Eastern Economic Corridor Thailand June 2017

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1 Eastern Economic Corridor Thailand June 2017

2 20-YEAR NATIONAL DEVELOPMENT STRATEGY Reform to achieve Long-term Sustainable Growth 1. Infrastructures Development : Physical / Connectivity / Intellectual / Social 2. Target Industries : First and New S-Curves 3. Enterprises : Entrepreneurs and SMEs 4. People : Start-ups / Workforce and Thai 4.0 2

3 S-CURVE TARGET INDUSTRIES NEW S-Curves : High-tech Industries New Engines of Growth FIRST S-Curves : Traditional Strength Prime for High Value-add Upgrades 3

4 How do we drive Target Industries Development? Public-Private-Education Partnership Shared Goals / Strategies / Execution Government Supports Ease of Doing Business, Deregulation, Funding Target Industries Special Privileges BOI & Ministry of Finance Investment, R&D, HR Development International Linkages & Collaboration Combined Expertise, Early Commitment, Clear Execution Roadmap, Continuity Ensured 4

5 Putting Thailand 4.0 into Action Thailand 4.0 SMART TECHOLOGY with SMART PEOPLE / SMART LIFE Match to the real demand and leave no one behind Thailand s Industrial Transformation Policies Moving Towards Next Technology with Inclusive Growth Area-Based Development Bangkok TH Industrial Policies in Action = Eastern Economic Corridor : EEC Eastern Economic Corridor Chonburi Chachengsao Rayong Bio Tech Health Tech Robotic Tech Culture/Creativity 5

6 EEC builds on 30 successful years of Eastern Seaboard Thailand Eastern Seaboard Development Project... The beginning of the Thailand s Industrialization The first industrial clusters for exports: Textiles, Electronics, Automobiles The first energy and petrochemical complex Maptaput: Refinery, Gas separation plant, Plastic and chemical The first integrated infrastructure for industrial needs Leam Chabang Seaport, Motorway, Double track railway... The highly successful area development A famous destination for FDI Exports raised 12%, Industry grew 12%, Economy grew 7% per annum during the first 20 years. 6

7 Why wait? EEC is located in the best strategic location of the region India CLMV China South Korea To US Japan Combined GDP of East Asia, ASEAN, CLMV, India region represent 1/3 of world s GDP Gateway to Asia - reaching more than half of world s population To EU AEC To Oceania EEC will represent the largest investment projects in ASEAN, in terms of budget and area 7

8 Why wait? Regional Connectivity Center of East-West Economic Corridor and North-South Economic Corridor Connect Indian Ocean with Pacific Ocean, CLMV, South China N-S E-W Dawei Laem Chabang China CLMV Cambodia Vietnam Maptaput Malaysia Singapore Cambodia 8

9 Why wait? Existing Industries and Infrastructures Double-Track Railway Motorway Deep Seaport Airport Industrial Estate Industrial Park 9

10 How to? 4 core areas will be developed to be World-class economic zone Ready to be upgraded To be World-class economic zone Infrastructure Business, Industrial clusters and Innovation hub Tourism New cities and communities Aviation Hub Logistics Hub Trading Hub Adv. Manufacturing Hub Tourism Hub Global Business Hub Metropolis of the Future 10

11 Target Note : Estimated investment amount shown Combined Public and Private Investments at least 1.5 Trillion baht ($43B USD) in the first 5 years U-Tapao International airport 200,000 million baht ($5.7 BUSD) Map Ta Phut port 10,150 million baht ($0.3 BUSD) Laem Chabang port 88,000 million baht ($2.5 BUSD) High-speed train 158,000 million baht ($4.5 BUSD) EEC New Cities / Hospitals 400,000 million baht ($11.5 BUSD) Tourism Dual-track railway 200,000 million baht ($5.7 BUSD) Industry 500,000 million baht ($14 BUSD) Motorway 35,300 million baht ($1 BUSD) 64,300 million baht ($1.8 BUSD) 11

12 Eastern Aerotropolis (U-Tapao) Eastern High Speed Train Eastern Airport City Policy supporting millions in the future Initiation of MRO Thai Airways Air Bus and Alliance Initiation of the Construction of the Second Runway and Infrastructure Design Contest and Bidding of Investors for providing 15 millions and relative Business within 5 years Bidding of PPP High Speed Train for Eastern Line Connecting 3 Airports making EEC as permanent Bangkok extension Eastern Sea Gateway to Asia 3 Sea Ports as Part of the Eastern Sea Gateway Bidding of PPP Laem-Chabung Sea Port Phase 3 - Gateway to Asia PPP Map-Taput Sea Port Construction of Ferry and Cruise at Sattahip Commercial Sea Port Leading Target Industries Investment of Leading Companies in Electric Vehicle Robot -Medical Hub Aircraft Parts Bio-Economy Eastern Future Cities Plan Area Criteria for the Development of 3 New Cities (Plan for the Development of Financial Center) Digital Transformation and Innovation Incubators 2 Transformation Complexes Digital Park Innovation Park 12

13 #1 U-Tapao Airport city, first phase towards Aerotropolis New High-Speed Rail connection New Commercial area 675 rai (1.08 million sq.m.) New Passenger Terminal 1,400 rai (2.24 million sq.m) Existing Terminal R u n w a y 1 Existing Runway 1 St Phase Full Phase R u n w a y 2 New Runway New Free Trade zone 950 rai (1.52 million sq.m.) Maintenance Repair Overhaul (MRO) 570 rai (0.912 million sq.m.) Training Center 200 rai (0.32 million sq.m.) 13

