Candle Manufacturing in Thailand: Production Setup, Industrial Parks, and Industrial Zones

The number of companies with foreign participation in Thailand is growing every year, and entrepreneurs are becoming increasingly inventive. While many business niches may seem saturated, new entertainment concepts, туристические программы, and innovative retail formats continue to emerge.

However, most foreign entrepreneurs still focus on services and tourism-oriented businesses. At the same time, Thailand’s favorable tax environment and investment legislation are designed to support large-scale businesses and industrial investments. Many international companies relocate part of their production to Thailand for one simple reason: it is profitable.

How to Set Up Manufacturing

Key legal requirements for establishing a factory can be found in the Factory Act B.E. 2535 and related regulations issued by the Ministry of Industry.

To determine the most efficient structure for production, investors should explore industrial parks listed by the Thailand Board of Investment. Major estates such as Amata Nakorn, Amata City, Hemaraj Industrial Estate, and Chonburi Industrial Estate are located along Thailand’s Eastern Seaboard, near Suvarnabhumi Airport and major seaports.

Industrial Parks and Zones

Within industrial parks, companies can:

Lease or purchase ready-to-use factory facilities
Acquire land plots for custom construction

Industrial zones are typically divided into:

Free Zone – offers significant tax and customs privileges
General Zone – standard industrial operations

Companies operating in Free Zones may qualify for BOI support, including:

Exemption from import duties on machinery
Exemption from import duties on raw materials (up to 5 years for export production)
Corporate income tax exemption (up to 8 years)
Double deduction of transportation, electricity, and water costs (up to 10 years)

Additional Benefits for Investors

100% foreign ownership of companies, including land ownership rights
In some cases, a requirement for Thai shareholders depending on business type
Foreign shareholders/directors may purchase up to 1 rai (1,600 sq.m.) of land for residential use near the company, provided the investment exceeds 40 million baht
Simplified employment procedures for foreign specialists, with visas and work permits obtainable in as little as one day

Factory Classification

Under Thai law, a factory is defined as any facility using machinery of 5 horsepower or more, or employing 7 or more workers for production-related activities.

Factories are divided into three categories:

Low-regulation factories – can operate without prior approval
Notification-based factories – require informing the Ministry of Industry
Licensed factories – require official permits (also for expansion)

The level of regulation depends largely on environmental impact: the lower the impact, the fewer the requirements.

Regulatory Requirements

The Ministry of Industry sets rules regarding:

Location and environmental standards
Machinery and equipment
Worker qualifications
Production processes and safety
Waste management
Documentation and reporting obligations

Factories are prohibited from operating in residential areas (houses, condominiums, townhouses) and must be located:

At least 50 meters from public places (schools, hospitals, etc.)
At least 100 meters for higher-risk (Category 3) factories

Why Thailand?

Thailand is currently experiencing an industrial boom. Over recent decades, many global manufacturers have established production facilities here. Products from brands like Honda, Toyota, and Canon are successfully produced in the country.

Many corporations are also considering relocating production from other countries due to:

Favorable investment climate
Strategic geographic location
Excellent global logistics access
Affordable skilled labor
Year-round production capabilities

Large areas in provinces such as Chonburi Province and Rayong Province have been designated for industrial use. One of the closest major industrial hubs is Amata Nakorn, which offers not only production facilities but also developed infrastructure, including schools, hospitals, the Thai-German Institute of Technology, restaurants, and even the Amata Spring Country Club.