Perks for 7 EEC zones to be introduced soon - Bangkok Post 87.5% of the budget will come from the private sector, 2.8% from the government, and 9.7% from state enterprises or public-private partnerships. What documents are required for foreigners applying for a credit card in Thailand? The Eastern Economic Corridor is served by the State Railway of Thailand's (SRT) Eastern Line. Thailand has not established agreements with Cambodia and Vietnam, who also have maritime territory in the Gulf of Thailand, leading to conflicts. Larger ferries carrying up to 260 people may be added to the service later. It simplified the rules for starting a business: the rule that requires a company to obtain a business stamp before it is created has been removed. SEZ have been laid out mainly for free flow of people, trade and investment starting from 2015. Krai, 7. Cross-Border Trade between Thailand and Bordering Countries. Eastern Economic Corridor - Wikipedia Those who are interested in investing in business in these zones may wonder what tools to promote investment will be implemented. After the 2014 coup, the NCPO announced the creation of a special economic zone (SEZ) called the Eastern Economic Corridor (EEC) with a budget of 1.5 trillion baht (US$43 billion) over its first five years. Nongkhai ODT makes no representation or warranty, either expressed or implied, in fact or in law, with respect to the accuracy, completeness or appropriateness of the data, materials or documents contained or referenced herein or provided. Special Economic Zone consists of 14 sub-districts with border areas in 3 districts in Tak. Investing in SEZs also provide investors with tax and non-tax incentives, one-stop service provisions, access to foreign workers and infrastructure development. The SEZs in Thailand are categorised into two phases; the first phase, which started in 2015 and the second phase in 2016. [51], A passenger-only ferry service from Pattaya to Hua Hin began operation on 12 January 2017 but is no longer in operation.It was operated by Royal Passenger Liner. This is intended to reduce income disparities, as well as improve quality of life of citizens who live there. Sri Bun Ruang, Mukdahan, Bang Sai Yai, Kam Ar Huan and Na Si Nuan, 4 sub-districts in Wanyai District: Bang Sai The development of SEZs at the border regions of Thailand has been facilitated by, several legislative changes regarding SEZs. in Klongyai District in Trat: Khlong Yai, Had Lek, and Mai Rood, 5. According to the government policy that aims to develop the country's economy and national security in order to increase competitiveness, increase employment, and create well-being for the people, and to solve the problem of foreign workers being smuggled into the country, the smuggling of illegal agricultural products from neighboring countries, and congestion at border checkpoints, as well as promoting important trade and investment to support the opening of the ASEAN Economic Community, a total of 10 special economic zones (SEZs) have been established, namely Tak, Sa Kaeo, Trat, Mukdahan, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat, which are considered a new economic mechanism used by many countries to create interest and attract investment from foreign investors. His greatest hope is for other cities in Thailand to take control of their destiny and transform their cities into more sustainable places for people to live, and as great places to attract investments. The Office of the Board of Investment is a government agency under the Office of the Prime Minister. With their proximity to neighboring countries, SEZ enjoy the benefit from the large pool of labor in the nearby area. [52] By road, the journey takes five to six hours. In the first nine months of 2017, statistics from Thailands Department of Foreign Trade showed that value of border trade (Malaysia, Myanmar, Laos, and Cambodia) and goods crossing the borders (from Singapore-southern China and Vietnam) totaled 971.42 billion baht, an increase of 9.68% from 885.71 billion baht in the same period in the previous year. Thailands Special Economic Zones (SEZs)are regions recently designated by the Special Economic Zone Development Board of the Thai Government. Thanks to the growth in exports and the flourishing tourism industry, Thailand achieved a record current account surplus, equivalent to USD 48.2 billion in 2017. 