Post : 2 Feb 2023

Let's get to know EEC or the Eastern Economic Corridor.

EEC consists of Chonburi, Rayong and Chachoengsao provinces. The main infrastructure in the EEC is as follows:

• High-speed rail project connecting 3 airports (Don Mueang-Suvarnabhumi-U-Tapao) can connect U-Tapao Airport to Bangkok within 45 minutes by a high-speed train (250 km/hr) from Suvarnabhumi-U-Tapao station with 5 stations which are Chachoengsao, Chonburi, Sriracha, Pattaya and U-Tapao. This allows tourists and/or investors to travel directly from their country of origin to the eastern part of Thailand. And it is also easy to travel back to Bangkok. It will be operational in 2026.
• U-Tapao Airport Development Project and the Eastern Aviation City. The objective is to upgrade U-Tapao Airport as "The 3rd Main Commercial International Airport" connecting Don Mueang and Suvarnabhumi Airports with high-speed trains, all 3 airports can accommodate up to 200 million passengers per year. Especially being “Tourist Industry Center and Logistics & Aviation" including being the center of "Eastern Aviation Metropolis" will cover the development of the city area of ​​about 30 km around the airport (Pattaya to Rayong), which continues the intention of developing the Eastern Seaboard to become a port city and important business city of Thailand by connecting as an extension of Bangkok and the perimeter to the east that can be connected easily by water, land and air to push Thailand to be Aviation hub and economic gateway to Asia. It will be operational in 2026.
• Map Ta Phut Industrial Port Project, Phase 3 is an infrastructure development to support the transportation of natural gas and liquid raw materials for the petrochemical industry. At present, the full potential has been used, therefore, it is necessary to expand the port which will be operational in 2026
• The Laem Chabang Port Project, Phase 3, is to increase the port's capacity to accommodate the growing demand for international sea freight in the future. The construction of a deep sea pier and other facilities will be undertaken including the development of a single rail transfer operator (SRTO) at Laem Chabang Port; (Pier A). Improvement of facilities is to solve the traffic problem inside the pier, as well as, the network and multimodal transportation system necessary in the Laem Chabang Port area that will be sufficiently connected to the outside and ready to support the expansion of the volume of ships and various types of cargo.  It will be operational in 2025 for F1 and in 2029 for F2.

EEC promotes 12 targeted industries attracting innovation investment and advanced technology industries which are 5 First S- curves industries namely 1.) Modern automotive 2.) Intelligent electronics 3.) Agriculture and biotechnology 4.) High-income tourism and medical tourism 5.) Food processing and also the extension of 7 new industries (New S – curves), including 1.) Robotics 2.) Comprehensive Medicine and Health 3.) Digital 4.) Aviation and Logistics 5.) National Defense 6.) Personnel Development and Education 7.) Biofuels and Biochemical.

Benefits for investors according to Measures to promote investment in the Eastern Economic Corridor (EEC) in 2020-2021:

1. Exemption of corporate income tax for 10 years for Industry Category 8 (Technology Development and Innovation), 8 years for A1 (Knowledge-Based Industry Emphasis on design, R&D) and A2 (infrastructure business for national development and high-tech enterprises), and 5 years for A3 (high-tech activities that are important to the country's development with some production bases). Moreover, in case the project located in an industrial estate or industrial zones is exempted from corporate income tax for an additional year for Category 8 and A3 industries.
2. Personal income tax: foreign workers working in EEC are subject to personal income tax at a rate of 17 per cent, covering their parents, spouses and children, while foreign executives working at head offices or international trading companies in the EEC area must pay personal income tax at a rate of 15 percent
3. Import duties: taxes exemption of import duty on machinery and goods imported for use in research and development
4. Special deductions: tax reduces at the rate of 3 times the cost of research and development in innovation and technology.
5. Financial transactions: operators are exempt from foreign exchange control laws and can use foreign currency in EEC area.
6. Ownership of land and real estate: foreign entities can hold land and real estate for business operations. Foreign entities can hold property for living purposes. Foreign agencies have the right to do lease/sublease/lease of land or real estate within the EEC area for 50 years and can be renewed upon approval for another 49 years.
7. Immigration and residence in Thailand: foreign professionals or executives, including their spouses and dependents, can enter and reside in the Kingdom of Thailand for a period longer than the legal limit.

Reference from https://www.eeco.or.th/th

#investment #thailand #privilege #EEC #highspeedrail #LaemChabangPort #MapTaPhut #BOI #IndustrialEstate #CPGCIndustrialEstate #Infrastructure #Logistic