Eastern Economic Corridor
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- Bartholomew Welch
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1 Eastern Economic Corridor
2 Outline : 1 Objectives 2 Thailand s Eastern Economic Corridor (EEC) 3 Major Components of EEC 4 Current Status 2
3 1 Objectives To upgrade Thailand s ESB to be leading special economic zone of Asia To develop efficient infrastructure connectivity To promote urban development and urban environment To facilitate and provide incentives to investors To support high-tech industries and tourism Thailand s flagship Special Economic Zone (SEZ) to accelerate future growth of the region 3
4 1 Objectives (continued) Super Cluster Policy Automotive and Parts Electronics Cluster for industries using advanced technologies and industries for the future Eco-friendly Petrochemical and Chemical Products Digital Industries Cabinet approved Super Cluster Policy on September 22, New S-Curve Industries Policy Cabinet approved 10 New S-Curve Industries Policy on November 17,
5 2 Thailand s Eastern Economic Corridor (EEC) Chachoengsao Province Chon Buri Province Rayong Province Strategic Location Thailand industrial Heartland. Strength of the leading industries: Automobile & parts, Petrochemicals, Electrical & Appliances Already home of world s famous manufacturers and tourist destinations Excellent infrastructure linkage (200 kms from Bangkok through highway linkages, Laem Chabang commercial port, Map Ta Phut industrial port, U-Tapao international airport) Springboard to ASEAN, China, India. 5
6 2 Thailand s Eastern Economic Corridor (EEC) (continued) Success Story and Advantages of ESB Establishment of 29 industrial estates. Investment of 50,500 Million USD. Production based of 3,786 factories. Available Industrial Zones for EEC 21 industrial estates are ready to invest (approx. 2,345 Hectares) 6 industrial estates are under development (approx. 2,431 Hectares) Automobile Production Hub Investment of 12,500 Million USD Foundation of parts & material developments for auto and aviation industries Map Ta Phut Industrial Estate + Complex Top 5 production capacity in Asia petrochemical complex. Investment of 13,000 Million USD Foundation of plastics, rubbers & polymers for value-added industries 6
7 2 Thailand s Eastern Economic Corridor (EEC) (continued) Principle : For the development within the SEZ area according to the Government s announcement Industrial / Transportation / Energy /Public Utilities & Facilities Public - Infrastructure - Investment Incentives & Facilitation Especially the S-curve industries Private - Industrial development - Private Public Participation (PPP) Development Roles People - participation - Improved quality of life Especially the transportation infrastructure 7
8 2 Thailand s Eastern Economic Corridor (EEC) (continued) 1. High Potential Industries 2. Transportation & Logistics Infrastructure 3. Public Utilities / Facilities & Urbanization 4. Investment Incentives Industry Infrastructure Public Utility & Urbanization Incentives Support the development of the environmentallyfriendly industries with advanced technology according to potential of the area while accelerating the remedy for pollution & environmental problems in the affected areas Develop the transportation infrastructure connecting economic areas and creating a high-potential economic base to accommodate the target industries and enhancing the national competitiveness Develop public utilities as well as standardized social/environmental infrastructure in order to improve quality of life while distributing benefits to local communities Improve urban environment to be livable while accommodating the economic and social expansion Provide incentives to attract investments in target industries in order to be the New Engine of Growth 8
9 3 Major Components of EEC Laem Chabang Deep Sea Port Expansion Investment: 1,000 Million USD Map Ta Phut industrial Port Expansion Investment 290 Million USD U-Tapao International Airport Capacity: 3 Million Passengers/year High Speed Train (BKK Rayong) Investment: 4,471 Million USD Motorway (Map Ta Phut) Investment: 580 Million USD 9
10 4 Current Status June 28, 2016 Cabinet approved concept of EEC. Oct 4, 2016 Cabinet approved in principle the draft of EEC Law. Jan 4, 2017 Cabinet approved the EEC Development Program ( ) For FY2017, 48 urgent projects (approx. 7 bil. Baht) are approved to use Central Fund (contingency fund for emergency or immediate needs). [water resource, waterworks, public health, urban environment, U-tapao airport, road, industrial waste management, investment promotions, etc.] For FY2018, approx bil. Baht is being considered under the Integrated Budget Plan Jan 17, 2017 NCPO order No.2/2017 regarding EEC development by virtue of Section 44 of the Interim Constitution of Thailand, B.E (2014) to establish (1) the EEC Development Policy Committee (chaired by PM), (2) the EEC Administrative Committee (chaired by Ministry of Industry), and (3) the EEC Development Office to be a new operating agency under Ministry of Industry. At present, Draft EEC Law is being considered by Office of the Council of State (expected to be finalized by February 2017) 10
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