Overview
Thailand’s rapidly expanding digital economy, projected to grow by 7.3 percent and reach approximately $140.3 billion in 2025—well above the national GDP growth of 2.8 percent—is positioning the country as a key digital hub in the ASEAN region and creating strong opportunities for U.S. companies. Government initiatives such as the Government Cloud Project are driving demand for cloud services, data centers, and AI technologies, encouraging collaboration with foreign tech providers. This flow in digital development has attracted fierce competition, with both local and international players like Huawei, ZTE, Intel, Ericsson, Cisco, Samsung, and HPE actively pursuing market share.
Regulatory Environment
The Personal Data Protection Act (PDPA), in effect since June 2022, is Thailand’s first law expressly intended to govern data protection. The law is heavily influenced by the EU’s General Data Protection Regulation (GDRP). Key aspects of the PDPA include rules surrounding data processing, collection, storage, and consent protocols. The PDPA mandates that data controllers and processors who use personal data must receive consent from data owners and use it only for expressed purposes, with financial penalties for non-compliance.
The Electronic Transaction Development Agency (ETDA) is currently revisiting the draft legislation on AI that has been pending since 2023. The new draft principles focus on risk-based requirements, measures in support of innovation, general principles, regulatory and legal enforcement. There is no specific timeline set for completion. Additionally, Thailand recently launched the Artificial Intelligence Governance Practice Center (AIGPC), designed for sharing best practices in ethical AI, conducting training, promoting knowledge exchanges and regional expertise, and collaborating with organizations such as UNESCO to further advance ethical AI principles.
The Office of the National Digital Economy and Society Commission (under the Ministry of Digital Economy and Society) is in the process of drafting an AI Business Law intended to prevent public harm caused by AI business implementation. The draft law covers AI system business classifications, market entry and registration, transparency, monitoring, and compliance assessment. The authority is working on the draft, but there is no specific timeline for completion.
The Personal Data Protection Act allows for cross-border transfers to destination countries that offer an adequate level of data protection. In 2021, the National Cybersecurity Agency published regulations under the Cyber Security Act that define critical information infrastructure (CII) and establish a national coordination center to monitor and resolve cyber threats. The seven sectors classified as CII are national security, essential government services, banking and finance, information technology and telecommunication, transportation and logistics, public utilities (electricity, petroleum and natural gas, water utilities), and health.
Thailand’s Computer Crime Act provides the government with expansive authority to regulate online content. The Act establishes a liability shield for online service providers with respect to non-IP-protected, user-generated content if they comply with requirements to remove certain content within specified timeframes. The mandated timeframes vary across content types and are as short as 24 hours for some types of content.
Thailand’s Royal Decree on Measures for the Prevention and Suppression of Cybercrime B.E. 2568 (2025) introduces stringent penalties for unauthorized data sharing. Individuals who open accounts, electronic cards, or wallets for purposes other than personal use, or who allow others to use their SIM cards for illegal activities, may face up to three years in prison, a fine of up to $9,300 (or 300,000 baht), or both. Those who advertise or invite others to trade such accounts or SIM cards with the intent of facilitating illegal use could be sentenced to two to five years in prison, a fine ranging from $6,000 - $15,000 (200,000 to 500,000 baht), or both.
Additionally, the decree holds financial institutions, telecommunications service providers, and social media platforms accountable for damages resulting from cybercrimes conducted through their services. These entities may be subject to penalties if they fail to exercise due diligence in preventing such activities.
Thailand Industrial Standards Institute (TISI) falls under the Ministry of Industry, Thailand. The authority has a key role in developing both mandatory and voluntary standards to serve the needs of specific industries and the country’s overall economy. TISI normally publishes a work program every six months for standards development in the country. These standards are established to support government policy in aspects of consumer protection, environmental protection, industrial promotion, and natural resources preservation.
General Guidelines
Generally, Thai regulations are readily available for public review, though typically only in the Thai language. Thai government agencies are legally required, in most cases, to hold public consultations before finalizing draft regulations or laws. However, public consultation periods are, in some cases, short, making it logistically challenging for foreign stakeholders to participate.
Partnering with a local agent or distributor is generally the most effective way to enter the Thai market and reach potential Thai buyers. The agent or distributor can facilitate and expedite market entry with their extensive market knowledge, established distribution networks, and relationships with key business and government officials.
The key to successful bidding on Thai government contracts and supply tenders is to have a reputable local representative with good access to the procuring agency and knowledge of specific procurement requirements. Without this intermediary, it is very difficult to win a government project since procurement is decentralized among more than 200 government agencies and state enterprises. Representatives are accepted as legitimate players in the bidding process and often provide an early “heads up” to U.S. firms when they hear of attractive tenders. Before tenders are issued, agents help to ensure a principal’s product will meet the required tender specifications.
Companies bidding on government projects should note that technology transfer, training, and after-sales services are important features considered in the review of all proposals. U.S. companies should plan to build additional training costs and expenses into the bid. American firms may find it more cost-effective to send engineers or specialists to train larger groups of employees at a plant or specialized government facility, such as a military installation.
