Fueling Industrial Expansion

With a strong track record in attracting global investments, the Industrial Estate Authority of Thailand is set to play a bigger role in the country’s economic growth.
Map Ta Phut Industrial Estate, Rayong, THAILAND
Yuthasak Supasorn,
Chairman of the IEAT board

As the second-largest economy in Southeast Asia, Thailand remains an attractive destination for global investors, including those looking to set up businesses within its well-equipped industrial zones.

One of the driving forces behind Thailand’s success in securing foreign direct investment is the Industrial Estate Authority of Thailand (IEAT), a state enterprise under the Ministry of Industry, which is responsible for creating and organizing industrial estates in a synergistic manner.

Ambitious Goal

According to IEAT, the value of investments in 2023 increased by about 202% compared to 2022, with total investments reaching approximately US$490 billion.

IEAT manages 68 industrial estates nationwide, housing 4,828 factories with an accumulated investment of 10.8 trillion baht (US$319.5 billion).

“These figures reflect the agency’s on going commitment to creating a conducive environment for investment and demonstrate the confidence that both domestic and international investors have in Thailand’s industrial estates,” says Yuthasak Supasorn, Chairman of the IEAT board.

Although IEAT’s achievements are commendable, Supasorn believes the agency can reach greater heights. “As we look forward, our goal of attracting 3.05 trillion baht (US$90.2 billion) annually over the next three years is ambitious but achievable,” he says. Supasorn expects 20% of these investments to come from the U.S., another 20% from Europe, and 10% from China.

Key Strategies

To achieve the 3.05 trillion baht (US$90.2 billion) annual goal, IEAT has put in place several key initiatives. First, it aims to expand and upgrade its existing industrial estates, and develop new industrial estates.

IEAT also works closely with domestic and international technology partners to develop and implement new technologies, such as artificial intelligence (AI), big data and the Internet of Things, to ensure that its industrial zones are able to support new technologies.

Furthermore, Supasorn says the government has a set of business- and investment-friendly policies in place, such as tax incentives and benefits, as well as streamlined regulatory requirements to attract investors.

“In recent years, we have seen growing interest from foreign investors in establishing operations in Thailand due to its strategic location in Asia and strong logistics connections,” he says.

IEAT the One-Stop Center           

IEAT is the ideal partner for global investors looking to set up a manufacturing facility in Thailand. For a start, IEAT works like a one-stop center, helping investors from the initial stage, such as the application of necessary licenses and permits, to the final stage of commencement of operations.

By managing 68 industrial estates across Thailand, IEAT has a holistic view of the country’s industrial sector. Thanks to this advantage, IEAT is able to help business owners and global investors to identify the best location for their manufacturing facilities in order to maximize business synergy.

The agency also actively supports the participation of local communities in the management of industrial zones, ensuring that development is carried out in cooperation with local authorities and with strict adherence to laws. This promotes a harmonious relationship between industrial development and community growth. 

Tech, Innovation and Sustainability

Supasorn says the agency’s strength lies in its focus on technology, innovation and sustainability. “We place significant importance on the development of technology and innovation within our industrial estates, with a particular focus on supporting the integration of digital technologies and smart solutions,” he says.

Today, IEAT’s industrial estates can support technologies like smart energy management systems, smart sensors and AI through a reliable broadband network.

As part of IEAT’s commitment to sustainability, it plans to launch several sustainability related projects this year. This includes ramping up its promotion of renewable energy by encouraging business owners in its industrial zones to adopt solar- or wind-generated energy. “Another major initiative is the carbon credit trade, which supports industrial estates in reducing greenhouse gas emissions,” Supasorn says.

“Through strategic measures, technological advancements and collaborative efforts, we aim to drive significant progress toward carbon neutrality and foster sustainable industrial development,” he adds.

 

www.ieat.go.th/en/home

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