BOI Thailand: Metal products equipment - Juslaws
PRACTICE AREAS
Board of investment

Metal products and machinery and transport equipment

Thailand is considered one of the world leaders in machinery, so, there are numerous opportunities to invest in this highly progressive and continuously expanding industry. Due to high demand for farm and food processing machinery, as well as for alternative energy usage/energy conservation equipment, textile machinery, automotive machinery, molds and dies, this sector is extremely attractive for investors. For the moment, the majority of equipment orders are met by import. Nevertheless, firms in Thailand would prefer local sources to meet this demand, so an excellent investment opportunity is to be found in the Thai machinery and metalworking industries. Regarding the current state of the Thai economy, machinery and metalworking continue to play an important role. Apart from this, there is also bright export potential for all ASEAN markets.
The automotive industry is also a key sector for Thai economy as it is highly important with respect to exports and trade inflows. It is Thailand’s second-largest export industry after computer parts and components. As the Government prioritizes this sector, the automotive industry has evolved into an industry with strong foreign, original equipment manufacturer (OEM) competition and an extensive network of supporting industries.

Opportunities for metal products, machinery and transport equipment in Thailand

Thailand is one of Southeast Asia’s top performers in the logistics field. Currently, Thailand is ranked 35th out of 160 countries in the World Bank’s Logistics Performance Index (LPI) and ranked 3rd among ASEAN countries listed in the index. This is clear evidence that Thailand is competitive at a global level.
Major multinational automotive industry leaders with a presence in Thailand include: Auto Alliance Thailand (Ford and Mazda), BMW Manufacturing, General Motors, Hino Motor, Honda Automobile, Isuzu Motors, Toyota Motors, Mercedes-Benz Thailand, Mitsubishi Motors, Nissan Motors, Tata Motors, Suzuki Motors and Volvo Car Thailand.

metal products, machinery and transport equipment

Manufacture of metal products including metal parts

Surface treatment or anodized surface treatment (except coating or coloring treatment for decoration purpose)

Heat treatment

Manufacture of multi-purpose engines and equipment

Manufacture of machinery, equipment and parts

Manufacture of general automobile

Manufacture of automobile engines

Manufacture of vehicle parts

Building or repair of ships

Manufacture of trains or electric trains or equipment or parts (only rail system)

Manufacture of repair of Aircraft, or Aerospace Devices and Equipment

Manufacture of motorcycles (excepts less than 248 cc engine displacement)

Manufacture of Fuel Cells

Fabrication industry or platform repair or petroleum industry

Manufacture of science equipment

Why set-up metal products, machinery and transport equipment 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 metal products, machinery and transport equipment

Capital Income Tax (CIT) exemption up to 8 years (without cap) + 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 for Competitiveness

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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

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nithirat@juslaws.com

+66 7630 4353