A LIT TLE HELP Economic development zones other than the EEC struggle to catch on.
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Bangkok Post, Monday, February 22, 2021
A LITTLE HELP
Economic development zones other than the EEC
struggle to catch on.
Bangkok Post, Thailand · Feb 22, 2021 · B1
Centuries-old Wat Pa Sak in Chiang Rai’s Chiang Saen district is among
the province’s ancient art built in the Lanna style.
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Bangkok Post, Monday, February 22, 2021
The Industrial Estate Authority of Thailand’s Smart Park is also located in
the EEC.
The Map Ta Phut Industrial Estate in Rayong falls within the Eastern Eco‐
nomic Corridor.
The government’s touted Eastern Economic Corridor (EEC)
seems to be the only flagship economic development project Thai‐
land has initiated in recent years, with little to no follow-up on
similar projects. What happened to the other schemes? The gov‐
ernment agreed in early 2019 to approve regional development
plans worth a combined 94.4 billion baht. The largest portion of
the budget would be allocated for six regions, consisting of the
central, northeastern, northern, southern, eastern and three
southernmost provinces.
Authorities prioritised the Northern Economic Corridor (NEC)
and Northeast Economic Corridor (NEEC) schemes, setting 2020 as
a start date to implement the projects.
The NEC, NEEC and Southern Economic Corridor are men‐
tioned in passing by authorities, but their progress seems glacial
when compared with the EEC.
FORGOTTEN SCHEMES?
The NEC, NEEC and Southern Economic Corridor are not
shelved, but they are moving ahead at a snail’s pace, facing sev‐
eral obstacles, said an industry official familiar with the schemes
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who requested anonymity.
He blamed the slowdown on the lack of a “real” host agency to
oversee the projects and serve as a focal point of coordination.
There are also no concrete details, action plans or even a clear
framework, though the government told provincial officials to
come up with ideas to set up economic development zones, said
the official.
“City planning is also a hindrance for land development as
factory construction is not allowed in some areas and local offi‐
cials disagree on certain concepts of the schemes,” he said.
Some projects such as the Southern Economic Corridor re‐
quire a feasibility study that may last 2-3 years, said the official.
Industry Minister Suriya Jungrungreangkit was not available
for comment.
Earlier this month, the cabinet approved a three-year exten‐
sion of investment privileges for the Southern Economic Corridor
until December 2023.
The scheme aims to economically link countries ringing the
Indian Ocean — India, Sri Lanka and Bangladesh — with the Gulf
of Thailand and the Andaman Sea. The government also wants to
connect the southern corridor with the EEC.
Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat
provinces would be grouped together to form a new economic
zone providing access to the sea and the upper southern region of
Thailand.
The southern corridor’s development framework consists of
four components: a western gateway for trade; a gateway for Gulf
of Thailand and Andaman Sea tourism; bio-based and processed
agricultural product industries; and ecological and cultural con‐
servation.
As the government puts it, the corridor is meant to be another
economic window for the country, serving as a “land bridge” be‐
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tween the Gulf of Thailand and the Andaman Sea.
Implementing such a corridor is proving to be an uphill task
as residents in Songkhla dislike the scheme. Many villagers have
protested against it, arguing it would bring a heavy industry com‐
ponent to a district in Chana based on fisheries and farm prod‐
ucts.
The northern corridor, which comprises Chiang Mai, Chiang
Rai, Lamphun and Lampang, is gradually taking shape, with Lam‐
pang seen as a sustainable future city (SFC).
The northern corridor focuses on attracting tourism through
its Creative Lanna Cluster, covering the four provinces and pro‐
moting Lanna heritage, which refers to the unique culture in the
North.
The National Economic and Social Development Council
(NESDC) said last year it spent 9.5 million baht hiring
Chulalongkorn University to conduct a feasibility study on a SFC
development plan for Lampang and Kanchanaburi municipali‐
ties.
Kanchanaburi municipality is part of the CentralWestern Eco‐
nomic Corridor meant for the development of agro- and high-tech
industries as well as heritage and green tourism.
The corridor in the Northeast seems to have the least head‐
lines of all the economic development zones.
NESDC secretary-general Danucha Pichayanan insisted re‐
gional developments will move ahead and most projects are un‐
dergoing a feasibility study.
The NEEC in the Northeast has been designated a bioeconomy
cluster, geared towards developing highquality processed agricul‐
tural goods and growing premium jasmine rice.
The bioeconomy cluster includes the provinces of Khon Kaen,
Nakhon Ratchasima and Ubon Ratchathani. These provinces are
to concentrate on transforming raw materials into high-value
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goods.
THE STAR
The EEC, on the other hand, has received constant govern‐
ment support and remains part of the government economic de‐
velopment backbone.
“The EEC is known all over the world because of frequent
roadshows to promote the scheme, as the Southeast Asian econ‐
omy is rapidly growing,” said Kriengkrai Thiennukul, vice-chair‐
man of the Federation of Thai Industries.
“The EEC is presented as the country’s mega-investment
project, which attracts the attention of investors.”
The project spans 30,000 rai in Chachoengsao, Chon Buri and
Rayong provinces and is set to become Thailand’s high-tech indus‐
trial hub.
This multi-billion-baht economic zone promotes 10 specific
segments: next-generation cars; smart electronics; affluent, medi‐
cal and wellness tourism; agriculture and biotechnology; food; ro‐
botics for industry; logistics and aviation; biofuels and biochemi‐
cals; digital; and medical services.
The government also wants to connect the EEC with China’s
Belt and Road Initiative (BRI) and the Regional Comprehensive
Economic Partnership (RCEP) to further expand Thai and Asean
economies.
BRI is meant to link China’s economy with Southeast Asia,
Africa and Eurasia by developing land and maritime infrastruc‐
ture. Beijing also joined the RCEP trade pact, the world’s biggest
free trade deal, signed by 15 nations in Asia-Pacific including
Thailand.
Before the pandemic, the Thai government forecast the EEC
could boost the country’s GDP growth to 5% a year, creating more
than 100,000 jobs and generating income exceeding 450 billion
baht annually.
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Infrastructure development projects in the EEC are in place,
while roadshows to China, Japan and Vietnam aim to attract in‐
vestors, Mr Suriya said earlier.
The infrastructure projects are a high-speed railway linking
three airports (225 billion baht); U-tapao aviation city (290 bil‐
lion); a maintenance, repair and overhaul (MRO) centre (10.6 bil‐
lion); the third phase of Laem Chabang seaport (114 billion); and
the third phase of Map Ta Phut seaport (55.4 billion).
Up to 6,000 rai of land in Rayong and Chon Buri serve as new
industrial estates for the EEC, he said.
The EEC Office aims to attract 300 billion baht in investment
applications this year. Deputy Prime Minister Supattanapong Pun‐
meechaow, who chaired a subcommittee meeting on EEC policy
earlier this month, said the government is ready to come up with
proactive approaches to achieve this target.
NEW OPPORTUNITIES
In addition to the EEC’s promise, the NEC, NEEC and southern
corridor are also crucial to help Thailand expand trade and in‐
vestment, especially during the post-pandemic period, said Mr
Kriengkrai.
“The government should use all the economic tools at its dis‐
posal to strengthen the Thai economy,” he said.
As the ongoing political unrest in Myanmar looks set to affect
its economy, foreign investors are likely to focus more on Thai‐
land and Vietnam, said Mr Kriengkrai.
This could help investment at the EEC, as well as the NEC,
NEEC and southern corridor, he said.
“I believe the government will push these projects ahead,
though they are not heavily publicised like the EEC, making their
progress appear passive,” said Mr Kriengkrai.
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