The government vows to move ahead with five-year investment plans for the state flagship Eastern Economic Corridor (EEC), aiming to drive economic growth by 5% a year between 2023 and 2027 and draw a combined investment of 2.2 trillion baht.
According to Kanit Sangsubhan, secretary-general of the EEC Office, the Eastern Economic Corridor (EEC) Policy Committee chaired by Prime Minister Prayut Chan-o-cha yesterday approved the investment target of the EEC scheme between 2023 and 2027.
Mr Kanit said despite growing risks, particularly from persistent Covid-19 infections and the Russia-Ukraine conflict, the EEC remains designated to become the country's vital investment destination during this period to draw investment at an average of 500 billion baht a year.
"The government over the past several years has planned and developed infrastructure projects to support the EEC including 5G which is the most advanced and fastest in Asean. We expect over the next two years, the world's leading digital companies will shift to invest in the EEC, with spending of not less than 100 billion baht a year," said Mr Kanit.
The EEC is part of the government's strategy to move Thailand towards a high-tech economy.
The area spans a combined 30,000 rai of land in the provinces of Chon Buri, Rayong and Chachoengsao to accommodate investment in targeted industries, focusing largely on advanced technology.
The EEC will host 12 target S-curve industries -- cars, smart electronics, medical and wellness tourism, agriculture and biotechnology, food, robotics for industry, logistics and aviation, biofuels and biochemicals, digital, medical services, defence and education development.
The government is offering a raft of privileges for investment in the EEC, including standard tax holidays for 5-10 years depending on the investment category, corporate income tax exemption for an additional two years and a 50% corporate tax reduction for three years for investment projects related to human resources development.
According to Mr Kanit, the government's measures and tax perks offered to support electric vehicles (EVs) in Thailand are also expected to draw investment of car manufacturers to set up their plants, be it batteries and EV parts, in the EEC.
He said leading automotive makers from Japan, China and the US have already decided to invest in the EEC while Tesla and Volkswagen are also planning to invest in the area and are now in discussion with responsible agencies.
Mr Kanit said that the four key infrastructure projects in the EEC are likely to start construction by late this year and are scheduled to be complete in 2025 and 2026.
EEC infrastructure projects in the first phase comprise high-speed railway links between three airports; the development of U-tapao airport; and the Map Ta Phut Industrial Port Phase 3 and Laem Chabang Port Phase 3.
The four development projects are worth a combined 655 billion baht, with the private sector providing 416 billion baht and the government making up the remainder.
In a related development, the committee yesterday acknowledged the operation of the EEC project between 2018 and 2022 which successfully attracted investment of up to 1.8 trillion baht, well outstripping the original target.
Under the original investment plan for the EEC, spanning 2018-22, the government had set a target to attract investment of 1.7 trillion baht or an average of 300 billion baht a year.
