The Eastern Economic Corridor (EEC) Policy Committee in Thailand has approved a new 5-year development plan for 2023-2027.
Key Takeaways
- The Eastern Economic Corridor (EEC) in Thailand aims to attract a significant increase in investment over the next five years, with a target of 500 billion baht.
- The development plan focuses on promoting targeted industries, improving infrastructure, upskilling the workforce, developing modern cities, and ensuring sustainable community development.
- To attract foreign investment, a new visa scheme will be implemented in 2024, offering 10-year visas to investors in the EEC, along with various perks and benefits.
- The EEC is a significant part of Thailand’s strategy to boost growth and attract investment, particularly in high-tech industries, amid a slowdown in the economy.
The plan aims to attract an investment influx of 500 billion baht and increase the gross provincial product of EEC provinces by 6.3%. The strategy includes promoting investment in targeted industries, improving infrastructure, upskilling the workforce, developing modern cities, and ensuring sustainable community development.
In addition, a new visa scheme has been approved to attract foreign investment, offering 10-year visas to investors in targeted industries, along with various perks.
Visa holders will enjoy various benefits, including expedited work permit processing, a flat 17% personal income tax rate, a visa duration of up to 10 years, convenient online reporting, and access to fast-track channels at international airports.
10-year visas for investors in targeted businesses
Thailand is set to offer 10-year visas to foreign investors in targeted businesses in its industrial eastern region starting next year. The government aims to attract more investment and ease restrictions by providing these visas.
Additionally, the government is targeting a total investment of 500 billion baht in the Eastern Economic Corridor (EEC) between 2023-2027, with a focus on modern and environmentally friendly industries.
Companies investing in these industries will receive benefits such as an EEC work permit, a flat income tax rate of 17%, and a 10-year visa. The EEC is a key part of Thailand’s efforts to boost growth and attract investment, particularly in high-tech sectors. The country’s economy grew at a slower rate than expected in the third quarter, highlighting the need for measures to stimulate economic activity.
The Eastern Economic Corridor (EEC)
The Eastern Economic Corridor (EEC) is a special economic zone that covers three provinces in eastern Thailand: Chonburi, Rayong, and Chachoengsao. It is a key component of the “Thailand 4.0” economic policy that aims to transform Thailand into a high-income, innovation-driven economy. The EEC has a budget of 1.5 trillion baht (US$43 billion) over its first five years to develop infrastructure, industries, and services in the region.
Some of the target industries in the EEC include next-generation automotive, smart electronics, biotechnology, robotics, aviation, and digital technology. The EEC also offers various incentives and benefits for investors, such as tax exemptions, land lease rights, visa facilitation, and regulatory easing. The EEC also provides comprehensive R&D infrastructures to support the competitiveness of the country’s target industries.
The EEC is expected to boost Thailand’s economic growth, create jobs, attract foreign direct investment, and enhance regional connectivity. The EEC also aims to promote social and environmental sustainability by adopting green technology, renewable energy, and circular economy principles. The EEC is a strategic initiative that will help Thailand achieve its vision of becoming a developed country by 2037.
