Introduction:
Thailand continues to emerge as an attractive destination for foreign companies and investors. One of the main driving forces behind this popularity is the development of the Eastern Economic Corridor (EEC). Nestled along Thailand’s Eastern Seaboard, the EEC is becoming a hotspot for investment and a beacon of economic prosperity.
In this article, we will explore the key features, opportunities, and benefits of Thailand’s Eastern Economic Corridor.
Key Points
- The EEC visa offers unique benefits for holders including; a 10-year visa, streamlined work permit procedures, and a flat tax rate of 17% for foreigners engaging in strategic economic activities within the EEC.
- The Board of Investment offers a range of attractive incentives for qualified projects within the Eastern Economic Corridor, such as 100% foreign ownership and tax exemptions.
- The EEC visa is available to applications who are active in specific targeted industries.
Thailand’s Shift Towards the Thailand 4.0 Policy
To understand the significance of the Eastern Economic Corridor, it is important to understand the broader context of Thailand’s development strategy. The Royal Thai Government has established an ambitious 20-Year Strategy, known as Thailand 4.0 policy, with the aim of elevating the country to high-income status by 2036.
Thailand 4.0 envisions a transformation of the nation into an innovative, value-based economy, with a focus on 12 targeted industries, including automation and robotics, aviation and logistics, and digital technologies.
What is the Eastern Economic Corridor?
Central to the plans of the Thailand 4.0 policy, the Eastern Economic Corridor, will be a strategic development initiative covering three provinces along the Eastern Seaboard: Rayong, Chonburi, and Chachoengsao. Spanning an area of 13,285 square kilometres, the EEC has become a thriving industrial centre for the past three decades, attracting numerous business developers and fostering exceptional achievements.
The EEC’s development plan encompasses both physical and social transformation, positioning it as a regulatory sandbox for innovation and a catalyst for the nation’s competitiveness.
With a clear regulatory and governance structure, the EEC has garnered full support from the government, making it an attractive destination for local and foreign investors alike.
What are the Targeted Industries and Business Opportunities Within the EEC?
The Eastern Economic Corridor is strategically aligned with the Thailand 4.0 policy’s vision of fostering advanced industries. The EEC offers a wide range of business opportunities across various sectors, including:
The new next-generation sectors:
- next-generation automotive,
- intelligent electronics,
- advanced agriculture and biotechnology,
- high-value and medical tourism, and digital technologies.
These industries represent the focus of Thailand’s economic plans for the future and offer significant growth potential for investors.
To further incentivize investment, the Board of Investment, Thailand’s investment promotion agency, offers a range of attractive incentives for qualified projects within the Eastern Economic Corridor. These incentives include:
- 100% foreign ownership of a company
- corporate tax exemptions of up to 15 years,
- exemption from import duties,
- matching grants, and
- a low personal income tax rate of 17%.
The agency also supports research and development initiatives through the Eastern Economic Corridor of Innovation (EECi), an innovation district within the special economic zone.
The EEC Visa
The EEC visa is designed to provide an attractive visa option for foreign investors who specialise in certain targeted areas. The EEC visa has been broken down into four types of category:
- Specialists (EEC Visa “S”),
- Executives (EEC Visa “E”),
- Professionals (EEC Visa “P”), and Spouses and
- Dependents (EEC Visa “O”).
Each category offers unique advantages and benefits to help facilitate the entry and stay of foreign investors in Thailand.
What are the Benefits of the EEC Visa?
The introduction of the EEC visa offers a range of benefits for foreign investors who are eligible for this visa including:
- All EEC visas will be granted a Work Permit
- Enjoy a flat Income Tax Rate of 17%
- The Visa will be valid for 10 Years
- Multiple Entry Visa and Online Reporting Options
- Dedicated Fast-Track Channel at International Airports
Why is the EEC an attractive Option for Foreign Investors?
