Thailand: Removing incentives for steel manufacturing

2025-05-21

The four new measures include:

First, improve the efficiency of small and medium-sized enterprises.

Tax exemptions will be used to encourage Thai small and medium-sized enterprises to improve operational efficiency by investing in new machinery, automation, diGItal technology, energy conservation and emission reduction. The tax exemption period for improving efficiency will be extended from three years to five years.

Second, reduce the risk of oversupply.

Investment incentives will no longer be provided to industries facing potential oversupply or trade-related risks.
In addition, incentives for the steel manufacturing industry will also be cancelled, including long steel,hot-rolled steel plates, thickSTEEL PLATEs, and various steel pipes.

Third, stricter production standards.

Certain industries affected by US trade measures, such as auto parts, electrical appliances, electronic products, metal products and light industries, will be subject to stricter production standards to ensure that their exports bring clear benefits to Thailand.

Fourth, revise the employment conditions of foreign employees.

Raise the minimum income standard for foreign employees, with a monthly salary of no less than 150,000 baht for executives and no less than 50,000 baht for experts to attract high-level foreign professionals.

In addition, the BOI has also conducted a study in collaboration with the Federation of Thai Industries and the Thailand Development Research Institute to study how to improve corporate production efficiency and optimize relations with foreign investment partners.

Interested?

Let us know more about your project.

REQUEST A QUOTE