FUTURE IMPACT OF EEC ON PATTAYA/JOMTIEN. 23 March 2018
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1 FUTURE IMPACT OF EEC ON PATTAYA/JOMTIEN 23 March 2018
2 Projected GDP (PPP) ranking in 2050 The Study of PwC: World in 2050 การศ กษาของ PwC: โลกในป 2050: เศรษฐก จโลกจะเปล ยนแปลงไปอย างไร? GDP (PPP) in 2050 ไทย Thailand Ranking Thailand 20->25 ห Year 2050 Year 2016 Vietnam 20 th 32 th 19 th 28 th 4 th Philippines 8 th Indonesia 24 th 27 th Malaysia -5 Thai 20 th 25 th 2
3 THAILAND stuck Low investment..low extension Decrease in competitive capability Stuck in New Normal GDP % Need more annual investment % to boost GDP to % อ นด บความสามารถในการแข งข น Rank of Competitiveness during from 140 ( ) countries จาก 140 ประเทศ Technology ไทย ส งคโปร มาเลเซ ย อ นโดน เซ ย ฟ ล ปป นส ความพร อมด านเทคโนโลย Innovation นว ตกรรม ค ณภาพการศ กษา Education Source : WEF แถบส เข ยวหมายถ งอ นด บท ด กว าประเทศไทย ท มา WEF Thailand Singapore Malaysia Indonesia Philippines 3
4 Concept of Eastern Economic Corridor 4
5 Different Types of Special Economic Zones and its evolution Free Zone SEZ source : The World Bank Group 5
6 The growth of Special Economic Zones in the past 4 decades Number of countries with SEZS Number of SEZs source : The World Bank Group 6
7 Most of SEZs are located in Asia Location of SEZs in 2005 Unit: % source : The World Bank Group 7
8 The Models of proper SEZs depend on the policy context and country development purposes Free Zone SEZ 8 source : The World Bank Group
9 SEZs Incentives and Privileges Tax Incentives Exemption from import duties, excise tax and VAT on machinery and raw materials Tax holiday period Tax reduction or exemption to bring merchandise into Free Zone for assembling or manufacture Benefits from Land Utilization Cheap long term lease-hold built factory Basic infrastructure provided Reasonable [price of ready build factory] Others facilities : warehouse Non - Tax Incentives Land Ownership by foreign investors up to 100% Repatriate Profits Foreign exchange control Others: Loan access Administration Ease of doing business Efficient flexible organization Clear accountability on job description source: The World Bank Group 9
10 Shanghai Pilot Free Trade Zone Models and Concepts of SEZs in select Countries ท มา : The World Bank Group Development from large scale SEZ to cross border economic cooperation Develop and managed by private sector and driven by the market Shenzhen, Zhuhai, Shantou and Xiamen Free Market economy Export-Oriented Economy Support export industry development FDI in the Economic and social border areas Developed from Free Zone SEZ to the development of Large Scale SEZ Export promoted by the government Private sector are encouraged to develop and operate Export Promotion Instrument for regional development and competitiveness and regional leadership ISKANDA located in Johor bahru, the southern part of Malaysia Export-Oriented Economy =China =Malaysia =India =Mexico Free Market Orientation, Labor for US company Solve labour problems Border and FDI from US 10 =Philippines
11 =China =Malaysia High Various High =India =Mexico =Philippines =Myanmar =Lao Less Limit Less =Cambodia Budget and time for development Scope of Promotion Number of activities in SEZs source : The World Bank Group Limit Limit High High 11
12 The Government determines to establish the EEC as the future gateway of Thailand General Prayuth Chan-o-cha Prime Minister 12
13 EEC: Putting Thailand 4.0 in Action via Area based Development Thailand 4.0 SMART TECHNOLOGY with SMART PEOPLE Match to the real demand and leave no one behind Thailand s Industrial Policies Moving toward New Technology and Inclusive Growth Bangkok EEC The First Area- Based Development T4.0 in Action Industrial Policies in Action Eastern Economic Corridor: EEC Chachengsao Chonburi Rayong Bio Tech Health Tech Robotic Tech Culture/creativity 13
