Home - Manufacturing Business Opportunities in Thailand
The Thai government is promoting foreign investments to uplift the economy. As a part of this plan, the Board of Investment Thailand offers incentives to businesses in various categories, and manufacturing business is one of them.
About 10 percent of the Thai population is employed in this sector and the manufacturing industry is one of the key pillars of the Thai economy. So, it is the best time to set up a manufacturing business here. Read our in-depth guide on manufacturing business opportunities in Thailand to get all the necessary information in one place.
A manufacturing business utilizes raw materials, machinery, human resources, and other resources to create finished products. For example, a flour mill turning wheat into packaged flour can be called a manufacturing business.
Advanced manufacturing businesses include automotive manufacturing, aviation manufacturing, electronics manufacturing, etc. Even businesses assembling products, such as mobile or car assembly, fall under this category.
Among allowed business entities, a private limited company is the top choice for manufacturing businesses in Thailand for the following reasons.
Setting up a private limited company is easier than a public company or partnership company
Shareholders of a private limited company have a limited liability. This means they will only bear the burden of loss equal to their investments.
Managing a private limited company is more convenient for the owners.
Private limited companies enjoy various advantages from the BOI and the IEAT
Foreign investors can fully own a private limited company if they receive a foreign business certificate or BOI promotion
The abundance of resources, low-cost labor, and strategic benefits from the government opened new opportunities in the Thailand manufacturing sector. Here is a comprehensive list of manufacturing businesses you can start in 2025.
Manufacturing flour, starch, oil, or fat from plants or animals
Manufacturing natural rubber products
Manufacturing or preservation of food, beverages, food additives, food ingredients, or dietary supplements
Manufacturing animal feed or animal food ingredients
Manufacturing fuel or pharmaceutical-grade alcohol from agricultural products
Manufacturing biological fertilizers, organic fertilizers, nano-coated organo-chemical fertilizers, and bio-pesticides
Manufacturing bioplastic or products from bioplastic
Manufacturing biochemicals
Manufacturing plants, animals, or microorganism breeding
Manufacturing diagnostic kits using biotechnology
Manufacturing non-woven fabric or hygienic products from non-woven fabric
Manufacturing high-risk or high-tech medical devices
Manufacturing active pharmaceutical ingredients, targeted medicines, and conventional medicines
Manufacturing engines, equipment, or vehicle parts
Manufacturing automobile and motorcycles
Manufacturing battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV)
Manufacturing and repairing vehicles and weapon systems for national defense
Manufacturing and repairing unmanned systems for national defense
Manufacturing and repairing weapons and equipment for facilitating exercise or combat
Manufacturing or repairing aircraft or aerospace equipment
Manufacturing space equipment and provision of space services
Designing and manufacturing microelectronics, optoelectronics, or embedded systems
Manufacturing electronic products, devices, and parts (including semiconductors, integrated circuits, resistors, capacitors, inductors, printed circuit board assemblies, solid state drives, hard disk drives, energy storage, flat panel displays, electro-magnetic products, peripheral devices, solar-powered products, audio-visual products, and more)
Manufacturing advanced or nanomaterials and products using these materials
Manufacturing glass or ceramic products
Manufacturing fire-resistant materials or heat insulation
Manufacturing gypsum board or gypsum products
Manufacturing construction materials and pre-stressed concrete
Manufacturing up-stream steels (such as pure molten irons, pig irons, sponge irons, direct reduction irons, hot briquetted irons, etc.)
Manufacturing intermediate steels (such as slabs, billets, and blooms)
Manufacturing down-stream steel (such as high tensile steel, steel wire rods, shafts, bars, flat rolled steel products, steel sheets, steel plates, etc.)
Manufacturing steel or stainless steel pipes
Manufacturing metal powder and ferro-alloy
Manufacturing chemicals and chemical fundamental fertilizers
Manufacturing petrochemical products
Manufacturing specialty polymers or specialty chemicals
Manufacturing specialty plastic or rubber compounds
Manufacturing plastic products for industrial and consumer goods
Manufacturing plastic packaging
Manufacturing products from pulp or paper
Developing industrial estate or industrial zones
Developing smart industrial estate of industrial zones
Special industrial zones, such as food innovation, science and technology park, gem and jewelry, logistics, agri-good, aerospace, etc.