1. We thank you for your support. The incentive includes a corporate income tax reduction to 10% of the companys net profits for 10 years. [53], The Eastern Economic Corridor is served by two ports: Laem Chabang Port and Map Ta Phut Port. In other words, this will help strengthen Thailands competitiveness in a sustainable way and create security, well-being and a better quality of life for people living in border areas. To explore the relationship between regional growth and the presence of an SEZ in Songkhla province, Thailand, the CD Vine-Copula AutoRegressive (CD-Vine COPAR) models were constructed using annual datasets of Songkhla's economic performance from 1995 to 2016. Other expected benefits include enhanced security along border regions, enabling the stability to develop competitive business endeavours, as well as fostering linkages with neighbouring countries. The SEZ policy was first launched in 2015 based on the governments belief in the strong potential of the 10 areas to connect with the neighboring countries in terms of trade, economy and investment, https://www.thailand-business-news.com/author/boardofinvestment. SEZ promotion is among many measures we initiated to provide SMEs with greater opportunity to connect with new markets, distribution channels and new business opportunities. At the November 2017 BOI Board meeting, the board has approved a new measure to encourage investors to build Trading and Product Development Center within SEZ. Thailand.go.th is a Thai government website under the responsibility of the Public Relations Department, providing accurate and comprehensive information for Thai people and foreigners. Indeed the investment plan will be analyzed by the BOI, in order for them to benefit from tax advantages including: Then, if the BOI promotion status is secured, foreigners can also secure additional tax benefits: However if the BOI promotion status is not obtained, the special economic zone authority may grant some or all the tax benefits that such status would have granted, but the activities of the company must be linked to the economic interest by the free zone authority and must correspond to the 13 targeted businesses. Finally businesses operating in a free zone can bring foreign experts in Thailand, in particular through a fast-track and simplified procedure. As urban centers expand, they provide opportunities for individuals to secure employment, access education, and elevate their quality of life. To learn more about the system architecture, read our documentation. Enregistrer mon nom, mon e-mail et mon site dans le navigateur pour mon prochain commentaire. [42], The Eastern Economic Corridor is served by U-Tapao International Airport, one of three main commercial airports in the country. These include an exemption from corporate income tax for eight years, with a possibility to extend for another five years; double tax deductions for transportation, electricity and water costs; and an exemption from import duties on machinery and raw materials involved in the manufacturing of products for export. Group A1 or A2 which are already granted 8-year CIT shall receive additional 50% reduction CIT for 5 years. This site uses Akismet to reduce spam. Assessing Regional Economic Performance in the Southern Thailand - MDPI sub-districts in 2 districts, 10 sub-districts in Muang district: Gu Ru Ku, With supporting environment for both large and small investors, we are building stronger economy with inclusive growth, said Ms. Duangjai. These are the following ones: First of all, foreigners need to propose an application to cover the BOI promotion status. These cities show that change is within reach, and through the power of collaboration between government and private sectors, positive transformations can unfold at both the local and national levels. While the province boasts significant infrastructure projects like the U-Tapao International Airport and the Map Ta Phut Industrial Estate, Thailands largest petrochemical hub, one of the city's primary objectives is to build the 193-kilometer Bangkok-Rayong high-speed rail. 10-yeardoubledeductionsfrom the costs of transportation, electricity, and water supply, - SEP for SDGs Partnership; ASEAN and Dialogue Partners; Thailand's Anti-Human Trafficking Actions; Thai Business Information Center; Visiting Thailand. Nevertheless, Thai cities frequently face constraints in terms of institutional abilities and available resources. Site users are encouraged to do additional research in support of their activities and to share the results of that research with our team, contact us to further improve the site accuracy. Investing in the development of infrastructure and custom houses help facilitate the expansion of cross-border trade between Thailand and neighboring countries. Nakhon Phanom, Nong Khai, Mukdahan, and Kanchanaburi. Songkhla Special Economic Zone Free zones, also known as "special economic zones", are regions designated by the Special Economic Zone Development Board of the Thai Government. installation or construction of facilities (apart from normal Responsible party Strategic and financial advantages can be mentioned when registering a free zone company in Thailand. These changes have encountered resistance from civil society organizations, communities and local authorities who suggest that the policies developed prioritize the