Sanet informs: The Eastern Economic Corridor
Thailand’s ambitious plans for the future
Thailand has done some ambitious planning in terms of economic and infrastructure development. In addition to the construction of a high-speed railway between Thailand and China for goods transport, the Thai government is also promoting a project known as the Eastern Economic Corridor (EEC), which seeks to turn Thailand into a Southeast Asian hub for trade and logistics on par with Singapore. If they succeed, it will make Thailand an even more attractive location for top global corporations.
One of the top candidates among these corporations is the Chinese trading giant Alibaba, which is currently eying Thailand as a location for the development of a logistics hub for distribution in Southeast Asia. Some other big names are Airbus, Europe’s largest airplane producer, as well as the British company Rolls-Royce, who are both already considering setting up maintenance and repair workshops for planes within the Corridor.
The plans for the EEC include four large state-sponsored infrastructure projects: the expansion of the U-Tapao Airport in Pattaya with a total investment of appx. 200 billion Thai Baht, a high-speed train from Bangkok to Rayong (ca. 160 billion Thai Baht), the expansion of the Laem Chabang deep-sea harbour (ca. 90 billion Thai Baht) as well as a two-track railway connecting the three sea ports in Bangkok, Laem Chabang und Map Ta Phut (ca. 65 billion Thai Baht). These projects will be carried out via Public-Private Partnerships (PPP).
Both domestic and foreign companies are in favor of the idea to build an EEC. According to a study by the Bank of Ayudhya, the construction, energy, tourism and logistics sectors stand to profit the most from the project. Secondary growth benefits will be enjoyed by those from the automobile, electronics and med-tech industries. At present there are numerous export-oriented European MSEs set up in these industries.
For over a decade the German-Thai consultants of Sanet have been helping European companies to successfully set up business in Thailand.
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