The Eastern Economic Corridor Office (EECO) has finalized a comprehensive set of incentives designed to attract investors to the EEC special promotion zones. This strategic move aims to encourage significant investment within these zones.
Chula Sukmanop, Secretary-General of EECO, has confirmed that the privileges framework has been submitted to the cabinet for approval. Once approved, investors will be eligible to receive various benefits within the EEC special promotion zones. Currently, more than 20 companies are eagerly awaiting the implementation of these privileges.
To ensure smooth operations, EECO will establish a negotiation committee tasked with securing agreements with investors regarding the privileges offered. These privileges are based on various factors such as project value, supply chain integration, job creation, community support, and technological innovation.
Investors who meet 95% of the requirements outlined in the framework will qualify for a corporate tax exemption lasting up to 15 years.
The privileges framework offers a range of incentive packages tailored to meet the diverse needs of business operators. Corporate tax exemptions, ranging from one to 15 years, will be provided based on the value of the project. In cases where investors do not qualify for tax exemption, alternative options such as a reduction in corporate tax of up to 50% for periods of one to ten years are available.
Additionally, investors can carry forward annual losses incurred during the tax exemption period to offset future profits. Those unable to qualify for tax exemptions or reductions may be eligible to deduct investment funds from net profits over a specified period.
Furthermore, non-tax privileges including import duty exemptions and land ownership rights are offered to incentivize investment in the EEC special promotion zones.
EECO is also introducing the EEC Visa program, catering to high-tech investments. This program includes various visa types such as specialist, executive, professional, and dependent visas, along with an EEC work permit option.
The EEC Development Plan (2023-2027)
The Plan aims to attract a total real investment of 500 billion baht over five years, fostering an annual investment of 100 billion baht and achieving a GDP growth rate of 6.3%.
Currently, annual real investment stands at 70 billion baht, prompting efforts to attract additional investors and reach the targeted investment figure.
EECO has identified seven special industry promotion zones, including the Eastern Airport City and Digital Park, to facilitate targeted investments. Efforts are underway to establish additional zones to accommodate growing investor interest.
In support of Thailand's aviation ambitions, EECO is pursuing the development of maintenance, repair, and overhaul (MRO) facilities near U-tapao airport. This project, part of the Eastern Airport City initiative, aims to attract investors and enhance Thailand's position as an aviation hub.
Infrastructure projects such as the construction of a second runway and taxiway at U-tapao airport are progressing, supported by partnerships between U-Tapao International Aviation Co and the Royal Thai Navy.
The high-speed train project linking Don Mueang, Suvarnabhumi, and U-tapao airports is nearing finalization, further enhancing connectivity within the EEC.
Furthermore, plans are in place for the development of a smart city in Bang Lamung district, with land allocation and budget provisions already secured.
In conclusion, EECO's comprehensive incentives, coupled with strategic infrastructure development, are poised to attract significant investment, drive economic growth, and solidify Thailand's position as a regional economic powerhouse.
Strategic Incentives and Infrastructure Advancements Propel Thailand's Eastern Economic Corridor Forward
1. Incentive Packages for Investors
Explore the various incentives offered by EECO to attract investors, including corporate tax exemptions, reductions, and non-tax privileges.
2. EEC Visa Program
Detail the EEC Visa program, outlining its different visa types and eligibility criteria for investors in high-tech industries.
3. EECO Development Plan (2023-2027)
Discuss the objectives and targets of EECO's development plan, focusing on the goal of attracting 500 billion baht in real investment over five years.
4. Special Industry Promotion Zones
Highlight the seven special industry promotion zones identified by EECO, emphasizing their role in facilitating targeted investments.
5. Infrastructure Development Initiatives
Provide an overview of infrastructure projects such as the expansion of U-tapao airport and the high-speed train project, highlighting their significance in enhancing connectivity and supporting economic growth.
6. Partnerships and Collaboration
Discuss partnerships between EECO, government agencies, and private sector entities in driving infrastructure development and attracting investments.
7. Progress Updates
Provide updates on the progress of key infrastructure projects and investment initiatives, including milestones achieved and future plans.
8. Economic Impact
Analyze the potential economic impact of EECO's initiatives, including job creation, GDP growth, and industry diversification.
9. Challenges and Opportunities
Identify challenges facing EECO's investment promotion efforts and discuss strategies for overcoming them, while also highlighting opportunities for further growth and development.
10. Future Outlook
Offer insights into the future prospects of the Eastern Economic Corridor, considering emerging trends, geopolitical factors, and global economic conditions.
Credit News: https://www.eeco.or.th/en/news/1786
