Trading with Thailand: a CHF/THB guide for Swiss businesses

Thailand is an important commercial market and manufacturing hub in Southeast Asia. Its diverse manufacturing base includes automotive products, electronics and agricultural manufacturing, while its position within the ASEAN region can also make it a relevant market for Swiss exporters. 

Swiss companies may therefore trade with Thailand in several ways. Some import machinery, components, food products, clothing or other manufactured goods. Others export pharmaceuticals, precision instruments, machinery, luxury goods or business services to Thai customers. 

The commercial relationship could develop further under the free trade agreement signed between Thailand and the European Free Trade Association (EFTA), whose members include Switzerland. 

Whether a Swiss company is buying from or selling to Thailand, the commercial price is only one part of the transaction. The invoice currency, payment schedule, exchange rate and banking costs can all affect the final profit margin and cash-flow requirement. 

This guide explains the main currency and payment considerations for Swiss businesses trading with Thailand. 

What could the EFTA–Thailand agreement change for Swiss businesses? 

The agreement was signed on 23 January 2025. However, it will only take effect once domestic procedures have been completed in Thailand and the EFTA states. 

Once it enters into force, the agreement is intended to reduce or eliminate customs duties on qualifying goods and improve market access in several other areas. 

This does not mean that every shipment will automatically qualify for a lower tariff. The treatment of a product will depend on factors including its customs classification or its country of origin, for instance. 

The agreement also covers areas beyond customs duties, including trade in services, investment, intellectual property, competition and public procurement. The practical relevance of these provisions will vary according to the company’s activities. 

The agreement may therefore create opportunities for Swiss importers and exporters, but businesses will still need to check the requirements for each product and transaction. 

What should be agreed with a Thai commercial partner? 

The contract, purchase order or commercial agreement should define more than the total price. Before goods are produced, shipped or supplied, both parties should agree on: 

• the goods or services being provided, 

• product specifications and quality standards, 

• the invoice currency, 

• the total price and payment schedule, 

• delivery terms and responsibilities, 

• inspection and acceptance procedures, 

• the documents required before payment, 

• the treatment of defects, delays or disputes, 

• the beneficiary’s verified bank details. 

For imported goods, a Thai supplier may request an initial deposit before production and the remaining balance when the order is complete or ready to ship. A 30% deposit followed by a 70% balance is one possible structure, but it is not a universal rule. 

The percentages and milestones depend on the product, order value, production requirements, supplier relationship and negotiating position of each party. 

Swiss exporters selling to Thai customers face a different set of timing considerations. They may need to decide whether to request payment in advance, offer a payment term or link settlement to delivery or documentary milestones. The appropriate structure will depend on the value of the transaction, the commercial relationship and the level of credit risk the exporter is prepared to accept. 

Should you make payments in THB, USD or CHF? 

A Thai supplier or customer may agree to transact in Thai baht (THB), US dollars, Swiss francs or another international currency. The choice determines which party manages the currency conversion and bears the exchange-rate exposure. 

For a Swiss importer, paying directly in THB can separate the supplier’s commercial price from the currency conversion. The buyer can review the CHF/THB rate and associated costs rather than accepting a foreign-currency price that may already include the supplier’s conversion assumptions. 

Receiving THB also means that the supplier does not need to convert a foreign-currency payment after it arrives. 

For a Swiss exporter, invoicing in CHF may provide greater certainty over the amount booked in the company’s domestic currency. However, a Thai customer may prefer a quotation in THB because it gives them clearer visibility over their local-currency cost. 

If the exporter agrees to invoice and collect in THB, it assumes the risk that the value of the future THB receipt may change against the Swiss franc before conversion. 

No invoice currency is automatically preferable in every transaction.

Businesses should compare: 

• the commercial price offered in each currency, 

• who performs the conversion, 

• the exchange rate and FX spread, 

• transfer and bank charges, 

• the payment date, 

• the time between agreeing the price and settlement, 

• which party is better placed to manage the currency exposure. 

CHF to THB exchange rates 

Use our currency calculator below to estimate CHF to THB conversions based on current exchange rates. 

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CHF

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*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

Send

CHF

Receive

EUR

You could save up to*

EUR

*Currency rates used are indicative based on the mid-market rate with example spreads used to demonstrate the difference between an average for Swiss banks vs one typically offered by SwissFx.

This is for informational purposes only and you may get a different rate when exchanging money.

Please contact us for an exact price.

How can CHF/THB movements affect the profitability of a transaction? 

A currency exposure arises whenever the amount is fixed in one currency but will be paid, received or reported in another currency at a later date. 

