Eastern Economic Corridor June 2017 20-YEAR NATIONAL DEVELOPMENT STRATEGY Reform to achieve “Long-term Sustainable Growth”

1. Infrastructures Development : Physical / Connectivity / Intellectual / Social 2. Target Industries : First and New S-Curves 3. Enterprises : Entrepreneurs and SMEs 4. People : Start-ups / Workforce and Thai 4.0 2 S-CURVE TARGET INDUSTRIES

NEW S-Curves : High-tech Industries New Engines of Growth

FIRST S-Curves : Traditional Strength Prime for High Value-add Upgrades

3 How do we drive Target Industries Development?

Public-Private-Education Partnership Shared Goals / Strategies / Execution

Government Supports Special Privileges Ease of Doing Business, Target Industries BOI & Ministry of Finance Deregulation, Funding Investment, R&D, HR Development

International Linkages & Collaboration

Combined Expertise, Early Commitment, Clear Execution Roadmap, Continuity Ensured 4 Putting Thailand 4.0 into Action

Thailand 4.0 SMART TECHOLOGY with SMART PEOPLE / SMART LIFE Match to the real demand and leave no one behind Thailand’s Industrial Transformation Policies Moving Towards Next Technology with Inclusive Growth

Area-Based Eastern Economic Corridor Development Chachengsao • TH 4.0 + Industrial Policies in Action = “Eastern Economic Corridor : EEC”

Rayong

Bio Tech Health Tech Robotic Tech Culture/Creativity

5 EEC builds on 30 successful years of Eastern Seaboard

Thailand Eastern Seaboard Development Project ... The beginning of the Thailand’s Industrialization • The first industrial clusters for exports: Textiles, Electronics, Automobiles • The first energy and petrochemical complex Maptaput: Refinery, Gas separation plant, Plastic and chemical • The first integrated infrastructure for industrial needs Leam Chabang Seaport, Motorway, Double track railway

... The highly successful area development • A famous destination for FDI • Exports raised 12%, Industry grew 12%, Economy grew 7% per annum during the first 20 years.

6 Why wait…? EEC is located in the best strategic location of the region…

Combined GDP of East Asia, South Korea Japan ASEAN, CLMV, India region represent 1/3 of world’s GDP To US India CLMV Gateway to Asia - reaching more than half of world’s population

AEC EEC will represent the largest investment projects in ASEAN, To EU in terms of budget and area To Oceania 7 Why wait…? Regional Connectivity… Center of East-West Economic Corridor and North-South Economic Corridor Connect Indian Ocean with Pacific Ocean, CLMV, South China

N-S China CLMV Dawei Cambodia Vietnam Laem E-W Chabang

Maptaput

Malaysia Cambodia 8 Why wait…? Existing Industries and Infrastructures

Double-Track Railway Motorway Deep Seaport Airport Industrial Estate Industrial Park 9 How to? 4 core areas will be developed… to be World-class economic zone

Ready to be upgraded… To be World-class economic zone

Infrastructure Aviation Hub Logistics Hub Trading Hub Business, Industrial clusters Adv. Manufacturing Hub and Innovation hub Tourism Hub

Tourism Global Business Hub

New cities and Metropolis of the Future communities

10 Target Combined Public and Private Investments at least 1.5 Trillion baht ($43B USD) in the first 5 years U-Tapao International airport New Cities / Hospitals 200,000 million baht ($5.7 BUSD) 400,000 million baht ($11.5 BUSD) Tourism 200,000 million baht ($5.7 BUSD) Map Ta Phut 10,150 million baht ($0.3 BUSD) EEC Industry 500,000 million baht ($14 BUSD) port 88,000 million baht ($2.5 BUSD) Motorway High-speed train 35,300 million baht ($1 BUSD) 158,000 million baht ($4.5 BUSD) Dual-track railway 64,300 million baht ($1.8 BUSD) Note : Estimated investment amount shown 11 • Eastern Airport City Policy supporting 15-30-60 millions in the future • Initiation of MRO Thai Airways – Air Bus and Alliance Eastern Aerotropolis • Initiation of the Construction of the Second Runway and Infrastructure (U-Tapao) • Design Contest and Bidding of Investors for providing 15 millions and relative Business within 5 years

Eastern • Bidding of PPP High Speed Train for Connecting 3 Airports High Speed Train making EEC as permanent Bangkok extension

• 3 Sea as Part of the Eastern Sea Gateway Eastern • Bidding of PPP Laem-Chabung Sea Port Phase 3 - Gateway to Asia Sea Gateway to Asia • PPP Map-Taput Sea Port • Construction of Ferry and Cruise at Sattahip Commercial Sea Port

Leading • Investment of Leading Companies in Electric Vehicle – Robot -Medical Target Industries Hub – Aircraft Parts – Bio-Economy

Eastern Future • Plan–Area–Criteria for the Development of 3 New Cities Cities (Plan for the Development of Financial Center)

Digital Transformation • 2 Transformation Complexes and Innovation • Digital Park Incubators • Innovation Park 12 #1 U-Tapao Airport city, first phase towards Aerotropolis

New High-Speed Rail connection

R New Free Trade zone 950 New Commercial area 675 rai R u rai (1.52 million sq.m.) (1.08 million sq.m.) u n 1St Maintenance Repair Overhaul (MRO) n w Phase 570 rai (0.912 million sq.m.) New Passenger Terminal 1,400 w a rai (2.24 million sq.m) a y Full Training Center 200 rai Existing Terminal y Phase 2 (0.32 million sq.m.) 1 New Runway Existing Runway 13 #2 Laem Chabang phase 3, towards World’s Top 10 ports

