2 Years of EECConnecting to the world to promoteThailand’s prosperity July 2019
2 EasternEconomicCorridorEECTHE PRIME GATEWAY TO ASIA
3Years of EECJoining forces of all sectorsConnecting Thailand to the World17 January 201715 May 2018June 2019Order No.2/2017 of National Council for Peace and Order (NCPO)Eastern Economic Corridor1 Year of EECThe EEC ActEastern Special Development ZoneAct B.E. 2561 (2018)2
4 The starting point ofEECThe fast-moving progress ofdisruptive technology and the fluctuationsin the global economy have brought aboutfundamental economic and societal changes.As the world transforms…Thailand has to adaptThailand’s challenge is to keep pacewith technological changes.
5The 20-yearNational Strategic Plan willpush the country towardsThailand 4.0,strengthen the country from within andconnect Thailand to the world.
During the past 10 years (from 2005-2014)• Thailand experienced a low level of investment growth at 2%.• This resulted in a small growth of GDP (2-3%), which is lower than Thailand’s potential (4-5%).• Therefore, Thailand’s level of competitiveness is unable to drive the country’s economy towards the next phase.Economic crisisThe average growth in investmentwas 9% per year. GDP, on average expanded by 5.3% per year.The average growth in investment was 2% per year. GDP, on average, expanded by 3.4% per year.InvestmentGDP20.010.00-10.0-20.0-30.0-40.0-50.01994 1995 1996199920092000 2001 2002 2003 2004 2005 2006 2007 2008 2010 2011 2012 2013 2014199719986 Thailand is currently facinga low level of investment,unable to keep pacewith technological changes andcaught in the middle-income trap.
From now on :• Thailand must raise the investment growth rate to 10%.• This will increase the country’s GDP growth rate to 4-5%, which is the country’s full potential.• Thailand’s competitiveness level will therefore help the country escape the middle-income trap and turn Thailand into a developed country by 2032. 7As a result, Thailand mustboost the level of investmentin order to keep pacewith technological changes andescape the middle-income trap.In order to become a developed country by 2032,the Thai economy must expandby around 4-5% per year. In the next 15 years• Demand driven• Fundamental driven• Technology drivenAssetbasedValuebasedpopulationincome$5,4104-5%per yearpopulationincome$12,450Developed countrywithin 2032To achieve the goal, the targetedindustries must be clearly determinedand meet the following criteria:
Step-upSpring-upStart-upBig companies supportSMEs and Start-upsInternational SMEsStart-ups as strong SMEsGlobally competitiveUpgrading the First S-curve industries :Next-generationAutomotiveIntelligentElectronicsAdvancedAgriculture andBiotechnologyHigh-valueand MedicalTourismFood forthe FutureAutomationand RoboticsMedical andComprehensiveHealthcareDigital Aviation andLogistics DefenseEducation andHuman ResourceDevelopmentBiofuel andBiochemicalAdvancing the New S-curve industries :Moving forward…without leaving anyone behind.8 Targeted IndustriesThe mechanism that will drive the Thai economywith future technology. 12
91. Clearly-defined area :The Eastern Seaboard was the first designated area as it is recognizedby global investors. In addition, it is an important investment base for industrialestates in Thailand, with infrastructure to support development. 2. Public-Private Partnerships : The government sets appropriate policies and development frameworks, while the private sectors make the investment.3. Clearly-defined incentives : Implement investment promotion measures, create an investment ecosystem,and designate special economic zones in order to quickly produce effectiveresults.4. The EEC Act and regulatory bodies : The EEC Act and regulatory bodies are set up to support the continuityof EEC area development.The 4special mechanismsthat will speed up investmentin the targeted industries :This is the starting point of the Eastern Economic Corridor(EEC)“ ”
10 EEC’s vision and missionTo be a case example of an organization drivingeconomic, social, and environmental developmentsuccessfully and sustainably in orderto turn Thailand into a developed country.“ ”• Formulate EEC into a best-in-class area-based development that contemplates economic, social, and environmental advancement, supported by clear regulatory and governance structure, and serves as an example for Thailand’s future area-based development • Emphasise the need to accumulate and leverage collective new technologies to generate more income and promote better quality of life• Proactively ensure that the development advances with cohesiveness and timeliness througheffective public-private cooperation at the national-, regional-, and provincial-level• Implement the overall development plan of Eastern Economic Corridor in accordance withthe national agenda and aspirations• Develop an integrated infrastructure system that is efficient, reliable, and accessible to all• Determine the optimal use of land in accordance with the area’s potential and the sustainabledevelopment principles• Ensure that the new city/development is modernized, safe, and supportive of business activities according to the international standard
