As Southeast Asia continues to rise as a global economic hub, international companies are increasingly setting up regional operations in this dynamic region. Two standout contenders—Thailand and Vietnam—consistently attract attention due to their strategic locations, cost advantages, and skilled talent pools. But when it comes to choosing between them, how do you decide which country is the better fit for your business?
This comparison will help you evaluate the key differences between Thailand and Vietnam across infrastructure, labor, regulations, and long-term scalability, so you can make a confident decision about your regional base.
- Ease of Doing Business
Thailand
- Ranked higher than Vietnam in many global “Ease of Doing Business” reports.
- More mature business and legal frameworks.
- Streamlined company registration and investor-friendly policies in key sectors (e.g., automotive, manufacturing, digital services).
Vietnam
- Progressively improving its regulatory environment.
- Offers strong incentives for manufacturing and export-driven businesses.
- Some bureaucratic challenges still exist, particularly around licensing and approvals.
Insight: If speed and legal clarity are top priorities, Thailand may offer a smoother entry.
- Labor Market & Talent Pool
Thailand
- Skilled labor in sectors like healthcare, logistics, IT, and engineering.
- Higher English proficiency than Vietnam in most urban centers.
- Competitive wages, though slightly higher than Vietnam in some sectors.
Vietnam
- Younger workforce with strong capabilities in tech, manufacturing, and engineering.
- Rapidly growing pool of software developers and digital professionals.
- Very cost-competitive labor market.
Insight: Vietnam wins for tech hiring at scale and cost-efficiency; Thailand offers stronger mid-level talent and English proficiency.
- Infrastructure & Connectivity
Thailand
- World-class infrastructure, especially in Bangkok and Eastern Economic Corridor (EEC).
- Suvarnabhumi and Laem Chabang ports enhance regional logistics.
- High internet and mobile penetration.
Vietnam
- Infrastructure improving quickly but still developing compared to Thailand.
- Good coverage in major cities like Ho Chi Minh City and Hanoi, but rural logistics remain challenging.
- Lower logistics and supply chain reliability in some areas.
Insight: Thailand leads in infrastructure and cross-border connectivity.
- Government Incentives & Taxation
Thailand
- Offers a wide range of tax holidays and investment incentives via BOI (Board of Investment).
- Corporate tax rate: 20%.
- Strong support for high-tech, smart electronics, EVs, and regional headquarters.
Vietnam
- Attractive tax incentives in industrial zones and for high-tech firms.
- Corporate tax rate: 20%, but incentives can reduce it significantly in special zones.
- FDI-friendly policies with a focus on manufacturing and exports.
Insight: Both countries offer solid incentives, but Thailand offers more transparency and support for regional HQs.
- Strategic Location & Market Access
Thailand
- Positioned at the heart of mainland Southeast Asia.
- A logistics gateway to CLMV countries (Cambodia, Laos, Myanmar, Vietnam).
- Member of ASEAN, RCEP, and has FTAs with major economies.
Vietnam
- Coastal advantage for trade with Northeast Asia (China, Japan, South Korea).
- Rapid integration into global supply chains.
- Also a member of ASEAN, CPTPP, and RCEP.
Insight: Thailand is ideal for regional coordination; Vietnam excels for manufacturing and East Asia trade routes.
Final Verdict: Align with Your Long-Term Goals
- Choose Thailand if your goal is to build a scalable regional command center, benefit from stable infrastructure, and tap into a well-established legal and compliance framework.
- Choose Vietnam if you’re looking for agile growth in manufacturing or software, with a young workforce and cost-effective operations.
Many businesses even choose a dual-market strategy—setting up manufacturing in Vietnam while maintaining operational HQ in Thailand.
Need Help Setting Up in Thailand or Vietnam?
Whether you’re exploring Employer of Record (EOR) services, company formation, or local hiring support, our team can help you simplify your expansion in Southeast Asia. Get in touch for tailored solutions that fit your regional growth strategy.
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