This study examines the impact of regional trade agreements on the governance of digital foreign direct investment (FDI) in two emerging markets, China and Thailand, both of which are signatories to the ASEAN-China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP). The research highlights the disparities in economic governance, regulatory frameworks, and investment incentives between these nations. Employing a comparative case study approach, the study evaluates the factors influencing market entry, compliance challenges, and business adaptation of multinational enterprises (MNEs) in countries with advanced eCommerce, fintech, and cloud computing sectors. The regulatory environment in China is characterised by stringent controls on foreign firms, limiting technological expansion, whereas Thailand's more liberal policies foster greater FDI inflows. The study emphasises the significance of regulatory predictability, investment incentives, and the facilitation of cross-border digital trade in enhancing market competitiveness. Policy recommendations include increasing regulatory transparency in China and enhancing Thailand's promotion of digital FDI incentives within the RCEP framework. Further research should focus on quantitative analysis of digital investments across the broader ASEAN region to deepen the understanding of digital trade integration in other regions.