Résumé Choosing where to operate a factory in Thailand requires more than comparing land prices or BOI incentives. Manufacturers need to consider infrastructure capacity, access to labour and suppliers, transport links, environmental requirements and the incentives available for their particular activity and location. The EEC is Thailand’s main manufacturing hub, but IEAT estates, central Thailand, northern industrial areas and border SEZs may be more suitable depending on the project’s production and supply chain requirements. For a significant greenfield project, manufacturers should generally plan for an overall development period of around 18–36 months.
Introduction :
Thailand has a well-established manufacturing base supported by industrial estates, major ports, developed supply chains and investment incentives. For a foreign manufacturer considering production in Thailand, however, deciding where to locate a factory requires more than identifying an available plot of industrial land.
The location of a BOI zone factory can affect access to suppliers, electricity and water capacity, transport costs, availability of skilled workers and eligibility for additional investment incentives. A site that works well for an automotive supplier exporting through Laem Chabang may make considerably less sense for a food processor supplying customers in Bangkok.
Manufacturers therefore need to consider their business activity, production requirements and supply chain before committing to a particular industrial estate in Thailand.
This is particularly important for larger projects. Industrial land prices in the Eastern Economic Corridor (EEC) have risen substantially, while suitable large-scale factory space can be difficult to secure in some locations. Current market data also shows that new industrial land supply remains heavily concentrated in the EEC.
Lex Nova Partners assists foreign manufacturers with the legal and regulatory aspects of factory development in Thailand, including corporate structuring, BOI promotion, land transactions, regulatory compliance, employment and immigration. Considering these issues together at the site-selection stage can help identify potential problems before significant capital is committed.
Points clés
- The EEC is Thailand’s main manufacturing hub. Chonburi, Rayong and Chachoengsao provide access to established industrial clusters, major highways, Laem Chabang Port and extensive manufacturing supply chains.
- BOI and IEAT serve different purposes. BOI promotion provides investment incentives, while IEAT industrial estates provide developed industrial infrastructure and a regulated environment. A manufacturing project may benefit from both.
- Infrastructure should be checked at estate level. Electricity capacity, water supply, wastewater treatment, labour availability and transport links can differ considerably between industrial estates, even within the same province.
- Factory costs extend well beyond land and construction. Machinery, power systems, water and wastewater infrastructure, environmental compliance, professional fees and working capital should all be included when comparing potential locations.
- A realistic factory development timeline is around 18–36 months. Site selection, BOI promotion, land arrangements, environmental approvals, construction, machinery installation and operational setup need to be coordinated before production can begin.
Factory Development 101: BOI Zones vs IEAT vs Special Economic Zones
The terms BOI zone, industrial estate and special economic zone are sometimes used interchangeably, but they refer to different frameworks.
BOI-Designated Industrial Zones
Thailand’s Board of Investment provides incentives according to the promoted activity and, in certain circumstances, the location of the project.
Projects located within a BOI-promoted industrial estate or industrial zone may qualify for an additional year of corporate income tax exemption, subject to the applicable activity and incentive conditions. These estates are located across Thailand, with major industrial areas in provinces such as Chonburi and Rayong in the Eastern Economic Corridor (EEC), as well as Ayutthaya, Chachoengsao and Samut Prakan.
BOI incentives can also include exemptions from import duties on machinery and qualifying raw materials, permission to bring foreign skilled workers and experts into Thailand and, for qualifying promoted companies, permission to own land for the promoted activity.
However, simply locating a factory in a BOI industrial zone does not mean the project will automatically receive BOI benefits. The benefits available will depend on the business activity, technology, level of investment and the specific conditions of the BOI promotion.
Industrial Estates in Thailand by Region
Thailand has industrial estates and industrial parks across the country, although the largest concentration is in the Eastern Region, particularly Chonburi and Rayong. The following provides a regional overview of the main locations included in the industrial estate listings.
Eastern Region
Chachoengsao: 304 Industrial Park; Gateway City Industrial Estate; TFD Industrial Estate; TFD Industrial Estate 2; BlueTech City; Wellgrow Industrial Estate.
