1. Machinery
and Metalworking

2. INDUSTRY OVERVIEW
Thailand’s machinery and metalworking
industries currently employ a labor force of
around 400,000 people and are comprised of
approximately 50,000 enterprises.
The limited supply of domestic high-end
machinery and parts has left downstream
Thai industries to look for imports. Machinery
and parts currently rank in Thailand’s top
5 most imported goods with US$12.57
billion worth imported in 2009. Japan was
the primary source with 24.6% of the total,
followed by China (21.3%) and the US
(9.4%). Electrical machines and apparatus
with individual functions (HS 8543) were
the leading products with US$ 9.78 million
imported in 2009. Opportunities exist for
suppliers to capitalize on this growing
demand for more sophisticated machinery by
providing domestic downstream industries
with a local source.
Machinery and Parts: Imports and Exports
2004 – 2010 (Jan-Feb)
Billion Baht
Import
Export
2004
385.77
143.34
2005
440.83
179.12
Source: Ministry of Commerce, Thailand
2006
434.36
200.93
2007
426.34
288.41
2008
495.89
303.41
2009
431.77
274.07
2010 (Feb)
77.56
57.18

3. Top 5 Machinery and Parts Imports, 2009
Code
Description
8543 Electrical machines and apparatus, having
individual functions
8414 Air or vacuum pumps, air or other gas
compressors and fans
8411 Turbo-jets, turbo-propellers and other gas
turbines
8443 Printing machinery used for printing by means of
the printing type, blocks
8418 Refrigerators, freezers and other refrigerating or
freezing equipment
US$ Million
978
932
918
748
721
Top 5 Machinery and Parts Exports, 2009
Code
Description
8443 Printing machinery used for printing by means of
the printing type, blocks
8418 Refrigerators, freezers and other refrigerating or
freezing equipment
8429 Self-propelled bulldozers, angledozers, graders,
levellers, scrapers, mechanical shovels,
excavators
8414 Air or vacuum pumps, air or other gas
compressors and fans
8543 Electrical machines and apparatus, having
individual functions
US$ Million
231
223
177
175
145
Thailand’s status as a regional export hub
allows local machinery and parts suppliers
to benefit from the economic growth of its
neighbors. Exports have grown by over 90%
since 2004 to over US$8 billion a year. Rapid
development in the region coupled with
favorable trade relations after the signing
of the ASEAN Free Trade Agreement (AFTA)
sparked this recent rise in Thai machinery
and parts exports. The trend of export
growth looks likely to continue as demand
from developing nations such as Vietnam,
Malaysia and Indonesia grows.

4. AGRICULTURAL
MACHINERY
Thailand is flush with agricultural resources
and the machinery to make efficient use
of these resources in the fields and on the
processing floor is in high demand. Major
suppliers of agricultural machinery in
Thailand currently fall short of meeting this
demand. The domestic market instead turned
to imports, which increased by over 80% over
five years to a level of US$548 million in 2009.
While importing more modern equipment for
use in its fields, Thailand has also increased
its exports of agricultural machinery. The five
years leading up to 2009 have seen exports
of machinery rapidly increase by 77%, with a
considerable portion going to fellow ASEAN
members such as Laos and Cambodia. The
top export categories of agriculture machinery
in 2009 were tractors, and machinery for
cleaning, sorting and grading seed and grain.
MACHINE TOOLS
Growth in Thailand’s automotive and E&E
industries is expected to fuel demand for
modern machine tools. Automotive and auto
parts firms are the biggest buyers of machine
tools, purchasing 35% of the domestic market.
The supporting metalworking industry
follows with 27% while the E&E industry
buys 14%. With a limited number of domestic
enterprises specializing in the manufacture
of machine tools, most of the demand is met
by imports which totaled US$1.20 billion in
2009.
In 2009, the top three exported categories of
machine tools were parts and accessories for
machines; machine tools for the removal of
material; and lathes for removing metal.

