Rank #38 · Asia-Pacific
Thailand spent approximately $5.89B (1.3% of GDP) on defense in 2025 under a military-influenced government that has prioritized platform modernization over personnel reform. The Royal Thai Air Force secured cabinet approval in August 2025 for a phased acquisition of 12 Gripen-E/F fighters replacing aging F-16s, while the long-troubled Chinese submarine deal — stalled since 2017 over German engine restrictions — was partially resolved in June 2025 with a switch to Chinese CHD620 engines.
Thailand's defense budget hovers near 1.3% of GDP, constrained by moderate economic growth and competing social spending priorities. The 2025 budget of approximately 202 billion baht (~$5.89B) allocates roughly half to personnel costs. Capital procurement spending was boosted in August 2025 when the cabinet approved a multi-year package including: Phase 1 of the Gripen-E/F acquisition (4 jets, THB 19.5B), K9 Thunder self-propelled howitzers, and Chinese-made VT-4 tank orders for the Army. The Royal Thai Navy submarine contract with China (signed 2017, THB 13.5B for one Yuan-class S26T) remains unresolved — the CHD620 engine substitution agreement of June 2025 requires parliamentary approval.
The Royal Thai Armed Forces total approximately 360,850 active-duty personnel: Royal Thai Army (~245,000 including ~115,000 conscripts), Royal Thai Navy (~65,000), and Royal Thai Air Force (~45,000). Thailand maintains universal male conscription for two years. The Army operates M60A3 and Chinese VT-4/Type 96 tanks, M113 APCs, and is inducting K9 howitzers. The Air Force flies JAS-39C/D Gripens (12 jets, in service since 2011), F-16A/B Fighting Falcons, and Alpha Jets (training). The Navy fields two FFGs, six corvettes, and no submarines; the anticipated Yuan-class boat remains years away from delivery. Southern Thailand counter-insurgency against Malay-Muslim separatists in Pattani, Yala, and Narathiwat continues.
Thailand has a nascent defense industrial base, producing small arms, infantry vehicles, and maintaining a licensed-production line for armored vehicles. The government operates the Defense Industry Institute (DII) as a research and coordination body but has not achieved significant indigenous platform development. Offset provisions are negotiated with major contractors: Saab's Gripen deal includes a Swedish industrial-participation package estimated at 50% of contract value. Thailand exports very limited defense goods and relies almost entirely on foreign suppliers for major combat systems. The pivot toward Gripen (Sweden) and K9 (South Korea) reflects a deliberate diversification away from US and Chinese dependency.
Thailand faces an active low-level insurgency in its three southernmost provinces (Deep South) by Barisan Revolusi Nasional (BRN) and affiliated groups. Casualties in the deep south totaled several hundred in 2024-2025. Thailand has no interstate conflicts but manages complex relations with Myanmar (border instability, refugee flows, drug trafficking) and participates in regional maritime exercises. The Cambodian border dispute over the Preah Vihear temple area remains legally settled but politically sensitive. Thailand's US treaty-ally status provides a security backstop against major power threats in the region.
On August 5, 2025, the Thai cabinet approved major military purchases including Phase 1 of 4 Gripen-E/F jets (THB 19.5B) and K9 howitzers. The full Gripen program envisions 12 jets over 10 years at THB 60B (~$1.85B). In June 2025, the government resolved the stalled Chinese submarine contract by approving CHD620 engine substitution for the Yuan-class S26T — the submarine had been blocked since 2018 when Germany refused to supply MTU 396 engines due to EU arms export restrictions. SIPRI confirmed Thailand's 2025 spending at ~$5.89B in its April 2026 release. The Gripen-E/F contract was formally signed on August 25, 2025 with SAAB, witnessed by Sweden's Defense Minister.
The Royal Thai Air Force flies 12 JAS-39C/D Gripens (delivered 2011-2012) and F-16A/Bs. The F-16s are being replaced: in August 2025 Thailand approved a 10-year, 12-jet Gripen-E/F procurement at a total cost of approximately THB 60B ($1.85B), with first deliveries expected in 2029.
Thailand signed a contract in 2017 for one Yuan-class S26T submarine from China at THB 13.5B. Germany refused to supply the specified MTU 396 engines due to EU arms export restrictions to China. For years Thailand demanded the original German engines; in June 2025 the government accepted Chinese CHD620 engines as a substitution, allowing the contract to proceed — though critics question the CHD620's performance relative to the MTU original.
Yes. Thailand and the United States are treaty allies under a 1954 bilateral agreement (successor to the Manila Pact / SEATO). The US designated Thailand a Major Non-NATO Ally in 2003. However, Thailand's close economic and defense ties with China — including the Chinese submarine purchase and VT-4 tanks — have complicated the relationship. Thailand balances between the two powers.
A separatist insurgency by ethnic Malay-Muslim groups in Pattani, Yala, and Narathiwat provinces has persisted since 2004. The BRN (Barisan Revolusi Nasional) is the main actor; the conflict has killed over 7,000 people since 2004. Thai security forces conduct ongoing counter-insurgency operations; intermittent peace talks have not produced a settlement.