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The objectives of the research reported here were: (1) to analyse congruency between the learning factory concept and actual applications in a Thai setting; (2) to construct a learning factory model relevant to the Thai context; and (3) to propose guidelines for implementation of the model. Qualitative research was employed in this study, consisting of three main stages. The first stage included document analysis, case studies of German vocational education and of the Thai pilot project in learning factory with in-depth interviews of experts and key informants and field observations in the Thai case study. In the next stage, a learning factory model was constructed, based on the synthesised information. Lastly, the drafted model was subject to reviewing by a panel of experts, resulting in the model improvement and guidelines for implementation. The study found that of the nine elements characterising the philosophical concepts of learning factory innovation, only two elements were highly congruent with the actual practice of the pilot project. The proposed model was consistent with national strategies on vocational education and training (VET), providing strategic measures to meet key problems in vocational training.