Friends who have been browsing the news lately may have noticed that TikTok is once again making big moves in Southeast Asia!

This time, they are directly investing300 billion Thai baht (about $8.8 billion) in real money over five years, claiming they will help Thailand build digital infrastructure, cultivate tech talent, and promote local specialties and culture.

With this scale of investment, it's not an exaggeration to say they want to make Thailand the "center stage" of Southeast Asia's digital industry.

But why is TikTok suddenly so obsessed with Thailand? Let's dig into the data first.

TikTok announces $8.8 billion investment in Thailand. Image source: Bloomberg

Thailand's GMV surges to No.1 in Southeast Asia, user numbers soar to 50 million

Although Thailand's land area isn't large, it's definitely a "big player" in TikTok's Southeast Asian map.

Latest data shows that TikTok Shop's annual transaction volume (GMV) in Southeast Asia has reached$21 billion, with Thailand alone contributing$5 to $6 billion, directly topping the list.

2024 TikTok Shop GMV performance by site. Image source: TT123

Even more astonishing, TikTok's user count in Thailand has soared to50 million. Considering Thailand's total population is just over 70 million, this coverage rate is truly remarkable.

You could say that Thai people's enthusiasm for TikTok might even surpass our own for Douyin. Young people love browsing short videos and watching live commerce on the platform, and with Thailand's e-commerce market still in a rapid growth phase, TikTok's investment is clearly aimed at "devouring this juicy market."

TikTok users in Thailand exceed 50 million. Image source: Oberlo

Spending money wisely—where will this investment go?

Some may think $8.8 billion sounds astronomical, but TikTok's plan this time is quite practical. The money will be spent mainly in three areas:infrastructure, talent cultivation, and security.

First, infrastructure. Thailand's cloud computing capabilities aren't top-tier in Southeast Asia, so TikTok plans to help boost local data processing capacity, making the platform run faster and videos load smoothly. As for cybersecurity, telecom fraud has long been a headache in Southeast Asia, and TikTok will cooperate with the Thai government to develop anti-fraud technology and combat fake news. This move not only earns them a good reputation but also cleans up their own platform—killing two birds with one stone.

Talent cultivation is even more down-to-earth. Thailand currently lacks digital tech talent, so TikTok is directly launching training courses to teach locals how to make short videos, do live streaming, and even use AI tools. This is a bit like how domestic internet companies used to go to rural areas to teach older folks how to use smartphones, except this time the target is Southeast Asia's "Gen Z."

Image source: Internet

Unstable US market—has Southeast Asia become "Plan B"?

At this point, some may ask: Why is TikTok suddenly so focused on Southeast Asia?

The answer may lie in another market—the United States.

At the beginning of the year, TikTok set a goal for its e-commerce team to double GMV by 2025, with the US market expected to grow by 200%.

But reality is harsh—the US side keeps changing policies and threatening bans, making TikTok anxious. By treating Southeast Asia as a backup, they can both diversify risk and secure a fast-growing market in advance—again, killing two birds with one stone.

Image source: Forbes

Moreover, Southeast Asia has a solid foundation. Out of a total population of 700 million, more than half are under 35, and 63% of Gen Z are addicted to social media.

Their habits of watching short videos and buying through live streams are almost identical to those of China's post-90s and post-00s. TikTok can copy the domestic"short video + live commerce" model to Southeast Asia with little adjustment and quickly gain a foothold in the market, achieving commercial monetization.

Image source: Internet

In the next five years, Southeast Asia may see a transformation

On the surface, TikTok's moves look like a business strategy, but behind them lies an even bigger "ambition."

Once Thailand's digital infrastructure is upgraded, it could drive industrial upgrades across Southeast Asia. For example, with improved cloud computing, more AI companies may set up data centers; as cybersecurity matures, fintech and cross-border payment industries will also benefit. In short, TikTok is laying the foundation for its future Southeast Asian ecosystem.

However, whether $8.8 billion can make a real splash depends on whether TikTok can handle local policies and cultural "soft obstacles." After all, Southeast Asia is complex and diverse; capital investment alone isn't enough. How to integrate into local culture and adapt to policy environments will be the key to success or failure.