Don Moon, 8 sub-districts in Mae Sai district: Koh Chang, [4] It aimed at developing the region of the eastern seaboard in order to promote industrial growth and to decentralize economic and population growth. The first phase consists of five provinces, 10 districts and 36 sub-districts. Just across the Mekong river from Thailand, Ton Pheung is just a stone's throw from where the borders of Laos, Myanmar, and Thailand meet. Tak, Nhong Yat, Nhong Saeng, Art Samart, 3 sub-districts in Tha U Ten district: Non Tarn, Ram Raj, Vern Phra Baht, 9. [54], The EEC is home to Burapha University, Amata University (EEC campus of National Taiwan University), CMKL University (Carnegie Mellon University), and Asian Institute of Hospitality Management (Les Roches International School of Hotel Management, Switzerland). Initiative projects: Extension projects are considered case-by-case. Tax measures Target activities: 8-year corporate income tax exemption and 50% reduction for another 5 years; General businesses are divided into: - Groups A1-A2: 50% reduction of corporate income tax for an additional 5 years; - Groups A3-A4 and B: additional 3-year corporate income tax exemption. Key findings. The 220 kilometre line will consist of 181 kilometres of elevated track, eight kilometres of underground track, and two kilometres of surface track. The consortium includes Charoen Pokphand (CP); Ch. The ferry shortens travel time to about two hours, subject to sea conditions. Larger ferries carrying up to 260 people may be added to the service later. Its design prioritizes livability, sustainability, and smart technologies, with a central 64-hectare park and natural waterways connecting twelve districts. Songklah: Sadao, Samnak Kham, Samnak Taew, Padang Bazar, 6. Disclaimer: Open Development Thailand will thoroughly review all submitted resources for integrity and relevancy before the resources are hosted. Incentives that are given for BOI general activities located in the SEZs listed on the Announcement on the Board of Investment No. Collectively, these provinces occupy an area of 13,266km2 (5,122sqmi), and in 2016 had an estimated population of over 2.8 million. 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. The zone was established on 17 January 2017, at the direction of the National Council for Peace and Order (NCPO), with the mission of promoting economic integration across the (Eastern seaboard). Provinces situated near the borders will be able to access natural resources and cross-border trade routes between Thailand and neighbouring countries. This article is about the development in Thailand. 2/2557, Mae Sot, Mae Tow, Ta Sai Luad, Phra That Pha Dang, Mae Gasa, Mae Pa, Mae Ku, Mahawan, Sri Bun Ruang, Mukdahan, Bang Sai Yai, Kam Ar Huan, Na Si Nuan, Sadaom Samnak Kham, Samnak Taew, Padang Bazar, Krueng, Boon Ruang, Rim Khong Vieng, Sri Don Chai, Sa Tan, Huaykho, Baan Saew, Pa Sak, Mae Ngern, Yo Nok, Vieng, Sri Don Moon, Koh Chang, Baan Dai, Pon Ngam, Pong Pha, Mae Sai, Vieng Pang Kam, Sri Muang Chum, Huay Krai, Kai Bok Wan, Nai Muang, Baan Duer, Phra Tat Bang Puan, Pho Chai, Pon Sawang, Mee Chai, Vieng Kook, See Kai, Nong Kom Kor, Hat Kam, Hin Ngom, Gu Ru Ku, Tha Kho, Na Sai, Na Raj Kwai, Nai Muang, Baan Pueng, Pho Tak, Nhong Yat, Nhong Saeng, Art Samart, Three-year additional corporate income tax exemption, but not exceeding eight years in total. This is intended to reduce income disparities, as well as improve quality of life of citizens who live there. Special Economic Zones | Open Development Thailand Nevertheless, Thai cities frequently face constraints in terms of institutional abilities and available resources. Tha Kho, Na Sai, Na Raj Kwai, Nai Muang, Baan, 3 sub-districts in Tha U Ten district: Non. However, ODT cannot guarantee accuracy, completeness or reliability from third party sources in every instance. Non-tax incentives, such as permission to own land and employ foreign unskilled and skilled labour. The provision of one stop service (OSS) centres for each SEZ to enable investors to engage with the government more efficiently on a range of issues such as trade and investment, public health, security, as well as issues with accessing labour. 