Chonburi: Amata City Chonburi Industrial Estate; Amata City Chonburi Industrial Estate Project 2; Asia Clean Chonburi Industrial Estate; Ban Bueng Industrial Estate; WHA Chonburi Industrial Estate 1 (WHA CIE 1); WHA Chonburi Industrial Estate 2 (WHA CIE 2); WHA Eastern Seaboard Industrial Estate 2 (WHA ESIE 2); WHA Industrial Estate Eastern Seaboard 3 (WHA ESIE 3); Laem Chabang Industrial Estate; Pinthong Industrial Estate PIP1, PIP2, PIP3, PIP4 and PIP5; Rojana Industrial Estate Laem Chabang; Saha Group Industrial Park Sriracha; Yamato Industries Industrial Estate.
Prachinburi: 304 Industrial Park; Bo Thong Industrial Estate; Hi-Tech Kabin Industrial Estate; Kabinburi Industrial Zone; Rojana Industrial Park (Prachinburi); Saha Group Industrial Park Kabinburi.
Rayong: Amata City Rayong Industrial Estate; Asia Industrial Estate; CPGC Industrial Estate; Eastern Seaboard Industrial Estate (Rayong); WHA Eastern Industrial Estate (Map Ta Phut); WHA Eastern Seaboard Industrial Estate 1; WHA Eastern Seaboard Industrial Estate 2; WHA Eastern Seaboard Industrial Estate 4; WHA Rayong Industrial Land; WHA Rayong 36 Industrial Estate; WHA Industrial Estate Rayong; IRPC Eco Industrial Zone; Luckchai Rubber City Industrial Estate; Map Ta Phut Industrial Estate; Padaeng Industrial Estate; Rayong Industrial Estate (Ban Khai); RIL Industrial Estate; Rojana Industrial Park Rayong (Ban Khai); Rojana Industrial Park Rayong (Pluak Daeng); Siam Eastern Industrial Park; Pinthong Project 6 Industrial Estate.
Sa Kaeo: Sa Kaeo Industrial Estate.
Bangkok and Vicinity
Bangkok: Bang Chan Industrial Estate; Gemopolis Industrial Estate; Lat Krabang Industrial Estate.
Pathum Thani: Bangkadi Industrial Park; Nava Nakorn Pathumthani.
Samut Sakhon: Maharaj Nakorn Industrial Estate; Samut Sakhon Industrial Estate; Sinsakhon Industrial Estate.
Samut Prakan: Asia Industrial Estate; Bangplee Industrial Estate; Bangpoo Industrial Estate; Bangpoo Nuea Industrial Estate; Bangkok Free Trade Zone (Bangna-Trad Km.23); Bhakasa Industrial Estate.
Central and Western Region
Ayutthaya: Bang Pa-In Industrial Estate; Ban-Wa (Hi-Tech) Industrial Estate; Rojana Industrial Park Ayutthaya; Nakhon Luang Industrial Estate.
Ang Thong: S Industrial Estate Angthong.
Ratchaburi: Ratchaburi Industrial Estate.
Sing Buri: Indra Industrial Park.
Saraburi: Nongkhae Industrial Estate; WHA Saraburi Industrial Land (WHA SIL); Kaeng Khoi Industrial Estate.
Northern Region
Lamphun: World Lamphun Industrial Estate; Northern Region Industrial Estate; Saha Group Industrial Park Lamphun.
Phichit: Phichit Industrial Estate.
Northeastern Region
Nakhon Ratchasima: Nava Nakorn Industrial Estate Nakhon Ratchasima.
Udon Thani: Udon Thani Industrial Estate.
Southern Region
Songkhla: Songkhla Industrial Estate; Southern Region Industrial Estate (Songkhla); Rubber City Industrial Estate Project in the Southern Region.
IEAT Industrial Estates
An industrial estate in Thailand operating under the Industrial Estate Authority of Thailand (IEAT) provides businesses with a purpose-built environment for manufacturing and other industrial activities.
IEAT currently reports 84 industrial estates across 18 provinces, including estates operated directly by IEAT and those developed jointly with private operators. These estates typically provide the infrastructure needed for industrial operations, including roads, electricity, water supply and wastewater treatment.
For manufacturers, one of the main advantages is having this infrastructure already in place. Rather than developing utilities and supporting systems independently, a company can establish its factory in an area designed specifically for industrial operations.
