Agriculture & Agricultural Products

BOI Thailand Business Opportunities

Thailand's agriculture and agricultural products industries are an important part of the Thai way of life, and generate several billion Thai baht a year in economic value. For this reason, the BOI Thailand law continues to promote and offer incentives to people willing to invest in this industry.

Since the Thai food industry is a key contributor to the national economy and because of its wide diversity of agricultural products and processed food items (major crops, off-season rice cultivation, dairy products, farm products), Thailand has earned the designation of "The Kitchen of the World". Additionally, it is a strategic hub for food production for both Asia and other regions of the world due to its biodiversity, year-round growing season, relatively low labor costs, impressive crop yields, and skilled, well-educated agricultural workers and farmers.

Around 41% of the total land area in the country is used for agriculture. As a result, more than 80% of raw materials are sourced from domestic producers at low prices. Entrepreneurs in Thailand's agriculture and food processing industries continue to strive to introduce innovative technologies in the agricultural sector, private sector, and other economic sectors. The Thai Government and Department of Agriculture, through the BOI Thailand, has been promoting policies that support food production of the highest standard with regards to quality and safety. The aim is to expand Thailand's food exports and trade to other sectors and new markets, particularly ASEAN, China, US, India, UAE, Australia, and Russia, while striving for sustainability with regards to things like fossil fuels and soil degradation.

Agriculture & Agricultural Products

Food and water resources demand in the central region of Southeast Asia (South-East Asia) will continue to grow, as both population and income expand throughout the regions. Thailand offers tremendous opportunities for food processors. According to the National Food Institute, Thai food processing industry currently comprises more than 30,000 processed-food factories with annual earnings of about USD 25 billion in recent years. Major Multinational and Thai industry leaders include companies like: Nestle, Kellogg's, Royal Friesland Foods NV, Saha Pathana Inter Holding, Sasha Farms, Unilever Group Patum Rice Mill & Granary, Thai Union, Dole Thailand, Del Monte, Charoen Pokphand Group, Betagro, Thai Beverage, Kraft, Pepsi Co., Procter & Gamble, and Ajinomoto.

Other excellent investment prospects exist in the following areas of agricultural production:

  • Manufacture of organic and biological fertilizers, bio pesticides, and nano-coated chemical fertilizer
  • Plant for animal breeding (only those that are not eligible for biotechnology activity)
  • Economic forest plantation (except for Eucalyptus)
  • Crop drying and silo facilities
  • Animal propagation or animal husbandry
  • Livestock farming and aquatic animal propagation
  • Livestock husbandry or aquaculture (except for shrimp)
  • Slaughtering
  • Off-season rice cultivation
  • Deep sea fishing
  • Forestry and forest products
  • Grading, packaging and storage of plants, vegetable, fruits or flowers.
  • Manufacture of modified starch or plant-based starch with special properties
  • Manufacture of plant-based and animal-based fats or oil (except for soybean oil)
  • Manufacture of natural extracts and products thereof (except for medicine, shampoo, toothpaste, soap, and cosmetics)
  • Manufacturing active ingredients from natural raw materials
  • Tanneries of leather finishing
  • Manufacture of natural rubber products (except rubber bands, rubber balloons and rubber rings)
  • Manufacture of products from agricultural by-products or agricultural waste (except for those with uncomplicated production processes, e.g. drying, dehydration)
  • Manufacture of fuel from agricultural waste/ scrap/ garbage, and other agricultural products
  • Manufacture (using modern technology) of preservation of food, food additives, food ingredients, or beverages (except drinking water, carbonated soft drinks, caffeinated beverages, alcoholic beverages, gum, ice cream, chocolate, candy, sugar, baked goods and products, instant noodles, plant-based starch or flour, essence of chicken, and bird's nest)
  • Manufacture of food supplements or medicinal food products
  • Cold storage and the transportation thereof
  • Agricultural Goods Trading Centres

Why Set Up A BOI Company?

    Permission for a foreigner to own 100% of their companies
    Permission to bring in skilled workers and experts, as well as their families
  • 0% TAX
    Up to fifteen years exemption from CIT (Corporate Income Tax)
    Permission for foreigners to own land in Thailand

BOI Incentives

The value-added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil centers, all of which must have a value-added of at least 10% of revenues.

  • Capital Income Tax (CIT) exemption up to 8 years
  • 100% foreign ownership
  • Visa and work permits
  • Permission for foreigners to own land in Thailand
  • 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 enhancement
  • Merit incentives on industrial area development