Zoning For Restrictions - Setting Up Small Garment Factory.

[mixed]

We're looking to buy land for our house as well as a small garment factory in a province close to Bangkok.

What is the situation for zoning? Do we need to be in a special area or do most areas allow this?

The business would not be noisy or polluting.

[ThaiLawOnline]

If you are a foreigner and would like to invest in a small factory, you should read about the BOI (Board of investments in Thailand) benifits. Many incentives can be given, depending on the zone where you want to build it (1,2 or 3) the kind of investment (agriculture, technology, etc) and the money invested. (1m over, 3m, 10m, 40m, etc.).

Have a look at 3W dot boi DOT go DOT th.

Yes, there are some 'residential' areas where factories are not allowed.

[quiksilva]

It depends on how the ministry of industrial works classifies your factory. There are 3 factory types, unimaginatively named 1, 2 & 3.

Most fall within the third classification and are required to be located in an area that is zoned for industrial use under the town plan (purple coloured if you have one handy).

If however, it falls in to the 1st or 2nd classification then you may get get a permit outside of these areas, but even that would be subject to compliance with local town plan of the residential area and subject to planning authority approval. In some residential areas factories are outright prohibited, whereas in others they may fall under the 10% exception rule.

Different areas, different rules.

Welcome to joy that is town planning in Bangkok. My firm specializes in industrial real estate services so feel free to PM should you need additional advice.

[mixed]

It depends on how the ministry of industrial works classifies your factory. There are 3 factory types, unimaginatively named 1, 2 & 3.

Most fall within the third classification and are required to be located in an area that is zoned for industrial use under the town plan (purple coloured if you have one handy).

Do you have a link or info on exactly what these the requirements are for each classification?

Where not looking to be in the town itself, rather on the outskirts where there is some housing and some farms.

[rcalsop]

We're looking to buy land for our house as well as a small garment factory in a province close to Bangkok.

What is the situation for zoning? Do we need to be in a special area or do most areas allow this?

The business would not be noisy or polluting.

Depending on your factory size make sure that the area you set up in has a ready made trained work force near at hand .. remember you are a labour intensive industry ( 30 years in it myself ) and after working and consulting in the industry in Thailand for 3 years I know labour is the key factor in fact it was the major governing factor for expansion . We even started to bring in migrant labour to expand . Turn over is also a major factor in BKK areas ... Perhaps your size will not have the same issues . Look around the Rangsit area several zones with small starter factory units available , Or just wait a little longer lots of factories in the trade are going belly up at the moment .

[mixed]

labour is the key factor in fact it was the major governing factor for expansion ...... Or just wait a little longer lots of factories in the trade are going belly up at the moment .

Good advice, we've already got an operating business in Bangkok and are looking to move for lifestyle as well as business reasons.

I know finding labor can be difficult, but as you say lots of businesses are going under, which will also mean more ppl looking for work.

[rcalsop]

labour is the key factor in fact it was the major governing factor for expansion ...... Or just wait a little longer lots of factories in the trade are going belly up at the moment .

Good advice, we've already got an operating business in Bangkok and are looking to move for lifestyle as well as business reasons.

I know finding labor can be difficult, but as you say lots of businesses are going under, which will also mean more ppl looking for work.

Reference people looking for work I have noticed one trend in the clothing trade ( almost universalfrom experience in UK to Korea , whenever there are many closures the machinists out of a job do not always move back into the trade I feel only about 50% stay the rest seem to move on to other industries .

To expand on labour shortages in Thailand in the trade I speak from experience fom BKK up to Mai Sot in the North and now from Malaysia where all our machinists 1000 in this factory alone are recruited off shore out side of Malaysia , In Thailand the company I worked for was the first to recruit in mayanmar legally and correctly with all the correct papers and conditions for the employees handled correctly ( a quote to my self from the Thai labour authorities )Sorry a bit of topic but it is rare I get the chance on this forum to talk about something I actually know .

[mixed]

Reference people looking for work I have noticed one trend in the clothing trade ( almost universalfrom experience in UK to Korea , whenever there are many closures the machinists out of a job do not always move back into the trade I feel only about 50% stay the rest seem to move on to other industries .

