Thailand SMEs in Vietnam See Growing Market Opportunities

Over the past two decades, Thailand has consistently ranked among Vietnam’s top trade and investment partners. Beyond being a regional export powerhouse, Thailand has also become a dynamic investor, particularly in FMCG, food, and modern retail.

In Vietnam, the image of “Made in Thailand” has evolved into a symbol of quality, durability, and safety — a perception that Thai SMEs have successfully leveraged to expand their footprint. Yet, as ASEAN markets grow increasingly competitive, Thailand SMEs in Vietnam must navigate a new reality: how to maintain their national brand advantage while adapting to local consumer preferences and rising domestic competition.

Trade cooperation between Vietnam and Thailand highlights the growing presence and influence of Thailand SMEs in Vietnam.

Investment Scale & Key Sectors of Thailand SMEs in Vietnam

According to Vietnam’s Ministry of Planning and Investment, as of 2025, Thailand has over 700 investment projects in Vietnam, with total registered capital exceeding USD 14 billion, more than 60% of which are operated by small and medium enterprises (SMEs).

Key sectors include:

• F&B and FMCG: packaged foods, beverages, instant noodles, snacks, cleaning products, and personal care.

• Retail and distribution: Central Group (GO! / Big C), MM Mega Market, and Tops Market are key entry platforms for Thai SMEs.

• Agriculture and food processing: Thai SMEs excel in clean sourcing, processing, and preservation technologies.

Notable Thai SME brands familiar to Vietnamese consumers include Mama, Tipco, Koh-Kae, Vitamilk, Sabina, Beauty Buffet, and Srichand.

Thai F&B and FMCG products such as snacks and packaged foods showcase the strong export capability of Thailand SMEs in Vietnam.

The “Made in Thailand” Advantage in Vietnam

In Vietnam, “Thai products” have become a national brand in themselves.

• They serve as a bridge between premium Japanese/Korean goods and lower-priced Chinese products.

• Vietnamese consumers associate Thai goods with reliability, value for money, and consistent quality.

• Thai SMEs emphasize appealing packaging, colors, and flavors tailored to local preferences.

Leveraging the distribution strength of Central Group and MM Mega Market, Thai SMEs enjoy a clear advantage in Modern Trade (MT) channels while maintaining a trustworthy image backed by their national brand reputation.

Thai household products are among the most trusted categories for Vietnamese consumers.

Distribution Channels and Market Entry Models

Thai SMEs are not only exporting to Vietnam — they are building a regional supply chain presence. Three key entry models dominate:

1. Official imports through Thai-owned retail systems:

   • Central Group (GO!, Tops Market), MM Mega Market, and CP Group serve as launchpads for Thai SME brands.

   • Products enjoy preferential ASEAN tariffs (0–5%) under Form D (ATIGA) certificates.

2. Joint ventures and local production partnerships:

   • Many Thai SMEs, especially in food and cosmetics, partner with Vietnamese manufacturers to reduce logistics costs and ensure quality control.

   • Examples include CP Vietnam (livestock & food), Tipco (fruit juice), and Thai Beverage (beer, soft drinks).

3. E-commerce and Thai trade fairs:

   • Shopee, Lazada, and TikTok Shop are used to test new products before scaling offline.

   • Annual “Thailand Fair” events in Hanoi and Ho Chi Minh City remain effective tools for SMEs to find local distributors.

GO! supermarket, operated by Central Retail, serves as a key distribution channel for Thailand SMEs in Vietnam.

Challenges Facing Thailand SMEs in Vietnam

Despite their strong brand trust, Thailand SMEs in Vietnam face several operational and competitive challenges:

• High logistics costs: most goods are transported by land via Laos or Cambodia, making logistics 20–30% costlier than Chinese imports.

• Modern Trade competition: Vietnamese retail chains are prioritizing domestic products, reducing shelf space for imports.

• Cultural adaptation: Vietnamese consumers prefer milder, less spicy flavors than traditional Thai products.

• Rise of local brands: domestic Vietnamese companies are gaining ground in snacks, cleaning products, and personal care.

Opportunities and Growth Potential

Despite rising challenges, Vietnam remains one of ASEAN’s most attractive markets for Thai SMEs due to:

• A young, fast-growing middle class: increasing demand for branded, quality goods.

• Intra-ASEAN FTAs (ATIGA, RCEP): lower tariffs and simplified trade procedures.

• Booming e-commerce: offering low-cost, high-speed market testing for Thai FMCG and beauty brands.

• Consumer trends toward “safe, clean, traceable” products — a perfect match for the “Made in Thailand” positioning.

Recommended Strategies for Thailand SMEs in Vietnam

To stay competitive, Thai SMEs must shift from a product-focused export mindset to a localized brand-building strategy.

1. Invest in local manufacturing or packaging: reduce logistics costs and strengthen price competitiveness.

2. Partner with local distributors: expand reach, especially in northern and western Vietnam, where Thai products remain less available.

3. Leverage e-commerce channels: focus on Shopee Mall, LazMall, and TikTok Shop, using Vietnamese influencers for localization.

4. Enhance offline brand experience: conduct sampling and promotions in MT chains and participate in consumer trade fairs.

5. Diversify product portfolio: introduce lower-priced or localized SKUs to compete with domestic brands.

Vietnam is now a strategic market for Thailand SMEs within ASEAN. Yet, as Vietnamese consumers become more selective and local brands grow stronger, only those Thai companies that localize deeply, optimize operations, and commit long-term will continue to uphold the legacy of “High-Quality Thai Goods.”

With proven experience in market entry, compliance, and distribution, Go2Market (G2M) Vietnam partners with Thailand SMEs in Vietnam to design tailored import, logistics, and marketing strategies — enabling sustainable growth and long-term brand building.