Investments into Thailand’s industrial east expected to flood in

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The Thai government has just approved 168 infrastructure development projects worth a combined $31.4 billion for its flagship Eastern Economic Corridor (EEC) scheme.

The EEC is a centerpiece of the junta’s policy to boost growth in Thailand and targets investment into ten hi-tech industries, as it transitions from those reliant on cheap labour. It is also a reaction to the tact that Thailand’s economic growth has fallen behind other Southeast Asian economies since the 2014 coup.

The ten industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

The investment will come in three phases: urgent, intermediate and long term. The urgent phase, during 2017-2018, aims to lure both domestic and foreign investment to the EEC; the intermediate phase of 2019-2021 focuses on transport development; and the third phase, from 2022 onwards, aims to create sustainable development and bolster the infrastructure network to link neighbouring countries.

Of the total EEC infrastructure investment, government spending will account for 30 per cent, with public-private partnerships making up 59 per cent, state-owned enterprises ten per cent and the Royal Thai Army one per cent.

Projects include an upgrade of the Vietnam War era U-Tapao International Airport and Thailand’s largest deep sea port in Laem Chabang, as well high-speed train connections, motorways and air cargo facilities, among others.

So far, the roadmap drew more than $9 billion in pledges of private investment last year and nearly $7 billion more is expected this year, according to the Thai Board of Investment.

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Reading Time: 2 minutes

The Thai government has just approved 168 infrastructure development projects worth a combined $31.4 billion for its flagship Eastern Economic Corridor (EEC) scheme.

Reading Time: 2 minutes

The Thai government has just approved 168 infrastructure development projects worth a combined $31.4 billion for its flagship Eastern Economic Corridor (EEC) scheme.

The EEC is a centerpiece of the junta’s policy to boost growth in Thailand and targets investment into ten hi-tech industries, as it transitions from those reliant on cheap labour. It is also a reaction to the tact that Thailand’s economic growth has fallen behind other Southeast Asian economies since the 2014 coup.

The ten industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

The investment will come in three phases: urgent, intermediate and long term. The urgent phase, during 2017-2018, aims to lure both domestic and foreign investment to the EEC; the intermediate phase of 2019-2021 focuses on transport development; and the third phase, from 2022 onwards, aims to create sustainable development and bolster the infrastructure network to link neighbouring countries.

Of the total EEC infrastructure investment, government spending will account for 30 per cent, with public-private partnerships making up 59 per cent, state-owned enterprises ten per cent and the Royal Thai Army one per cent.

Projects include an upgrade of the Vietnam War era U-Tapao International Airport and Thailand’s largest deep sea port in Laem Chabang, as well high-speed train connections, motorways and air cargo facilities, among others.

So far, the roadmap drew more than $9 billion in pledges of private investment last year and nearly $7 billion more is expected this year, according to the Thai Board of Investment.

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