Thailand vs. Vietnam: Where Should You Set Up?

When expanding into Southeast Asia, the question inevitably arises: Thailand or Vietnam? Both countries offer compelling advantages, but the right choice depends on your business model.

Manufacturing & Export

Vietnam has become a manufacturing powerhouse, particularly for electronics and textiles. Lower labor costs and aggressive trade agreements (like EVFTA) make it attractive for export-focused factories.

Thailand excels in higher-value manufacturing—automotive, electronics components, and food processing. The workforce is more skilled, and supply chain infrastructure is more mature.

Digital & Services

For digital businesses, Thailand offers significant advantages:

• More developed digital payments ecosystem
• Larger domestic consumer market
• BOI incentives specifically for tech companies
• Better English proficiency in business settings

Legal Simplicity

Vietnam's foreign investment rules can be complex and change frequently. Thailand's Foreign Business Act, while restrictive, is well-documented and predictable. BOI promotion provides a clear pathway to 100% foreign ownership.

Quality of Life

For founders and expat teams, Thailand offers superior quality of life—international schools, healthcare, and lifestyle options that make long-term relocation easier.

Our Take

For manufacturing exports: Consider Vietnam.

For services, digital, and regional headquarters: Thailand is often the better choice.

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Need help deciding? Let's discuss your specific situation.