One of the key advantages of the Eastern Economic Corridor is its strategic location in the heart of Southeast Asia. Thailand’s central position, bordered by Myanmar, Lao People’s Democratic Republic (Lao PDR), and Cambodia, provides unique opportunities for trade and investment. Laem Chabang port, the gateway to landlocked Lao PDR, serves as a significant trade hub within the EEC. By improving transport infrastructure and connectivity within the EEC, Thailand aims to enhance regional trade and strengthen economic ties with neighbouring countries.
The EEC has also focused significant attention on the development of advanced infrastructure. Thailand has embarked on an ambitious plan to enhance logistics and transportation systems within the EEC. High-speed trains will connect three international airports, namely Don Mueang, Suvarnabhumi, and U-Tapao, allowing easy connectivity and the efficient movement of goods and people. Additionally, double-track railways will link Laem Chabang port to Map Ta Phut and Sattahip Commercial Port, while the construction of a motorway from Bangkok to Rayong aims to reduce travel time and costs.
Regulatory Support and Governance
To ensure the successful implementation of the Eastern Economic Corridor, Thailand has established a dedicated regulatory and governance structure. The EEC Policy Committee, chaired by the Prime Minister of Thailand and comprising 15 ministers, government agencies, private sector associations, and specialists, oversees the development and implementation of key policies and initiatives. The EEC Office, supported by the government, plays a pivotal role in driving the EEC’s growth and ensuring efficient coordination among various stakeholders and creating a dynamic environment to help companies succeed and help Thailand grow.
To support these aims and promote the growth and development of the EEC, the Thai government has identified 15 major investment projects. These projects encompass various sectors, including transportation, logistics, manufacturing, tourism, and renewable energy. Some of the key infrastructure projects in the EEC are:
U-Tapao Airport and Aircraft Maintenance: The expansion of U-Tapao airport, including the construction of a second runway and passenger terminal, aims to increase passenger capacity and transform the airport into a hub for aviation maintenance, repair, and overhaul.
Laem Chabang Port: The expansion of Laem Chabang port, Thailand’s largest port, will double its container accommodation and improve connectivity with other ports in Southeast Asia. The port will serve as a logistics hub and gateway to the region.
High-Speed Rail and Double-Track Railways: The development of high-speed and double-track railways will improve connectivity between ports, airports, industrial clusters, and major urban centers in Thailand, enhancing the transportation of goods and people.
Next-Generation Automotive Vehicles: The EEC aims to promote the development of advanced automotive technologies, including battery and electric vehicles. This initiative will position Thailand as a leader in the automotive industry.
Digital Park in Si Racha: The establishment of a digital park will foster innovation and connectivity in the EEC. The park will provide digital infrastructure and support for technology-driven businesses.
Environmental Sustainability and Social Development
Thailand recognizes the importance of sustainable development within the Eastern Economic Corridor. As part of its commitment to environmental sustainability, the EEC focuses on promoting green and clean industries, as well as sustainable urban development. Efforts are being made to balance economic growth with environmental preservation, ensuring that the EEC remains an attractive and livable region for residents and businesses alike. Additionally, the EEC is committed to fostering social development by providing opportunities for skills development and education, creating a skilled workforce for the industries of the future.
What is the Future Outlook and Opportunities for the EEC?
The Eastern Economic Corridor holds immense potential to drive Thailand’s economic growth and help push Thailand towards high-income status. With its strategic location, advanced infrastructure, targeted industries, and supportive regulatory framework, the EEC offers an attractive opportunity for local and foreign investors. As Thailand continues to develop and expand the EEC, the opportunities for business growth and innovation are set to continue to develop making it an exciting destination for those seeking to be part of the country’s economic transformation.
Our Thoughts
Thailand’s Eastern Economic Corridor represents a groundbreaking development initiative that is set to reshape the nation’s economic landscape. With its focus on advanced industries, strategic infrastructure, and supportive regulatory environment, the EEC offers many opportunities for investors and businesses.
For those looking to be part of Thailand’s development and the opportunities it offers, the Eastern Economic Corridor presents an exciting gateway to prosperity.