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MYANMARLAOSCAMBODIATHAILANDVIETNAMHIGH-SPEED TRAINDOUBLE TRACK RAILWAY INDUSTRIAL-PORTMOTORWAYBANGKOK-PATTAYA-RAYONGRAYONGCHONBURICHACHOENGSAOMAP TA PHUTPORTSATTAHIPCOMMERCIALPORTU-TAPAOAIRPORTLAEM CHABANGPORTLADKRABANGSTATIONCHACHOENGSAOSTATIONCHONBURISTATIONSI RACHASTATIONPATTAYASTATIONU-TAPAOSTATIONRAYONGSTATIONDON MUEANGINTERNATIONALAIRPORT SUVARNABHUMIINTERNATIONALAIRPORT12 EEC : The first areadevelopment model
13The EEC Act to facilitatethe continuation of areadevelopment1. PermanentAdministration• The Policy Committee(28 persons) chairedby PM, includes 14 Ministers, Budget Bureau,NESDB, BOI1), Board of Trade, FTI2), TBA3),and external experts• Secretary-General and EEC Office2. Clear WorkingProcess• One-stop Service (OSS), EIA, PPP,Urban planning, and etc. • Special Economic Promotional Zone• Incentives (tax, visa / work permit and etc.)3. EEC Inclusivity • Integrated Plan and Budget Fundfor local developmentEastern SpecialDevelopment ZoneAct B.E. 2561 (2018)
14 Restructurethe country Building the capabilityto absorb, utilize,and develop future technologyof Thailand at every level“National sustainable development strategy”Technology and human capital in the world of DigitalizationThe leading factorspromoting investmentin new technologyBasic infrastructureTargeted industriesSmart citiesGDP 5+%100,000 high-quality work positions/year Research fundingbased on private andmanufacturing sector demandFirst phaseSecond phasedemand-drivenHuman development process according to demands/vocational education higher educationCreating OTOP/SMEs/Large/New businessesTechnology accumulationprocess for future adoption. Private sectors/ public sectors/ educational institutions willaccumulate knowledge in :ManufacturingManagementPolicy formulation and governanceEEC’s targets
15Russia3,086(1.7%)Germany6,026(1.4%)France4,393(1.3%)England5,495(2.1%)Brazil6,338(2.7%)Japan7,221(0.7%)USA37,624(2.4%) China40,894(4.7%)India17,503(6.0%)ASEAN10,507(4.3%)Elevate the roleof Thailand among foreign countriesBecoming one of“Asia’s economic centers ”40% of the World economic activities in 2035will be attributed to ASEAN, China, and India.Real GDP estimates in 2035Unit: Million US dollarsSource : IHS, Global Insights
16 The EEC’s overall planis integrated into in the 20-year National Strategy.9Specialeconomic zonesIndustry andservice of the futureResearch anddevelopmentForeign AffairsAgriculturaldevelopmentSocialempowermentEquality developmentand local economy promotionSecurityValues andcultural transformationHuman capitaldevelopmentTourismAnti-corruptionPublic service andpublic sector developmentArea developmentand smart citiesInfrastructure,logistics, and digitalLegal and judicialdevelopmentA modern entrepreneurship-basedeconomy development and SMEsWatermanagement systemSports potentialLearningdevelopmentStrengtheningthe health of Thai peopleCreating socialsecurityCreatingsustainable growth23 master plans under the National Strategy
171. Development of basic infrastructure2. Development of digital infrastructure3. Development of livable smart cities and financial centers4. Development of targeted industries that utilize advanced technology5. Development and promotion of tourism 6. Development of human resources, education, research, and technology6 Development Guidelines :The EasternEconomicCorridor Issue No. 9 :
18 EEC’s missionStrengthening the Thai economy
19Modern infrastructure• Physical infrastructure• Digital infrastructure12 Targeted industries• 5 First S-curve industries• 7 New S-curve industriesNew way of life• Tourism• City developmentCovered aspects• Education/Health/Environment• Basic public utilities/Community development
The Double-Track Railway(1.8 billion US dollars)The High-Speed Rail(5.7 billion US dollars)The development ofthe Laem Chabang Port Phase 3(4.2 billion US dollars)20 The developmentof the Map Ta PhutIndustrial Port Phase 3 (0.3 billion US dollars)The developmentof the U-Tapao international airport (5.7 billion US dollars)EECValue of investmentin EECFrom both the governmentand the private sector$ 49,900 in the first 5 years
Investmentin the targeted industries(1.4 tn billion US dollars) 21 millionThe development of smart city(1.15 ten billion US dollars)The developmentof the tourism industry (5.7 billion US dollars)Intercity Motorway(1 billion US dollars)(estimated) Modern infrastructure• Physical infrastructure• Digital infrastructure12 Targeted industries• 5 First S-curve industries• 7 New S-curve industriesNew way of life• Tourism• City developmentCovered aspects• Education/Health/Environment• Basic public utilities/Community development
