Vietnam vs. Thailand 2025: Where Should SMEs Bet on Growth?

ASEAN remains one of the fastest-growing regions in the world, with Vietnam and Thailand standing out as two of the most attractive destinations for foreign investors and SMEs seeking to expand into Asia. Both countries offer unique advantages, but also distinct challenges. For businesses planning their next move in 2025, the question is clear: Vietnam or Thailand?

1. Economic Outlook: Growth Momentum

• Vietnam: Projected GDP growth of ~5.5–6%, driven by exports, digital economy, and strong FDI inflows.

• Thailand: Moderate growth (~3–3.5%), supported by tourism recovery, infrastructure projects, and domestic consumption.

• SME takeaway: Vietnam offers faster growth, while Thailand provides more stability and a diversified economy.

2. Investment Climate & Incentives

• Vietnam: Tax incentives for high-tech, renewable energy, and manufacturing sectors; multiple FTAs (EVFTA, CPTPP, RCEP).

• Thailand: BOI (Board of Investment) incentives, strong infrastructure, and strategic logistics hubs for ASEAN distribution.

• SME takeaway: Vietnam excels in trade access; Thailand is ideal for regional HQs and logistics.

3. Labor Force & Costs

• Vietnam: Young, skilled, and cost-competitive workforce, ideal for manufacturing and tech-driven industries.

• Thailand: Higher wages but stronger talent pool in engineering, services, and tourism.

• SME takeaway: Vietnam wins on cost advantage; Thailand on specialized skills.

4. Infrastructure & Supply Chains

• Vietnam: Expanding industrial parks, ports, and highways but still facing congestion and capacity gaps.

• Thailand: More advanced infrastructure, strong connectivity across ASEAN, and established logistics hubs.

• SME takeaway: Vietnam is catching up fast; Thailand is more reliable for distribution.

5. Sector Opportunities

• Vietnam: Electronics, textiles, renewable energy, digital economy.

• Thailand: Tourism, automotive, healthcare, food processing.

• SME takeaway: Sector choice may determine the best market for entry.

Choosing the Right Fit

Both Vietnam and Thailand present compelling opportunities for SMEs in 2025. Vietnam is best suited for manufacturing, export-driven industries, and cost-sensitive operations, while Thailand is a strong base for regional distribution, services, and specialized industries.

For many SMEs, the winning strategy may not be Vietnam vs. Thailand but Vietnam + Thailand — leveraging Vietnam’s growth momentum with Thailand’s infrastructure and logistics strength for a balanced ASEAN strategy.

👉 Interested in exploring ASEAN expansion? GTI Partner helps SMEs design market entry strategies, assess risks, and build partnerships across Vietnam and Thailand. Let’s connect today!