Manufacturing & Trade

Sector Focus

Manufacturing & Trade

Legal counsel for manufacturers, industrial operators, importers, exporters, and supply chain businesses operating in Thailand.

Thailand as a Manufacturing and Trade Hub

Thailand occupies a central position in Southeast Asian manufacturing — home to major automotive, electronics, food processing, chemicals, and logistics sectors. The country offers strong infrastructure, a skilled workforce, and a well-developed BOI incentive framework that continues to attract inbound industrial investment. For businesses looking to manufacture in Thailand, export into or out of the country, or build regional supply chains, the legal environment rewards careful structuring.

We advise manufacturers, trading companies, logistics operators, and industrial investors on market entry, operational legal matters, regulatory compliance, and commercial disputes.

Market Entry & Investment Structures

Manufacturing and trading activities in Thailand are subject to the Foreign Business Act. While manufacturing for export generally benefits from FBA exemptions, domestic sales may require specific structuring. We advise on:

BOI Promotion

BOI-promoted manufacturers gain land ownership rights, import duty exemptions, corporate income tax holidays, and the right to bring foreign skilled workers. We manage the full application, compliance, and amendment process.

Industrial Estate Setup

Operating within IEAT-designated industrial estates provides land ownership rights for foreign-owned companies, simplified customs procedures, and a stable operating environment. We advise on estate selection, lease or purchase structures, and IEAT compliance.

Trading Company Structures

Foreign majority trading companies generally require FBA licences. We advise on FBA licence applications, representative office structures for market exploration, and compliant Thai majority holding structures.

Acquisitions & JVs

Acquiring or partnering with existing Thai manufacturers — due diligence, regulatory change-of-control approvals, BOI transfer applications, and joint venture structuring.

Factory Licences & Regulatory Compliance

Manufacturing operations in Thailand require compliance with an interconnected set of regulatory frameworks. Operating without required licences creates criminal exposure for factory operators and directors.

  • Factory Act Licences — Factory licences from the Department of Industrial Works are required for most manufacturing operations. Licence type depends on factory size, power usage, and industrial activity. We advise on applications, amendments, and compliance with conditions.
  • Environmental Permits — Environmental Impact Assessment requirements, Environmental Management Plans, wastewater discharge permits, and hazardous waste management licences under the Factory Act and Enhancement and Conservation of National Environmental Quality Act.
  • Hazardous Substance Licences — Import, manufacture, use, and disposal of hazardous substances require registration with and licences from the Department of Industrial Works.
  • Product & Import/Export Compliance — Standards Institute (TISI) product certification, customs classification, import licensing for restricted goods, and export control compliance.

Commercial Contracts & Supply Chains

Manufacturing and trading operations depend on robust contractual frameworks. A well-drawn commercial contract protects your position when a supplier fails, a customer refuses to pay, or a distributor underperforms.

Supply & Procurement Contracts

Raw material supply agreements, price variation mechanisms, quality standards, delivery terms, and remedies for non-conforming goods.

Distribution Agreements

Exclusive and non-exclusive distribution arrangements, territory rights, minimum purchase commitments, and termination provisions compliant with Thai law.

Manufacturing Agreements

OEM and contract manufacturing agreements, tooling ownership, IP assignment, quality control, and liability for defective products.

Logistics & Warehousing

3PL agreements, bonded warehouse arrangements, customs brokerage terms, and liability for loss or damage in transit.

IP & Technology Licensing

Technology transfer agreements, royalty structures, trademark licensing for Thai manufacturing operations, and know-how protection.

Commercial Disputes

Supplier payment disputes, buyer rejection of goods, distributor termination claims, and defective product liability — through negotiation, arbitration, or litigation.

Employment & Workforce

Manufacturing businesses in Thailand employ large workforces and must navigate a detailed employment law framework. Common issues include:

  • Work Rules & Contracts — Drafting compliant work rules, employment contracts, and HR policies for large Thai and foreign workforces.
  • Foreign Worker Permits — Work permits and visa management for foreign technical staff and executives — including BOI quota management.
  • Redundancy & Restructuring — Managing workforce reductions in compliance with the Labour Protection Act — severance calculations, notice requirements, and unfair dismissal risk management.
  • Industrial Relations — Union recognition, collective bargaining, labour disputes, and managing the labour court process.

Talk to Our Manufacturing & Trade Team

Whether you are setting up a new factory, managing supply chain contracts, or dealing with a regulatory investigation, we provide practical legal advice built for industrial businesses.