How can you tell if a Thai supplier is a factory or a trading company?
Check several signals together: the business type in the company's Thai registration, whether it holds a factory licence, its address, how focused its product range is, its minimum order quantity, and whether it can show live production. No single signal is conclusive, and a trading company is not a problem as long as it is open about what it is.
Why does it matter?
A trading company buys from factories and resells. That can be useful, but it changes three things: the price, how much control you have over production, and which documents the supplier can actually provide. Some certificates and authorisations can only be issued by the manufacturer or brand owner.
What signals should you check?
- Company registration — the company's record at Thailand's Department of Business Development shows its registered business type. Manufacturing and wholesale or trading are different categories.
- Factory licence — larger factories need a licence from the Department of Industrial Works, commonly called a Ror Ngor 4 (รง.4). Ask for it and check that the name and address match.
- Address — a site in an industrial area points to a factory; an office in a city tower points to a trader.
- Product range — factories usually specialise; traders often offer many unrelated product types.
- Minimum order quantity — factories usually set higher minimums. A supplier that accepts very small orders for everything may be reselling.
- Certificates — test reports and certifications normally name the actual manufacturer.
- Live production — a live video call from the production floor, or a visit, is one of the clearest tests.
What should you do if the supplier is a trader?
Ask which factory makes the product, whether you can visit it, and who will issue each document you need. A trader that answers clearly may be a good partner. One that avoids these questions is a reason to slow down before paying.
How can SiamPartner help?
Many of these checks depend on Thai-language records, a call in Thai or a visit to the site — exactly where overseas buyers get caught out. SiamPartner checks a supplier's registration and role, and visits the factory, before you commit — and tells you in writing what we found and what we could not confirm.
Common questions
Is buying from a trading company a bad idea?
No. Traders can combine products, accept smaller orders and handle export paperwork. The risk is a trader that presents itself as the factory, or cannot provide documents only the manufacturer or brand owner can issue.
Does no factory licence mean it is not a factory?
Not necessarily. In Thailand, smaller operations below certain thresholds may not need the main factory licence. Treat it as one signal, not proof.
General information only, based on what we commonly see in our work. It is not legal, tax or customs advice, and every situation differs.DISCLAIMER →
Related reading
- What will a Thai factory ask before agreeing to meet you? →
- How do you check a Thai company's registration? →
- Do you need an interpreter for factory visits in Thailand? →