Companies operating within an IEAT industrial estate may also have access to additional benefits, depending on the zone and the nature of the project. These can include permission for qualifying foreign-owned companies (up to 100% foreign owned) to own land for their industrial operations, assistance with bringing foreign skilled workers and experts into Thailand, and access to IEAT’s One Stop Service for land use, factory and other relevant approvals.
Certain estates also contain IEAT Free Zones, which can provide customs and tax privileges for qualifying imported goods used in manufacturing or other approved activities.
These benefits are separate from BOI promotion. A company located in an IEAT industrial estate may also apply for BOI promotion if its activities qualify, allowing the project to potentially benefit from both frameworks.
Special Economic Zones (SEZ) & EEC
Thailand also offers additional investment incentives for projects established in certain designated areas.
The country’s 10 Special Economic Zones (SEZs) cover designated areas in Tak, Mukdahan, Sa Kaeo, Trat, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi and Narathiwat. These zones are intended to encourage investment and economic activity in border areas, with qualifying projects potentially eligible for additional BOI incentives depending on their activity and location.
For larger manufacturing projects, the Eastern Economic Corridor (EEC) is particularly important. Covering Chonburi, Rayong and Chachoengsao, the EEC is one of Thailand’s main industrial and investment hubs and is home to major industrial estates, ports and supporting infrastructure.
The Eastern Economic Corridor (EEC) – Manufacturer’s First Choice
The Eastern Economic Corridor (EEC) covers Chonburi, Rayong and Chachoengsao and is home to some of Thailand’s most established automotive, electronics, petrochemical and advanced manufacturing clusters.
For manufacturers, its appeal extends beyond BOI incentives. The region combines established industrial estates, major road and rail connections, extensive supplier networks, skilled labour and access to deep-water ports. Laem Chabang Port currently has capacity of approximately 11 million TEUs, with its Phase 3 expansion expected to increase container capacity and improve rail connections.
This combination makes the EEC particularly relevant to export-oriented manufacturers and businesses that depend on imported components, established supply chains or efficient access to international markets.
Why the EEC Dominates Thai Manufacturing
One of the EEC’s main advantages is the concentration of infrastructure around existing manufacturing clusters. The region has access to Laem Chabang deep-water port, Map Ta Phut Industrial Port, major highways, rail infrastructure and established electricity and water networks.
These facilities support automotive and EV manufacturing, electronics, petrochemicals, food processing and other export-oriented industries. Manufacturers can also locate close to existing suppliers, logistics providers and industrial service companies rather than developing an isolated production base.
The region’s established industrial workforce is another advantage, particularly for companies requiring employees with previous manufacturing experience. However, competition for skilled technicians, engineers and other specialist personnel can be stronger in established industrial areas.
For manufacturers, the EEC is therefore particularly relevant where port access, supplier proximity, infrastructure capacity and access to an established industrial workforce are more important than securing the lowest-cost site.
EEC Incentive Structure
Locating a factory in the EEC does not automatically provide a fixed package of incentives. The benefits available depend on the promoted activity, technology, project location and applicable BOI measures.
Qualifying BOI-promoted manufacturing projects may receive:
- Corporate income tax exemptions: Certain advanced or strategically important activities can qualify for exemptions of up to 13 years, while other activities may receive shorter exemption periods or non-tax incentives.
- Import duty privileges: Exemptions or reductions may apply to qualifying machinery and raw materials used in production for export.
- Accès à la propriété foncière : A qualifying BOI-promoted company may receive permission to own land required for its promoted activity, subject to the conditions of its promotion.
- Foreign specialists: BOI privileges can facilitate the employment of qualifying foreign skilled workers and experts, including personnel required for machinery installation and technical operations.
The incentive package should therefore be assessed against the individual manufacturing project rather than assuming that every BOI zone factory established within the EEC receives the same benefits.
Rayong: Heavy Industry and Port Access
Rayong has a well-established industrial base covering petrochemicals, chemicals, automotive manufacturing and other capital-intensive industries.
Industrial areas around Map Ta Phut and the Eastern Seaboard provide access to port infrastructure and utilities capable of supporting large manufacturing operations. This can be particularly important for businesses with substantial electricity, industrial water or wastewater treatment requirements.
Rayong can therefore be suitable for petrochemicals, chemicals, automotive manufacturing, industrial equipment and other import- or export-intensive operations.
