How Thai capital deepens its roots in Vietnam’s economy

Leading Thai corporations are rapidly strengthening their footprint in Vietnam through large-scale investments in manufacturing, retail, energy, logistics, finance, and industrial real estate.

After Vietnam and Thailand upgraded their relationship to a Comprehensive Strategic Partnership in May 2025, bilateral economic cooperation has entered a new phase, with Thai direct investment emerging as a key pillar, reflecting the growing integration between the two economies.

As of April 2026, Thailand had 805 valid investment projects in Vietnam with total registered capital of $15.4 billion, ranking eighth among 153 countries and territories investing in Vietnam and second within ASEAN, after Singapore, according to the Foreign Investment Agency.

From consumer market to supply chain hub

In the early stages, Thai businesses entered Vietnam mainly through sectors closely tied to consumer demand such as retail, food & beverages, agriculture, and construction materials. These industries directly benefited from Vietnam’s large population, rapid urbanization, rising incomes, and growing consumer demand.

However, recent trends show Thai capital shifting toward deeper investment. Thai firms are no longer simply selling products in Vietnam; they are gradually building integrated ecosystems covering manufacturing, distribution, logistics, finance, and industrial infrastructure. Vietnam is therefore becoming not only a consumer market but also a manufacturing and export base within ASEAN for Thai enterprises.

Notably, Thai media outlets have recently described Vietnam as one of the region’s fastest-rising economies. Bangkok Post commented that pressure is mounting on Thailand as emerging Southeast Asian economies, including Vietnam, begin to catch up, and that Thailand risks losing appeal against Vietnam without stronger economic reforms.

This perspective indicates that Thai investment in Vietnam is not merely a bilateral investment story, but also part of broader competition and supply-chain restructuring within ASEAN. Thai businesses view Vietnam both as an investment destination and as a new benchmark for growth, exports, and FDI attraction.

SCG: An industrial ecosystem from petrochemicals to building materials, packaging and logistics

Among Thai investors in Vietnam, Siam Cement Group (SCG) is one of the largest and most deeply established conglomerates. The group has invested billions of U.S. dollars across chemicals, cement and construction materials, packaging and logistics in Vietnam.

SCG’s flagship project is the Long Son Petrochemicals Complex in the former Ba Ria-Vung Tau province (now part of Ho Chi Minh City after their merger last July), with total investment exceeding $5 billion, making it one of Vietnam’s largest FDI projects in the petrochemical sector. Beyond petrochemicals, SCG is active in cement, building materials, ceramic tiles, packaging and logistics.

What stands out is that SCG is not merely investing in isolated projects, but is gradually building a comprehensive industrial chain in Vietnam, spanning petrochemical raw materials, construction materials, packaging and logistics.

C.P. Vietnam: A “farm-to-table” supply chain

If SCG represents industrial investment, C.P. Vietnam is a typical example of Thai investment in agriculture and food.

As part of Charoen Pokphand Foods, C.P. has developed in Vietnam through the integrated “Feed - Farm - Food” model, covering animal feed, breeding, livestock farming, aquaculture, food processing and food distribution, commonly referred to as a “farm-to-table” ecosystem.

This is a deep-investment model. Rather than simply exporting products to Vietnam, C.P. has built production facilities, farms, factories, and distribution networks right in the Vietnamese market. The company is deeply involved in animal feed, livestock, poultry, aquaculture, processed food, and ready-to-eat food sectors.

Central Retail: A multi-format retail network

In the retail sector, Central Retail is one of the most prominent Thai investors in Vietnam. The group entered the Vietnamese market through both direct investment and mergers and acquisitions (M&A), later expanding into a diversified retail ecosystem.

A major milestone was its acquisition of Big C Vietnam from France’s Casino Group in 2016. Following the deal, Central Retail gradually restructured and expanded the system into hypermarkets, supermarkets, shopping malls, convenience formats, and electronics retail chains.

Central Retail’s network in Vietnam now includes brands such as GO!, Big C, Tops Market, mini go!, Nguyen Kim, Lan Chi Mart, Kubo, Supersports, and various shopping mall models.

With a population approaching 100 million people, a rapidly growing middle class, and substantial room for modern retail expansion, Vietnam remains an important market for Thai retailers.

ThaiBev - Sabeco and BJC - Metro: Landmark M&A deals

One of the defining characteristics of Thai investment in Vietnam is its strong reliance on M&A, particularly in retail, beverages, and consumer goods.

