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.
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.
Manufacture of metal products including metal parts
Surface treatment or anodized surface treatment (except coating or coloring treatment for decoration purpose)
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
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