A crisis is when you meet an acquaintance, casually ask “How are you?”, and realize you’re about to hear a detailed report on how everything is going wrong — with the Russian ruble exchange rate to blame. Russian businesses in Thailand are currently undergoing a serious stress test. This year will be telling: for some, it may be their last in Southeast Asia; for others, it will be a time to rethink strategies and discover new business directions.
There is no universal solution — where to go, what to do, and how to find clients is a question everyone must answer individually. In this article, we’ll highlight key trends and shifts that may inspire new ideas.
Cross-Border Trade: A Shift in Direction
A year ago, there was strong interest in exporting goods from Thailand to Russia — everything from seafood to pet clothing. This made sense, as Thailand is a major producer of electronics, food products, textiles, and cosmetics.
Today, interest in exports to Russia has declined overall, except for businesses operating through their own Thai companies (which remains a viable structure even during a crisis).
At the same time, interest has grown in exporting goods from Russia and CIS countries to Thailand, especially when contracts are denominated in stable foreign currencies. However, importing into Thailand is not simple. For example, food imports require not only an import license but also approval from the Food and Drug Administration. Additionally, import duties and taxes must be calculated in advance to determine product viability.
The biggest challenge remains market entry: finding customers and promoting products. Despite these difficulties, the long-term potential is significant — access to the ASEAN market of over 600 million people, including Singapore, Indonesia, and Vietnam.
Workforce and Client Base: Better Late Than Never
In recent years, the number of businesses targeting foreign customers has grown significantly — particularly in real estate, tourism, restaurants, and related industries.
Hiring Russian staff, once considered a luxury, became a necessity. However, with the downturn in the Russian market, it is increasingly becoming an unjustified expense. Instead, companies should consider expanding their Thai workforce.
It’s a common misconception that Thai employees are needed only to meet legal requirements (four Thai employees per foreign worker). In reality, qualified Thai staff — especially those who speak English — can bring real value:
- Handling daily operations
- Communicating with government authorities
- Assisting with legal and accounting matters
- Reviewing documents in Thai
- Working effectively with local clients
Moreover, many foreign customers trust local staff more than compatriots.
Services: From Mid-Level to Either VIP or Essential
The number of middle-income tourists in Thailand has declined, but there will always be high-net-worth individuals willing to spend — keeping demand for VIP services alive, provided quality matches expectations.
At the same time, demand for essential, affordable services remains strong: budget housing, reasonably priced food, transportation, and everyday services.
For example, if several massage salons offer services at 150, 200, and 1000 baht, most customers will choose either the cheapest option or the premium one — skipping the middle.
Freelancers: Coming Out of the Shadows
One of the most affected groups among Russians in Thailand today is freelancers — programmers, designers, editors — working remotely for clients abroad and earning in rubles. Even with Thailand’s relatively low cost of living, a sharp drop in income can push many to consider returning home.
However, there are opportunities worth exploring. The Board of Investment (BOI) offers incentives for businesses based on knowledge and expertise, including:
- Creative design and development centers
- Software development
- Digital and cloud services
These sectors may qualify for corporate income tax exemptions for up to 8 years.
An important advantage:
- Minimum registered capital is only 1 million baht (can be paid in installments)
- No strict requirements for office location or large staff
- Main investment is the expertise of employees
This makes starting a business accessible even for freelancers. Additionally, visa issues can be resolved — a business visa and work permit can be obtained quickly after BOI approval and company registration.
Author: Alexandra Agapitova.
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