In recent years, there has been a surge in the demand for renting industrial properties in Thailand. From large scale properties on industrial estates throughout Thailand to warehouses of all types and varieties. There are so many options.
Are you are looking to rent a warehouse or industrial property in Thailand? Check out our informative guide that will recommend some value-for-money Thailand warehouse rental options. And will also give you some advice on the best areas for renting industrial properties in Thailand.
Legal Requirements for Setting Up a Factory in Thailand
If you are currently setting up a factory-style business in Thailand, there are some regulations that you need to fully understand. The main law that addresses setting up a factory is called the “Factory Act”, which was initially established in 1992.
The act defines a ‘factory’ as a “building, place or vehicle that utilizes an engine which has a combined power of five horsepower or higher, or has eight workers that produces, maintains, alters or transports any type of thing.”
The Factory Act is divided into three categories. When you are setting up your factory, it is important that you know which category that your business will fall under. Each category has a certain set of conditions. They could be dramatically affected by the type of industry you are in. Or even the zoning location of the warehouse or factory space.
Factory Categories in Thailand
Here is a quick rundown of the categories. Although we would always recommend that you get proper legal advice on the subject.
Category 1: The regulatory requirements of this category covers a factory that has 5 to 20 horsepower. And also between 7 to 20 staff. If this is similar to your operation, you can begin operations right away. You won’t need a license unless you produce pollution.
Category 2: This category type is for factories that use 20 to 50 horsepower. Or has between 20 to 50 staff or workers. You also do not need a license for this type of factory. And as long as you inform the relevant local authorities, you can start operations right away. Unless you produce pollution.
* Category 1 and 2 type factories have to be at least 50 yards from a school, temple, hospital, nature reserve, a government office or any other public space.
Category 3: If your factory does produce pollution, you will fall under Category 3. You will also fall under this category if your factory has over 50 horsepower or 50 workers or more. You will need to apply for a factory license for this type before you can start operations. This type of factory is not allowed to be located within 100 meters of a school, hospital, temple, government office or a nature reserve.
Is your factory is part of the food industry? If so, you will also have to ensure that you get GMP FDA compliance. As we mentioned above, it is important that you get legal advice and representation.
Increased Demand for Industrial Properties and Warehouses in Thailand
Over the course of the past decade, we have seen a massive upturn in the demand for industrial properties and warehouses in Thailand for not only factories, but also for e-commerce businesses.
The e-commerce boom has rapidly increased the demand for warehouse spaces close to major cities and airports, which has also seen a decrease in availability that has increased the rates of renting industrial properties in Thailand. It’s more important than ever before to do your research to find a great deal.
Best Locations for Renting Industrial Properties in Thailand
There are many industrial estates located in Central Thailand, But lots of them are for larger scale companies. Finding available warehouses for rent in Thailand can be a serious issue. Finding one that meets your specifications and budget can also be extremely difficult. Because of the lack of availability, rates for both sales and renting industrial properties in Thailand are above market value. However, because of the demand, many smaller and alternative factory parks were set up near to the major industrial areas.
Here are the best locations for renting industrial properties in Thailand. We also have some fantastic recommendations with some of the best value-for-money warehouses and factories you will find.
Bangkok Warehouses and Factories
Although you would expect there to be lots of warehouse and factory options in Bangkok, there are not as many as you would think. But there are a number of limited options on the outskirts of the city in areas such as Bang Poo, Lad Krabang and on Band Chan Industrial Estate. The most popular areas for warehouses are to the east of the city along Bangna-Trad highway and 80km to the north of Bangkok. This covers areas such as Wang Noi and Phra Nakhon. These are great areas to set up a factory. They are close to major road networks away from the mass traffic you will find closer to the city.
Please click here to see some warehouse for rent in and around the outskirts of Bangkok.
Pathum Thani Warehouses for Rent
Pathum Thani is a great option for renting an industrial property in Thailand. The province is located to the north of Bangkok and is a very central location that ensures you are within close proximity to the capital, but far enough away to make this area very viable for a factory. Some of the major areas for renting industrial properties are Lam Luk La, Khlong Luang, and Navanakorn.
Click here to see some factories and warehouses in Lam Luk La.
Click here to find some great value factories and warehouses at Khlong Luang
Nonthaburi Warehouses for Rent
Nonthaburi is a district to the north of Bangkok that is an ideal location for a factory or a warehouse. This is a great location because you are still close to Bangkok, but far enough away to not have to deal with heavy traffic. We have an affordable selection of warehouses for rent in Nothaburi that you can view by clicking here.
Samut Prakan Industrial Properties for Rent
Samut Prakan province is located in a perfect place for a factory, situated close to not only Bangkok, but also the Bangna-Trad Road and within close proximity to Suvarnabhumi Airport. In fact, the Bangna-Trad Road is a main route to the Laem Chabang Depot Seaport on the Eastern Seaboard. This is one of the most central locations as a transport hub, ideal for logistics companies and e-commerce distributors. There are more warehouses in this stretch than you will find anywhere else in Thailand.
Please click here to view some affordable industrial properties for rent in Samut Prakan.
Eastern Seaboard Warehouses and Factories for Rent
The Eastern Seaboard of Thailand is home to very busy industrial areas such as Chachoengsao, Chonburi, Laem Chabang Seaport Depot and Chonburi. These areas are perfect for setting up a warehouse or factory because they are less than an hour away from Bangkok and Suvarnabhumi Airport.
Some of the most well-known industrial estates in this area are Laem Chabang Industrial Estate, Hemaraj Eastern Seaboard Industrial Estate, Amata City Industrial Estate, Eastern Seaboard Industrial Estate, and Chonburi Industrial Estate.
Chonburi, Chachoengsao and the Eastern Seaboard in general is one of the most convenient locations for renting factories and warehouses in Thailand.
Please click here to see more affordable options for renting industrial properties in Thailand.
If you are currently setting up a factory in Thailand, or you are looking for warehouse space or some advice about the rules and regulations pertaining to forming a factory, we can help you every step of the way. You can contact Hero Realtor directly by email in our contact details section or you can call us on 065 083 2211.