Let’s think bigger. Thailand is not just Pattaya, business is not only tourism, investments are not limited to buying apartments, and trade is not just about souvenirs. Looking a bit deeper reveals many new and interesting opportunities.
The concept of industrial parks is not new. The law governing their operation under the Industrial Estate Authority of Thailand was adopted in 1979, while the first industrial park, Navanakorn Industrial Estate, was established in 1971. Today, there are 34 registered industrial parks in Thailand. Demand for land in these parks continues to grow, along with prices. What makes investors purchase expensive land, build new factories, or relocate production from other countries?
Why Industrial Parks Attract Investors
The conditions offered by industrial parks for manufacturing can be compared to those of a condominium for residential living. Just as a condo provides reliable utilities, security, and shared amenities, industrial parks offer businesses a fully equipped and secure environment for operations.
An industrial park is a designated area for industrial and related activities. Its main goal is to create the most favorable environment for companies already operating there while attracting new investors. In practice, this is achieved through several key mechanisms.
Legislative Incentives
- Foreign companies are allowed to own land within industrial parks
- Companies can employ the required number of foreign specialists along with their families, regardless of registered capital or the number of Thai employees
- Businesses can conduct transactions in foreign currency from within Thailand
Simplified Administrative Procedures
Industrial parks provide support in completing all necessary steps to launch operations, including:
- Obtaining land use and ownership licenses
- Construction permits
- Property registration
- Work permits and visas for foreign specialists
- Certification from the Thailand Board of Investment
Infrastructure and Living Conditions
Competition among industrial parks is high, and each strives to offer the best environment. This includes both production infrastructure and quality of life:
- Reliable water and electricity supply
- Telecommunications systems
- Waste management services
- Hospitals and wellness centers
- Educational institutions
- Shops and restaurants
Everything is designed to simplify operations and improve comfort. At the same time, it reflects Thailand’s broader investment policy: large-scale businesses are strongly supported, while smaller ventures may face more limitations, such as ownership restrictions and administrative procedures.
Author: Alexandra Agapitova.
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