Chemicals, Paper & Plastics

BOI Thailand Business Opportunities

The BOI Thailand is busy promoting business in each of these industrial sectors. Thailand's automotive sector absorbs USD 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 new wave of development plans for the chemicals sectors. Thai producers are also attempting to gain market share in neighbouring countries whose paper and printing markets are not as mature as Thailand's.

Plastics Industry

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.

Chemicals Industry

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 THB 463 billion 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 been operating in Thailand for more than 40 years.

Paper Industry

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 newspapers to both local and export markets. The market size of the industry is valued in excess of USD 20 billion.

Relevant Manufacturing Categories

  • 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 matters

Why Set Up A BOI Company?

    Permission to have 100% foreign ownership
    Permitted to bring in experts and skilled workers with their families
  • 0% TAX
    Up to 15 years exemption of Corporate Income Tax (CIT)
    Permits foreigners to own land

BOI Incentives

  • Capital Income Tax (CIT) exemption up to 8 years
  • 100% foreign ownershipVisa and work permits
  • 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 enhancement