. Expansion to support growth . Double containers Phase 3 accommodation, from 7 to 18 million TEU/year . Triple car export accommodation,

Phase from 1 to 3 million units/year 4 . Logistics hub and Gateway for Indo-China Railway connection . Move into world’s Top 10 ports 14 #3 High-Speed and Double-track railways Connect 3 International Airports within 1 hour with High-Speed Railway Connect 2 International Ports with Industrial Clusters High-Speed Rail: Bangkok - Donmuang - Connect 3 main airports: Donmuang, Suvarnabhumi, and U-Tapao in 1 hour Suvarnabhumi Chachoengsao - Suvarnabhumi to U-Tapao in 45 minutes - Accommodate 110 million passengers/year

Chonburi Double-track railway: Connect major ports with Industrial clusters Sriracha High-speed train Double-track railway (Current) - Upgrade to double-track from Laem Chabang to Proposed double-track railway route Map Ta Phut seaport New double-track railway route - New routes.. • Laem Chabang – Pluak Daeng – Rayong in the pipeline Rayong • Map Ta Phut – Rayong – Chantraburi – Trat under study U-Tapao 15 #4 Target Industries in EEC… New technology and Innovation to create greater value

Auto, Auto parts, Aviation, Maintenance and Bioeconomy Medical Hub Electronics, and Robotics Related Businesses

Aircraft parts and spare parts Smart Automobiles Wellness Center Functional Food

Maintenance, Repair and Bioplastic Electronic parts Medical Center Overhaul (MRO)

Robotics for industrial and lifestyle Air Cargo Medicines and Devices Cosmetic use 16 #5 New Eco Cities … Inclusive growth, Green environment

Enhanced urbanization, communities, quality of life and enviroment to international standards New City Muang Chachoengsao Leading universities and international schools Chachoengsao Muang Chonburi Leading hospitals and medical centers Baan Bueng Chonburi Laem Chabang Quality tourism spots

BanglamungNew City Rayong Regional commercial centers Baan Pattaya Chang New City New City Muang Rayong Map Ta Phut EEC Communities development funds Baan Pae 17 Special Privileges and Incentives for EEC • Most favourable in Thailand, internationally competitive • Focus on - Target industries with high technology - Infrastructures and logistics development - R&D and Technology support services - Tourism BOI Special Privileges EEC to become investment promotion zone >BOI standard package plus 50% CIT reduction for another 5 years >Potential 15 years CIT waiver plus grants for strategic projects in EEC (Thailand Competitive Fund) Additional Privilege from Ministry of Finance • Personal Income Tax Reduction up to 17% (Cabinet Resolution on Feb 28, 2017) for Administrators, Investors, Experts in Industry or Regional Head Office and Infrastructure and Facility Investment in EEC Areas. Thailand Competitive Fund

• Special, Tellermate support and privileges for R&D, HRD, Targeted-related activities in EEC 18 Key enablers in the pending EEC Act (2017)

Special processes: Social Infrastructure: Making private investment feasible Modern living standard

• Fast-track • Promoting city development • International school - Special 10 months PPP Process • International hospital / medical hub • Customs Procedure • Clean and Green • Long-term land lease (50+49 years) • World class power/water/waste treatment

Incentives: Community based Development: EEC exclusives Inclusive process

• Tax-incentives CIT / PIT / Free trade zone • Provided for in the pending EEC Act • Non-tax incentives VISA + work permit - Special Fund for EEC communities • Financial incentives Holding foreign currency - Health account - Environment • One stop services - Education 19 ระเบียงเศรษฐกิจพิเศษภาคตะวันออก EASTERN ECONOMIC CORRIDOR (EEC) 4 Core Areas and 5 High Priority Projects

Donmuang Airport

Infrastructure Bangkok 1 U-Tapao Airport and Aircraft Maintenance Business/Industry 2 Logistics Hub Sattahip Commercial Seaport Tourism 3 Laem Chabang Port Phase 3 Suvarnabhumi Chachoengsao New Cities Airport 4 Map Ta Phut Port Phase 3 New Chachoengsao City 5 High Speed Rail – Eastern Route

Food Processing 6 Double Track Railway Highways & Motorway Agricultural Technology 7 + EECi Eastern Rail Route 8 High Speed Train Modern Automotive Next Generation Automotive (EV/AV) Double Track Rails Chonburi 9 Aviation Industry, Robotics, Smart Electronics EECd 10 Advanced Petrochemical and Bioeconomy Medical Hub + EECd Rayong 11 LCB Port Smart Electronics EECi 12 Tourism Tourism Food Processing 13 Global Business Hub / Free Economic Zone Robotics Agricultural Technology New Cities, Inclusive Growth New Pattaya City 14 Public Utilities Bioeconomy New Rayong City 15 Sattahip Port Aviation Industry U-Tapao Map Ta Phut Port Aerotropolis 20 Driving EEC Forward

Chaired by Prime Minister General 1. EEC Policy Committee Prayut Chan-o-cha

2. EEC Management Committee Chaired by Minister of Industry, Uttama Savanayana

3. Eastern Economic Corridor Office (EECO) Headed by EEC Secretary- General, Kanit Sangsubhan

Contact: EEC Secretary- General Eastern Economic Corridor Office (EECO) Ministry of Industry 75/6 Rama VI Road, Ratchathewi, Bangkok 10400, Thailand E-mail : [email protected] 21