Foreign Investment Floods into EEC

            As the government accelerates the development of large-scale infrastructure across the country, including electric railways and high-speed train projects, it is pushing for the establishment of economic zones, particularly in the Eastern Economic Corridor (EEC). This initiative builds upon the Eastern Seaboard project, facilitating investment in three provinces: Chachoengsao, Chonburi, and Rayong.

Currently, significant progress has been made, especially regarding the interest from both Thai and foreign investors.

            The renewed interest in investing in the EEC is expected to stimulate overall investment and economic growth, alongside investments in innovation and technology that build upon existing frameworks. This will modernize and propel Thailand's industry forward, aligning with the Thailand 4.0 initiative. If the EEC succeeds, it is believed that the country's GDP could expand by up to 5%.

“Alibaba is preparing to invest in the EEC to sell Thai agricultural products through its platform.

            Following a meeting with the Thai government, Ms. Zhao Ying, head of the Alibaba Group, the largest e-commerce company in China, reported progress on the investment plan for the “Smart Digital Hub.” A site has already been selected within the Eastern Economic Corridor (EEC), not far from Suvarnabhumi Airport, to ensure the most convenient logistics and transportation routes.

            The investment area is expected to be announced in the third week of April. Mr. Jack Ma, the founder of Alibaba, is scheduled to visit Thailand to confirm this investment.

            The four main investment projects developed in collaboration with relevant agencies can soon commence, including promoting Thai agricultural products through Alibaba's platform, which the Department of Industrial Promotion (DIP) has already initiated. This aims to create a comprehensive online trading channel, alongside Alibaba developing digital skills for new entrepreneurs (startups).

            At the same time, Alibaba is also discussing tourism plans with the Tourism Authority of Thailand to initiate community tourism projects and is in talks with the Customs Department to detail a new Digital Customs system to align with all forms of e-commerce, not just with Alibaba.


F.T.I. Confident Investment in EEC Will Surge in Q2

            Mr. Jan Namchaisiri, President of the Federation of Thai Industries, discussed the overall investment landscape as the EEC Act is set to be enacted in April. There is increasing clarity, and it is expected that applications for BOI investment in certain industries will begin to be submitted in Q2 of 2018, with actual investments following, particularly in the electric vehicle (EV) sector, which has already seen some investments following applications submitted at the end of 2017.

Ministry of Industry Confirms Car Manufacturers and Global High-Tech Companies Will Invest

            Mr. Uttama Savanayana, Minister of Industry, stated that investment in targeted industries within the Eastern Economic Corridor (EEC), especially future automotive industries, has recently seen Mazda apply for investment promotion for electric vehicles (EV) with the Board of Investment (BOI). Previously, BMW and Mercedes-Benz have invested in EV battery factories.

            In the robotics industry this year, major private companies in Thailand are preparing to invest approximately 12 billion baht in robotics, including WHA Corporation Public Company Limited and Siam Cement Group Public Company Limited, with interest from Chinese companies. Japanese investors, such as Hirata, are also in discussions, along with Denso, which is bringing systems to support Thailand's robotics industry at the Banana Industry Promotion Center, and Hitachi, which is investing in big data in the EEC to provide services to both government and private sectors in the area.

PTTGC Breaks Ground on 3 Projects in EEC Worth 70 Billion Baht

            Thai investor PTT Global Chemical Public Company Limited (PTTGC) has already studied and prepared for investment in the EEC, which builds upon investments in projects within the Eastern Seaboard. They have received cooperation from PTT and 7-8 foreign partners, with a total investment value of around 100 billion baht. On March 23, 2018, the company plans to start groundbreaking for three projects in the EEC, with a total investment of 70 billion baht, alongside plans for new investments in the BIO Chemical industry in the BIO Complex project, valued at 20-30 billion baht, which aims to enhance the value of Thai agricultural products, such as palm and sugarcane, for further development in the agricultural industry.