needs of investors, over the preferences of local people. Special Economic Zone in Thailand - thaiembdc.org Enter your email address to subscribe and receive notifications of new posts by email. To qualify for the tax incentive, companies must meet the following requirements: Investing in the SEZ provides companies with a wide range of tax and non-tax incentives and also attract foreign investment in different regions around Thailand. The acquisition of land in each zone and the development of infrastructure, such as, roads, customs houses and industrial estates, which are intended to be leased to private investors. Sa Kaeo is an example, where an SEZ is being developed on the Thai-Cambodia border as part of the Greater Mekong Sub-region Southern Economic Corridor used to transport goods from Thailand to Southern Vietnam. [46][45][47], The Eastern Airport City is a part of the larger initiative to improve transportation and logistics infrastructure in the EEC. [2] The first law of the EEC is the Eastern Special Development Zone Act, proclaimed on 15 May 2019. This guide will make it easier to understand the various steps so that investors will not miss out on investing and expanding their business in Thailand. Kanit Sangsubhan . We will review any map data, laws, articles, and documents that we do not yet have and see if we can implement them into our site. Accessed in May 2018. We believe that not everything should be centralized.. Telephone : 02-553-8111 Fax : 02-553-8315, (-) saraban@boi.go.th. Kha, 4. At the same time, other businesses, especially SMEs outside SEZ, will also reap the benefits from this measure. Thailand has embraced the significance of nurturing its cities and boasts remarkable progress in social and economic development over the past four decades, transforming from a low-income to an upper-middle-income nation. Agriculture, fisheries and related businesses, Automotive, machinery, and parts industry, Electrical appliances and electronics industry, Product and by-product or agricultural scrap business, Manufacturing of metal structures for construction or industry, Manufacturing of animal feed or animal feed ingredients, Manufacturing of construction materials and manufacturing of prestressed concrete products for public utilities, Manufacturing of additives for body cleansing, such as medicated soap, shampoo, toothpaste, and cosmetics, Manufacturing of plastic products for consumer products, such as plastic containers, Manufacturing of articles from pulp or paper, such as paper boxes, Development of buildings for industrial factories and/or warehouses. Thailand's GDP growth has picked up modestly since the surge in COVID-19 cases last year, but economic activity remained below pre-pandemic levels in the first quarter of 2022. Thanks to its abundant resources and its geographical location, Thailand is nestled in the heart of ASEAN. This action resulted in the Central Group investing more than five to six billion baht within a year, and Synphaet Hospital investing more than two billion baht, creating potential for the city to develop and not being restricted by the old city plan.. 19/2565 aims to promote investment in Special Economic Zones and distribution of socioeconomic growth at both local and regional levels thoroughly. Still . For the Indian development, see, Special Economic Zone in Eastern Thailand, Thailand, Eastern Special Development Zone Policy Office, [r.ba st.t.kt pk t.wn.k], National Science and Technology Development Agency, Don MueangSuvarnabhumiU-Tapao high-speed railway, China Railway Construction Corporation Limited, Asian Institute of Hospitality Management, Les Roches International School of Hotel Management, Hong Kong University of Science and Technology, / , " .. As part of this order, six sub-committees were established to take responsibility for the following portfolios at both the national and regional levels.4. PDF INCLUSIVE AND SUSTAINABLE GROWTH ASSESSMENT - Asian Development Bank Chiang Rai Special Economic Zone 5. The establishment of SEZs along the border regions of Thailand was an idea introduced by the Asian Development Bank (ADB) in 1998, as a strategy of promoting the use of transboundary economic corridors. We are a premier corporate services firm specialising in providing everything foreign entrepreneurs and established companies need to successfully start and manage their new business in Thailand. Tak Something's gone wrong, Please Resubmit the form! Special Economic Zone (SEZ) Investment Guide - THAILAND.GO.TH Please see the profile page on Open Development Thailand for access to all resources. var divElement = document.getElementById('viz1533272193632'); var vizElement = divElement.getElementsByTagName('object')[0]; vizElement.style.width='800px';vizElement.style.height='427px'; var scriptElement = document.createElement('script'); scriptElement.src = 