25% deductionof the cost of [17], Twelve Key Industries Identified as Potential Growth Engines for Thailand:[18], Five S-curve industries: 28 October 2017. Eastern Economic Corridor - Wikipedia Learn how your comment data is processed. Thailands Special Economic Zones (SEZs)are regions recently designated by the Special Economic Zone Development Board of the Thai Government. Thailand Special Economic Zones and Cross Border Economic Zones Thailand Rail Links Thai economic corridors Show news on map LEGEND Special Economic Zones Capital (USD million) 3.73 114.74 Area (sqkm) 235.17 1523.63 Total Special Economic Zones listed: 10 Filters Textual search Filter by All Province Show entries Showing 1 to 10 of 10 entries These industries are: Those running businesses in the 13 target industries can avail the following incentives from the BOI of Thailand: Businesses operating within the SEZs that are not within the 13 targeted SEZ industries can also benefit from the general BOI promotion scheme: the corporate income tax exemptions may vary from three to eight years. [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. Special Economic Zones Thailand - OD Mekong Datahub It is an independent public agency, reporting directly to the prime minister. [45], The private sector partners will also construct a third Passenger Terminal Building, a Cargo Village, and a Free Trade Zone, among other commercial areas. 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. Permission to employ foreign unskill labour. Something's gone wrong, Please Resubmit the form! To learn more about cookies, click here. Bangkok. and Don Tarn, 3. [52] By road, the journey takes five to six hours. Somsak encourages more urban centers to take the initiative in shaping their city maps and designs, taking ownership of their development trajectory. Most of the target industries are labor-intensive ones, including garment, agricultural and agricultural processing, fishery, furniture, logistics distribution center, bonded warehouses and tourism. The signing ceremony was presided over by the Prime Minister General Prayut Chan-o-cha. Page 9. For Thailand, the spatial distribution of economic activities must change to promote growth, reduce inequality and poverty and to move the country toward high-income level, said Fabrizio Zarcone, World Bank Country Manager for Thailand. 8 sub-districts in Mae Sot District: Mae Sot, The creation of the company can be done in 4.5 days instead of 27.5 days. The Eastern Economic Corridor (Abrv: EEC; Thai: , romanized:Rabang Stthakit Phk Tawan-k, RTGS:Rabiang Setthakit Phak Tawan-ok, pronounced [r.ba st.t.kt pk t.wn.k]) officially the Eastern Special Development Zone (ESDZ), is a special economic zone of three provinces in eastern Thailand. Understanding special economic zones (SEZs) in Thailand - Acclime Thailand 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. And civic organizations are particularly monitoring through the implement process, such as land use and management policy in the SEZ, the environmental impacts, the water management issue, and so on. Group A1 or A2 which are already granted 8-year CIT shall receive additional. This site uses Akismet to reduce spam. However, it is very hard to get budget from the central government to develop projects that would have an impact on the city and that is why KKTT had to come in and help the city develop infrastructure on a bigger scale to push the economy in the city forward, he said. Challenges for Local Economy in the Special Economic Zones. sub-districts in 2 districts, 10 sub-districts in Muang district: Gu Ru Ku, For investment in special economic zones as of November 2022, the value is 38,895.57 million baht, which has been promoted by the BOI for 73 projects, a total amount of 18,495 million baht, from a total of 106 projects applying for investment promotion, a total amount of 29,036 million baht. Kha, 4. there are several issues that are important to address. 1. Their companies can be wholly foreign-owned without the requirement to secure a foreign business licence, which enables them to reduce costs and delays. Tha Kho, Na Sai, Na Raj Kwai, Nai Muang, Baan Pueng, Pho Songkhla Special Economic Zone Ten SEZs were announced based on criteria in the policy and were prioritized on the basis of this feasibility study. 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. In addition to infrastructure and utilities, the government has promoted private sectors participation in development of those areas by renting land plots in SEZs to private companies for industrial parks or facilities development to support investors. 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. This led to Thailand formulating Border Economic Development Action Plans to transform existing transportation corridors in the region into genuine economic corridors. 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. As urban populations surge, the need for public services, innovative infrastructure, and regular maintenance continues to grow. However, the Special Economic Zone Act is still in draft form. Noi, Cha Note, Wanyai and Bongkham, 2 sub-districts in Don Tan District: Pho Sai Must have an added value of not less than 20% of income, except agriculture, electronics, and parts businesses, and metal cutting businesses must have an added value of not less than 10% of income; Must have the measures to prevent and reduce the impact on the environment; In the case of SMEs, installments with minimum investment conditions of not less than 500,000 baht. Border Special Economic Zones Development Policy. The