Metal Products, Machinery, and Transportation Equipment

The production of metallic products in Thailand are by no means monolithic and are an amalgamation of different products spanning several industries. Nonetheless, the Board of Investment promotes projects involved with the production of metallic parts or goods derived from metals. This includes both finished goods sold directly to end users as well as products to be sold to other manufacturers for the purpose of producing finished goods. The Board of Investment categorizes this primarily into three parts: products made from metals or alloy powders, products made from regular metals or metallic parts, and other metallic products or parts. Each are given different sets of incentives depending on which is most relevant to the project.

Conditions

• Projects that manufacture products derived from metal or alloy powder are eligible for A3 privileges and are required to have a sintering process.
• Those manufacturing products made from regular metals or metallic parts are eligible for A3 privileges. They must involve a metal forming process following the use of an induction furnace for iron/steel casting or forging.
• Those involved with the production of other metal products or parts can be eligible for either A4 or B1 privileges. Activities which include a continuous forming process from pressing, pulling, casting, or forging or non-ferrous metals can be granted A4 privileges whereas those involving machining and stamping can be granted B1 privileges.

The production of metallic products in Thailand are by no means monolithic and are an amalgamation of different products spanning several industries. Nonetheless, the Board of Investment promotes projects involved with the production of metallic parts or goods derived from metals. This includes both finished goods sold directly to end users as well as products to be sold to other manufacturers for the purpose of producing finished goods. The Board of Investment categorizes this primarily into three parts: products made from metals or alloy powders, products made from regular metals or metallic parts, and other metallic products or parts. Each are given different sets of incentives depending on which is most relevant to the project.

Conditions

• Projects involved with the forming process of engine parts such as cylinders, crank cases, and connecting rods are eligible for A4 privileges.
• Those involved with the assembly of multipurpose engines or equipment are eligible for B1 privileges.

The production of machinery in Thailand is a crucial industry that supports the majority of the Kingdom’s largest sectors, namely manufacturing and automotive. While the industry has grown significantly over the last few decades, gaps in its development still remain especially given the rise in automated machinery and other complex technologies. The Board of Investment therefore wishes to promote projects engaged in these activities to elevate the machinery sector in Thailand. As a result, the Board provides a number of privileges to projects involved with the production of machinery, equipment, and mechanical parts, particularly automated machinery such as robots.

Conditions

• The production of automated machinery or equipment that possess include engineering designs such as control system configurations are eligible for either A1 or A2 privileges. Those that integrate automation systems are eligible for A1 privileges, whereas those without them will be eligible for A2 privileges.
• The production of machine equipment or parts are eligible for A3 privileges. Projects must include part-forming processes as well as an engineering design process.
• Assembling machinery and machine equipment are eligible for A4 privileges. However, assembling processes must be approved by the Board.
• Assembling robots, parts, or equipment for automated machinery are eligible for A3 privileges.

Given the significant role played by Thailand’s automotive industry in the country’s economy, the production of automobile engines plays an important role as a supporting activity to facilitate the production of automobiles not only for domestic consumption, but also for export. The Board makes a distinction between the production of engines for automobiles and those for motorcycles.

Conditions

• Project producing engines for automobiles are eligible for A3 privileges. Projects must also integrate forming processes of at least 4 of the following: cylinder heads, cylinder blacks, crankshafts, camshafts, and connecting rods. If projects do not have these processes but still possess a Board-approved assembly process, they will be eligible for A4 privileges.
• Projects producing motorcycle engines are eligible for A3 privileges. Projects must also integrate forming processes of at least 4 of the following: cylinder heads, cylinder blacks, crankshafts, camshafts, and connecting rods.

Thailand’s automotive industry is undoubtedly one of its largest sectors, contributing significantly to the country’s exports. This makes the production of vehicle parts a very important supporting industry in order to help automotive manufacturers meet both domestic and international demand. The Board of Investment has listed a number of parts that projects can produce in order to be eligible for privileges. They are listed accordingly, each having different sets of privileges.

BOI Privileges

Eligible for A2 privileges

Eligible for A3 privileges