22 2 Years of EEC :Joining forces of all sectorsConnecting to the world to promoteThailand’s prosperity1.Preceding operations : The preceding operations have beensuccessful as a result of the government’ssupervision, ensuring cooperationof the public sector, the private sector,and the citizens. 2.The next year’s mission :achievingthe set goals In the past 2 years, the government has successfully made EECa major investment base to create economic opportunities and mobilize investmentin high-technology industries, pushing the Thai economy forward.The Thailand 4.0 scheme will help Thai citizens escape the middle-income trap,earn higher and sustainable income, and acquire better standard of living.Most importantly, the scheme will make Thailand an important hub of Asia once again. “”
23The investment value of infrastructure projects : 21 billion US dollarsThe structure ofPublic-Private Partnerships (PPP)The government invests 6.5 billion US dollars. (32%)The private sector invests 14.6 billion US dollars (68%)The government’s expected return is14.6 billion US dollarsU-Tapao Airportand Eastern Airport City Project Project value : 9.4 billion US dollarsLaem Chabang Seaport Phase 3 Project value :2.7 billion US dollarsHigh-Speed Rail Linking 3 AirportsProject value: 6.0 billion US dollarsYear of operation: 2023MRO Centerat U-Tapao International Airport Project value: 343 million US dollarsPublic 6% Private 94%Map Ta PhutIndustrial Port Phase 3 Project value: 1.7 billion US dollarsYear of operation: 2023Public 63% Private 37%Year of operation: 2025Public 63% Private 37%Year of operation: 2023Public 65% Private 35%Year of operation: 2022Public 60% Private 40%
24 PPP EEC Track PISU Act 20138 - 10 Months6 - 10 Months1. Project Preparation 2. Project Proposal 3 - 5 Months 4 Months1. Project Preparation 2. Project Proposal 3. EEC ActProjectPreparation+Project Proposal1.Private Selection(Ready for bidding)2.3.5 Months - 4.5 Months4.5 - 5.5 MonthsReady for bidding
257 Months + (12 - 18) Months3. Private Selection Normal1.5 Months + 10.5 MonthsPrivate Selection PPP Fast track25months40months9months20months8 - 10 MonthsEECEEC Track5Cs• Certainty : Preparation of the EEC project list to clearly pinpoint the importance and urgency of the projects• Consolidation : Consolidation: Reducing unnecessary processing steps and red tape and jointly executing the process• Concurrence : Concurrence: Side-by-side operations/ Parallel operations• Check & Balance : Check & Balance: Disclosure of information for transparency, and accountability • Commitment : The commitment of project owners and related parties in pushing the project towards successSigned ContractReadyfor bidding Signed ContractReady for bidding Signed Contract
26 The continuous progress of the main High-Speed Rail Linking 3 AirportsCars: 2-3 hours High-Speed Rail : less than an hourYear of operation : 2023Project Owner : State Railway of ThailandU-Tapao International Airport3.7 million passengers/year 60 million passengers/yearYear of operation : 2023Project Owner : Royal Thai NavyMRO Facility at U-Tapao airportThe intelligent MRO Center providing aircraft parkingfor 7 airplanes (5 wide body and 2 narrow-body aircraft)Year of operation : 2022Project Owner : Thai Airways International PCL
27 infrastructure projectsIntercity MotorwayReducing traffic congestion and increasing connectivitybetween cities Year of operation : 2020Project owner : Ministry of TransportLaem Chabang Port Phase 311.1 million TEU/year 18.1 million TEU/yearYear of operation : 2025Project owner : Port Authority of ThailandMap Ta Phut Industrial Port Phase 3The capacity of gas and liquid cargo shipment will increasefrom 16 million tons/year 31 million tons/yearYear of operation: 2025Project owner : Industrial Estate Authority of Thailand
28 TargetInvestment in the 12 targeted industrieshas received unprecedented feedback from investors. The value of investment promotion application increased from 199,327 million baht in 2016to 310,337 million baht in 2017and to 675,310 million baht in 2018 respectively.As a result, EEC has contributed to an increasein GDP from 0.9% to 3.3% in 2016,3.9% in 2017, and 4.2% in 2018.Investment
293 EEC provinces 2016 2017 2018199,327Million Baht310,337Million Baht675,310Million BahtValue of investmentpromotionapplicationsin the 12 targeted industries generate an investment value of 100,000 million bahtin the 12 targeted industries.Chachoengsao60,800 Million Baht (9%)Chonburi555,810 Million Baht (82%)Rayong58,700 Million Baht (9%)has exceeded set target.