5. Industrial Machinery and Parts,
Imports and Exports, 2004-2010(Feb)
Import
Export
2004
9.36
3.88
2005
10.66
4.88
2006
10.35
5.49
2007
10.43
7.99
2008
11.98
8.38
2009
10.82
7.72
2010 (Feb)
1.94
1.60
Source: Ministry of Commerce Thailand
CNC MACHINE TOOLS
INDUSTRY MACHINERY
Reflecting a growing demand, Thailand’s
market for computer numerical controlled
(CNC) machine tools remains heavily
dependent on imports, half of which
come from Japan, and the machinery and
metalworking industry is keen to source
more of these sophisticated machine tools
domestically.
Thailand’s world class downstream
manufacturing industries have boosted
imports of industrial machinery, while the
industrial machinery industry itself has
rapidly developed as an exporter.
Imports in 2009 totaled US$10.82 billion,
marking a 16% increase since 2004. Printing
machinery (HS 8433) saw the biggest
In 2009, total imports of CNC machine tools increase in the same year with a 108% rise
were worth US$87.45 million. Total exports from US$1.8 billion in 2008 to US$3.6 billion.
that year were worth US$10.55 million, with
the top-exported categories of CNC machine In the five years leading up to 2009, Thailand’s
tools being lathes and horizontal lathes exports of industrial machinery more than
(including turning centers) for removing doubled to a level of US$7.7 billion. The
metal.
main exports of industrial machinery were
printing machinery, refrigerating & freezing
equipment, and air or vacuum pumps, gas
compressors and fans. Printing machinery
was the greatest export gainer in 2009 with
an increase of 33.8% from US$0.97 billion to
US$1.3 billion.

6. MOULD AND DIE
FOOD PROCESSING
AND PACKAGING
MACHINERY
Moulds and Dies are essential inputs for
downstream manufacturing. With Thailand’s
automotive and electronics/electrical
appliances (E&E) industries expected to
grow, the prospects for the mould and die
industry are just as bright. The Mould and Die
Industry Development Project aims to reduce
dependence on imports by more than 3% and
increase the value of exports by about 5% by
creating added value for the industry.
According to a Thai Tool and Die Industry
Association (TDIA) survey, there are
approximately 1,061 mould and die factories
in Thailand. Of these factories, 90% produce
More than 10,000 food processing companies moulds and dies for plastic and metal, while
currently exist in Thailand to create a healthy the rest produce those for rubber, glass and
demand for processing and packaging ceramics. A majority of moulds and dies
equipment, with the domestic market for are utilized by Thailand’s automotive and
such equipment having grown 20% annually E&E industries. Stamping, progressive and
for the past several years. Imports comprise forming are the most common types of metal
a large portion of this market – with a total mould, while injection and blow are plastic
value of nearly US$263 million in 2009 – and moulds widely used by the auto and E&E
most come from advanced economies such makers as well as the packaging industry. The
as Japan (33%), Germany (30%), US (22%) and automotive industry is expected to expand
output of vehicles in 2010, and accordingly
Italy (15%).
die casting used in the manufacturing of
The most imported food processing and such items as engine blocks, crank shafts,
packaging machinery by value was machinery front cases, oil pans, gear boxes and auto
for filling, closing, sealing, capsiling, or safety parts present particularly attractive
labeling bottles, worth over US$100 million in opportunities.
2009, the biggest increase in imports over the
last three years with a growth value of 32%. Local mould and die manufacturers are
only partly able to meet the increasingly
Import categories that rose in 2009 included sophisticated demands of Thailand’s
machinery and apparatus for filtering or downstream industries, leaving a significant
purifying water (8.6%) and machinery for the opportunity in the market to higher quality
mould and die imports from foreign
preparation of meat and poultry (3.7%).
manufacturers. Japan is the source of around

7. understanding and improving procedures
and management; since the project began,
39 enterprises have received ISO 9001:2000
certification and 81 enterprises have
developed programs for compliance with ISO
9001:2000 standards.
Major Mould & Die Clusters in
Thailand
half of the total mould and die imports, with
China a distant second followed by Taiwan 1. Mould & Die Cluster of Thailand (MDCT):
most members are located around
and Korea. In 2009, Thailand imported US$568
Bangkok, Samutprakan, Chachoensao
million worth of moulds and dies and exported
and Rayong.
US$203.5 million mainly to Japan, US and
China. Closing this trade deficit presents an 2. Thai Mould and Parts Cluster (TMPC):
most members are located around
investment opportunity in Thailand’s mould
Bangkok, Samutsongkram and
and die industry, which is made even more
Samutsakorn.
attractive by growing downstream sectors
3. Thai Mould and Die Industry Assiciation
and a supportive government.
(TDIA): most members are located
around Bangkok.
In order to advance the sector, the Thai
government has initiated the Mould and Die 4. Nano Global Precision Cluster (NGPC):
most members are located around
Industry Development Project for 2010-1014.
Bangkok, Phatumtani and Ayutthaya.
This project supports 20 industry related
educational institutes and has invested in
the expansion of 225
mould factories. It has
Thailand’s Top Import and Export locations for
surpassed its original
Moulds and Dies, 2009
aim of establishing
5 mould excellence
Import Origins
Export Destinations
centers with public and
Country
Value
Country
Value
private funding, having
US$ Million
US$ Million
established 7 as of
June 2008. One of the 1 Japan
343.48
1 Japan
64.40
many functions of the
59.59
2 India
27.33
excellence centers is to 2 China
train mould technicians 3 Taiwan
47.69
3 USA
19.19
and since the opening
36.96
4 China
11.76
of the centers 4,426 4 Korea
t e c h n i c i a n s h a v e 5 Singapore
19.88
5 Malaysia
11.64
been successfully
15.82
6 Vietnam
11.45
trained. The project 6 Malaysia
als o a i ms to r ai s e 7 USA
7.37
7 Indonesia
10.97
production standards
5.54
8 Singapore
3.94
to make Thailand more 8 Germany
c o m p e t i t i v e i n t h e 9 Hong Kong
4.99
9 Germany
3.61
world market both by
4.50
10 Canada
3.46
enhancing technical 10 Canada

