INVESTMENT IN EASTERN ECONOMIC CORRIDOR (EEC)

Development of Special Eastern Economic Corridor Development Project (Eastern Economic Corridor: EEC) is a strategic plan under the Thailand 4.0 policy that has been further extended from the Eastern Economic Development Plan (Eastern Seaboard) which has been in operation for more than 30 years. Thailand is the center of economic group connections that is growing rapidly between Cambodia, Laos, Myanmar and Vietnam. Besides, it is a strategic point for ASEAN countries in the areas of production, trade, exports and transportation such as automotive parts, electronics, petrochemicals, food processing, etc. Therefore, Thailand is in the best position for investment in ASEAN. Nevertheless, due to the tendency of world’s industry and technology have been changed rapidly, Thailand must be ready for the world’s industry in the future.

The Eastern Economic Corridor Development Project (EEC) has emerged with the ambition of raising middle-income countries, which from the agricultural countries develop into the industrial countries by technology and innovation investment. It’s focusing on the infrastructure development, public utilities, tourism, business, and large industrial cities in the target area of three provinces; Chachoengsao, Chonburi and Rayong. These areas are the top industrial zone of the country that surrounded by factories in the large industrial estates, airports, and also the 22nd largest port in the world. Therefore the government has accelerated The Eastern Economic Corridor Development Project to stimulate the economy and investment in Thailand to develop continuously.

By the first 5 year investment during 2017-2020, Eastern Economic Corridor Development Project will emphasize on the infrastructure investment and the investments to support 10 target industries under a mutual investment between the public and private sectors which consists of 5 potential former industries to be further expanded (First S-curve) including; modern vehicles, Intelligent electronics, good income tourism group and health tourism group, agricultural, biotechnology and food processing industry in the future, and 5 (New-S-curve), including robots for industrial, aviation and logistics of biofuels and bio-chemicals, digital and medical services to promote domestic investment by both Thai and foreign investors.

The main purpose of the government in accelerating the development of this project is to stimulate the economy, attracting more foreign investors to invest in Thailand. The government has issued three important laws, namely; the amendment of the Investment Promotion Act, The Fund to Increase Competitiveness and the Special Economic Development Area Act, Eastern Region. In order to focus on the flexibility of private investment and increase benefits to attract investment. The total area in 3 provinces will be divided into 10 zones. Each zone will receive special privileges that are different from the Board of Investment ( BOI), including tax benefits such as the city of aviation, Eastern region will get tax exemption up to 8 years and 50% corporate tax deduction for an additional 5 years or industrial areas in the EEC area, industrial estates will have a 50% reduction in corporate income tax for another 5 years and other non-tax benefits such as work rights of foreign workers in 3 provinces without having to apply for a work permit and then cover to the family that followed to live with. It also includes foreigners' rights to own land and the right to purchase foreign condominiums for 100%, etc.

From this privilege, it can be seen that the promotion of Thai investment has changed dramatically because the BOI benefits are flexible and specific. As the investors can propose investment projects in order for the board that has the authority under each Act consider and approve the scope of investment benefits on a per project basis. This benefit will be beneficial to investors while also being a tool to attract investment that is in line with the country's long-term development strategy.

Legal Spirit Co., Ltd. realized the importance of changing the current economic situation. Therefore, we have studied and researched to develop the knowledge of the team in the company in order to create expertise. Especially in various laws relating to investment in the special economic zone in the Eastern Region Rules for applying for investment promotion business type details including various benefits to be received in order to provide legal services to both Thai and foreign investors and to create confidence for investors who are interested in investment that will benefit the most from receiving our Legal service and investment advice that suitable for your business.