Dr. Uttama Savanayana Minister of Industry

22 June 2017

20-YEAR NATIONAL DEVELOPMENT STRATEGY Reform to achieve “Long-term Sustainable Growth”

1. Infrastructures Development : Physical / Connectivity / Intellectual / Social

2. Target Industries : First and New S-Curves

3. Enterprises : Entrepreneurs and SMEs

4. People : Start-ups / Workforce and Thai 4.0

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S-CURVE TARGET INDUSTRIES

FIRST S-Curves : Traditional Strength

Prime for High Value-add Upgrades

NEW S-Curves : High-tech Industries

New Engines of Growth

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How do we drive Target Industries Development?

Public-Private-Education Partnership

Shared Goals / Strategies / Execution

International Linkages & Collaboration

Special Privileges BOI & Ministry of Finance

Investment, R&D, HR Development

Government Supports Ease of Doing Business, Deregulation, Funding

Target Industries

Combined Expertise, Early Commitment, Clear Execution Roadmap, Continuity Ensured 4

Putting Thailand 4.0 into Action

Bio Tech Health Tech Robotic Tech Culture/Creativity

Thailand 4.0 SMART TECHOLOGY with SMART PEOPLE / SMART LIFE Match to the real demand and leave no one behind

Thailand’s Industrial Transformation Policies Moving Towards Next Technology with Inclusive Growth Bangkok

Eastern Economic Corridor

Chachengsao

Chonburi

Rayong

• TH 4.0 + Industrial Policies in Action = “Eastern Economic Corridor : EEC”

Area-Based Development

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Thailand Eastern Seaboard Development Project

... The beginning of the Thailand’s Industrialization

• The first industrial clusters for exports:

Textiles, Electronics, Automobiles

• The first energy and petrochemical complex

Maptaput: Refinery, Gas separation plant, Plastic and chemical

• The first integrated infrastructure for industrial needs

Leam Chabang Seaport, Motorway, Double track railway

... The highly successful area development • A famous destination for FDI

• Exports raised 12%, Industry grew 12%, Economy grew 7%

per annum during the first 20 years.

EEC builds on 30 successful years of Eastern Seaboard

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EEC is located in the best strategic location of the region…

Gateway to Asia - reaching more than half of world’s population

EEC will represent the largest investment projects in ASEAN, in terms of budget and area

Combined GDP of East Asia, ASEAN, CLMV, India region represent 1/3 of world’s GDP

Why wait…?

China

India

AEC

Japan South Korea

To EU

To US

To Oceania

CLMV

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Regional Connectivity… Center of East-West Economic Corridor and North-South Economic Corridor Connect Indian Ocean with Pacific Ocean, CLMV, South China

Why wait…?

Cambodia Vietnam

Laem Chabang

Maptaput

Dawei

Cambodia

China CLMV

Malaysia Singapore

E-W

N-S

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Why wait…? Existing Industries and Infrastructures

Industrial Estate

Industrial Park

Double-Track Railway

Motorway

Deep Seaport

Airport

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4 core areas will be developed… to be World-class economic zone

Aviation Hub Logistics Hub Trading Hub Adv. Manufacturing Hub Tourism Hub

Infrastructure

Tourism

Business, Industrial clusters and Innovation hub

New cities and communities

Ready to be upgraded… To be World-class economic zone

Global Business Hub

Metropolis of the Future

How to?

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Combined Public and Private Investments at least 1.5 Trillion baht ($43B USD) in the first 5 years

200,000 million baht ($5.7 BUSD)

400,000 million baht ($11.5 BUSD)

500,000 million baht ($14 BUSD)

35,300 million baht ($1 BUSD)

64,300 million baht ($1.8 BUSD) 158,000 million baht ($4.5 BUSD)

88,000 million baht ($2.5 BUSD)

10,150 million baht ($0.3 BUSD)

200,000 million baht ($5.7 BUSD)

U-Tapao International airport New Cities / Hospitals

Tourism

Industry

Dual-track railway High-speed train

Laem Chabang port

Map Ta Phut port

Motorway

Note : Estimated investment amount shown

Target

EEC

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• Bidding of PPP High Speed Train for Eastern Line Connecting 3 Airports making EEC as permanent Bangkok extension

• Eastern Airport City Policy supporting 15-30-60 millions in the future • Initiation of MRO Thai Airways – Air Bus and Alliance • Initiation of the Construction of the Second Runway and Infrastructure

• Design Contest and Bidding of Investors for providing 15 millions and relative Business within 5 years

Eastern Aerotropolis (U-Tapao)

Eastern High Speed Train

• Investment of Leading Companies in Electric Vehicle – Robot -Medical Hub – Aircraft Parts – Bio-Economy

Leading Target Industries

• Plan–Area–Criteria for the Development of 3 New Cities (Plan for the Development of Financial Center)

Eastern Future Cities

• 3 Sea Ports as Part of the Eastern Sea Gateway • Bidding of PPP Laem-Chabung Sea Port Phase 3 - Gateway to Asia • PPP Map-Taput Sea Port • Construction of Ferry and Cruise at Sattahip Commercial Sea Port

Eastern Sea Gateway to Asia

• 2 Transformation Complexes • Digital Park • Innovation Park

Digital Transformation and Innovation

Incubators 12

R

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w

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y

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R

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w

a

y

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New Runway Existing Runway

Training Center 200 rai (0.32 million sq.m.)

Maintenance Repair Overhaul (MRO) 570 rai (0.912 million sq.m.)

New Free Trade zone 950 rai (1.52 million sq.m.)

New High-Speed Rail connection

New Commercial area 675 rai (1.08 million sq.m.)