14 #2 Laem Chabang phase 3, towards World s Top 10 ports Phase 3 Phase 4 Expansion to support growth Double containers accommodation, from 7 to 18 million TEU/year Triple car export accommodation, from 1 to 3 million units/year Logistics hub and Gateway for Indo-China Railway connection Move into world s Top 10 ports 14

15 #3 High-Speed and Double-track railways Connect 3 International Airports within 1 hour with High-Speed Railway Connect 2 International Ports with Industrial Clusters Donmuang Suvarnabhumi Chachoengsao High-Speed Rail: Bangkok - Rayong - Connect 3 main airports: Donmuang, Suvarnabhumi, and U-Tapao in 1 hour - Suvarnabhumi to U-Tapao in 45 minutes - Accommodate 110 million passengers/year Chonburi Sriracha Pattaya U-Tapao Rayong High-speed train Double-track railway (Current) Proposed double-track railway route New double-track railway route Double-track railway: Connect major ports with Industrial clusters - Upgrade to double-track from Laem Chabang to Map Ta Phut seaport - New routes.. Laem Chabang Pluak Daeng Rayong in the pipeline Map Ta Phut Rayong Chantraburi Trat under study 15

16 #4 Target Industries in EEC New technology and Innovation to create greater value Bioeconomy Auto, Auto parts, Electronics, and Robotics Aviation, Maintenance and Related Businesses Medical Hub Functional Food Smart Automobiles Aircraft parts and spare parts Wellness Center Bioplastic Electronic parts Maintenance, Repair and Overhaul (MRO) Medical Center Cosmetic Robotics for industrial and lifestyle use Air Cargo Medicines and Devices 16

17 #5 New Eco Cities Inclusive growth, Green environment Muang Chachoengsao Muang Chonburi Baan Bueng aem Chabang New City Chachoengsao Chonburi Enhanced urbanization, communities, quality of life and enviroment to international standards Leading universities and international schools Leading hospitals and medical centers Quality tourism spots Banglamung Pattaya New City New City Baan Chang Map Ta Phut Rayong New City Muang Rayong Baan Pae Regional commercial centers EEC Communities development funds 17

18 Special Privileges and Incentives for EEC Most favourable in Thailand, internationally competitive Focus on - Target industries with high technology - Infrastructures and logistics development - R&D and Technology support services - Tourism BOI Special Privileges EEC to become investment promotion zone >BOI standard package plus 50% CIT reduction for another 5 years >Potential 15 years CIT waiver plus grants for strategic projects in EEC (Thailand Competitive Fund) Additional Privilege from Ministry of Finance Personal Income Tax Reduction up to 17% (Cabinet Resolution on Feb 28, 2017) for Administrators, Investors, Experts in Industry or Regional Head Office and Infrastructure and Facility Investment in EEC Areas. Thailand Competitive Fund Special, Tellermate support and privileges for R&D, HRD, Targeted-related activities in EEC 18

19 Key enablers in the pending EEC Act (2017) Special processes: Making private investment feasible Fast-track - Special 10 months PPP Process Customs Procedure Long-term land lease (50+49 years) Social Infrastructure: Modern living standard Promoting city development International school International hospital / medical hub Clean and Green World class power/water/waste treatment Incentives: EEC exclusives Tax-incentives CIT / PIT / Free trade zone Non-tax incentives VISA + work permit Financial incentives Holding foreign currency account One stop services Community based Development: Inclusive process Provided for in the pending EEC Act - Special Fund for EEC communities - Health - Environment - Education 19

20 ระเบ ยงเศรษฐก จพ เศษภาคตะว นออก EASTERN ECONOMIC CORRIDOR (EEC) 4 Core Areas and 5 High Priority Projects Donmuang Airport Suvarnabhumi Airport Bangkok Eastern Rail Route High Speed Train Double Track Rails LCB Port New Pattaya City Sattahip Port Tourism EECd Aviation Industry U-Tapao Aerotropolis Logistics Hub Smart Electronics Robotics EECi Chachoengsao New Chachoengsao City Food Processing Agricultural Technology Modern Automotive Chonburi Rayong Bioeconomy New Rayong City Map Ta Phut Port Food Processing Agricultural Technology U-Tapao Airport and Aircraft Maintenance Sattahip Commercial Seaport Laem Chabang Port Phase 3 Map Ta Phut Port Phase 3 High Speed Rail Eastern Route Double Track Railway Highways & Motorway Next Generation Automotive (EV/AV) Aviation Industry, Robotics, Smart Electronics Advanced Petrochemical and Bioeconomy Medical Hub Tourism Global Business Hub / Free Economic Zone New Cities, Inclusive Growth Public Utilities Infrastructure Business/Industry Tourism New Cities + EECi + EECd 20

21 Driving EEC Forward 1. EEC Policy Committee Chaired by Prime Minister General Prayut Chan-o-cha EEC Management Committee Eastern Economic Corridor Office (EECO) Chaired by Minister of Industry, Uttama Savanayana Headed by EEC Secretary- General, Kanit Sangsubhan Contact: EEC Secretary- General Eastern Economic Corridor Office (EECO) Ministry of Industry 75/6 Rama VI Road, Ratchathewi, Bangkok 10400, Thailand eeco_p@industry.go.th 21

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