8. WHY THAILAND
There are many reasons to choose Thailand as
your machinery and metalworking production
base. Among other things, Thailand boasts:
Strong Business Climate – In Doing
Business 2010, the World Bank ranked
Thailand 12th in the world and 3rd in East
Asia and Pacific for ease of doing business.
Machinery and Mould & Die
Clusters - In order to foster greater
productivity and efficiency in the industry, the
government has encouraged the development
of national machinery and mould & die
clusters. Proximity between firms and their
input suppliers allows for not only enhanced
communication, but also improved flow of
goods.
Growing Domestic Demand
–
Thailand’s dynamic manufacturing industries
have established a presence in world markets
and are expected to expand even further,
while urban development and infrastructure
projects fuel a growing construction industry.
All of these increases in economic activity
rely on the machinery and metalworking
industries for support, making prospects for
these industries very bright indeed.
- Automotive Industry
- Food Processing Industry
- Southeast Asia’s largest vehicle
- World’s largest exporter of rice,
producer and world’s 2nd largest
sugar, cassava, processed chicken,
producer and market of pick-up
canned and frozen seafood and
trucks
processed pineapple products
- Thailand is the world’s 13 largest
- World’s 19th largest agriculture
automobile manufacturing country
output
- Production of vehicles to reach 1.4
- Construction Industry
million in 2010
- Construction industry is expected to
- Electronics/Electrical Appliances Industry
grow at an annual rate of 5.5% from
- World’s #1 HDD components
2008-2012
manufacturing base (1.4 million in
- Public investments totaling up to
2010)
US$14 billion planned for expanding
- World’s 4th largest producer and 9th
roads and mass transit (MRT,
largest exporter of air conditioning
Skytrain) in and around Bangkok
units

9. Thailand’s extensive road networks, world
class deep sea ports, such as Laem Chabang
Deep Sea Port, and a new international airport
make exporting easy and efficient.
Competitive Workforce – Thailand
not only boasts relatively low labor costs,
but also has an exceptionally well-educated
workforce. Literacy rates are uncommonly
high at 96%. Currently, 56 public and
private engineering institutes in Thailand
are accredited by the Council of Engineers.
There were 111,314 Thai graduates in science
technology and engineering in 2009.
Investor-friendly Environment – In
addition to the many incentives provided
by the BOI, the Thai government imposes
no export requirements, no local content
requirements, no location requirements,
and no foreign equity restrictions on
manufacturers.
Access to Markets – Thailand has
successfully negotiated many free trade
agreements (FTAs). These FTAs include those
with ASEAN member nations, Australia,
New Zealand and Japan. Thailand’s prime
location in the heart of Southeast Asia and its
membership in the ASEAN Free Trade Area
(AFTA) allow Thailand unparalleled access
to ASEAN’s market of 550 million people.
The tariff on machinery exported to ASEAN
nations was eliminated at the outset of 2010.
Great Infrastructure
– There are
many industrial estates which focus on the
metalworking and machinery industries and
provide them with state-of-art facilities.
Excellent Institutional Support –
the Thai government is aware of the need
to support the continued development of the
machinery and metalworking industries, as
well as the technological capabilities of its
workforce. Thailand offers many resources
for research and development (R&D),
technical training and industrial organization,
including:
- Thai-German Institute (TGI)
- National metal and Materials Center
(MTEC)
- Bureau of Supporting Industries
Development (BSID)
- Metal-working and Machinery Industry
Development Institute (MIDI)
- Thai Tool and Die Industry Association
(TDIA)
- Thailand’s Institute of Scientific and
Technology Research
- Thailand-Japan Technology Promotion
Association (TJTPA)
- Metals and Materials Research Center –
Kasetsart University

