Thailand — beyond the stereotypes: what Italian SMEs should know

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Diego Sala, CEO of Siam Trade Development, a regulatory consulting firm based in Thailand, has kindly written this article for my blog.

Last night, while cooking a pasta (strictly Italian), my wife and my daughter — both Thai — were curiously watching the video of Smooth Criminal by Michael Jackson. Without knowing who he was. It made me realise something: culturally, we are much more distant than we think.

I’ve been working in Asia since 1993 and have lived in Thailand permanently since 2015. Every day we face deep cultural differences, which often are the key — or the limit — to doing business in Asia. Some cultures are truly far from ours: Korean and Chinese more than most.

And Italians? Almost absent. The Italian community here is small, loosely connected, and mainly operates in hospitality and Food & Beverage. Genuine industrial investments by Italians are counted on one hand.

Why don’t Italians invest?

Simply because they don’t truly know the market. Thailand often ends up on the list of “countries to try”: you exhibit at a fair, hand out catalogs, collect some smiles… and then you draw the quick conclusion: “There’s no business here.”

Wrong. There is business — real business — but it demands a different approach. Here, people never say “no” out loud: out of politeness they listen, smile and that’s it. If you fail to interpret that mechanism, you conclude the market is dead. Instead, it’s vibrant, dynamic, and growing.

You must show up, be seen, let them know who you are. It takes time: months, sometimes years. You need to localize, have a local contact person, guarantee quick deliveries, and manage post-sales properly. Nobody orders anymore from Italy by email: here, they order via LINE — the instant messenger you must use to survive — and they expect the goods tomorrow.

Once you enter seriously, you enter for real. Middle class is growing, purchasing power is rising, and the economy maintains a clear growth direction.

Misconceptions Italians often have about Thailand

Bangkok, Thailand’s economic hub and a growing market for Italian SMEs
  • Tropical paradise: true. But don’t imagine you can open a beachside chiringuito and call it a business.
  • Destination for sex tourism: this concerns only a few streets in the whole country. The rest is everyday life.
  • Undemocratic state: many legislative processes are more transparent than ours.
  • Worker exploitation: social security, unions and labour laws exist and work.
  • Instability: yes, there was a coup in 2014 — but foreign companies and investors were unaffected.
  • Poor country: maybe once. Today, the royal family’s assets exceed those of the British monarchy, and Thai groups such as King Power or Central Group rank among the richest and most stable worldwide.

So, why do the Swiss, Germans, French and Spaniards invest, while Italians don’t? Because they come better informed, with clear goals and realistic expectations. We often land with vague ideas, tourist-type expectations and an over-confidence in improvisation.

The unknown scares. Knowledge, instead, generates investments.

The shadows: visas, bureaucracy, foreigner restrictions

Thailand is modern in everyday life, but business still moves as if in the 1950s:

  • You cannot buy land.
  • Visas are short and complicated.
  • Foreigners cannot do manual labour (unless licensed).
  • A Thai partner holding 51% shares is mandatory.

These rules seldom hit large multinationals — they bypass them with privileged channels. For SMEs, they are real walls.

International relations and future outlook

Thailand maintains good relations with China and the USA, has applied to join the BRICS, belongs to ASEAN, and is negotiating FTAs with Europe. For now, it plays all sides. But in cases like foreign-investor regulations, sooner or later it will have to pick a direction. That’s the main challenge the country may face in the years ahead.

Conclusion

Thailand — with about 71.6 million inhabitants — is a poorly known country, full of contrasts: a welcoming population, real business opportunities, but also regulations that can make you feel excluded. It demands time and patience.

For Italians: a three-day trip to Bangkok with a suitcase of catalogs is no longer enough. You need to understand, earn trust, and commit seriously. Those who do — on these grounds — grow for real.

About the author

Diego Sala is the CEO of Siam Trade Development, a leading regulatory consulting firm in Thailand. He has been working in Asia since 1993 and has lived permanently in Bangkok since 2015, supporting international companies entering Asian markets — with a particular focus on Thailand and ASEAN. An expert in food regulations, dietary supplements and medical devices, he combines strong technical competence with deep knowledge of local cultural dynamics.

Learn more about Diego Sala’s services: 👉 https://www.siamdevelopment.com/