14 Why? Existing Industries and Infrastructures leading to EEC 14 2 Deep Seaport Laem Chabang and Map Ta Phut 1 Motorway 8 Highway 1 Double Track Railway Ladkrabang-Laem Chabang 1 U-Tapao Airport Capacity : 3 Million passenger /year Chonburi Rayong Chachoengsao Industrial Estate 100,000 Rai Leading Petro Chemical in AEC The 13rd World leading Automobile Production based Tourism Pattaya Tourist 10 Million people
15 Why? What Thailand will get 15 invest 1.5 trillion baht in 5 years EEC is economic driving mechanism for right investment Economic growth 5% yearly Economic growth at least 5% yearly, compare with at present 3 % Enhance Thai 'quality of life and environment to international standard New annual tax base 100,000 Million Baht Create new tax base 100,000 M baht per year from increasing GDP + 10 million Tourists / Year More foreigner tourists to U TA PAO airport Increase income more than 450,000 M Baht / Year 100,000 New Job position per year Create new jobs both in industrial and service sectors Reduce Logistic cost 400,000 M Baht/Year Reduce Logistics Cost from 15% of GDP to 12% of GDP
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17 Map of fundamental infrastructures ( At present next 5 years ) 17
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19 Connectivity of EEC within Thailand and the World East-West Economic Corridor Upper Part 1) Bangkok Phitsanulok Chiang mai 2) TAK Phitsanulok Phetburi Khonkhaen Roi et - Mukdaharn East-West Economic Corridor Lower Part 1) Bangkok Karnchanaburi 2) Bangkok Cha Cheng Sao 3) Bangkok Cha Cheng Sao Laem Cha Bang 19
20 Major Infrastructure: Aerotropolis and High Speed Train, connect 3 Airports Donmuang 3 Airports with High Speed Train Aerotropolis Suvannabhumi Chachongsao Chonburi Sriracha Pattaya utapao Rayong U ta pao has passenger capacity Million in next years Present value 150,000 Million Baht Increase of high speed train income 40,000 Milllioon Baht 20 20
21 Investment in 3 Major ports, connect with dual track train and seamless operation Laem Cha Bang Port Phase 3 Bangkok Map Tha Phut Industrial Port Phase 3 Satthahip Commercial Port Dual Track Train connect 3 Ports Seamless Transportation Operation ICD ladkrabang ศ นย กลางโลจ สต กส ท ฉะเช งเทรา Major industrial Estate Clusters Major industrial Estate Clusters Chonburi Chachengsao Rayong
22 Tourism: upgrade to international quality Ferry to BANGKOK- HUAHINN World Class Tourism Ring (Pattaya Sattahip- Rayong) 1. Chachongsao, Green tourism City, Nature 2. World Class Tourism Ring (Pattaya Sattahip- Rayong) 3. Pattaya Pattaya Pier (No Pollutiion)- New Pattaya City 4. Pattaya Huahin (Sattahip port - Pranburi) 5. Pattaya- Royong - Sihanuville 22
23 EEC Track 2013 Public Private Partnership with Private Sector in EEC(PPP-EEC Track) To do faster, without reduce steps of work 8-10 month 6-8 month 7 month month Comply with PPT Act. 1.Project Preparation 2. Project Presentation 3.5 month 4 month 1.5 month month 3. Private Sector Selection Start bidding 1.Project Preparation 2. Project Presentation 3. Private Sector Selection Start bidding Contact Signing Contact Signing 1.Project Preparation & Presentation 2. Private Sector Selection Start bidding Contact Signing 23
24 4 PPP Projects in EEC List and U Ta Pao Maintenance Repair and Overhaul (MRO) Center DEC 2017 Mar 2018 JUN 2018 SEP 2018 DEC 2018 START OPERATION FEB 2019 REPORT High Speed Train, Connect 3 Airports Got Private Sector SIGN CONTRACT 2023 A.D. U Ta pao Airport REPORT Got Private Sector SIGN CONTRACT 2023 A.D. REPORT MRO Got Private Sector SIGN CONTRACT 2021 A.D. Map Tha Phut Port Phase 3 REPORT Got Private Sector SIGN CONTRACT 2024 A.D. Laem Chabang Phase 3 REPORT Got Private Sector SIGN CONTRACT 2025 A.D. Remarks: High Speed Train connecting 3 Airports will develop in 2 phases Phase1: from Donmuang airport to U-Ta pao airport in order to facilitate the approval of EIA and reduce environment effect in Map Tha Phut I.E. Area Phase 2: The extension part from U-Ta pao airport to Rayong, Chantaburi and Trat province - urgent study about the direction of high 24 speed train and design in the most valuable method