30 Promoted Zones for Specific IndustriesEECdEECiChachoengsaoEECiInnovation PlatformEECaEastern Airport CityEECmdMedical hubEEChHigh-Speed Raillinking 3 airports EECdDigital ParkChonburiRayong
31Developmentof special technological zonesEECiInnovation PlatformThe preparation of construction areasin the EECi (Phase 1) was started in February 2019 andwas expected to be availablefor rent in 2021. Request for Proposalin September 2019.EECd = Digital ParkAn integrated innovation ecosystem to support investment in research and innovation and develop manpower in the targeted industries through the cooperation of the government, the privatesector and educational institutions.The EECi is located on an area of over 3,000 Rai in Rayong. The center of digital investment and digital manpower development, locatedon an area of over 700 Rai in Si Racha,Chonburi, will transform Thailand into a Digital Innovation Hub of ASEAN. EECd
Area declared : 86,775 RaiArea to accommodatenew investments :28,666 RaiInvestment value:1.3trillion Baht32 Promoted ZonesFor Targeted IndustriesTFD 2Chachoengsao (1 Zone)Chonburi(12 zones) Rayong(8 zones)• Yamato Industry• Amata City• Pinthong• Hemaraj Chonburi• Hemaraj Eastern Seaboard· Smart Park· Hemaraj Eastern Seaboard· Hemaraj Eastern Industrial Estate (Map Ta Phut)· Eastern Seaboard (Rayong)· Hemaraj Rayong 36· Amata City· CP RayongDeclared as EEC promotional zonefor targeted industries21zonesTotal of 31 industrial estates (113,000 Rai) in EEC
33Facilitates investments by simplifying the registration and licensing process. Reviewingthe licensing process (Thailand’s Smart & Simple License) in order to facilitate future business operations in line with the 8 following chapters :1. Factory Law 5. Machine Registration Law2. Land Allocation Law 6. Public Health Law3. Land Excavation and Compaction Law 7. Immigration Law4. Building Contract Law 8. Commercial Registration LawEEC One Stop Service
34 MOU between EECand domestic and international agencies1. Cooperation in trade and investment strategies at an international policy level2. Cooperation in the promotion of business opportunities in EECcollaborating with state - owned enterprises and private sectors3. Cooperation in education and human resource development4. Cooperation in the promotion of innovation, businesses, and start-ups
355. Cooperation in innovation, technology, and digital technology6. Cooperation in comprehensive medical service9. Cooperation in airport city development with the Henan government of China7. Cooperation in international E-Commerce and logistics system8. Cooperation in electric vehicle investment projects
EECChina36 a case example ofinternational cooperationof 3 countries.
Japan37Japan - Chinainvestment cooperation in EEC9 May 2018Tokyo, Japan MOU on Japan China Private Economic Cooperation in the Third Countries13 September 2017EEC, ThailandEEC Connecting Thailand and Japan to the Future25 August 2018EEC, ThailandBelt and Road Initiative and EECConnectivity for the FutureJapan-China Workshop on Business Cooperation in Thailand26 October 2018Beijing, ChinaJapan-China Third Country Market Cooperation Forum2 April 2019Bangkok, Thailand1st 31 May 2018Bangkok, Thailand1st JP-CN-EEC Forum 2nd JP-CN-EEC ForumLogistics Energy and the Environment Smart cities
38 Creating awunderstanding of
39 areness andthe EEC project
40 Market Sounding and Public Hearing sessionsfor the EEC infrastructure projectsHigh-Speed Rail Linking 3 AirportsMap Ta Phut Industrial Port Phase 3*Some examples of the activities
41Digital Park (EECd)U-Tapao International AirportLaem Chabang Port Phase 3
ชลบุรี42 Building an understanding of the EEC development andthe Special Economic Promotional Zone. In addition, opinions from the local people in Nong Thinok Sub-district,Bharn Po district, Chachoengsao were heardand taken into consideration.A seminar on EEC progress forthe local media in Chachoengsao to buildan understanding of EEC and its future developmentMeeting on ways to encourage cooperation between local administrators and EEC.EEC-HDC Committee Meeting to define the visionand develop strategies for the education sector. A seminar on “The preparation ofthe land use plan and the infrastructureand public utility system development plan of the 3 provinces”Arranging over 50 communityparticipation activitieswith more than 30,000 participantsChonburi*Some examples of the activities