The main trade-off is cost. Industrial land in established locations can command a premium, particularly where it provides convenient access to ports, transport routes and developed industrial infrastructure. Manufacturers should weigh the higher initial site cost against potential long-term savings in logistics, utilities and supply-chain efficiency.
Chonburi: Automotive, Electronics and Supply Chains
Chonburi has one of Thailand’s most developed automotive and manufacturing ecosystems, making it particularly relevant to automotive component suppliers, EV supply-chain businesses, electronics manufacturers and assembly operations.
Major industrial locations include Amata City Chonburi, Laem Chabang Industrial Estate, WHA estates and the Pinthong industrial estates. Manufacturers also benefit from an extensive network of existing suppliers and supporting businesses.
Access to Laem Chabang Port is another important advantage for companies importing components or exporting finished products. However, strong demand for industrial sites and skilled workers can increase operating and property costs.
Manufacturers considering Chonburi should therefore balance the cost of establishing a factory against the operational benefits of being close to suppliers, customers, ports and major transport routes.
Chachoengsao: EEC Access and Manufacturing Expansion
Chachoengsao provides access to both the EEC and Bangkok and can offer an alternative for manufacturers that do not need to locate directly within the more established industrial areas of Chonburi or Rayong.
The province contains manufacturing locations including 304 Industrial Park, Gateway City Industrial Estate, TFD Industrial Estate, BlueTech City and Wellgrow Industrial Estate. Its industrial base includes automotive-related manufacturing, food and agro-industrial production, chemicals and other light and medium manufacturing.
The suitability of Chachoengsao should still be assessed at estate level. Electricity capacity, water supply, wastewater treatment, road connections and distance from suppliers can vary considerably between sites.
For manufacturers that want access to the EEC but do not require immediate proximity to Laem Chabang or Rayong’s heavy-industry infrastructure, Chachoengsao can therefore be worth considering.
Outside EEC: Alternative Manufacturing Zones
The EEC will not be the most suitable location for every BOI zone factory. The right location should reflect the manufacturer’s operations, supply chain, workforce requirements, target market and operating costs.
Northern provinces such as Chiang Mai and Lamphun may be suitable for food processing, agricultural products and certain types of light manufacturing, particularly where direct access to a deep-water port is not essential. Land and labour costs may also be lower than in some of Thailand’s major industrial areas, which can make these locations attractive for manufacturers that do not need to be close to the Eastern Seaboard.
Central locations, including Ayutthaya and surrounding provinces, may be more practical for manufacturers supplying Bangkok or the domestic market. These areas have established industrial clusters and good highway connections, although land prices, congestion and transportation costs should be considered when selecting a site.
Thailand’s border Special Economic Zones (SEZs) provide another option, particularly for businesses with supply chains or customers in neighbouring ASEAN markets. Land and labour costs may be more competitive in some of these areas, while qualifying projects may also benefit from additional BOI incentives. However, these advantages need to be considered alongside practical factors such as workforce availability, logistics and access to suppliers.
For factory development in Thailand, the location should ultimately be selected around the requirements of the project. BOI incentives and lower operating costs can make certain areas attractive, but they should support a commercially suitable location rather than determine it.
Factory Development Timeline & Process
Setting up a BOI zone factory project involves more than obtaining investment promotion. The BOI application, corporate structure, site selection, construction and regulatory approvals all need to be planned together, as decisions made at one stage can affect the rest of the project.
A typical project may involve:
- Site selection and BOI feasibility: Confirm that the proposed manufacturing activity is eligible for promotion and assess the planned investment, production process, utility requirements and potential locations.
- BOI application: Prepare the BOI application around the proposed project and investment plan.
- Land acquisition or lease: Conduct due diligence on the proposed site and confirm that the land can legally and practically support the planned factory and promoted activities.
- Environmental and factory approvals: Determine which factory licences, environmental assessments and other approvals are required before construction or operations can proceed.
- Factory design and construction: Design and build the facility around the production process, machinery, utilities, fire safety and waste management requirements.
- Machinery installation and testing: Import and install the required machinery, test the production line and complete the relevant requirements under the BOI promotion.
- Operational setup: Put the necessary employment, work permit, immigration, tax, accounting and ongoing compliance arrangements in place before operations begin.
