ICBC, bankers sign EEC MoU

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Industrial and Commercial Bank of China (ICBC), the Thai Bankers’ Association and the Thai government’s Eastern Economic Corridor (EEC) office have signed a memorandum of understanding (MoU) to lend support as well as loans to accelerate new investment in the government’s flagship project.

Kanit Sangsuphan, secretary-general of the EEC office, said the MoU could help facilitate Chinese as well as Thai investors looking to start investment in the EEC area.

The government aims to attract 30 leading multinational firms to invest in the EEC over the next two years. The area is meant to be Thailand’s new growth engine, featuring high-tech and innovative industry clusters.

The EEC, spanning 30,000 rai across the provinces of Chon Buri, Rayong and Chachoengsao, is intended to accommodate investment in 10 targeted industries: 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.

Mr Kanit said the Thai government plans to set up a currency exchange centre in EEC areas to facilitate investors transferring money and accessing loans.

The goal is for the centre to be expanded into a currency exchange hub for the whole of Asean once business activities eventually ramp up in the corridor.

He said the project to link the EEC to other regions in Thailand and to other countries is in progress, particularly the double-track railway to link three major deep-sea ports in the EEC.

The government wants to increase the use of rail to make up 30% of the country’s logistics over the next few years, up from 8%, as rail is one of the cheapest modes of transport, Mr Kanit said.

Hiranya Suchinai, secretary-general of the Board of Investment, said the BoI expects new investment in the EEC to reach the government’s target of 150 billion baht set for 2017 because of strong government promotion.

Investment in the EEC is projected to reach 500 billion baht over the next five years, Ms Hiranya said.