To expand on labour shortages in Thailand in the trade I speak from experience fom BKK up to Mai Sot in the North.

No worries about getting off topic, the info is very useful. What your saying about ppl not returning to the clothing trade makes sense, as the wages aren't high enough to attract ppl back.

As you've moved from Bangkok to Mai Sot, I'm curious about how you overcame logistics problems up there. Did you find it difficult being away from Bangkok with it's ready access to markets, transport and other services?

[rcalsop]

Reference people looking for work I have noticed one trend in the clothing trade ( almost universalfrom experience in UK to Korea , whenever there are many closures the machinists out of a job do not always move back into the trade I feel only about 50% stay the rest seem to move on to other industries .

To expand on labour shortages in Thailand in the trade I speak from experience fom BKK up to Mai Sot in the North.

No worries about getting off topic, the info is very useful. What your saying about ppl not returning to the clothing trade makes sense, as the wages aren't high enough to attract ppl back.

As you've moved from Bangkok to Mai Sot, I'm curious about how you overcame logistics problems up there. Did you find it difficult being away from Bangkok with it's ready access to markets, transport and other services?

Sorry may be I was unclear what I meant was we opened factories in different areas of Thailand ,non closed just expansion so as we expanded we looked for good labour markets that is avialable not just the cost in zone 1 or zone 3 for example they all have different minimum wages . The labour cost was a secondary factor the availabilty is the key ..In fact in the North of Thailand the geared incentive systems I devised ( GSD based smv and a geared system with varied yield rates for the technically minded ) meant that a good performer 90% could earn the same in the North of Thailand as in Bangkok but the minimum guarentee was lower so the hard workers who took the company into good productivity were rewarde and did not need to leave or move to Bkk . It took some persuading of the Thai boss to see the logic but I won in the end and was proved right . Quite simply if you plan work into the Northern factories and because of poor productivity do not achieve plan you must subcontract (risky) usually to BKK so you end up paying BKK +++ rates ,have no margin ,excess costs and have not recovered your overheads in the Northern factory and have an unhappy work force with high turn over . Give people the opportunity to EARN and they will ...screw them and they will screw you ...

Just out of interest now that I am on a roll most clothing companies in Thailand because of the old Labour law on working hours plan there overhead recovery of the factories working more than 60 hours .... The law is changing and if you produce for the big brands you must not work more than 60 hours a week Codes of Conduct .

The laws will change soon and many companies will have lower working hours enforced and will not recover their overheads because they are tied to 60 plus hours and not productivity . .

Sorry my hobby horse subject .

Ref logistics simple ! a big truck and two drivers .. managerial supervisory /technicans staff willing to work up there another problem and a big one

[quiksilva]

Sure here you go Department of Industrial Works (sorry the specific page is not opening up for some reason but it is on this site if you dig around a bit!)

[Smithson]

.....the hard workers who took the company into good productivity were rewarde and did not need to leave or move to Bkk . It took some persuading of the Thai boss to see the logic but I won in the end and was proved right . Quite simply if you plan work into the Northern factories and because of poor productivity do not achieve plan you must subcontract (risky) .. managerial supervisory /technicans staff willing to work up there another problem and a big one

Those incentive programs sound interesting. We've tried to do something like this, but I'm no expert and can't come up with a scheme. The best I can do is take them out to dinner once in a while! But it seems to work, our labor force is happy with few ppl leaving.

But I know location is important, we moved just a few sois from our old place and found it much easier to find workers.

[mixed]

Looking at the classifications, it appears we would come under 1 or 2.

How do I go about finding out if land in a certain area would be suitable?

[quiksilva]

Good that makes things much easier.

To start you off, first find your ideal spot and then verify its location in the town plan and read the bylaws associated with that particular block (also within the town plan) to investigate what may or may not be permissible in that block. Almost all of them have this convenient 10% exception rule, but there will often be prohibited uses too, you need to check what these are and even when you have done so in the plan it might still be worth verifying this at the local department office.

Hope this points you in the right direction. If you need anything further let me know, but I may have to start the meter ticking