BOI Thailand Incentives for Smart Manufacturing and Industry 4.0 AI
Thailand's manufacturing sector is a cornerstone of the national economy, and the BOI has created powerful incentives to drive Industry 4.0 transformation. This guide covers BOI incentives for smart manufacturing, automation, robotics, and AI-powered production — including the combined benefits available in the Eastern Economic Corridor (EEC) and how training investments in AI amplify your BOI package.
- BOI-promoted manufacturing companies in Thailand seeking to add AI capabilities
- New manufacturing investments incorporating Industry 4.0 and AI systems
- Existing factories applying for BOI technology upgrade promotion
- Manufacturing companies in the Eastern Economic Corridor (EEC) for combined benefits
- Companies must meet minimum investment thresholds for their specific activity
- Compliance with environmental and safety regulations required
- Determine if you are applying for new BOI promotion or technology upgrade promotion (Activity 10.1)
- Prepare manufacturing business plan highlighting AI and Industry 4.0 components
- Submit BOI application including equipment list, workforce plan, and training strategy
- Obtain Promotion Certificate and import AI equipment duty-free
- Register AI training programmes with the Department of Skill Development (DSD)
- Deliver training across shop floor, engineering, and management teams
- Claim 200% training deduction and track CIT exemption usage
- Submit annual BOI operating reports with training outcomes and technology investment details
Thailand's Manufacturing Transformation Under BOI
Thailand has been a major ASEAN manufacturing hub for decades, with deep strengths in automotive, electronics, food processing, petrochemicals, and medical devices. The BOI has been instrumental in attracting manufacturing investment through competitive incentive packages. In 2026, the BOI's manufacturing focus has shifted decisively toward Industry 4.0 — smart factories, AI-driven production, and automation.
Key manufacturing trends driving BOI policy:
- Smart factory adoption: Thai manufacturers are investing in IoT, AI, and data analytics to improve productivity and quality
- Automation and robotics: Rising labour costs and workforce shortages are accelerating automation, especially in automotive and electronics
- Sustainability: AI-optimised energy use, waste reduction, and circular economy practices
- Supply chain resilience: AI for demand forecasting, supplier management, and logistics optimisation after pandemic-era disruptions
BOI Promoted Activities for Manufacturing
Activity Category 4: Metal Products, Machinery, and Transport Equipment
This category covers most traditional manufacturing activities:
Group A1 (maximum incentives) for:
- Manufacturing of robots and automation equipment
- Manufacturing of advanced electronic components (including AI chips)
- Aerospace parts manufacturing with AI quality systems
Group A2 for:
- Automotive parts manufacturing with Industry 4.0 systems
- Advanced electronic assembly with AI-powered quality control
- Precision engineering with AI-guided machining
Group A3/A4 for:
- General manufacturing with significant automation investment
- Existing factories upgrading to smart manufacturing systems
Activity Category 1: Agriculture and Food Processing
Group A2/A3 for:
- Food processing with AI-powered quality inspection
- Automated packaging with computer vision
- Smart agriculture using AI analytics
Activity 5.6: Automation and Robotics Development
Companies developing automation and robotics solutions for manufacturing receive Group A1 incentives:
- CIT exemption for 8 years with no cap
- Import duty exemption on all equipment
- Additional merit-based CIT extension for R&D and training
Eastern Economic Corridor (EEC) Combined Benefits
The EEC is Thailand's flagship investment zone spanning three provinces: Chachoengsao, Chonburi, and Rayong. Manufacturers in the EEC can combine BOI promotion with EEC-specific incentives for a significantly enhanced package.
EEC Incentive Enhancements
| Benefit | BOI Only | BOI + EEC |
|---|---|---|
| CIT exemption | Up to 8 years | Up to 15 years |
| CIT reduction (post-exemption) | 50% for 5 years | 50% for additional years |
| Personal income tax | Standard rates | Flat 17% rate for qualifying workers |
| Land lease | Standard terms | Up to 99-year leases |
| One-stop service | BOI service centre | EEC One-Stop Service Centre |
EEC Target Industries for AI Manufacturing
The EEC specifically promotes 12 target industries, several directly relevant to AI and smart manufacturing:
- Next-generation automotive (electric vehicles, autonomous driving)
- Intelligent electronics (AI chips, smart devices)
- Advanced agriculture and biotechnology
- Food processing with AI quality systems
- Robotics and automation
- Digital technology and AI
- Medical and wellness tourism
Industry 4.0 Upgrade Incentives
Existing manufacturers can apply for BOI promotion specifically for technology upgrade projects. This is critical for companies that want to add AI capabilities to existing production facilities.
