Thailand Industrial Estates
Thailand industrial estates are one of the best and that are highly diversified estate in the world. The country of Thailand has more than thirty industrial estates that are primarily focused within the electronics industry, automobile industry as well as various consumer products such from household products to toys and etc. The IEAT or Industrial Estates Authority of Thailand encourages the industry to jointly manage and build estates. One of the largest benefits of this type of clustering is the reduction in ‘industrial sprawl.’ An entire area can be devoted to an industry making it easier for business to business relationships as well as maintain the looks of the rest of the area.
There are many benefits to be had from deciding to start up a company in Thailand industrial estates. For instance a partner that is local won’t be required of multinational investors as is the case in some areas Southeast Asia countries. Rayong’s Amata City can boast being home to the only Asian plant that enjoys 100% German ownership. This would be BMW, the company known for producing Germany’s elite automobiles. The rest of this company’s plants in Asian countries are forced by regulation into joint partnerships.
These Thailand industrial estates aren’t exclusively meant for those with bigger abilities. There are many of the middle guys who move closer to their suppliers so that the chain of supply is much shorter therefore having a smaller chance to get interrupted. In fact, often clients of these companies demand they are closer to their supply. This trendy movement in the manufacturing industry is considered ‘lean manufacturing,’ and is sometimes referred to as ‘just in time.’ It’s a way of forward thinking that helps these smaller companies benefit from Thai industrial estates and become more globally competitive. Of course one of the biggest benefits an international company will gain from moving to Thailand industrial estates is the tax advantages. Of course this is just a start of the financial benefits; the company will also get smaller import tax. On top of that the business will also get visa or work permit advantages. They are also able to purchase a land title, free hold it thereby qualifying for local financing.
Quality Control: IEAT will watch over the estate to insure a certain level of responsibility will remain intact. There will be high standards for real estate development as well as roads and environmental qualities. They will insure the people in the area have fair expenses in regards to market purchasable as well as living expenses such as utilities.
Thailand industrial estates work so well that they become communities and virtual cities. Some boast training, health care, recreation and entertainment as part of the estate. Others are evolving to a high level of sophistication that helps them to better take care of their workers which in turn allows for the better production of a product. At the end of most evaluations the estates are a vast benefit.
Setting up a company in Thailand industrial parks involves creating a new business; or registering an existing overseas company for foreigners. Though you can handle the registration process but it is very time consuming and you might face language and local culture difference problem. It is advisable to seek a professional services to make your processes go through smoothly in shorter time. Opportunity for incorporation or local partnership is also available here in Thailand. The decision to partner with local corporation is the first step in providing effective protection from personal liability, excessive taxation, and provides the investor with an effective and powerful tool to assist in managing and growing their business ventures.
