If you are looking for the right investment that is forward thinking and profitable, buying a factory in Thailand could well be it. Thailand is the second largest economy in South East Asia and it is only growing stronger. It is well on the way to industrialisation, and this could well be the perfect time to get in on the ground floor. With a reputable, fast growing, and successful economy, buying a factory in Thailand is definitely worth looking into today.
Can foreigners buy a factory in Thailand?
The first thing to check is whether or not you can actually purchase property at all, and the answer here is yes you can. However, it isn’t always easy and there are several criteria that must be met. If you think it is tough to buy a house, then it can be even harder to buy a factory or other type of property in Thailand, but there are a couple of exceptions.
A foreign owned company can buy land for the purpose of manufacturing if the factory would be inside an industrial estate, or with the backing of the Board of Investment (BOI). If your project is backed by the BOI you can go ahead and buy land, but this can take time. That, and if and when your business ceases to operate, you cannot keep the land.
Building your factory on an industrial estate has similar constrictions and benefits, but with a few added extras that can make it a preferable choice.
The benefits of buying on an Industrial Estate
As mentioned, you can buy land and build your factory on an industrial estate, though not an industrial park, as an exception to the prohibitions on foreigners owning land. There are many benefits to taking this option, and here are a few of them to get you started:
- An industrial estate is already set up – infrastructure should already be in place, with easy maintenance and many other added bonuses to make life easier.
- There is likely to be less red tape and need for permits than building off site – if you decide to go with the BOI backing and build elsewhere, you will have to conduct an Environmental Impact Assessment, organise a Factory License, and there can be other hoops to jump through and expenses to be met. These are not usually needed when building on an industrial estate however.
- The Industrial Estate Authority of Thailand (IEAT) also offers further benefits for your business.
Though it can be tricky to get started in Thailand, if you follow the rules and go through the BOI or buy a factory on an industrial estate, you can indeed set up your manufacturing business and see your investment pay off. An industrial estate offers many benefits that can help get you up and running quicker and with fewer potential risks as well. Thailand is the right place and this is the right time, so start planning today and see how your investment here could grow.
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