Digital Trade Barriers
There are currently no requirements for foreign IT providers to localize their data or turn over source code. However, Thai companies and government agencies may still request companies to store and process data locally, even when not legally required. Pending regulations, under consideration by NCSA, may mandate that “high” impact information systems with “seriously severe” effects must use a local data center and a backup data center in “Thailand” or “ASEAN, including Singapore and Hong Kong.” The scope of these regulations remains under consideration.
Telecommunication is considered a national security sector and is therefore limited to Thai ownership. Pursuant to the Telecommunications Business Act (2006), the Thai government generally prohibits foreigners from working or offering professional services in the sector. Foreign entrepreneurs in Thailand should consult with legal service providers or contact the Department of Foreign Trade at the Ministry of Commerce for further information.
In Thailand, approximately 70-80 percent of digital equipment and solutions are imported. Products from the United States, China, Japan, Korea, Taiwan, and other European countries are the most popular because of consumer perceptions about the quality and innovation of technology in these countries. U.S. equipment is perceived to be of high quality with the best technology, but the Thai market is price-sensitive, and equipment and solutions are often procured from the lowest bidder. Non-U.S. companies may be heavily subsidized and supported by their governments in various ways to secure Thai government projects.
Opportunities
Thailand’s national digital strategy, known as Thailand 4.0, aims to turn the country into a leading digital hub in Southeast Asia. Supported by the government, this plan encourages the use of new technologies, digital innovation, and the growth of a digital economy. According to the National Broadcasting and Telecommunications Commission (NBTC), using 5G more widely could add $9.3 billion to the Thai economy—about 10 percent of its GDP—by 2035. This opens up strong business opportunities for foreign companies looking to offer digital and tech solutions in Thailand.
Since the COVID-19 pandemic, many Thai industries, such as retail, manufacturing, and transport, have adopted digital tools more quickly. By early 2025, Thailand had 65.4 million internet users, over 91 percent of the total population. While 5G is already used in network services, many businesses, especially small and medium-sized ones, are still just starting to go digital. This creates plenty of room for foreign companies to help Thai businesses use 5G and other digital technologies to grow and improve their operations.
Advanced Computing in Thailand is emerging across industry sectors, and most companies want to adopt and transform themselves with advanced technologies. There is potential for advanced computing, including AI and machine learning, high-performance computing, edge computing, and IoT.
In Thailand, the Human-Machine Interfaces (HMI) sector market is expected to grow rapidly as industries adopt HMI applications and solutions in manufacturing and automation processes.
The Thai government approved the Thailand national AI strategy and action plan (2022-2027) for driving AI country development plan, supervised by the Ministry of Higher Education, Science, Research, and Innovation (MHESI) and the Ministry of Digital Economy and Society (MDES).
In Thailand’s 2023 budget, approximately $216 million was allocated for AI initiatives among 68 government agencies at the department level. These projects have involved the development of infrastructure and data to support AI adoption and utilization, plus training for government officials on integrating AI technologies in the agencies.
According to Statista, Thailand’s generative AI market is expected to reach $312 million in 2025 and grow at a compound annual growth rate (CAGR) of 41.5 percent through 2030, reaching a projected market volume of $1.8 billion by that year.
The National Broadcasting and Telecommunications Commission (NBTC) has allocated the lower portion of the 6GHz spectrum for unlicensed use, while a decision on the upper portion is still under consideration. The final determination is expected to be guided by regional consensus and the approaches adopted by other countries in the region.
Open Radio Access Networks (OpenRAN) is a technology that holds the potential to bring further competition to areas where Huawei and ZTE have been traditionally dominant. Thai mobile operators, while interested in the technology, are not yet convinced of its commercial viability.
Nearly 90 percent of the Thai population have enjoyed 5G coverage since the end of 2023. Data consumption per subscription in Thailand is expected to grow to nearly 80 GB per month in 2025 from its previous level of 32.7 GB per month only in 2022.
The National Broadcasting and Telecommunications Commission (NBTC) expects to auction licenses for six spectrum bands: 850 MHz, 1500 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 26GHz in the first quarter of 2025. Most telecom operators are eager to participate in the auction and plan to obtain sufficient spectrum to support the rollout of 6G services.
According to the NCSA, the number of cybersecurity incidents in Thailand increased significantly, from 135 incidents in 2021 to over 772 incidents in 2022, with most being data breaches occurring through educational and public sector websites.
Spending on IT security and risk management technology in Thailand is expected to surge due to the growth of remote work, cloud computing, and risk management. The key industry sectors investing in cybersecurity technologies are the healthcare sector, financial institutions, IT and telecommunications, and the public sector.
In Thailand, approximately 70-80 percent of cybersecurity equipment and solutions are imported. U.S. equipment is perceived to be of high quality with leading technology, but the Thai market is price-sensitive.
Upcoming Digital Economy-related trade events.
• Thailand Smart City Expo 2025, November 5-7, 2025
• DigiTech ASEAN Thailand & AI Connect 2025, November 19-21, 2025
• Money 20/20 Asia in Bangkok, April 2026