Example 

Imagine that a Swiss importer orders goods worth THB 12 million. It pays a 30% deposit when the order is confirmed and the remaining 70% when production is complete.

If the entire order had been converted at THB 40 per CHF, it would have cost CHF 300,000. In this hypothetical example, the movement between the deposit and balance increases the total cost by CHF 14,000. 

The calculation excludes the FX spread, transfer fees, intermediary-bank charges and financing costs. 

An exporter collecting THB faces the reverse risk. If the Thai baht loses value against the Swiss franc between the invoice date and payment date, the THB receipt will convert into fewer Swiss francs. A favourable movement could produce the opposite result. 

Paying or converting at the current exchange rate 

A spot transaction converts currencies at the rate available for settlement at or close to the current date. 

An importer may use a spot transaction for an immediate supplier deposit. An exporter may convert a THB receipt after it arrives. This approach maintains flexibility but does not fix the rate for an outstanding payment or future collection. 

Fixing a rate for a future THB payment or collection 

A forward contract allows a business to agree an exchange rate for a future currency transaction. 

An importer could use a spot transaction for the initial deposit and arrange a forward contract for some or all of a sufficiently certain THB balance. An exporter expecting a defined THB payment could use a forward contract to make its future CHF value more predictable. 

A forward contract does not guarantee a better rate than the future spot market. Its purpose is to reduce uncertainty over the future currency value. 

SwissFx offers deliverable forward contracts for businesses buying and selling THB. Forward contracts remain subject to eligibility, assessment and agreed terms. 

What payment costs should businesses check? 

The exchange rate is only one component of an international payment or collection. Businesses should also check: 

• the FX spread

• the provider’s transfer fee

• correspondent-bank charges 

• fees applied by the recipient’s bank 

• the fee arrangement selected for the payment 

• the amount that will reach the beneficiary 

• expected processing and cut-off times 

• the information required for reconciliation

A low visible transfer fee does not necessarily mean that the total transaction is inexpensive. The FX spread and bank deductions should be reviewed at the same time. 

→ For supplier payments, the buyer should confirm whether the supplier expects to receive the full invoice amount net of charges. An unexpected deduction can leave a small unpaid balance and delay the release of goods. 

→ For collections, the exporter should establish how the payment will be identified and reconciled when it reaches the account. 

SwissFx supports international payments and collections in THB. Businesses can therefore convert, send or collect THB through the platform, subject to the applicable transaction requirements. 

How can recurring THB transactions be organised? 

A single international payment or collection may be handled manually. The workload increases when a company works with several Thai suppliers or customers, processes repeated invoices or operates across multiple currencies. 

Bulk payments allow several supplier payments to be prepared and processed within one payment run. Each beneficiary can still receive the appropriate amount and currency, while the company reduces the number of separate manual steps. 

SwissFx bulk payments can be integrated into commonly used enterprise resource planning (ERP) and accounting tools. Payment information can be prepared or uploaded, reviewed, and approved before the transactions are released. 

Automation should retain approval controls. Access rights, beneficiary verification and dual-approval procedures remain important as transaction volumes increase. 

How can financing extend payment terms with Thai suppliers? 

Importers may need to pay a deposit before production and the remaining balance before goods are shipped or sold. This creates a gap between the company’s outgoing cash flow and the revenue generated by the imported goods. 

The timing can be particularly relevant for: 

• large production runs,

• machinery or high-value components, 

• seasonal stock, 

• products with long manufacturing or shipping times, 

• companies experiencing rapid order growth. 

Supplier-payment finance provides a separate credit facility for an approved invoice. Under the structure described by SwissFx, its lending partner pays the supplier in local currency, while the Swiss company repays in its domestic currency up to 150 days later. 

Financing is subject to credit checks. The stated eligibility conditions are: 

• more than £1 million in operating revenue, 

• tangible net worth above £100,000, 

• at least two years of trading history. 

The amount, repayment period, pricing and final terms depend on the credit assessment and transaction. 

What should Swiss businesses check when trading with Thailand?

Frequently asked questions

Aligning trade, currency and payment considerations 

Trading with Thailand involves several connected decisions. These considerations should be reviewed altogether: 

• An appropriate invoice currency can provide clearer visibility over the commercial price. 

• A spot transaction can address an immediate conversion. 

• A forward contract can make the CHF value of a defined future payment or collection more predictable. 

• Bulk payments can support recurring supplier workflows. 

• Supplier-payment finance can address a separate cash-flow requirement for eligible importers. 

The appropriate combination depends on the direction of trade, transaction value, payment frequency, commercial terms and the company’s ability to absorb exchange-rate or cash-flow movements.