What is the current overview of Thai investments in Vietnam, including the presence of major Thai corporations in the country?

Praween Wirotpan, chairman of the Thai Chamber of Commerce and Industry in Vietnam

Thailand is among the largest foreign investors in Vietnam, ranking ninth among all countries, and $14.3 billion has been invested since 1988. Last year, Thailand ranked 15th with $225 million. Thailand is the second-largest investor in ASEAN, behind Singapore.

Thai businesses have established a significant presence across various sectors, such as manufacturing and processing, retail, power generation, logistics, banking, and agriculture, with diversified products and services. These include food and beverages, construction materials, consumer finance, fast-moving consumer goods, and industrial real estate. Major corporations include ThaiBev, C.P. Group, SCG, Bangkok Bank, KBank, Central Group, and Amata.

Thai companies aim to bring in high-quality investment and experience to a booming market like Vietnam, as well as trusted brands through well-known quality products and services. Moreover, within the business community, we act as an intermediate agency, consolidating our expertise to connect with experts in the field, central authorities, other chambers, and business associations.

How do you see the expansion of Thai companies in the Vietnamese market?

Thai companies have long-lasting experience in consumer products such as vehicles, appliances, food and drinks, retail, and hospitality services, while Vietnamese businesses are getting stronger in manufacturing. This creates mutual benefits for businesses in both countries.

There are continuous Thai manufacturing relocations to Vietnam, such as Amata’s industrial parks and snack factories in the southern province of Binh Duong, to capitalise on opportunities in Vietnam being a global manufacturing hub.

Moreover, there are an increasing number of services sectors, like retail and hospitality, that capture opportunities in the growing population and rising middle income class, as well as significant trading companies to explore the potential of Vietnam’s consumer market.

Thai companies have been active in mergers and acquisitions (M&As) to secure a stronger presence in Vietnam. What are your expectations for the M&A wave of Thai companies in Vietnam?

There are many potential opportunities in Vietnam for Thai businesses that can be good partners, fuelling domestic growing manufacturing and service sectors, with our expertise and sustainability mindset. Combining with Vietnam’s political stability, increasing skilled labour, access to global market through free trade agreements, and favourable investment conditions, there are many sectors where Thailand and Vietnam can collaborate further - for examples, logistics, renewable energy, supporting industries for vehicles, and semiconductors.

The good dynamics of both cultures and people’s characteristics can boost partnership among Vietnamese and Thai companies in the spirit of growing together, win-win collaborations, and delivering better outcomes for the people.

How do you evaluate the attractiveness of the Vietnamese market to Thai investors going forward?

In the medium to long run, Vietnam remains a great potential market thanks to stable and growing macro situation with access to the global market. Meanwhile, a rising middle class creates more spending on quality housing, healthcare, education, leisure activities, electronics, and branded products.

However, in the short term, there are some hurdles to overcome. From ongoing restructuring process, regulatory reforms could create a favourable investment climate, but there are unsolid policies and guidance for particular matters, like the global minimum tax, extended producer responsibility implementation, and renewable energy implementation.

From the uncertainties of the current US administration’s tariff policies, there is potentially high competition with imported products, especially with the trend of global trade re-routing.