ChachoengsaoRayong43A seminar on “EEC and the eastern region area development” for silent power 11, focusing on the ICD projectin Chachoengsao.A seminar on EEC progress forthe local media in Chachoengsao to build an understanding of EECand its future developmentA speech on the EEC Act duringthe “Economic Measures and Environment Tax for GreenBusinesses” seminar, held by Thammasat University and TRFA seminar on the EEC Actfor community leaders in Thapma,RayongMeeting with the Local AdministrativeOrganization and community leadersin Tapong to formulate a sustainabledevelopment planA seminar on the EEC Act for the local media in Rayongto build an understanding of EECand report current progress
44 Building understanding for centralagencies and educational institutionsA seminar on the Eastern Economic Corridor’s working process :39th Senior Royal Thai Army CourseA meeting on the overall development of EEC, problem solving process,and promotion of the measure implementation in EEC area(Chonburi, Chachoengsao, Rayong).A meeting on the EEC project implementation plan forthe 12th Strategic Studies Center management team of the Strategist Program, National Defense Studies Institute, Royal Thai Armed Forces Headquarter.*Some examples of the activities
45Scout Rally at the Vajiravudh Scout Camp in Si Racha, Chonburi. Meeting on the (draft)EEC development plan with an aim to receive feedbackChachoengsaoRayongChonburi
46 PR News/Scoop news/ Interviews/ News image 350 timesPress conference 24 timesSocial media (EEC website/ EEC Facebook Page) 720 timesDomestic and international media relations 8 timesVideos to create a better understanding of EEC shared through social media such as Facebook and YouTube Crisis managementTotal PR value of 320 million bahtWelcomed over 500 Japanese investors“Thailand-Japan Partnership towardsThailand 4.0 Future Together”Welcomed over 500 Chineseinvestors “BRI and EEC :Connectivity for the future”Communication and Public Relations *Some examples of the activities
47Roadshow to encourage investment from Japanese investorsin the EEC areaMeeting domestic and internationalmass media to create a betterunderstanding of EECExhibition in Henan, ChinaPress Conference aboutthe EEC committee meetingMeeting on measuresto promote EEC policies inan integrated manner Seminar to encourage investmentat the Hannover Messe 2019in Germany
2 Years of EEC :Joining forces of all sectorsConnecting to the world to promoteThailand’s prosperity1.Precedingoperations : The preceding operations have beensuccessful as a result of the government’ssupervision, ensuring cooperationof the publicsector, the private sector,and the citizens. 48 2. The next year’smission : achieving the set goalsWithin the next 1 year, EEC will generate an investment value ofover 300,000 million baht per year and create at least 100,000 jobs per year.This will contribute to a 2% increase in the national GDP and reduce economic inquality between the residents of Bangkok and the EEC area. Most importantly, the EEC willrestructure the whole nation’s economy and push the country towards Thailand 4.0,utilizing high technology to generate income and improve the standardof living of Thai citizens. “”
Ministry of Education,Ministry of Labor,and other governmentalagenciesCompanies inthe targetedindustriesWorld-classeducationalinstitutionsCarnegie Mellon University, USA(Information Technology andComputer Science)Les Roches Institution, Switzerland(Hotel management)National Taiwan University(Intelligent Manufacturing System Engineering)Local educationalinstitutionsEEC+Within the next 5 years,there will be 475,674 new jobs in the EasternEconomic Corridor.Vocational degree : 253,114 unitsBachelor’s degree : 213,943 unitsMaster’s degree or higher : 8,617 units 1. Digital2. Logistics3. Intelligent ElectronicsThe top 3 industries withhighest demand in workforce 7 Targeted Industries3 Infrastructure projects49Demand-driveneducation development
50 7 Targeted industries : 326,889 units3 Infrastructure projects : 148,785 unitsTotal : 475,674 units69%31%45%2%53%Divided by areaVocational degree : 253,114 unitsBachelor’s degree : 213,943 unitsMaster’s degree or higher : 8,617 unitsDivided by education levelHuman resou 7 targeted industries, 44,492 9,1559123,500 29,028 5,70149,15667,066 65,94043,9703,71329,12353,738Next-generationAutomotiveIntelligentElectronics Digital Aviation LogisticsSource : Eastern Economic Corridor (EEC)58,229 116,222 109,910 32,836