BOI Thailand: Paper & Plastics - Juslaws
PRACTICE AREAS
Board of investment

Chemicals, paper and plastics

Thailand is strengthening its role as a leading global hub of plastics manufacturing, with makers placing greater emphasis on value-added and environmental-friendly products, all reinforced by strong government policies. Whether employed for design beauty or structural integrity, plastics are crucial to most sectors in the country. Active in everything from smartcards to furniture, the Thai plastics industry is growing consistently, and demand in the vigorous domestic economy is the key driver. Within the four types of packaging materials, plastic ranks second with a 25% share, following paper’s 40% and ahead of metal and glass.
With a well-developed infrastructure from production to logistics, the trillion-baht chemical industry is one of Thailand’s most vibrant business sectors. The country’s foreign trade in chemicals hit 463 billion baht in 2009, and domestic sales were nearly tripled. Thailand hosts both foreign-owned and homegrown companies as PTT, SCG, Rayong Olefins, Thai Tank Terminal, Dow, Mitsubishi, TPI, ExxonMobil and the world’s largest chemical manufacturer, BASF, which has operated in Thailand for more than 40 years.
The Thai printing industry, comprised of more than 5,000 companies, is fully integrated, with paper manufacturing, graphic arts design, pre-press houses, various printing systems and post-press houses. Thailand’s printing establishments as a whole offer four major printed products – books, general printed materials, packaging, and newspaper to both local and export markets. The market size of the industry is valued in excess of US$20 billion.

Opportunities for chemicals, paper and plastics industries in Thailand

Thailand’s automotive sector absorbs US$897 million in plastics for parts on trucks, vans, cars and motorcycles annually. Petrochemical businesses have experienced especially rapid expansion, with the Thai government currently in the third wave of its 2004-2018 development plan for those sectors. Thai producers are also attempting to gain market share in neighboring countries such as Cambodia, Laos, Myanmar and Vietnam, whose printing markets are not as mature as Thailand’s.

Chemicals, paper and plastics

Manufacture of industrial chemicals

Manufacture of eco-friendly chemicals or polymers or products from eco-friendly polymers

Oil refinery

Manufacture of petrochemicals

Manufacture of specialty polymers or specialty chemicals

Manufacture of plastic products for industrial goods

Manufacture of plastic packages with special properties

Manufacture of plastic products from recycled plastic

Active pharmaceutical ingredients

Manufacture of medicine

Manufacture of chemical fundamental fertilizers

Manufacture of pulp or paper

Manufacture of paper articles

Production of printed matter

Why set-up chemicals, paper and plastics plants with BOI incentives in Thailand?

100% Foreign Ownership

Permission to have 100% foreign ownership

Visas & Work Permits

Including all family members

Freehold land ownership

Permission for foreigners to own land

Transfer funds

Permission to transfer money abroad in foreign currency

BOI incentives for chemicals, paper and pastics plants

Capital Income Tax (CIT) exemption up to 8 years + merit based incentives

100% Foreign ownership

Visa and work permits

Permission to own land

Transferring funds in foreign currency

Reduction of import duties on machinery and raw materials

Double deduction of costs of transportation, electric and water

Import duty exemption on raw or essential materials imported for use in production for export

Decentralization Merit Incentives

Merit Incentives based on Competitiveness Enhancement

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CHRISTIAN MOSER

Partner

christian.moser@juslaws.com

+66 2254 4117

CHONTICHA LEKKHAM

Senior Lawyer

chonticha@juslaws.com

+66 2254 4117

NITHIRAT CHAYAAPICHAT

Senior Associate

nithirat@juslaws.com

+66 7630 4353