Vietnam vs Thailand for Business: Tax, Ownership Rules, and Market Fit Compared

The short answer

Vietnam generally offers more straightforward 100% foreign ownership across a broader range of sectors and stronger recent FDI momentum in manufacturing; Thailand offers a long-established US tax treaty, deep automotive and agribusiness supply-chain infrastructure, and Board of Investment incentives that can be very attractive for specific promoted industries — but foreign ownership in Thailand is more frequently restricted under the Foreign Business Act, often requiring BOI promotion or a Thai majority partner outside promoted activities.

Foreign ownership rules

Vietnam permits 100% foreign ownership in most sectors, with conditional requirements limited to specific industries. Thailand’s Foreign Business Act generally caps foreign ownership at 49% in a wide range of business activities unless the investor obtains Board of Investment (BOI) promotion, a Foreign Business License, or qualifies under a specific exemption (such as US investors under the US-Thailand Treaty of Amity, which allows majority US ownership in many sectors). This makes Thailand’s ownership landscape more structure-dependent — the right answer often hinges on whether BOI promotion or Treaty of Amity protection is available for the specific business.

Corporate tax

Both countries apply a 20% standard corporate income tax rate. The differentiator is less the headline rate and more the incentive regime: Thailand’s BOI offers exemptions of up to 13 years for promoted sectors such as digital services and renewable energy, while Vietnam offers reduced rates of 10–17% for high-tech, priority-sector, and special economic zone investments. Both require a genuine review of whether a specific project actually qualifies — headline incentive figures are rarely automatic.

US tax treaty access — a real differentiator

Thailand has a long-standing, in-force US income tax treaty, giving US investors treaty-reduced withholding rates and Mutual Agreement Procedure access if a dispute arises. Vietnam does not — a treaty was signed in 2015 but never ratified by the US Senate (see our US-Vietnam Tax Treaty: Why There Is (Still) No Treaty in Force — and What US Businesses and Individuals Should Do Instead). For US groups specifically, this is often the single biggest structural difference between the two markets and should be modeled explicitly, not treated as a minor detail.

Industry fit

• Automotive, agribusiness, established manufacturing supply chains → Thailand’s decades of infrastructure and supplier ecosystems are hard to replicate quickly elsewhere.

• Electronics, textiles, diversified light manufacturing, and export-oriented supply-chain diversification → Vietnam has captured a large share of recent regional FDI in exactly these categories.

• Technology, services, and market-entry speed → Vietnam’s more permissive foreign ownership rules and 2026 investment law reforms generally allow faster, simpler entry for services businesses without BOI-style promotion requirements.

How W&A Consulting helps

While our core focus is Vietnam, we help investors run an honest side-by-side comparison — including where the US treaty gap changes the real, after-tax economics of a Vietnam investment relative to Thailand — before committing capital to either market.

Deciding between Vietnam and Thailand for your next investment? Contact W&A Consulting for a structuring-first comparison.

FAQ

Can foreigners own 100% of a business in Thailand?

Generally not without BOI promotion, a Foreign Business License, or a specific treaty exemption (such as the US-Thailand Treaty of Amity for qualifying US investors) — Vietnam permits 100% foreign ownership in most sectors without equivalent restrictions.

Does the US have a tax treaty with Thailand?

Yes, a long-standing treaty is in force — unlike with Vietnam, where a 2015 treaty remains unratified by the US Senate.

Which is better for manufacturing, Vietnam or Thailand?

Thailand for established automotive and agribusiness supply chains; Vietnam for electronics, textiles, and diversified export manufacturing capturing recent supply-chain diversification.