For a substantial greenfield manufacturing project, 18 to 36 months from initial site selection to production may be a more realistic planning timeframe than assuming the factory can become operational within a year. The actual timeline will depend on factors such as the size and complexity of the facility, environmental requirements, construction works and machinery procurement and installation.
Planning these stages together can help avoid a situation where a company secures BOI promotion or commits to a site before confirming that the wider project can be implemented as intended.
Infrastructure Reality Check: Utilities, Labor, Logistics
When selecting an industrial estate in Thailand, manufacturers should consider the infrastructure available, local labour market and ongoing operating costs. These can vary considerably between provinces and individual estates, making it important to assess each proposed site against the factory’s operational requirements.
The Thailand Board of Investment (BOI) publishes indicative costs for establishing and operating a business in Thailand. These figures provide a useful reference for initial budgeting, although manufacturers should obtain quotations based on their specific requirements before making an investment decision.
Electricity and Water
Electricity and water availability are particularly important for manufacturers operating energy-intensive production lines or requiring substantial water supplies.
According to the BOI’s published cost guidance, electricity costs approximately THB 5–6 per kilowatt-hour (kWh). However, this is a general reference rather than a fixed industrial electricity rate. Actual costs will depend on the applicable tariff, electricity consumption, peak demand and any additional charges.
Bank of Thailand
Manufacturers should also confirm whether an industrial estate has sufficient electricity capacity to support their operations, particularly where production requires heavy machinery or uninterrupted power.
Water supply requires similar consideration. Industrial water tariffs and available capacity differ between estates, while certain manufacturing activities may also require additional water treatment or wastewater management facilities.
For factories with substantial electricity or water requirements, even relatively small differences in utility costs can have a significant effect on annual operating expenses.
Labour
Labour costs and workforce availability should also be assessed when comparing manufacturing locations. Although land and operating costs may be lower outside Thailand’s main industrial centres, manufacturers must confirm that the local labour market can meet their staffing requirements.
Established industrial areas such as Chonburi and Rayong offer access to experienced manufacturing personnel, engineers and technicians. However, competition for skilled workers can increase recruitment costs. Manufacturers considering less developed industrial areas may benefit from lower operating expenses but face additional recruitment and training requirements.
Foreign manufacturers should also account for the costs of employing international personnel. The BOI’s published guidance lists government work permit fees of THB 3,000 for permits valid for more than six months and up to one year. Professional fees and other immigration expenses are additional.
BOI-promoted companies may qualify for immigration and work permit privileges for foreign skilled workers and experts, subject to the applicable promotion conditions.
Logistics
Transport costs should be assessed against the factory’s supply chain, production volumes and target markets rather than simply choosing the location closest to a major port.
The BOI publishes indicative shipping and rail freight costs that manufacturers can use when comparing potential locations. For example, its August 2026 data lists a rail container transport rate of THB 1,500 for the Lat Krabang–Laem Chabang route and THB 9,140 for Lamphun–Laem Chabang. These are published round-trip rates that exclude fuel surcharges.
These differences illustrate why manufacturers should calculate the full cost of transporting raw materials and finished products before selecting a location.
For export-oriented manufacturers, establishing a factory near Laem Chabang Port may reduce inland transportation costs and delivery times. However, businesses supplying customers in Bangkok or other domestic markets may find that a central location offers better access to their customers and suppliers.
The final assessment should consider land costs alongside transport expenses, delivery schedules, workforce availability and the infrastructure required to support production.
Environmental & Regulatory Compliance
Environmental requirements should be assessed before acquiring land, as they can affect the suitability of a site, factory design and overall investment costs.
Depending on the manufacturing activity, production capacity and location, a project may require environmental assessments, factory licences and specific measures for wastewater treatment, emissions and hazardous materials.
Manufacturers establishing operations within an industrial estate must also comply with their own environmental obligations. Even where an estate provides central wastewater treatment facilities, individual factories may still need to install pre-treatment systems and meet applicable discharge standards.
These requirements should be considered when comparing potential sites. A location with a lower purchase price may ultimately be more expensive if additional investment in wastewater treatment, drainage, storage or pollution-control systems is required.
For a BOI zone factory, legal and environmental due diligence should therefore form part of the initial site assessment. Identifying these requirements early can help manufacturers avoid unexpected costs, regulatory delays and restrictions that could affect their proposed operations.