25 Investor Persuade Keep Contact and Persuade Study the investment information Promotion Measurement Finish Already Invested Already give investment promotion to 160 Projects in EEC *As of 23 Aug 2017 from BOI Analyze project information with investor, will sign in investment contact in March 2018 Final Step of Negotiation Got investment promotion form BOI,in hybrid automotive cooperate with MDES in order to persuade investment in EEC Digital Park and will sign cooperation document in September 2017 during set up promotion measurement for using electrical vehicle of consumer 25 25
26 Major Progress 1. Important Infrastructure Investment U-ta-pao airport to be aviation center of the East (1 phase effective in 1 year/ TOR in Fully Completed in 5 years ) High Speed Eastern Train connect 3 Airports (TOR in Fully Completed in 5 years ) Develop 3 Deep Sea Port, connect with Dual Track Train and Seamless operation transportation Laemchabang Port Phase 3 (TOR in Fully Completed in 7 years ) Map Tha Phut Industrial Port(TOR in Fully Completed in 7 years ) Sattahip Port (A plan finish, will start construction first step at the end of 2018 ) The projects are already approved from the The Eastern Economic Corridor Policy Committee. 2. Public Private Partnership Regulation (PPP) Enforced Enforced only important project same steps but reduce work time
27 3. The persuade of investment in 10 high tech target industry Request to BOI 14,200 Million Baht in first 5 months Key Strategic company.. Aviation (TG-Airbus, Boeing, SAAB, Air Asia).. Electric Automotive.. (Toyota, BMW, Nissan, Suzuki, FOMM..).. Robot and Automation.. 12,000 Million Baht for BOI in this year.. E commerce.. Lazada/Alibaba.. Medical Center, Rehabilitation.. FIRM Group Fuji Film Kobe Medical research special zone Use existing I.E. (and newly announced to be I.E.) and set a standard with readiness for long term investment, with no environment effect. Set up the first One-Stop-Service at Laem Chabang I.E. and co-service wit BOI service center 4. Tourism Ministry of Tourism already set up a plan and identified projects 5. Promotion Zone Already announced 21 target industry promotion zones 27
28 6. The Improvement in Human, Knowledge and Technology The Ministry of Education inform National Council for Peace and Order (NCPO) for the approval of order to approve the curriculum, both short term and long term 7. Infrastructure, Town Development and Environment Plumbing and Energy System- Plans are well prepared and most of their budget are approved New Town are under planning by town plan sub committee, with the general director of department of public works and town & country planning act as a chairman. 8. Draft of EEC. Act B.C... National Legislature conclude the agreement on draft of EEC. ACT. On February 8,
29 I-EA-T Roles in EEC
30 YEAR 6-15 NEW AREA FOR FUTURE DEVELOPMENT 110,000 RAI AREA FOR FUTURE DEVELOPMENT 110,000 RAI 160,259 RAI YEAR 1-5 6,259 RAI 34,000 RAI T PRESENT 100,000 RAI NEWLY DEVELOPED AREA16,259 RAI AREA FOR BOI PROMOTING 10,000 RAI I.E. PREPARE TO DEVELOP 12,000 RAI AREA OF READY FOR INVESTMENT I.E. 12,000 RAI AREA OF OPERATED I.E. 100,000 RAI DIGITAN AND MEDICAL 3,000 RAI LOGISTICS 10,000 RAI (Aerospace/Aviation/MRO) 500 RAI FOOD PROCESSING/AGRICULTURE BIO TECH/BIO FUEL 11,500 RAI New Gen Automobile, Smart Electronic, Robotic 7,259 RAI Environmental Friendly Petrochemical 18,000 RAI 50,259 RAI EEC SUPPLY INDUSTRY AREA OF EEC INDUSTRY AREA OF EEC 30
31 The Future Prosperity in EEC FIRST S-CURVE Next generation automobile Smart electronics Food for future Agriculture & Biotechnology Affluent, Medicals & Wellness Robot Aviation Logistics Biofuels & Biochemicals Medical Hub Digital Total Areas Year 1-5 : 50,259 Rai Tear 6-15 : 110,000 Rai SPECIFIC INVESTMENT AREAS KOREA ZONE CHINA ZONE INNOVATION PARK SMART PARK 31 SCIENCE CITY
