The Eastern Economic Corridor (EEC) is an ambitious initiative that aims to transform the eastern part of Thailand into an international economic region that welcomes various foreign logistic and manufacturing opportunities. The EEC spans many provinces in the Thai eastern region, focused on driving economic growth through strategic investments in infrastructure, industry, and innovation. This comprehensive article offers essential insights into Thailand’s EEC, highlighting its benefits and process to apply your company as part of the EEC.
1. What is EEC?
The Eastern Economic Corridor (EEC) in Thailand is a special economic zone and regional development project designed to boost economic growth and investment in the eastern part of Thailand. The program was announced by the Thai government in 2017 and was officially established in May 2019 which is considered as a cornerstone of the Thai government’s “Thailand 4.0” strategy. The ambitious goal of EEC is to transform the eastern seaboard region into a hub for industry and innovation by covering 3 provinces of Chachoengsao, Chonburi, and Rayong.
2. What are the Benefits of EEC?
Tax benefits and incentives: To encourage foreign investment, the EEC offers tax incentives, including exemption from corporate income tax for up to 15 years. Non-tax incentives include land ownership for promoted projects, the right to lease state land for up to 50 years, and grants for investment, research and development, and human resource development for targeted industries.
Infrastructure and logistics for the global market: The EEC initiative aims to develop high-quality infrastructure, reduce transportation costs, and promote industry growth in sectors such as automotive, aerospace, and electronics. It also seeks to improve regional and global trade by enhancing infrastructure, such as industrial parks, and providing tax incentives for businesses in the EEC. Provinces in the EEC are near seaports, airports, and railroads, which will improve business efficiency.
3. Who Will Benefit?
Foreign Businesses: Companies operating in the EEC enjoy numerous benefits, including tax incentives, convenient document processes, and access to improved infrastructure.
Skilled Local Employees and Workforce: The EEC project generates employment opportunities, particularly in high-tech and industrial sectors. This incentive offers great career opportunities for both skilled Thai workers and expatriates.
Thailand’s Economy: The EEC contributes significantly to national economic growth by attracting foreign direct investment (FDI), boosting exports, and enhancing the overall competitiveness of the Thai economy.
4. How to Apply or Qualify?
Eligibility Criteria: Businesses interested in operating within the EEC must meet specific criteria, often related to the type of industry and investment levels. 12 targeted industries are eligible for EEC promotion and incentives which are next-generation automotive, electronics, high-value and medical tourism, biotechnology, future food industry, biochemical & biofuel, robotics & automation, defense, digital, medical & comprehensive healthcare, education and HRD, and logistics.
Application Process: Companies need to apply through the Eastern Economic Corridor Office (EECO). In its essence, there are 4 application steps the company needs to prepare and comply with:
- Potential investor submits a “Business Proposal” to negotiate for EEC incentives. EEC representatives reach out to potential investors or investors contact EEC representatives directly at The Eastern Economic Corridor Office of Thailand (EECO). Investors are required to provide EEC with a detailed business plan for incentive package consideration.
- EECO and potential investors will collaborate to design a “Customized Incentive Package” based on mutually agreed upon business terms and conditions. The package will be tailored to the specific needs of each investor and will fall within the incentive package approved by the EECO.
- EECO and investors to sign an agreement once the customized incentive packages are mutually approved.
- Investors operate their business according to the business plan and agreement made with EECO. Investors will receive incentives as negotiated and mutually agreed upon. EEC will provide full support to help investors in achieving their business goals..
In summary, Thailand’s Eastern Economic Corridor (EEC) offers substantial benefits for both local and foreign investors, transforming the region into a dynamic global economic hub. With its focus on infrastructure development, industry promotion, tax benefits, and support for foreign investors, the EEC provides fertile ground for businesses to thrive. Companies operating in the EEC enjoy significant advantages, including tax incentives, improved logistics, and access to cutting-edge infrastructure. The EEC is a key driver of Thailand’s economic transformation, making it an attractive destination for investment and growth. If you are looking to rent warehouses and factories of various sizes or learn more, kindly contact us.