The most symbolic deal was ThaiBev’s acquisition, through an affiliated company, of a 53.59% stake in brewer Sabeco in 2017 for $4.8 billion. This became one of the largest privatization and M&A deals in Vietnam, enabling the Thai investor to gain control of a leading beer brand along with its nationwide production and distribution network.

In retail, Berli Jucker (BJC), part of billionaire Charoen Sirivadhanabhakdi’s TCC Group, completed the acquisition of the entity owning MM Mega Market Vietnam within the TCC ecosystem, valued at approximately THB22.5 billion ($690,862), thereby bringing the wholesale-retail chain under BJC ownership.

The Central Retail, Sabeco, Metro, and Big C deals demonstrate that Thai companies are not only entering Vietnam through greenfield projects, but also by acquiring existing platforms including brands, customers, factories, distribution centers, and retail channels. This has proven to be a rapid way for expanding their presence in a major consumer market.

Amata, B.Grimm, Gulf: Industrial infrastructure and energy investments

Beyond consumer industries and manufacturing, Thai businesses are also active in industrial infrastructure. Amata is one of the Thai industrial park developers with a long-standing presence in Vietnam.

Amata’s footprint features industrial parks, urban-industrial zones, and manufacturing infrastructure projects. Unlike manufacturers, Amata focuses on creating industrial spaces and infrastructure platforms to attract both domestic and foreign manufacturers.

In the energy sector, Thai companies such as B.Grimm, Banpu, and Gulf Energy have invested in renewable energy, wind power, solar power, and electricity generation projects serving industrial demand. This aligns with Vietnam’s growing need for power investment, energy transition, and secure electricity supply for manufacturing.

Bangkok Bank, KBank, and Krungsri: Banking and financial services

Another layer of Thai capital in Vietnam comes from banking and financial services. While less visible than factories or retail chains, these institutions play an important role in trade finance, corporate lending, international payments, cash management, and supporting Thai corporations investing in Vietnam.

Bangkok Bank was among the earliest Thai banks to establish operations in Vietnam. It focuses on corporate clients, trade finance, credit services, guarantees, international payments, and support services for FDI enterprises.

KBank, Thailand’s second-largest bank, has accelerated its expansion in recent years. In 2023, Reuters reported that KBank was negotiating the acquisition of Home Credit Vietnam in a deal potentially worth up to $1 billion. It aims to become one of Vietnam’s top 20 banks by total assets by 2027.

Another notable transaction was Krungsri’s acquisition of SHB Finance. In May 2023, Saigon-Hanoi Commercial Joint Stock Bank (SHB) completed the transfer of the first 50% stake in its subsidiary SHB Finance to Krungsri. By November 2025, SHB approved the transfer of the remaining 50%, earlier than initially planned.

Thai FDI in Vietnam enters ecosystem era

For Thailand, Vietnam is geographically close, has a large population, strong growth momentum, competitive costs, and an increasingly important role in global manufacturing networks. These factors make the country a long-term destination within Thai companies’ regional expansion strategies.

Overall, Thai FDI in Vietnam is evolving from isolated investments toward a deeper ecosystem-based model integrated with value chains. This trend is reflected in three major developments.

First, investment scale is increasing while sectors are becoming more diversified. From consumer-related industries such as retail, agriculture, food, and beverages, Thai companies have expanded into petrochemicals, building materials, packaging, logistics, industrial parks, energy, and finance.

Second, Thai conglomerates’ operations in Vietnam are becoming increasingly interconnected. SCG is building industrial chains from petrochemicals to packaging and logistics; C.P. is developing the Feed - Farm - Food model; Central Retail is expanding its retail ecosystem; ThaiBev and BJC are using M&A to control brands, distribution systems, and retail networks; while Bangkok Bank, KBank, and Krungsri are adding financial services ranging from corporate banking to consumer finance.

Third, Thai capital is becoming more closely linked to supply chains and sustainable growth. Vietnam and Thailand are promoting the “Three Connections” Strategy, which includes supply-chain connectivity, business and local-government connectivity, and alignment of sustainable growth strategies.

This framework supports the transition from sector-based investment to value-chain-based investment, while opening further opportunities in logistics, energy, green industry, and sustainable development.

Against this backdrop, the official visit to Thailand by Party General Secretary and State President of Vietnam To Lam from May 27-29, 2026 is expected to create additional momentum for both countries to effectively implement the Comprehensive Strategic Partnership framework and deepen substantive cooperation in politics, economics, supply chains, logistics, and emerging growth sectors.