Light Industry

Production of textile products or parts
The Board of Investment splits the definition of this activity in three parts: the production of natural or synthetic fibers, the production of yarn or fabric, printing fabrics, and garments – each having their own sets of privileges and conditions. Thailand’s textile industry is highly developed given the country’s skilled workforce, sophisticated value chain, and strategic infrastructure which facilitates the operation of textile enterprises. Being among the most dominant in the world in terms of exports, Thai textiles have contributed significantly to Thailand’s economy, prompting the government to provide incentives for foreign investors seeking to participate in this sector.

BOI privileges for producing natural or synthetic fibers
- Technical fibers or functional fibers - Recycled fibers - Others fibers Conditions
  • Projects involving the production of technical fibers or functional fibers – these must be approved by relevant agencies such as the Thailand Textile Institute or the National Innovation Agency.
  • Projects involving the production of recycled fiber - these must only use domestic scraps or waste.
  • Producers of functional yarn and functional fabric - must be approved by relevant agencies such as the Thailand Textile Institute or the National Innovation Agency.
  • Producers of other fabrics
    •  In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
  • Projects involving bleaching, dyeing, finishing, or printing on fabrics:
    • These must be located in industrial estates or promoted industrial zones that possess waste treatment and environmental protection systems in accordance to section 30 of the announcement of the Ministry of Industry
    • If projects are not located in industrial estates or promoted industrial zones, only projects seeking to expand their projects will be granted BOI privileges. They must also have measures to reduce environmental impacts.
    • Those involved with digital textile printing can be located in any area.
  • Production of garments, clothing accessories, and household textiles:
    • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
Production of bags, shoes, or leather-derived products
The Thai leather industry has grown significantly over the last few decades, positioning Thailand to be among the world’s most competitive leather producer in the world. This has been facilitated by Thailand’s infrastructure, skilled workforce, and facilities. Because of its significance to the Thai economy, the government has incentivized foreign investors to invest in large-scale projects in this field through privileges given by the Board of Investment. Conditions
  • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
Production of furniture or parts
Thailand’s furniture industry is among the strongest in the region as a result of its quality, innovative designs, and abundance in locally-sourced materials. Likewise, the country’s infrastructure, considered superior to many of its Southeast Asian neighbors, ensures that both domestic and international trade are facilitated in a seamless manner. Given Thailand’s strong real-estate and construction sectors, demand for furniture in the Kingdom has seen strong growth in the last few years and has contributed significantly to the Thai economy. Therefore, the Board of Investment promotes large-scale activities in this sector, including the production of finished goods, materials, or accessories related to furniture. Conditions
  • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
Production of furniture or parts
The toy industry has remained resilient in spite of the major disruptions that have taken place in the last two decades, including the proliferation of social media as an advertising platform as well as the growth of smartphone and tablet apps geared towards children’s entertainment. This resilience has been brought about as a result of growing dual-income households and rising disposable incomes in emerging economies particularly in the Asia-Pacific region. Having said this, Thailand is well positioned to serve as a major producer of toys given its excellent infrastructure and skilled workforce. The Thai government incentivizes projects engaged in this sector through privileges given by the Board of Investment. Conditions
  • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
Creative product design and development center
The Board of Investment splits the definition of this activity in three parts: the production of natural or synthetic fibers, the production of yarn or fabric, printing fabrics, and garments – each having their own sets of privileges and conditions. Thailand’s textile industry is highly developed given the country’s skilled workforce, sophisticated value chain, and strategic infrastructure which facilitates the operation of textile enterprises. Being among the most dominant in the world in terms of exports, Thai textiles have contributed significantly to Thailand’s economy, prompting the government to provide incentives for foreign investors seeking to participate in this sector. BOI privileges for producing natural or synthetic fibers Recycled fibers Other fibers Conditions
  • Projects involving the production of technical fibers or functional fibers – these must be approved by relevant agencies such as the Thailand Textile Institute or the National Innovation Agency.
  • Projects involving the production of recycled fiber - these must only use domestic scraps or waste.
  • Producers of functional yarn and functional fabric - must be approved by relevant agencies such as the Thailand Textile Institute or the National Innovation Agency.
  • Producers of other fabrics:
    • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
  • Projects involving bleaching, dyeing, finishing, or printing on fabrics:
    • These must be located in industrial estates or promoted industrial zones that possess waste treatment and environmental protection systems in accordance to section 30 of the announcement of the Ministry of Industry.
    • If projects are not located in industrial estates or promoted industrial zones, only projects seeking to expand their projects will be granted BOI privileges. They must also have measures to reduce environmental impacts.
    • Those involved with digital textile printing can be located in any area.
  • Production of garments, clothing accessories, and household textiles:
    • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
Production of lenses
Manufacturing lenses refers to the production of transmissive optical devices that focus or disperse light through a process called refraction. These can be used for a wide range of purposes including scientific research, photography, as well as visual aid for those diagnosed with visual impairment. Thailand has been an active participant in this industry and has incentivized foreign investors to invest in large-scale projects in this field through the Board of Investment. Activities in this sector include the refinement of lenses as finished goods or parts to be sold to other businesses. Conditions
  • In order to avail A4 privileges, R&D, design, or product development expenditures must consist of at least 0.5% of the project’s total revenue for the first 3 years of operations. Projects that fall short of this benchmark will be made eligible for B1 privileges.
Production of medical devices or parts
The production of medical devices has become a thriving industry in Thailand given the country’s acclaimed status as a major medical hub in Asia. This has made Thailand particularly attractive for major investments in this field given not only the country’s countless public and private hospitals, but also its proximity to other major medical hubs in the region. Given its significance to the Thai economy, the Board of Investment provides privileges to foreign investors seeking to participate in large-scale projects in this field. These can include manufacturing medical devices, equipment, and disposable apparatus. Conditions
  • Manufacturers of high-risk, high-tech medical devices such as X-rays, MRI, and CT Scan machines, as well as medical apparatus that have been commercialized from public sector or public-private partnership efforts must engage in R&D and innovation in order to be eligible for A1 privileges.
  • If the above mentioned sectors do not engage in R&D and innovation, they will only be eligible for A2 privileges.
  • Producers of other medical devices that do not constitute high risk will be given A3 privileges.
  • Projects producing medical equipment derived from fabrics and fibers, such as medical gowns, face masks, and other auxiliary apparatus, will be given A4 privileges. These must be made from raw cotton fabric or cotton yarn.