Thailand wasted decade as products lag, tourism loses trust: Thai Chamber in China
Phaichit Viboontanasarn warns that the past decade has been a “lost decade” for Thailand, saying the country failed to strengthen its business sector and now accesses only a fraction of the Chinese market — despite it being 35 times larger than Thailand’s.
- According to the Thai Chamber of Commerce in China, Thailand has wasted over a decade of strategic opportunities by failing to adapt to China's online market, causing its products to be seen as outdated.
- Thailand's reputation among Chinese tourists has declined significantly due to high-profile safety concerns, including fraud and cybercrime, leading to a sharp drop in visitor arrivals.
- The country has struggled to compete due to a lack of investment in new product development, a weak brand identity, and an inability to present a unified marketing narrative for its goods.
Phaichit Viboontanasarn, vice-chairman and secretary-general of the Thai Chamber of Commerce in China and former Minister Counsellor (Commercial) at the Royal Thai Embassy in Beijing, has warned that Thailand has spent more than a decade missing out on “strategic opportunities” in the Chinese market.
He said Thailand failed to keep pace with China’s rapid shift to full-scale online consumption, leaving Thai goods “behind the curve” and increasingly viewed as “outdated” by Chinese consumers.
He noted that Thailand has not invested consistently in new product development, lacks a strong brand identity, and has struggled to present a unified health-centric narrative for Thai food products, despite clear potential.
Without research-backed communication, he said, Thailand remains unable to penetrate China’s fast-growing middle-class segment.
“The past 10 years have been wasted,” Phaichit said. “China’s market is 35 times larger than Thailand’s, yet we can access only a fraction of it because our products, strategies and personnel are still not ready.”
Tourism image declines amid safety concerns
Thailand’s reputation among Chinese tourists has deteriorated due to several high-profile safety incidents, including fraud, illegal detention and cybercrime.
As a result, Chinese arrivals this year may reach only 4 million—well below the Tourism Authority of Thailand’s target of 5 million and far from the pre-Covid level of 7–8 million.
To rebuild confidence, he proposed a strategy of “one negative story must be countered with three positive ones”. He added that the recent state visit to China by His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua and Her Majesty Queen Suthida during November 13–17, 2025, significantly boosted Thailand’s image on Chinese media platforms.
China moves ahead with clear strategies as competition intensifies
China now hosts more than 80 million SMEs and micro-enterprises, creating an intensely competitive environment where local goods are widely seen as “cheap and high-quality”, backed by fast-advancing technology in sectors including EVs, home appliances, food and consumer products.
China’s strategic direction is also more coherent, with national plans set by the Chinese Communist Party. These include:
- 15th Five-Year Plan – prioritising domestic consumption to reach 60% of GDP.
- Technology – targeting AI capability on par with the United States by 2025.
- Infrastructure – advancing the new CR450 high-speed rail system
- Green energy – progressing towards Carbon Peak and Carbon Neutrality goals.
“To survive in China, foreign businesses must understand this Chinese way of thinking,” he said.
Investment challenges in Thailand: ‘lack of skilled workers and slow bureaucracy’
Despite Thailand’s role as a key investment base under China’s Go Global and Belt and Road strategies, new investment will remain difficult unless structural issues are addressed.
The biggest problem, Phaichit stressed, is a shortage of skilled workers with capabilities compatible with Chinese technologies. He suggested allowing Chinese experts to work temporarily in Thailand for six-month periods to transfer knowledge before returning under regulated conditions. Corruption and bureaucratic delays, he added, remain major deterrents for investors.
Starting point must be mindset: ‘Stop seeing ourselves as losers’
He emphasised that Thailand will never catch up with China if it remains trapped in a mindset of “we cannot compete”. Thailand must overhaul its approach, beginning with:
Strengthening intellectual property protection before entering China.
Forming business clusters to increase bargaining power, as Japan and South Korea have done.
Accelerating development speed and focusing on sectors where Thailand has advantages—such as food, health-related tourism and alternative-energy vehicles.
China’s growth trajectory, he said, remains immense. By 2035, the country aims to reach early developed-nation status, with its middle-class population rising from 400 million to 800 million—representing a vast economic opportunity for Thailand.
“Entering the Chinese market requires professional, strategic discipline,” he said. “Thai businesses must balance online and offline marketing budgets, use research-driven data, and understand China’s legal and governance systems in depth. Without this foundation, the risks are high, and the chance of being taken advantage of is even higher.”
Kannuth Buddee