The manufacturing market in Thailand is expected to reach a value of over $170 billion in 2025. Before opening manufacturing companies in Thailand, you must choose the business or industry depending on your plans, expertise, and resources.
Your manufacturing business must meet the following criteria to be eligible for the BOI investment promotion.
Your manufacturing business must add a value of at least 20% of the revenue to the local economy. If the business is related to agricultural or electronic products, the value addition requirement is 10%.
Modern machinery and equipment must be used for the production. Second-hand machinery won’t be eligible for import duty exemption.
The minimum investment capital for a manufacturing business is 1 million THB. If the investment capital crosses 10 million THB, the businesses must obtain ISO 9000 or ISO 14000 certification.
For projects with an investment capital of over 2,000 million THB, you must submit a detailed feasibility study.
Manufacturing businesses must comply with environmental protection regulations to reduce the impact on the environment.
The debt-to-equity ratio must be kept below 3 to 1.
You must complete the following steps for setting up a manufacturing business in Thailand.
Research the local and national market to learn about market demand, opportunities, and competition
Create a detailed business plan that contains business goals, products, manufacturing processes, and other aspects.
Registering your company as a private limited company is a great choice if you want to manufacture something.
Check out our detailed guide on How to Register a Company in Thailand.
Submit the registration application following the due process and obtain the certificate of registration.
Submit an application to receive a promotion certificate from the BOI following our guide on BOI company registration in Thailand.
Obtain the promotion certificate to conduct manufacturing business in specified categories.
Submit the factory license application with the necessary documents.
You may also need to apply for environmental permits or industry-specific licenses depending on your business and operational area.
Set up the factory in a strategic location. The factory should have access to easy transportation, affordable labor, etc.
Import machinery and equipment as required and install them.
BOI promotion allows manufacturing businesses to hire foreign workers and experts.
Hire the necessary staff to run the factory.
Only a Category 3 business needs a manufacturing license in Thailand according to the following chart.
|
Factory Type |
Number of Employees |
Power of Machinery |
License Requirement |
|
Category 1 |
7-20 |
5-20 HP |
Doesn’t need a license |
|
Category 2 |
20-50 |
20-50 HP |
Doesn’t need a license but has to notify the authorities about the operation |
|
Category 3 |
More than 50 |
Over 50 HP |
Must obtain a factory license |
According to the Factory Act, 1992, manufacturing businesses must follow these conditions.
Any manufacturing factory must prevent any disturbances to local residents or properties.
A Category 2 factory must be set up at least 50 meters from government offices, schools, hospitals, religious institutions, or any other public institution.
A Category 3 factory must maintain a distance of at least 100 meters from the above-mentioned places.
Follow these steps to obtain a factory license for manufacturing businesses in Thailand.
Filled application form for a factory license
An affidavit of the company wanting to open a factory
Floor plans or building layouts of the proposed factory
Detailed list of machinery and equipment intended for use
Documents containing safety measures, waste management, risk factors, etc.
Step 1: Submit the application form and supporting documents for a public hearing
Step 2: Apply for a permit with the report of the public hearing
Step 3: Thai officials will examine the documents and inspect the factory location.
Step 4: If the permit is approved, pay the permit fee and receive a permit.
Step 5: Set up the factory within the specified period and notify the commencement.
Starting a manufacturing business in the agricultural industry, food industry, electronics industry, or aerospace industry should be your top choice. These industries have increasing demands proportionate to the economic growth of Thailand.
Of course. Agricultural businesses contribute about 6% to Thailand’s GDP. It also creates employment for over 30% of laborers in Thailand. Setting up a manufacturing business in the agricultural industry has a high chance of success.
Manufacturing businesses in the electronics industry face the highest competition. As of November 2024, the electronics industry contributed about 14% to the overall export of manufactured products. So, opening a business in this industry can be profitable and challenging at the same time.
Not always. Manufacturing businesses need at least one Thai partner if they don’t have a foreign business certificate or a BOI promotion certificate. With any of these certificates, manufacturing businesses can operate without having Thai partners.
It depends on the investment capital, business strategy, target market, and other factors. New entrepreneurs should start with light manufacturing businesses. Experienced investors with large investment capitals can tap into the heavy or advanced manufacturing industry.
Registering a manufacturing business won’t take more than a few weeks. But, getting the BOI promotion certificate can take about 100-150 days. Then, it will depend on the factory size, machinery, etc. Registered companies must commence their operation within 36 months of registration.
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