10. BOI INCENTIVES FOR
THE MANUFACTURE
OF MACHINERY AND
MACHINE TOOLS
The Board of Investment offers a host of fiscal
and non-fiscal incentives and investment
services that range from corporate tax
exemptions to assistance with work permits
and product sourcing for the manufacture of
a wide range of machinery, equipment and
parts.
Manufacture of machinery, equipment or parts
that have engineering design; manufacture
of farm machinery or equipment and food
processing machinery or equipment; and
manufacture of energy-conserving; machinery
or equipment and machinery or equipment
which uses alternative energy are classified
as priority activities of special importance
and benefits to the country. As such, they
receive an eight-year corporate income tax
holiday and are exempt from import duties
on machinery, regardless of location, as
well as other location-based incentives, and
are not subject to the corporate income tax
exemption cap.
Manufacture or repair of moulds and dies and
manufacture of other machinery, equipment
and parts are classified as priority activities
and receive an eight-year corporate income
tax holiday and are exempt from import
duties on machinery, regardless of location,
as well as other location-based incentives.
The BOI also offers location-based incentives
for the manufacture of hand tools and
measuring tools, manufacture of metal
products, including metal parts, while the
manufacture of sintered products and the
manufacture of steel products or parts that
contain metal casting process using induction
furnace or forging process in the project are
treated as priority activities.

