Thailand

HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.

Thailand stands strong

In Thailand, businesses remain confident, undeterred by an uncertain trade environment and downtrodden economic conditions. Though a strong baht has affected export performance and tourism1, this hasn't dampened enthusiasm for the country's economic prospects. In August 2019, the Thai government announced a USD10 billion economic stimulus package2 that many believe will provide an extra boost to the economy.

State of play

Optimism at home and abroad

Thai business leaders' growth expectations for the short and medium-term surpass those of their peers in other parts of Asia-Pacific (APAC) as well as globally. 32% of Thai businesses are high-growth companies, meaning they expect to grow by 15% or more in the next year.

The overwhelming majority of Thai businesses are also upbeat about their prospects for global trade, though corporates have become slightly more conservative about their forecasts over the last one to two years. China and Japan remain Thailand's most important trading markets, while trade with the US is also increasing.

32 %

of Thai businesses are high-growth companies, meaning they expect to grow by 15% or more in the next year

Key contributors to expectations of sales growth over the next year

External – Quality and availability of suppliers and raw materials
40%
External – Improvements in logistics and transportation
38%
External – New markets opening up
37%
Internal – Improving your productivity
41%
Internal – Investing in technology
38%
Internal – Introducing new products/services
34%

External

Transformative technologies in your sector

36%

Increasing interest in sustainability

25%

Government incentives for investment opportunities  

25%

Internal

Ability to attract investment/secure financing

30%

Business restructuring

29%

Expanding to new digital platforms and channels  

26%

What you need to know

  1. 1

    32% of Thai businesses expect to grow by at least 15% in the next year, compared to 22% globally.

  2. 2

    92% of businesses expect growth to continue over the next five years.

  3. 3

    Improvements in productivity (cited by 41% of Thai companies), the quality and availability of suppliers and raw materials (40%) and investment in technology (38%) are among the key factors fuelling business optimism.

What your business can do

  • Focus on productivity. This is the factor most Thai businesses see as critical to growth.

  • Consider moving into new markets. 33% of Thai companies are adopting this strategy to counter potential threats. 

  • Look beyond your own operations. 27% of Thai businesses are reviewing their suppliers or investing in higher quality raw materials.