32 Map Tha Phut Industriial Port (Phase 3) Total Area Total Area 1,000 Rai ( 400 acre) ) Area ~ 550 Rai ( 220 acre) Sediment Retention area ~ 450 Rai (180 acre) Phase 1 Phase 2 Study Area cover the area under circle of radius 10 km from project center Phase 3 32
33 Grand Opening 27 July
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39 Operation Plan of Development and Promotion of Tourism in EEC Area Objective: enhance the tourism in 3 provinces (Chachengsao,Chonburi,Rayong)to sustainable world class tourist destination, focus on High End and Health & Medical Tourism Target : increase income from tourism in the area with slogan B-Leisure Destination - Harmony of Business and Leisure as a family destination
40 The Roles and Direction of Tourism in EEC Pattaya Satthahip and Royong : a major travel circle extend to Chachengsao Cultural and natural tourist destination and extend to others via transportation and logistics infrastructure of EEC Project Chachengsao: Thai Way of Life Strength in the way of life in Bang pakong River Basin, culture and agriculture Tourism Chonburi: Modern of the east The mixture of modern and local style. 1 of 5 Mice City of Thailand Rayong: Biz City Hub of industrial estates and Business Areas Target within 2021: Travellers in EEC increase to million (increase 1.5 times) and income increase to 528,590 million Baht (increase 1.8 times) Develop the quality and quantity of tourist attraction. Upgrade tourist facility infrastructures and environmental management Upgrade transportation infrastructures connecting tourist attraction such as Widen the road with bicycle lane, bridge, light rail in Pattaya area, bicycle lane Cruise Port and Ferry Port Set up the institution of tourism to develop the curriculum for enhance tourism staff capacity Set up security management in EEC with CCTV in famous tourist public areas.
41 Concepts of Tourism Development: 1. Development of Tourist Attraction Build new man made attraction, upgrade environmental management, zoning, set up standard signage system and etc 2. Development of Infrastructure and Facilities Cruise port, transportation system from airport to city, high speed train connect 3 airport, upgrade Road No.331 and etc. 3. Development of Human Resource (Tourism) promote cooperation between government, private and community to set up a cirriculum for development by using Sattahip Model Learning with Working 4. Enhance the confidence of tourists Upgrade the quality and security of tourism in EEC as a Preferred Destination, especially in Pattaya, and communicate to the targets 41
42 (Tentative) EEC Development and Tourism Promotion Operation Plan Divided into 4 Plans : Projects Plan 1 (15 projects) Development of Tourist Attraction Plan 2 (30 projects) Development of Infrastructure and Facilities Plan 3 (2 projects) Development of Human Resource - Tourism Plan 4 (6 projects) Building confidence measure for tourists Development of Tourist Attraction Development of Infrastructure and Facilities Development of Human Resource (Tourism) Enhance the confidence of tourists Total 53 Projects with approx. of 31, Million THB State Enterprise Fiscal budget 350 Milltion THB Thailand Fiscal budget 7, Million THB Budget (Million THB) PPP 23,000 Million THB Total , , ,040 2, , , , Total 1,300 12, , , ,
43 Proposed Results 600, , , , ,572 0 Visitor (Million) Number of visitors will increase from 30 million in 2017 to 47 million in Efficient transportation and logistics connectivity system links the tourist attractions within and between the 3 EEC provinces, enable tourists to travel freely and conveniently. 4. The quality and image of tourism industry in EEC will be improved. Tourism sentiment is high which boosts the economy locally and nationally. 5. Green tourism is promoting the ecological and friendly environment Revenue (Million THB) The revenue from tourism will increase from 285,572 million baht in 2017 to 508,590 million baht in 2021.
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