11. BOI ZONING MAP

12. BOI OFFICE ADDRESS
OFFICE OF THE BOARD OF INVESTMENT
555 Vibhavadi-Rangsit Road, Chatuchak,
Bangkok 10900, Thailand
Tel: +66 (0) 2553 8111
Fax: +66 (0) 2553 8222
E-mail: head@boi.go.th
Website: www.boi.go.th
Regional Offices
ONE STOP SERVICE CENTER
FOR VISAS AND WORK PERMITS
18th Floor, Chamchuri Square Building
Phayathai Road, Pathumwan,
Bangkok 10330, Thailand
Tel: +66 (0) 2209 1100
Fax: +66 (0) 2209 1194
E-mail: visawork@boi.go.th
ONE START ONE STOP
INVESTMENT CENTER
18th Floor, Chamchuri Square Building
Phayathai Road, Pathumwan,
Bangkok 10330, Thailand
Tel: +66 (0) 2209 1100
Fax: +66 (0) 2209 1199
E-mail: osos@boi.go.th
Website: osos.boi.go.th
CHIANG MAI
Regional Investment and Economic Center 1
Airport Business Park 108-110, 90 Mahidol Road,
Amphur Muang, Chiang Mai 50100
Tel: +66 (0) 5320 3397-400
Fax: +66 (0) 5320 3404
E-mail: chmai@boi.go.th
SONGKHLA
Regional Investment and Economic Center 5
7-15 Chaiyong Building Juti Uthit 1 Road, Hadd Yai,
Songkhla 90110
Tel: +66 (0) 7434 7161-5
Fax: +66 (0) 7434 7160
E-mail: songkhla@boi.go.th
NAKHON RATCHASIMA
Regional Investment and Economic Center 2
2112/22 Mitraphab Road, Amphur Muang,
Nakhon Ratchasima 30000
Tel: +66 (0) 4421 3184-6
Fax: +66 (0) 4421 3182
E-mail: korat@boi.go.th
SURAT THANI
Regional Investment and Economic Center 6
49/21-22 Sriwichai Road, Makhamtia, Amphur Muang,
Surat Thani 84000
Tel: +66 (0) 7728 4637, +66 (0) 7728 4435
Fax: +66 (0) 7728 4638
E-mail: surat@boi.go.th
KHONKAEN
Regional Investment and Economic Center 3
177/54 Moo 17, Mitraphab Road, Amphur Muang,
Khonkaen 40000
Tel: +66 (0) 4327 1300-2
Fax: +66 (0) 4327 1303
E-mail: khonkaen@boi.go.th
PHITSANULOK
Regional Investment and Economic Center 7
Thai Sivarat Building 3rd Floor,
59/15 Boromtrilokkanat 2 Road,
Naimuang District, Amphur Muang, Phitsanulok 65000
Tel: +66 (0) 5524 8111
Fax: +66 (0) 5524 8777
E-mail: phitsanulok@boi.go.th
CHONBURI
Regional Investment and Economic Center 4
46 Moo 5 Laem Chabang Industrial Estate,
Sukhumvit Road, Toongsukhla, Sriracha,Chonburi 20230
Tel: +66 (0) 3840 4900
Fax: +66 (0) 3840 4999
E-mail: chonburi@boi.go.th
Overseas Offices
BEIJING
Thailand Board of Investment, Beijing Office
Royal Thai Embassy, No.40 Guang Hua Road,Beijing 100600, P.R.C.
Tel: +86 10 6532 4510
Fax: +86 10 6532 1620
E-mail: beijing@boi.go.th
FRANKFURT
Thailand Board of Investment, Frankfurt Office
Royal Thai Embassy, Bethmannstr. 58, 5.OG 60311
Frankfurt am Main Federal Republic of Germany
Tel: +49 (0) 69 9291 230
Fax: +49 (0) 69 9291 2320
E-mail: fra@boi.go.th
GUANGZHOU
Thailand Board of Investment, Guangzhou Office
Investment Promotion Section, Royal Thai Consulate-General,
Room 1216-1218, Garden Tower, 368 Huanshi Dong Road,
Guangzhou 510064, P.R.C.
Tel: +86 20 8333 8999 Ext.1216-8, +86 20 8387 7770
Fax: +86 20 8387 2700
E-mail: guangzhou@boi.go.th
LOS ANGELES
Thailand Board of Investment, Los Angeles Office
Royal Thai Consulate-General, 611 North Larchmont Boulevard,
3rd Floor, Los Angeles CA 90004, U.S.A.
Tel: +1 (0) 323 960 1199
Fax: +1 (0) 323 960 1190
E-mail: boila@boi.go.th
SEOUL
Thailand Board of Investment, Seoul Office
#1804, 18 th Floor, Coryo Daeyungak Tower, 25-5,
Chungmuro 1-ga, Jung-gu, Seoul, 100-706, Korea
Tel: (822) 319-9998
Fax: (822) 319-9997
E-mail: seoul@boi.go.th
SHANGHAI
Thailand Board of Investment, Shanghai Office
Royal Thai Consulate-General, 15th Floor, Crystal Century Tower,
567 Weihai Road, Shanghai 200041, P.R.C.
Tel: +86 21 6288 9728-9
Fax: +86 21 6288 9730
E-mail: shanghai@boi.go.th
SYDNEY
Thailand Board of Investment, Sydney Office
Suite 101, Level 1, 234 George Street, Sydney,
New South Wales 2000, Australia
Tel: +61 2 9252 4884
Fax: +61 2 9252 2883
E-mail: sydney@boi.go.th
STOCKHOLM
Thailand Board of Investment, Stockholm Office
Stureplan 4C 4th Floor, 114 35 Stockholm, Sweden
Tel: +46 (0) 8 463 11 58, +46 (0) 8 463 11 72, +46 (0) 8 463 11 74-75
Fax: +46 (0) 8 463 11 60
E-mail: stockholm@boi.go.th
NEW YORK
Thailand Board of Investment, New York Office
61 Broadway, Suite 2810, New York N.Y. 10006, U.S.A.
Tel: +1 (0) 212 422 9009
Fax: +1 (0) 212 422 9119
E-mail: nyc@boi.go.th
TAIPEI
Thailand Board of Investment, Taipei Office
Taipei World Trade Center, 3rd Floor, Room 3E 39-40
No.5, Xin-Yi Road, Sec.5 Taipei 110, Taiwan R.O.C.
Tel: +886 2 2345 6663
Fax: +886 2 2345 9223
E-mail: taipei@boi.go.th
OSAKA
Thailand Board of Investment, Osaka Office
Royal Thai Consulate-General, Bangkok Bank Building, 5th Floor,
1-9-16 Kyutaro Machi, Chuo-Ku, Osaka 541-0056, Japan
Tel: +81 (0) 6 6271 1395
Fax: +81 (0) 6 6271 1394
E-mail: osaka@boi.go.th
TOKYO
Thailand Board of Investment, Tokyo Office
Royal Thai Embassy, 8th Floor, Fukuda Building, West
2-11-3 Akasaka, Minato-ku, Tokyo 107-0052, Japan
Tel: +81 (0) 3 3582 1806
Fax: +81 (0) 3 3589 5176
E-mail: tyo@boi.go.th
PARIS
Thailand Board of Investment, Paris Office
Ambassade Royale de Thailande, 8, Rue Greuze, 75116 Paris, France
Tel: +33 (0) 1 5690 2600-1
Fax: +33 (0) 1 5690 2602
E-mail: par@boi.go.th
BOI Fair 2011