Mitsui optimistic about EEC but cautious on investment
Japan’s Mitsui & Co, a global industrial conglomerate, sees Thailand’s plan to promote the Eastern Economic Corridor (EEC) as a key factor in supporting the company’s growth in Thailand and throughout Asean.
But doubts persist among Mitsui and other Japanese investors about the EEC timeline and certain business laws, making investors reluctant to move forward investing in the project.
Hiroshi Uchida, deputy general manager in the corporate planning division of Mitsui & Co Thailand, said the EEC is a good policy and Thailand is an appealing country for investment.
“It is very interesting and very attractive, with the prime minister talking directly to foreign investors about the EEC plan,” Mr Uchida said. “That helped assure investors the government will definitely go ahead with this plan.”
The EEC is the latest government policy to upgrade Thai industries along the eastern coastal areas that for more than 30 years has been called the Eastern Seaboard. The plan calls for the government to invest heavily in upgrading all infrastructure systems in the area to link it to other parts of the country as well as Asia.
The EEC spans the provinces of Chon Buri, Rayong and Chachoengsao and will be designated as a high-tech industry cluster with an eye towards becoming Asean’s leading economic zone for industry, infrastructure and urban development.
Mr Uchida said the massive investment in infrastructure in the area would mean improved logistics system that will facilitate trade and investment for dozens of Mitsui businesses in Thailand and the region.
“We can’t tell you immediately how much our revenue would grow because of the EEC, but we know the plan will provide room for our businesses to grow substantially in the future,” he said.
Mitsui expects the EEC to benefit the company’s infrastructure, logistics, construction and trading businesses.
Mitsui & Co, a Tokyo-based industrial and trading conglomerate, established its subsidiary in Thailand more than five decades ago as Mitsui & Co Thailand. Established in 1959, Mitsui & Co Thailand runs dozens of businesses here, including from power, energy, utilities, steel, automobiles, oil and gas, food exports, sugar manufacturing and commodities trading. The company employs around 300 Thais.
Mr Uchida said he expects the EEC to offer opportunities in oil and gas, power generation, logistics and exports and trading businesses for the company.
In the early stages of the EEC, the company expects rising revenue from businesses in its equity-based earnings because it is a minority shareholder with several Thai partners, including PTT Plc, Siam Cement Group Plc and Thai Oil Plc.
While the government is hopeful the EEC will attract billions of baht in investment over the next few years, Mitsui & Co Thailand is reluctant to invest until it knows which laws would govern the EEC. It is unclear when new laws would be implemented, he said, which is why investors want to take a wait-and-see attitude.