A Production in Thailand is massively promoted by the Thailand Board of Investment (BOI). The financial incentives are high, yet the ISO-regulated procedure for a BOI Approval requires good knowledge of the BOI Thailand’s expectations towards the investor and a thorough application process.
The Sanet Group, which has been a reliable partner for Western companies since 2004 when it comes to finding a strategy and setting up sales or production in Thailand, explains the main features:
The Thai Ministry of the Interior has been commissioned to examine the implementation of new regulations. In addition to an extension of rental and leasehold rights from 30 to 99 years, majority foreign ownership of up to 75% of residential properties is also intended to be possible in the future. The aim of the regulations is to boost Thailand’s economy and to create more opportunities to encourage investment in Thailand.
Thailand Board of Investment (BOI) has introduced new guidelines to promote sustainable development. Effective April 30th, 2024, the guidelines encourage businesses to adopt energy-saving practices, renewable energy, and pollution reduction measures. In return, companies can receive significant tax and customs incentives. This initiative positions Thailand as a prime destination for eco-conscious investors, aligning economic growth with environmental responsibility.
It is not every year that a company plans foreign investments, and the best “blueprints” cannot be adopted for a new project without risk. Planning the organization of a project carefully is decisive not only for the smooth running of the project. A lack of preparation inevitably leads to expensive, subsequent adjustments and delays in the start of your production in Thailand and thus the return on investment.
The Sanet Group in Bangkok has been supporting foreign investments in Thailand for around 20 years, not seldom from the initial workshop and strategy finding to the start of production.
Thereby, it has proven itself time and again that the management pays full attention to the following planning principles:
• Proactive communication of the project with stakeholders
• The proper composition of the project team
• Agreed project and reporting rules
• Selecting and involving of external support
As a consultant and “cultural ambassador”, Sanet helps a German machine builder with its Joint Venture in Thailand.
The German machine manufacturer held 75% of a sales and service Joint Venture in Thailand. A Thai partner owned 25% of the shares and managed the business single-handedly and largely without any direct intervention by the German majority partner. Little attention was paid to the Thai subsidiary.
The earnings were okay, but the sales figures were not impressive enough to make the Thai company the focus of the group management. After the company was established in Thailand, the German Controller came once a year for the annual accounts and soon returned home without any major problems. Market shares, market policy and the local company management were largely unaware of the situation at headquarters.
The surprise came as soon as the Thai partner wanted to introduce a successor.
