BOI Agricultural (1.2.5): Manufacturing Using Agricultural Raw Materials in Thailand

BOI agricultural manufacturing Thailand under BOI Category 1.2.5 is designed to support businesses that add value to agricultural raw materials through manufacturing or processing, rather than exporting raw products with limited economic impact.

This BOI category plays a key role in Thailand’s strategy to move from raw agriculture to value-added production, making it highly attractive for food processing companies, agri-manufacturing startups, and export-oriented businesses.

What Is BOI Category 1.2.5?

BOI Category 1.2.5 covers businesses engaged in the manufacturing or processing of products using agricultural raw materials as the primary input.

The focus is not on farming itself, but on:

  • Processing
  • Transformation
  • Value creation

In other words:
👉 If your business takes agricultural inputs and turns them into higher-value products, this category may apply.

Examples of Eligible Businesses Under BOI 1.2.5

This category is suitable for both traditional processors and technology-driven manufacturers.

Common Eligible Activities Include:

  • Food and beverage processing
  • Seafood processing and packaging
  • Agricultural product transformation (drying, freezing, extracting)
  • Functional food or ingredient production
  • Export-oriented agri-products

The key requirement is that the activity adds value beyond raw agricultural output.

Why BOI Strongly Supports Category 1.2.5

As our experieced with projectes, Thailand produces large volumes of agricultural raw materials. BOI promotes Category 1.2.5 because it:

  • Increases domestic value creation
  • Reduces reliance on raw exports
  • Creates industrial and skilled employment
  • Improves food safety and export standards
  • Strengthens Thailand’s position in global supply chains

This makes Category 1.2.5 both economically important and politically supported.

Who Is This Category Best For?

BOI Category 1.2.5 is ideal for:

  • Food manufacturing companies
  • Seafood processing businesses
  • Agri-manufacturing startups
  • Export-focused producers
  • Foreign investors adding processing capacity in Thailand

     

This category is particularly strong when combined with export plans or technology-enhanced processing.

BOI Requirements & Common Challenges

What BOI Looks For

  • Clear manufacturing or processing flow
  • Use of agricultural raw materials as main input
  • Production capacity and process explanation
  • Compliance with food safety or industry standards

Common Negative Pitfalls

  • Activities described as “trading” instead of manufacturing
  • No clear processing steps explained
  • Overlapping with non-eligible activities
  • Lack of value-added justification

These issues can lead to delays or rejection, even if the business is technically eligible.

BOI Category 1.2.5 vs 1.3.2.3: What’s the Difference?

This is a very common question.

Category

Focus

1.2.5

Manufacturing / processing agricultural products

1.3.2.3

Providing technology or services for modern agriculture

👉 Many businesses actually qualify for both, but under different parts of the operation.

Example:

  • Processing fish for export → 1.2.5
  • Monitoring, filtration, or farm systems → 1.3.2.3

Correct structuring is critical.

How Act & Align Advisor Supports BOI Category 1.2.5 Applications

At Act & Align Advisor, we support clients end-to-end:

  • Eligibility assessment for Category 1.2.5
  • Activity restructuring and clarification
  • BOI application preparation and submission
  • Post-approval support (company setup, visas, operations)

If your business is not clearly eligible at first glance, we advise how to restructure it to become eligible, where possible.

 

BOI Category 1.2.5 is a powerful option for businesses that turn Thailand’s agricultural resources into higher-value products for domestic and international markets.

For manufacturers, processors, and export-oriented startups, this category offers a clear BOI pathway, strong policy support, and long-term growth potential, especially when structured correctly.

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