BANGKOK — Expanding into a new market is never easy, especially when that market is as nuanced, relationship-driven, and culturally rich as Thailand. For many Western companies accustomed to direct communication and fast-paced decision-making, entering the Thai business ecosystem can feel like navigating uncharted waters.
Yet, Thailand offers immense opportunities, particularly for startups and international firms bringing innovative fintech, AI, or SaaS solutions to Southeast Asia.
As someone who has spent years on the ground working with local partners, regulators, and customers across the Thai financial landscape, I’d like to share some of the hard-earned insights and lessons that can help foreign businesses localize, build trust, and thrive in the Kingdom.
1. Understand the Thai Business Culture: Relationships First
At the heart of doing business in Thailand lies a simple but often underestimated truth: relationships come first. While this may be true across Asia, Thailand’s cultural emphasis on personal rapport, harmony, and hierarchy stands out, even when compared to neighbouring countries like Vietnam or the Philippines.
For foreign companies, especially Western ones used to transactional or performance-based business relationships, this shift can be challenging. Business in Thailand moves at a different rhythm. It’s not just about the product or solution you offer, it’s about who you are, how much you listen, and whether people trust you.
Building rapport takes time. That means multiple face-to-face meetings, shared meals, and understanding that decisions often involve group consensus. Decision-making in Thai companies is usually hierarchical, and it’s essential to respect the internal chain of command. Trying to bypass this process or pushing for aggressive timelines can backfire.
2. Adopt a Non-Confrontational Communication Style
Western communication tends to favour directness. But in Thailand, being overly blunt can be seen as disrespectful or even confrontational. Thai professionals usually avoid saying “no” outright. Instead, they may offer indirect responses or remain noncommittal. It’s important to bear in mind that it is not ambiguity, but an aspect of cultural sensitivity.
To succeed, foreign business leaders need to adjust their communication style. Slow down. Let your Thai counterparts speak at their own pace. Don’t interrupt or try to “get to the point” too quickly. Embrace the silence and listen actively. It’s through these seemingly small gestures that trust is built.
3. The power of localization
Language is not just a tool for communication, it’s a bridge to trust. Unlike countries like the Philippines, where English is widely used in business, Thailand is a high Thai-language market. This means everything, from your platform interface to sales decks, demos, onboarding documents, and customer service, must be localized into Thai.
While top-level executives might speak English, most employees feel more confident in their native language. More importantly, when conversations happen in Thai, participants are more likely to ask questions, express concerns, and engage in meaningful ways.
If you’re serious about entering Thailand, invest in a bilingual team. Better yet, empower local staff to lead discussions and be the face of your operations. Localization should go beyond translation, it should encompass tone, visuals, and workflows that align with local expectations.
4. Focus on Outcomes, Not Hype
In recent years, Thailand has experienced its fair share of buzzwords, such as AI, blockchain, cloud-native, and more. However, Thai businesses, especially in fintech and finance, have grown skeptical of solutions that promise much but deliver little.
Thai companies don’t care if you’re using the latest AI algorithm. They want to know if it will reduce operational costs, shorten processing times, or boost revenues. A few years ago, many local institutions experimented with AI credit scoring, only to see little real-world improvement. Today, results matter more than rhetoric.
So if you’re entering Thailand with a tech product, make sure you can demonstrate real business outcomes. Be ready to adapt your technology to suit local use cases. One-size-fits-all rarely works here. Customization, especially when it helps a business solve day-to-day pain points, goes a long way.
5. Build Your Network Face to Face
Thailand remains a deeply personal market. While LinkedIn is helpful for initial introductions, true networking happens offline. Industry events, business associations, and sector-specific gatherings are where relationships are formed and trust is cultivated.
Thailand has a rich ecosystem of associations, including the FinTech Association of Thailand, the Leasing Association, the Thai Capital Market Association, and many others. These groups host regular events that are well-attended by key players, from government agencies to financial institutions.
Make it a priority to attend these conferences. Show up consistently and listen more than you talk. This visibility helps you gain insights, build rapport, and identify partners who can support your expansion.
6. Understand the Timeline: From Hello to Handshake
Many foreign executives ask me: When does a friendly conversation turn into a business deal? In Thailand, the initial interest often comes quickly. If there’s mutual alignment, Thai companies will be open to further discussions. But closing the deal? That takes time.
Given the hierarchical nature of Thai organizations and their risk-averse culture, approvals often involve multiple layers and signatures. It is essential to be patient and understand that the slower pace is not a reflection of disinterest but rather due diligence and a desire to ensure long-term partnerships. Once a Thai partner commits, the relationship tends to be long-lasting and loyal.
7. Mentorship and Market Insight are Game-Changers
If you’re new to Thailand, finding mentors or industry insiders can make a big difference. These are the people who understand the unwritten rules, can make the right introductions, and offer guidance on local market dynamics.
By engaging with trade associations, chambers of commerce, and local accelerators, you can find a mentor that fits your business needs and style. There’s a robust network of professionals who are open to sharing their knowledge. Often, a single connection can unlock opportunities that might otherwise take years to uncover.
8. Respect the Culture
Lastly, a personal tip: show your appreciation for Thai culture, even in small ways. I make it a point to sprinkle a few Thai words into my conversations, even if my Thai isn’t fluent. I talk about how much I enjoy Thai food, or what I love about living here. It might seem minor, but it shows respect, it proves I am making an effort to learn the Thai language, and it makes people smile.
That kind of warmth can change the temperature in the room from formal to friendly. It can even help people remember me more easily, and therefore start cultivating a meaningful professional relationship.
Thailand is among the most stable economies in Southeast Asia. It boasts strong fundamentals across sectors such as banking, manufacturing, and services. More importantly, it has a relatively high spending power, both at the consumer and enterprise levels.
For fintechs in particular, Thailand is a market that can’t be ignored. Its financial sector is well-developed, with many institutions looking to digitize and innovate further. The big challenge now is financial inclusion: How do we serve the underserved? The unbanked?
The “invisible” segments with no credit history? This is where international fintechs can truly make an impact. AND Solutions, for example, has developed AI-powered credit scoring tools that rely on alternative data, allowing financial institutions to better assess and serve previously overlooked customer segments.
Expanding into Thailand requires more than a good product. It takes cultural sensitivity, strategic localization, and a long-term commitment to building relationships. But for companies willing to do the work, Thailand offers not just a gateway to Southeast Asia, but a loyal, stable, and high-potential market in its own right.
Whether you’re a startup founder or a multinational executive, remember: in Thailand, the path to business success runs through people, patience, and presence.
*Tselmeg Galtbayar is the Thailand Country Manager at AND Solutions
About AND Solutions
AND Solutions is a fintech solutions provider leveraging AI and ML to simplify financial processes for businesses. A subsidiary of AND Global, a leading fintech company that has created multiple cutting-edge businesses, AND Solutions brings market-tested end-to-end financial solutions to Southeast Asia.
With expertise in digital lending and financial automation, AND Solutions offers intelligent document processing, credit scoring, loan origination, and debt collection tailored to business needs. Committed to bringing technology closer to everyone, AND Solutions has a growing team across Mongolia, Singapore, the Philippines, and Thailand..
For more information, visit https://andsolutions.net/