Cost Breakdown & Financial Planning
The cost of building a factory in Thailand depends on the location, factory size, construction specifications, machinery and infrastructure required for the proposed manufacturing activity. Land prices and utility requirements can also vary considerably between industrial estates.
According to the Thailand Board of Investment’s (BOI) published cost guidance, updated in March 2026, construction costs for a standard low-rise factory are approximately THB 15,000–19,000 per square metre. The BOI also provides an indicative cost of THB 5,670 per square metre for general electrical power systems. This includes transformers and electrical distribution systems but excludes power installations for production machinery.
Indicative construction costs
Based on the BOI’s published reference figures, not project-specific quotations.
| Cost component | Indicative cost |
| Standard low-rise factory | THB 15,000–19,000/m² |
| General electrical power systems | THB 5,670/m² |
| Medium-quality office construction | THB 25,000–30,000/m² |
| High-quality office construction | THB 30,000–35,000/m² |
Source: BOI, March 2026 update. Construction estimates are based on September 2025 source data.
For example, applying the BOI’s indicative construction rates to a standard 10,000-square-metre factory produces an estimated building cost of THB 150–190 million. General electrical power systems could add approximately THB 56.7 million if the published rate applies across the full floor area.
For manufacturers comparing potential locations, the financial assessment should account for the following:
- Land acquisition or leasing: Purchase or rental costs, legal due diligence and any land preparation required before construction.
- Construction and infrastructure: Factory buildings, offices, electrical installations, water supply, drainage and wastewater treatment.
- Machinery and equipment: Production machinery, importation, installation, testing and any specialist power requirements.
- Regulatory compliance: Environmental assessments, factory licensing, safety systems and other approvals required for the proposed activity.
- Professional fees and working capital: Legal, engineering and project-management expenses, together with the funds required before production reaches full capacity.
Land costs can make a substantial difference to the overall investment, particularly when comparing established industrial estates in the Eastern Economic Corridor (EEC) with locations elsewhere in Thailand. However, a lower land price does not necessarily result in a cheaper project if additional investment in infrastructure, transportation or workforce development is required.
For a substantial factory development project in Thailand, manufacturers should prepare a detailed financial model for each shortlisted location before committing to land acquisition or construction.
Decision Framework: Where Should I Build a Factory in Thailand?
Choosing where to establish a factory in Thailand requires manufacturers to consider more than BOI incentives or the initial cost of land. The location must also support the proposed production process, workforce requirements, supply chain and long-term operating costs.
The following comparison outlines the main considerations for manufacturers assessing different industrial locations.
| Location | Main advantages | Key considerations | Potentially suitable activities |
| Corridor économique oriental (EEC) | Established industrial clusters, major ports, road networks and suppliers | Industrial land costs, competition for skilled workers and applicable BOI conditions | Automotive, electronics, advanced manufacturing and export-oriented production |
| IEAT industrial estates | Established industrial infrastructure, utilities and access to administrative services | Infrastructure capacity, estate fees, location and applicable IEAT privileges | Manufacturers requiring established infrastructure and industrial facilities |
| Central Thailand | Access to Bangkok, domestic markets, major highways and existing industrial clusters | Land prices, traffic congestion and transportation costs | Food processing, consumer goods and domestic-market manufacturing |
| Northern Thailand | Access to agricultural resources and potentially lower land and labour costs in certain areas | Distance from seaports, specialist workforce availability and transportation expenses | Agricultural processing, food production and selected light manufacturing |
| Border Special Economic Zones (SEZs) | Cross-border trade opportunities and additional incentives for qualifying projects | Infrastructure availability, labour supply and distance from major domestic markets | Manufacturing serving neighbouring ASEAN markets and cross-border supply chains |
These locations are not mutually exclusive. An IEAT industrial estate may also be located within the EEC, for example, allowing qualifying manufacturers to access benefits under more than one framework.
The appropriate location will depend on the manufacturer’s business model. An export-oriented automotive manufacturer may prioritise access to Laem Chabang Port and established component suppliers. A food-processing business may benefit more from being close to agricultural production areas, while an electronics manufacturer may place greater importance on skilled technicians, reliable electricity and specialist infrastructure.
Manufacturers should therefore compare the total cost of establishing and operating a factory across several locations, taking into account both the initial investment and ongoing expenses.
