Unlocking Thailand’s Digital Trade Potential: Challenges and Opportunities

Thailand stands at a pivotal moment in its digital transformation journey. With ambitions to reach high-income status by 2027, the country views the digital economy as a critical driver of growth and resilience. Within this broader ambition, digital trade—the exchange of goods and services enabled by cross-border data flows—has emerged as both an opportunity and a challenge.

Cross-Border Data Flows: A Double-Edged Sword

At the core of digital trade lies the seamless movement of data across borders. The report highlights that Thailand’s current regulatory environment remains uncertain and fragmented, creating friction for businesses engaged in international markets. The Personal Data Protection Act (PDPA), while designed to safeguard privacy, has introduced significant compliance burdens, particularly for micro, small, and medium-sized enterprises (MSMEs). This complexity restricts the efficient use of data and makes it harder for Thai firms to compete in global digital trade.

Regulatory Barriers and Institutional Fragmentation

Domestic data-sharing practices remain equally constrained. Limited interoperability between government agencies and strict governance rules often prevent the private sector from accessing valuable public datasets. For MSMEs, this means fewer opportunities to build innovative services or expand into regional and global markets. The lack of standardized protocols and alignment with international frameworks such as the EU’s GDPR and emerging ASEAN standards further undermines Thailand’s competitiveness.

Regional and Global Implications

Thailand’s situation is not isolated. Across the ASEAN region, countries are racing to harmonize digital regulations in anticipation of the ASEAN Digital Economy Framework Agreement (DEFA). Without clearer rules and stronger cross-border data-sharing mechanisms, Thailand risks being left behind in regional supply chains and global digital commerce. At the same time, alignment with international benchmarks, including WTO e-commerce discussions, is essential for ensuring Thailand’s active participation in shaping the rules of global digital trade.

Pathways for Reform and Growth

The roadmap provides several key recommendations to strengthen Thailand’s digital trade capacity:

  1. Harmonize data regulations with global standards to ensure secure yet business-friendly cross-border data flows.
  2. Establish a National Data Governance Authority (NDGA) to coordinate fragmented data policies and serve as a central point for regulatory oversight.
  3. Expand open data initiatives to make government datasets available for private-sector innovation and digital trade applications.
  4. Support MSMEs through targeted training, simplified compliance platforms, and access to public-private data-sharing initiatives.
  5. Deepen ASEAN cooperation to align on cross-border standards for e-invoicing, digital identity, logistics, and e-payments, thereby positioning Thailand as a regional hub for digital trade.

Conclusion

Thailand’s digital trade potential is significant, but realizing it requires decisive action. The country must strike a balance between data protection and data utilization, ensuring that privacy and security are upheld without stifling innovation or international competitiveness. By modernizing its regulatory environment, enhancing interoperability, and empowering MSMEs, Thailand can transform into a regional leader in digital trade and fully leverage the opportunities of the digital economy.

Summary prepared by DigitalTrade4.EU, based on the “Thailand Digital Data Infrastructure Roadmap (2025–2029)“