'https://public.tableau.com/javascripts/api/viz_v1.js'; vizElement.parentNode.insertBefore(scriptElement, vizElement); The development of SEZs at the border regions of Thailand has been facilitated by several legislative changes regarding SEZs (link to a sub-page on legal issues). SMEs and large investors are equally important. [9] Planners see the region as strategically important as it borders the gulf as well as being close to Bangkok, and two major airports. The ferry cruises at 27 knots on the 113km journey across the Gulf of Thailand with a maximum passenger capacity of 150 persons. In these zones, the state has planned to provide support for infrastructure development, investment incentives, and administrative services to enable access to foreign workers based to stimulate economic development through attracting new small to medium enterprises (SMEs). Chiang Rai depreciation deduction), - The exclusive economic zone of Thailand shown in pink Thailand has the world's 64th largest exclusive economic zone (EEZ), with an area of 299,397 km 2 (115,598 sq mi). The industrial estates are:[40][41], The EEC Livable Smart City, in its ultimate phase, will span over 10,000 hectares (100 square kilometers) and accommodate 2 million inhabitants. [6] Japan rescued the project by providing a modest 178.8 billion yen (US$1.6 billion) in loans, underwriting the construction of 16 projects: ports, roads, waterworks, and industrial parks. BOI : The Board of Investment of Thailand The Eastern Special Development Zone Policy Office (ESDZPO) is the governing body of the Eastern Economic Corridor. [3], The Eastern Seaboard Development Programme (ESDP) was initiated as part of the Fifth Economic and Social Development Plan of Thailand (19821986). We are open: Monday Friday 9 am 6 pm (UTC+7). Nakhon Panom Special Economic Zone consists of 13 Permission to employ foreign unskill labour. Privileges such as, one-stop service provision, reduced taxation, and priority access to foreign labour are promised to businesses that invest in these zones. Puan, Pho Chai, Pon Sawang, Mee Chai, Vieng Kook, See Kai, Nong Kom Kor, Hat Kam, Hin Ngom, 1 sub-district in Sa Krai district: Sa Krai, 8. Thailands export growth plan is currently focused on growing trade with secondary cities in partner countries using mini FTAs, often known as little free trade agreements. This page is not available in other languages. (link to another sub-page on specific issues), Special Economic Zone Act and Related Laws, Guidelines and Measures for the Development of Special Economic Zones in Border Areas of Thailand, Journal of Investment Promotion, 25th Year, Issue 11. . While cross border trade is growing, strong economic growth in those neighboring countries is also significant. of corporate income tax, Exemption of corporateincometax up to 8 years. Don Moon, 8 sub-districts in Mae Sai district: Koh Chang, Gorioux can assist you from A to Z for the creation of your business in Thailand. It was established on 15 May 2019 by the Eastern Special Development Zone (2018) Act and replaced the Eastern Economic Corridor Office. The 220 kilometre line will consist of 181 kilometres of elevated track, eight kilometres of underground track, and two kilometres of surface track. These changes have encountered resistance from civil society organizations, communities and local authorities who suggest that the policies developed prioritize the needs of investors, over the preferences of local people. Information is publicly posted only after a careful vetting and verification process. [1] This bustling city is a commercial and export nexus for the broader Indo-China region. Special economic zones (SEZ) can play an integral role in enhancing both regional and national economic growth. Do you have questions on the content published by Open Development Thailand? This plan aims to attract foreign investment to facilitate economic development in peripheral regions, bordering other members of the ASEAN Community. Somsak shared his insights, stating, Urban development in the city only started in 2019, and the focus was previously only on basic infrastructure. 8 sub-districts in Mae Sot District: Mae Sot, Privileges such as, one-stop service provision, reduced taxation, and priority access to foreign labour are promised to businesses that invest in these zones.1. Karnchang PLC (CK); Bangkok Expressway and Metro PLC (BEM); Italian-Thai Development PLC (ITD); and China Railway Construction Corporation Limited (CRCC). (2nd Project), Yamato Industries I.E., Smart Park I.E., Asia Clean, Rojana Nongyai, Rojana Lamchabang, WHA Industrial Estate (Rayong), and EGCO Rayong Industrial Estate. Most of the businesses investing in SEZ are garment and garment and textile manufacturing, coconut oil production, plastic bottles and bags, animal feed, ready mixed concrete, plastic fiber for fishing net production, rubber