For businesses seeking BOI promotion in Thailand, the proposed location should also be assessed against the applicable promotion criteria and location-based incentives. Selecting a site based on potential tax benefits alone may result in higher operating costs or practical restrictions that outweigh the incentives received.
The objective is to identify a location that meets the manufacturer’s operational requirements while providing an appropriate legal, regulatory and investment framework.
Frequently Asked Questions
How much does it cost to build a factory in Thailand by zone?
BOI currently publishes an indicative cost of THB 15,000–19,000 per sqm for a standard low-rise industrial building. Land, machinery, utilities and environmental systems are additional and can materially increase the total project cost.
What industrial zones in Thailand offer BOI incentives?
BOI incentives depend on both the promoted activity and applicable location-based measures. Promoted industrial estates, the EEC, border SEZs and certain other promoted areas can provide additional incentives subject to BOI conditions.
Which BOI zone is best for electronics manufacturing?
Chonburi, Rayong and other established EEC locations can be attractive because of their electronics, automotive and advanced manufacturing ecosystems. The final choice should also consider power requirements, suppliers, labour and logistics.
Can foreigners own land for a BOI factory?
A BOI-promoted company may be granted permission to own land required for its promoted activity. This is an investment-promotion privilege and should not be treated as a general exemption allowing unrestricted foreign ownership of Thai land.
How long does it take to develop a BOI factory in Thailand?
For significant greenfield manufacturing projects, approximately 18–36 months from planning to production is a practical planning range. Complex construction, environmental requirements or imported machinery can extend the timetable.
Is an IEAT estate the same as a BOI industrial zone?
No. IEAT industrial estates operate under the Industrial Estate Authority framework, while BOI promotion concerns investment incentives. A project can potentially involve both frameworks.
Is the EEC always the best location for manufacturing?
No. The EEC has major logistics and industrial-cluster advantages, but land costs can be higher and it may be unnecessary for manufacturers focused primarily on Thailand’s domestic market.
How should manufacturers compare electricity and water costs?
Request the current tariff, available capacity and connection requirements directly for each shortlisted estate. Water pricing and utility capacity can vary materially between locations.
Can a BOI company employ foreign engineers and technicians?
BOI promotion can provide privileges allowing qualifying foreign skilled workers and experts to work on promoted activities, subject to the relevant approval and immigration requirements.
What happens if a company loses its BOI promotion?
The consequences depend on the circumstances and the privileges being used. Issues can include tax incentives, machinery privileges, land rights and foreign personnel, so the company should assess the implications before any cancellation or withdrawal becomes effective.
Do all factories require an EIA?
No. Environmental requirements depend on the nature, scale, capacity and location of the project. This should be checked during site and regulatory due diligence rather than assumed.
Should I buy industrial land before applying for BOI promotion?
Not necessarily. The proposed site should first be assessed against the activity, BOI conditions, land-use restrictions, environmental requirements and infrastructure needs. Committing to unsuitable land can be considerably more expensive than conducting the feasibility work first.
Why Choose Lex Nova Partners for Factory Development
Starting a manufacturing operation in Thailand requires careful coordination of several legal and regulatory processes. Decisions concerning BOI promotion, corporate structure, land acquisition and factory development can affect one another, making it important to address these requirements as part of the overall investment plan.
Lex Nova Partners provides integrated legal support across corporate establishment, BOI promotion, real estate and regulatory compliance. Our team assists foreign manufacturers throughout the investment process, from assessing BOI eligibility and preparing applications to industrial land due diligence, corporate transactions, employment matters and work permits for foreign personnel.
With Thai, English and French-speaking professionals, Lex Nova Partners also supports Francophone investors establishing or expanding their manufacturing operations in Thailand.
For businesses planning a new BOI zone factory, our team can begin by assessing the proposed manufacturing activity, investment requirements and preferred locations. We then assist with structuring the investment, reviewing potential sites and coordinating the relevant BOI, corporate, property and regulatory processes in line with the project’s development timetable.
This approach allows manufacturers to identify potential legal and regulatory issues before committing to significant investments, while ensuring that the proposed corporate structure, BOI promotion and factory development plans are properly aligned.
Veuillez noter que cet article est fourni à titre d'information uniquement et ne constitue pas un avis juridique.