#1 U-Tapao Airport city, first phase towards Aerotropolis

Existing Terminal

1St Phase

Full Phase

New Passenger Terminal 1,400 rai (2.24 million sq.m)

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#2 Laem Chabang phase 3, towards World’s Top 10 ports

Expansion to support growth

Double containers accommodation, from 7 to 18 million TEU/year

Triple car export accommodation, from 1 to 3 million units/year

Logistics hub and Gateway for Indo-China

Move into world’s Top 10 ports

Phase 3

Phase 4

Railway connection 14

#3 High-Speed and Double-track railways Connect 3 International Airports within 1 hour with High-Speed Railway Connect 2 International Ports with Industrial Clusters

High-Speed Rail: Bangkok - Rayong - Connect 3 main airports: Donmuang, Suvarnabhumi, and

U-Tapao in 1 hour - Suvarnabhumi to U-Tapao in 45 minutes - Accommodate 110 million passengers/year

Donmuang

Suvarnabhumi

Chonburi

Sriracha

Pattaya

Rayong U-Tapao

Chachoengsao

High-speed train Double-track railway (Current) Proposed double-track railway route New double-track railway route

Double-track railway: Connect major ports with Industrial clusters - Upgrade to double-track from Laem Chabang to

Map Ta Phut seaport - New routes.. • Laem Chabang – Pluak Daeng – Rayong in the pipeline • Map Ta Phut – Rayong – Chantraburi – Trat under study

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#4 Target Industries in EEC… New technology and Innovation to create greater value

Bioeconomy Auto, Auto parts,

Electronics, and Robotics Aviation, Maintenance and

Related Businesses Medical Hub

Maintenance, Repair and Overhaul (MRO)

Aircraft parts and spare parts

Air Cargo

Smart Automobiles

Electronic parts

Robotics for industrial and lifestyle use

Functional Food

Bioplastic

Cosmetic

Wellness Center

Medical Center

Medicines and Devices 16

#5 New Eco Cities … Inclusive growth, Green environment

New Cities consist of …

Enhanced urbanization, communities, quality of life and enviroment to international standards Leading universities and international schools

Leading hospitals and medical centers

Quality tourism spots

Regional commercial centers

EEC Communities development funds

Muang Chachoengsao

Muang Chonburi Baan Bueng

Pattaya

Banglamung

Laem Chabang

Map Ta Phut Baan Pae

New City

New City New City

New City Baan Chang

Muang Rayong

Chachoengsao

Chonburi

Rayong

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Special Privileges and Incentives for EEC

• Most favourable in Thailand, internationally competitive • Focus on

- Target industries with high technology - Infrastructures and logistics development - R&D and Technology support services - Tourism

BOI Special Privileges EEC to become investment promotion zone >BOI standard package plus 50% CIT reduction for another 5 years >Potential 15 years CIT waiver plus grants for strategic projects in EEC (Thailand Competitive Fund)

Additional Privilege from Ministry of Finance • Personal Income Tax Reduction up to 17% (Cabinet Resolution on Feb 28, 2017) for Administrators,

Investors, Experts in Industry or Regional Head Office and Infrastructure and Facility Investment in EEC Areas.

Thailand Competitive Fund • Special, Tellermate support and privileges for R&D, HRD, Targeted-related activities in EEC 18

Special processes: Making private investment feasible

Incentives: EEC exclusives

Social Infrastructure: Modern living standard

• Fast-track - Special 10 months PPP Process • Customs Procedure • Long-term land lease (50+49 years)

• Tax-incentives CIT / PIT / Free trade zone • Non-tax incentives VISA + work permit • Financial incentives Holding foreign currency

account • One stop services

• Promoting city development • International school • International hospital / medical hub • Clean and Green • World class power/water/waste treatment

Community based Development: Inclusive process

• Provided for in the pending EEC Act - Special Fund for EEC communities

- Health - Environment - Education

Key enablers in the pending EEC Act (2017)

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EECd

EECi

U-Tapao Airport and Aircraft Maintenance

Sattahip Commercial Seaport

Laem Chabang Port Phase 3

Map Ta Phut Port Phase 3

High Speed Rail – Eastern Route

Double Track Railway

Highways & Motorway

Next Generation Automotive (EV/AV)

Aviation Industry, Robotics, Smart Electronics

Advanced Petrochemical and Bioeconomy

Medical Hub

Tourism

Global Business Hub / Free Economic Zone

New Cities, Inclusive Growth

Public Utilities

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Infrastructure

Business/Industry

Tourism

New Cities

+ EECi

+ EECd

EASTERN ECONOMIC CORRIDOR (EEC)

ระเบียงเศรษฐกิจพิเศษภาคตะวนัออก

4 Core Areas and 5 High Priority Projects

Chonburi

Rayong

Chachoengsao

Bangkok

Eastern Rail Route High Speed Train

Double Track Rails

New Chachoengsao City

New Rayong City

New Pattaya City

LCB Port

Donmuang Airport

Suvarnabhumi Airport

Sattahip Port

Map Ta Phut Port U-Tapao Aerotropolis

Tourism

Bioeconomy

Aviation Industry

Modern Automotive

Smart Electronics

Robotics

Logistics Hub

Food Processing

Agricultural Technology

Agricultural Technology

Food Processing

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EEC Policy Committee

EEC Management Committee

Eastern Economic Corridor Office (EECO)

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Chaired by Prime Minister General Prayut Chan-o-cha

Chaired by Minister of Industry, Uttama Savanayana

Headed by EEC Secretary- General, Kanit Sangsubhan

Contact: EEC Secretary- General Eastern Economic Corridor Office (EECO) Ministry of Industry 75/6 Rama VI Road, Ratchathewi, Bangkok 10400, Thailand E-mail : eeco_p@industry.go.th

Driving EEC Forward

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