gloves, palm oil and metal parts, for example. Following this, the NCPO issued Order 72/2014 to designate the functions of a Special Economic Development Zone Policy Committee. Non-BOI activities are entitled to incentives offered by the Revenue Department. Through its Smart City development plan, it aims to establish a solid foundation for the citys infrastructure to support new socio-economic development approaches. Key findings. This is intended to reduce income disparities, as well as improve quality of life of citizens who live there. The country has highly developed infrastructure and these major investments will reduce the cost of transport and logistics, and will contribute to Thailands reputation. Khon Kaen is a SMART city, meaning that we have a 20-year strategy plan with 136 projects in place, with the LRT project being one of them, said Suradech Taweesangsakulthai, CEO of Khon Kaen Think Tank (KKTT), a group of local businessmen spearheading visions for city development. Special economic zones Asean / Border trade / Economic Policy / SBEZ Thailand's Special Economic Zones (SEZs) are regions recently designated by the Special Economic Zone Development Board of the Thai Government. district: Kang Sian, Baan Kao, 10. It is an independent public agency, reporting directly to the prime minister. In these zones, the state has planned to provide support for infrastructure development, investment incentives, and administrative services to enable access to foreign workers based to stimulate economic development through attracting new small to medium enterprises (SMEs). These zones are designed to allow foreigners to set up their companies in Thailand, while benefiting from simplified procedures, tax advantages, property rights and full foreign ownership. As part of this order, six sub-committees were established to take responsibility for the following portfolios at both the national and regional levels. 9 Soi Rama 6 Soi 30, Rama 6 Road, Phayathai Subdistrict, Phayathai District, Bangkok 10400, Copyright 2022, The Government Public Relations Department, Entry Requirements to Thailand for International Passengers. Trains on the route will operate at maximum speeds of 250 kmph. These include: Currently, the development of SEZs is one of major state policies and is not an easy task to implement. (link to another sub-page on specific issues). Privacy Policy | A high-speed rail line is planned to serve the EEC. U-Tapao International Aviation Company Limited is a joint venture among three large private companies: Bangkok Airways, BTS Group Holdings, and Sino-Thai Engineering and Construction. He emphasized that good urban planning is essential not only for generating income but also for maintaining a sustainable environment within the city. He proposes that distributing these funds more evenly to foster the growth of secondary cities could contribute to the nations overall GDP and promote more balanced and inclusive development across the country. BOI general list, Incentives for targeted activities The main stations are Chachoengsao Junction railway station and Chon Buri railway station. PowerPoint presented at College of Interdisciplinary Studies of Thammasat University, Lampang Campus. 3 sub-districts in Pob Phra District: Phob With the IEAT incentives, foreign workers and investors who have businesses in a SEZ, have the right to own land in the industrial zone, visas and work permits especially for technicians and experts. Transferring currency abroad is also easier for them. Phra, Chong Kab and Valet, 3 sub-districts in Mae Ramad District: Mae Ja Rao, Mae Ramad, Ka Ne Jue, 2. Group A1 or A2 which are already granted 8-year CIT shall receive additional. Discussing potential future investments for Rayong city, Vice Mayor Phusit Chaichum shared his thoughts: One of the things that this city can attract besides tourism is the automobile industry. Nong Khai Special Economic Zone 2. This site uses cookies to optimize functionality and give you the best possible experience. Additionally, an Automated People Mover (APM) will run through automated walkways and allow passengers to travel to and from the airport quickly and efficiently. - Border Special Economic Zones Development Policy. Please make sure the resources are in the public domain or fall under a Creative Commons license. Feel free to schedule a consultation with Acclime for more information. In 2015, Thailand established 10 special economic zones - Tak, Mukdahan, Sakaeo, Trat, Songkhla, Nong Khai, Narathiwat, Chiang Rai, Phanom, and Kanchanaburi. Wan, Nai Muang, Baan Duer, Phra Tat Bang Incentives that are given for BOI general activities located in the SEZs listed on the Announcement on the Board of Investment No. The consortium will have the right to operate and manage the rail line for 50 years after which project assets will revert to the government. PDF Thailand - OECD