Estates | Industrial
The Invesment Promotion Drive
To promote investment in Thailand,
in addition to BOI, the government has set up several
specialized agencies and institutions to help with the
physical implementation of industrial projects.
To cope with the problems of major
cities and to fulfill regional development objectives.
The Industrial Estate Authority of Thailand (IEAT) was
established in 1979 as a state enterprise. The government
aimed to accelerate industrialization and urban development
planning through implementation of well-equipped industrial
locations as a way to help solving the problems of urban
Industrial estates provide a wide range of public utilities
and facilities such as roads, sewers, central waste-water
treatment plants, electricity, and telecommunications
together with necessary services such as post and telegraph
offices, banks, residences, and oil service stations.
There are two categories of industrial estates: a General
Industrial Zone (GIZ), intended for industries of other
business beneficial or related to industries, and an
Export Processing Zone (EPZ), designated for export
Firms located in an EPZ are exempt
from import duties on machinery, equipment, inputs needed
for the manufacture of exports, and export duties Custom
officials are stationed at the EPZ to monitor the imported
raw materials and exported finished goods, and firms
in the EPZ do not have to put up any form of guarantee.
Industrial estates were initially
the almost exclusives domain of the Industrial Estate
Authority of Thailand, but now the private sector and
joint-ventures with the IEAT can establish industrial
estates. There are now more than three dozen industrial
estates in all regions of Thailand, and more are under
construction. The vast majority of these industrial
estates have received promotional privileges from the
Board of Investment and must comply with strict standards
with regard to factory facilities and utilities. So,
investors seeking factory facilities are faced with
a growing number of choices.
The Eastern Seaboard Development Programme,
which was launched in 1981, has the aim of promoting
industrial development and decentralizing the economy.
This project is comprised of two principal locations,
Map Ta Phut, and Laem Chabang.
Map Ta Phut, a designated industrial
zone with an area of 6,000 rai, located about 200 km.
southeast of Bangkok has become the centre of a fully-integrated
petrochemical complex based on a supply of natural gas
from the Gulf of Thailand. The zone will also have a
deep-sea port and serve as an industrial estate for
capital and technology-intensive concerns and all are
Laem Chabang, located in Chon Buri
Province with an area of 3,556 rai, 155 km. southeast
of Bangkok and about 15 km. north of the resort town
of Pattaya, will have a deep-sea port, a general industrial
zone and an EPZ, as well as commercial areas. Industries
set up here will be principally light, labour-intensive,
and non-polluting. The land is still available for rent
in EPZ only.
Standardization is an essential tool
for the development of the economy and industry of the
country. Realizing the importance of standardization,
the Ministry of Industry promulgated the Industrial
Product Standards Act in 1968 which established the
Thai Industrial Standards Institute (TISI) as the national
standards body responsible for standardization activities
in Thailand. The objectives of TISI are to increase
the reliability and the popularity of the local products,
to provide a basic of fair trade and fair practice environment,
to eliminate barriers to trade, to guarantee the safety
and protection of the people and public property, and
to save resources and cost in production while keeping
pace with the development of industry.
The Institute, in its capacity as
the national standards body, represents Thailand as
member of various international organizations (both
regional and global) to participate in the formulation
of opinions and rulings on issues that may affect the
In 1991, the Institute announced the
adoption of TIS/ISO 9000 series as National Standard
for Quality Systems. This is, in every aspect, similar
to the international ISO 9000 series established by
the International Organization for Standardization and
to the European Standards EN 29000. With this world
class standard, the industry of Thailand will become
more competitive in the international market.
The Institute has formulated many
standardization issues concerning environmental protection
and the enhancement of the quality of life. It has also
overseen the promulgation of a Royal Decree requiring
many products to conform to standards. To enforce this
law, the Institute works in close cooperation with other
government bodies. The industrial standards of Thailand
have now achieved international acceptance.