Technology Upgrade Promotion (Activity 10.1)
Companies investing in significant technology upgrades can receive:
- Additional CIT exemption of 3 years for qualifying upgrades
- Import duty exemption on new machinery and AI-related equipment
- No minimum investment threshold for the upgrade itself (but must already hold BOI promotion for the base activity)
Qualifying AI Upgrades for Manufacturing
- Predictive maintenance systems: IoT sensors, data collection infrastructure, and AI models for equipment failure prediction
- AI quality inspection: Computer vision cameras, deep learning models, and automated inspection lines
- Smart production planning: AI-powered scheduling, demand forecasting, and inventory optimisation systems
- Energy management AI: Smart energy monitoring and AI-optimised consumption for ESG compliance
- Autonomous logistics: AGVs (Automated Guided Vehicles), robotic picking systems, and AI warehouse management
Training Incentives for Manufacturing AI
The 200% Training Deduction for Factory Teams
BOI-promoted manufacturers can claim the 200% training expense deduction for AI training across all levels of the manufacturing workforce:
Shop Floor Teams:
- Operating AI-enhanced machinery and automated lines
- Interpreting AI quality inspection results and taking corrective action
- Working safely alongside robots and automated systems
- Basic data collection and system monitoring
Engineering and Technical Teams:
- Developing and tuning predictive maintenance models
- Configuring and calibrating computer vision systems
- Programming industrial robots and AI controllers
- Managing IoT sensor networks and edge computing
Management and Planning Teams:
- Using AI for production scheduling and capacity planning
- Interpreting AI analytics dashboards and making data-driven decisions
- Managing AI implementation projects
- AI governance and quality management system integration
Merit-Based CIT Extension for Training
Manufacturers who invest at least 1-3% of payroll in AI training earn additional CIT exemption years. For a manufacturing company with 500 employees and average salary of THB 30,000/month (THB 180 million annual payroll):
- 1% threshold = THB 1.8 million in training → 1 extra year CIT exemption
- 2% threshold = THB 3.6 million in training → 2 extra years
- 3% threshold = THB 5.4 million in training → 3 extra years
At THB 50 million annual profit, each additional CIT exemption year saves THB 10 million. The ROI on training investment is extraordinary.
Automation and Robotics Training Incentives
The BOI and the Department of Skill Development have collaborated on special programmes for automation and robotics training:
Thailand Automation and Robotics Academy (TARA)
The Thailand Board of Investment supports TARA, which provides subsidised training in:
- Industrial robot programming and operation
- AI for manufacturing process control
- IoT sensor integration and data analytics
- Collaborative robot (cobot) deployment and safety
Skills Development Fund for Automation
Manufacturers transitioning to automated production can access the DSD's Skills Development Fund for:
- Retraining displaced workers for AI-related roles
- Upskilling operators to work with automated systems
- Training maintenance teams on AI-enhanced equipment
- Developing internal AI trainers and champions
These DSD programmes complement BOI incentives and can be claimed alongside the 200% training deduction.
How Pertama Partners Supports Manufacturing AI Under BOI
Pertama Partners delivers AI training tailored for Thai manufacturing environments. Our programmes are designed for BOI-promoted manufacturers seeking to build Industry 4.0 capabilities:
- Predictive maintenance training: Hands-on with your actual equipment data
- Computer vision for quality: Training on defect detection using your production images
- AI for production planning: Using your historical data for scheduling and forecasting models
- Factory AI assessment: Identify highest-ROI AI opportunities in your operations
- BOI documentation: We provide complete training records for 200% deduction claims and annual reporting
All programmes are DSD-registered and structured to meet BOI competitiveness enhancement criteria.
Contact us to build AI capabilities on your Thai factory floor.
Frequently Asked Questions
Frequently Asked Questions
Yes. The BOI offers technology upgrade promotion (Activity 10.1) for existing BOI-promoted manufacturers investing in significant technology improvements including AI systems. This can provide an additional 3 years of CIT exemption for the upgrade investment. For factories without existing BOI promotion, a new application can be made for the expanded or upgraded activity.
No. BOI promotion is available nationwide. However, the combined BOI + EEC package in Chachoengsao, Chonburi, and Rayong provinces offers significantly enhanced benefits. If you are already located in the EEC or planning a new facility, the combined package can provide up to 15 years of CIT exemption. Existing locations outside the EEC still receive strong BOI benefits.
BOI training incentives cover all skill levels. For shop floor teams, Pertama Partners designs practical, hands-on AI training that focuses on operating AI-enhanced systems rather than building them. Training uses visual guides, in-factory demonstrations, and local-language materials. The DSD also offers foundational digital literacy programmes that prepare workers for AI training.
Yes. BOI-promoted manufacturers receive import duty exemption on machinery and equipment for the promoted activity. This covers AI-related hardware including servers, GPUs, computer vision cameras, IoT sensors, industrial robots, and edge computing devices. You must list the equipment in your BOI application or request an amendment for additions.
Training on specific manufacturing execution systems (MES), SCADA systems with AI capabilities, and other production software absolutely qualifies for the 200% training deduction. The training must be registered with the DSD and delivered to Thai employees. Pertama Partners can customise training around your specific manufacturing technology stack.
- •Predictive Maintenance with AI and IoT
- •Computer Vision for Quality Inspection
- •AI for Production Planning and Scheduling
- •Industrial Robotics and Automation Fundamentals
- •Smart Factory Data Analytics
- •AI for Supply Chain and Logistics Optimisation
- •Energy Management with AI for Manufacturing
- •AI Safety and Human-Robot Collaboration
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