What is an Industrial Estate? What is I-EA-T? And why is land within Industrial Estates under I-EA-T considered the best choice for establishing a manufacturing base in Thailand for both local and international investors?
In Thailand, the development of factories and warehouses is primarily guided by zoning regulations. The “purple zone,” or industrial and warehouse land, is designated for industrial operations and logistics activities. It is the area legally permitted for the establishment of manufacturing facilities and warehouses. Broadly, this zoning is divided into two main categories: the standard purple zone and the light purple zone.
Within the Eastern Economic Corridor (EEC), we can see the purple zone and the purple zone with white dotted lines. The detailed regulations are slightly different between the general city plan and the EEC city plan, but in summary, if you wish to build a factory or warehouse, the purple zone is the best option.
Industrial land in Thailand can generally be divided into two categories:
- Purple zone land outside of industrial estates - This refers to land designated as “purple zone” under the city plan but owned by personal or private companies. Such land can be used for industrial purposes, but investors must handle infrastructure, permits, and utilities on their own.
- Industrial estate land – This refers to purple-zoned land located within industrial estates established under the Industrial Estate Authority of Thailand (I-EA-T). Industrial estates function much like a dedicated community for factories, offering shared infrastructure, complete utilities, and public facilities necessary for operations. Additionally, I-EA-T provides a one-stop service to streamline various business and regulatory approvals. Importantly, foreign companies are allowed to purchase and hold this land with 100% freehold ownership, making it highly attractive for multinational investors.
Who is I-EA-T (The Industrial Estate Authority of Thailand)?
- The Industrial Estate Authority of Thailand (I-EA-T) is a state enterprise under the Ministry of Industry.
- It is responsible for developing and establishing industrial estates, serving as a government mechanism to distribute industrial development across all regions of the country.
- I-EA-T also facilitates the approval of required permits and certificates, making the process of establishing factories much easier at every step.
What is the difference between ‘general purple zone land’ and ‘land within the industrial estate’?
While both are designated for industrial use, there are key differences in terms of infrastructure, services, and regulations. For foreign investors in particular, land within industrial estates is usually the most recommended option, as it offers comprehensive utilities, one-stop services through I-EA-T, and the ability to hold land ownership under favorable conditions.
For personalized guidance on choosing the right land for your business, you can contact the Logistics & Industrial Department of Cushman & Wakefield Thailand for the best advice tailored to your investment needs.
