in 2023, surpassing the global average. Factors contributing to this growth include strong demand from China, Europe and the United States, increasing private consumption and a rebound in tourism. Geopolitical tensions between China and the West have shifted regional supply chains, with more Chinese manufacturers moving production to Thailand. Consequently, Thailand’s growing economy is leading to an increase in business investments, creating more opportunities for tech products and software services.
Strong banking sector
Thailand has gained recognition for its robust and well-established banking institutions, which play a crucial role in the country’s economic development and position it as a regional financial hub. Prominent players such as Bangkok Bank, Kasikornbank and Siam Commercial Bank have earned excellent reputations in the financial industry; Fitch Ratings forecasts a solid performance from the banking sector in 2023. This favourable environment creates fertile ground for collaboration and innovation between traditional financial institutions, fintech companies, cybersecurity firms and SaaS businesses.
Through the Thailand 4.0 national development master plan, the government aims to further enhance the country’s financial infrastructure, streamline licensing processes and support open banking initiatives. As part of these efforts, the Bank of Thailand, the country’s central bank, is expected to grant the first digital banking licences in 2024. These licences will pave the way for establishing virtual banks, bringing about new opportunities and advancements in the financial industry.
Increased tech adoption
Thailand has been witnessing a rise in technology adoption across various industries and among its population, creating a demand for innovative software products. The government has prioritised investing in digital infrastructure, supporting the nationwide expansion of the 5G technology network and a state project focused on submarine cables, aiming to transform Thailand into ASEAN’s digital hub. Notably, in 2021, Thailand boasted the fastest fixed broadband speeds globally. Encouraged by business demand, Amazon Web Services and Google have announced plans to invest heavily in cloud computing infrastructure there, too.
Over the last decade, Thailand’s IT sector has rapidly expanded and demonstrated resilience during the pandemic. According to Mordor Intelligence, Thailand’s IT and security market is projected to double in size in the next five years, reaching a value of USD 13,652.90 million by 2028. E-commerce revenue in Thailand will grow by over 50% by 2027, reaching a value of USD 24.82 billion. The thriving e-commerce landscape presents an exceptional opportunity for tech and SaaS companies to enter a market poised for significant growth.
Additionally, Thai businesses need help with a shrinking talent pool. The working-age population in Thailand is projected to decrease significantly in the coming years. However, adopting robotics, AI and automation can assist Thai companies in maintaining production levels while reducing reliance on human labour. Businesses are, therefore, increasingly keen to invest in software and technologies that address the talent shortage and enhance efficiency in their operations.
Springboard for expansion
Thailand’s strategic location in Southeast Asia makes it a potential hub for companies looking to expand their presence in the broader region, including India, China and the Middle East. This proximity creates numerous opportunities for overseas businesses to expand their reach and tap into a broader customer base. Bangkok’s Suvarnabhumi Airport is one of the best connected airports in the region, making it easy for businesses to access neighbouring markets and establish new relationships.
Unlocking your potential in the “Land of Smiles”
As your strategic partner, AccelerAsia is dedicated to facilitating your successful market entry and tailoring a market strategy that aligns perfectly with your goals in Thailand. Our team of local experts possesses extensive knowledge in navigating the intricacies of the Thai market, ensuring you can build trust and establish fruitful business relationships by understanding and respecting the local culture.
Gain a competitive edge by tapping into our deep insights into local customer behaviour, the competitive landscape and market trends. Armed with this knowledge, your company can tailor products and marketing strategies to meet the specific needs and expectations of Thai customers. Our vast network and connections in the region enable us to introduce your company to potential partners, distributors, suppliers and key players in the industry, rapidly building a strong local network to support your growth.
Operating within the legal framework is paramount, and our team will guide you through all necessary legal requirements, licences and compliance to ensure seamless operations. Additionally, we can help you leverage various initiatives and incentives introduced by the Thai government, such as tax breaks, grants and accelerators.
Thailand, as a burgeoning tech hub in the region, offers immense opportunities for early entrants like you to seize untapped potential and establish a solid foothold in this dynamic market. Despite not matching the scale of countries like Indonesia or the Philippines, Thailand’s substantial population of 70 million surpasses that of nations like France or the UK, making it a compelling focus for forward-thinking businesses seeking sales growth and success. With AccelerAsia’s support, you can confidently venture into this thriving market and unlock its true potential.
Like to know how AccelerAsia can help you expand your sales in Thailand? Chat with our team today.