Government pledges special incentives for EEC investors

The government has pledged to offer special incentives for investments in the six new promotion zones in eastern Thailand, including EEC genomic medicine (EECg), EEC medical hub (EECmd) and EEC innovation platform (EECi).

According to Kanit Sangsubhan, secretary-general of the Eastern Economic Corridor (EEC) Office, special incentives will be offered to potential investors on a case-by-case basis.

“The office is now speeding up a draft of privileges for investment in the new six special promotion zones,” he said.

On Sept 28, the EEC Policy Committee, chaired by Prime Minister Prayut Chan-o-cha, asked the EEC Office to draw up a draft of special investment privileges for the six promotion zones.

The special privileges are aimed at: promoting innovations and niche investments with high potential; customising incentives; creating a good investment climate; and accelerating the digitalisation of government management and public services.

According to Mr Kanit, the six special promotion zones comprise: the Eastern Economic Corridor for innovation platform (EECi); Eastern Economic Corridor for digital park (EECd); Eastern Economic Corridor for aviation (EECa); Eastern Economic Corridor for the medical hub (EECmd); Eastern Economic Corridor of high-speed rail (EECh); and Eastern Economic Corridor for genomic medicine (EECg).

Mr Kanit said the agency is scheduled to implement a roadshow for investment in EECa in the fourth quarter of this year, while construction both of the Eastern Aviation City and the high-speed rail network linking three airports will be implemented by the end of this year.

The Board of Investment (BoI) currently offers privileges to investors on the basis of the same criteria, and following investment categories.

The BoI is now keen to attract special investments such as in high technology, while the EEC Office will convince them to invest in six special promotion areas. Investment projects may not be on the list of the BoI’s categories, said Mr Kanit.

“Under the draft of special incentives, the office will have investment tools that have more flexibility to attract investment to reach a target of a combined 2.2 trillion baht by 2026,” he said.

The EEC Policy Committee’s meeting on Oct 4, chaired by Gen Prayut, endorsed the revised investment plan for the EEC for the period 2022-26 with a combined value of 2.2 trillion baht.

Of the total, about 200 billion baht would come from: investment in the Eastern Aviation City; city development in a radius of 30 kilometres around U-tapao airport; and investment from area development along with the main stations of the high-speed rail linking three airports.

Investment in targeted industries is estimated at 400 billion baht a year, 250 billion baht of which will be from annual normal investment and the remainder from the new S-curve industries such as electric vehicles, digital, medical services, logistics, smart farm, and food.

The investment plan revision for the EEC is based around the government’s ambitious attempt to grow the economy by 4.5-5% a year over the next five years.

The government has high hopes for the EEC, aiming for it to become the country’s vital investment destination during this period in order to draw investment at an average of 400-500 billion baht a year.

Under the original investment plan for the EEC, spanning 2018-22, the government had set a target to draw investment of 1.7 trillion baht, or an average of 300 billion baht a year.

Investment has already topped 1.6 trillion baht, accounting for 94% of the target, said Mr Kanit.

The agency expects investment to reach 1.7 trillion baht by the end of this year.