cities highlighted above demonstrate the transformative potential of local administrations that take lead in tackling local challenges to pave the way for a sustainable and resilient urban future. In addition, specific target industries for each SEZ have been clearly identified based on unique geographical strength and locally available resources. The country has signed a free trade agreement with 17 other countries including India, Japan, New Zealand, Australia, Chile and Peru, as well as the 10 ASEAN countries. The EEC had a 2013 GDP of US$158.79bn (on a purchasing power parity basis), and US$63.76bn (on a nominal basis), about 15% of Thailand's GDP. PowerPoint: Policies on Special Economic Zones (Thai Language). Like many cities, Khon Kaen is grappling with restrictive institutional and fiscal frameworks as it tackles urbanization challenges and strives for sustainable development. Headline inflation has breached the Bank of Thailand's target range of 1-3%, reaching a 13-year high of 7.1% in May largely due to surging oil prices. The government estimates that the smart city will accommodate 350,000 people and create at least 200,000 jobs by 2032. Currently, the development of SEZs is one of major state policies and is not an easy task to implement. We will then be able to invite and attract interested global investors and stakeholders in the electric vehicle industry to invest in Rayong., Phusit also expressed concerns about budget limitations, elaborating that Infrastructure development is a critical factor for a secondary city to achieve economic growth and to expand opportunities to more people. Finally businesses operating in a free zone can bring foreign experts in Thailand, in particular through a fast-track and simplified procedure. Dashboard: COVID-19 and Thai Labor Market, 9 Tips to Stay Safe Online in the Age of COVID-19, Essential Information on Covid-19 in Thailand, Thai Civil Societys Efforts to Achieve SDGs, Ethnic minorities and indigenous peoples profiles, Social and Environmental Impacts from SEZ, Thai foresters complete data literacy training to advocate for improved forest governance, [Closed!] Playing a significant role in fostering public-private partnerships for urban infrastructure development in the city is Somsak Arunsurath, President of the Nakhon Sawan City Council. For example labour costs in Thailand are 3 to 5 times higher than its neighbouring countries of Myanmar, Cambodia and Laos, which threatens local wages, while Thailands economy benefits from the labour of up to 6 million unskilled labourers. Other provinces include Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat, comprising 12 districts and 55 sub-districts. In addition, some of the existing infrastructure projects are R9 route (East-West Economic Corridor: EWEC) connecting Thailand, Myanmar, Vietnam and Laos, R3A route (North-South Economic Corridor: NSEC) connecting Thailand, Laos and China, and R1 route (Southern Economic Corridor) connecting Thailand, Cambodia and Vietnam. Investing in SEZs also provide investors with tax and non-tax incentives, one-stop service provisions, access to foreign workers and infrastructure development. 19/2565 (Thai Version), Thailand Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak Bangkok 10900 Thailand Do you have questions on the content published by Open Development Thailand? installation or construction of facilities (apart from normal Free zones, also known as special economic zones, are regions designated by the Special Economic Zone Development Board of the Thai Government. This bustling city is a commercial and export nexus for the broader Indo-China region. Immigration and Customs; Tourism Information. 19/2565 aims to promote investment in Special Economic Zones and distribution of socioeconomic growth at both local and regional levels thoroughly. In 2015, total investment in SEZ was 280.1 million baht before it jumped to 8.31 billion baht in 2016. Rayong, a province nestled along Thailand's eastern coast, is not only known for its sun-soaked shores but also for its vital role as part of the Eastern Economic Corridor, a special economic zone fostering high-tech industries that could catalyze Thailand's growth. Under this scheme, the center located in any SEZ will be eligible for eight years of corporate income tax (CIT) exemption, with 100 per cent cap of investment capital, excluding land and revolving capital) plus 50 per cent tax reduction for another five years at the end of the CIT exemption period. Read more. The launch of the digital free trade hub is part of Thailands efforts to position itself as one of Southeast Asias key logistics centers for trade and e-commerce. This site uses cookies to optimize functionality and give you the best possible experience. Khon Kaen: Thailands Fastest Growing City. There are also exemptions from import duties, export duties, VAT and excise taxes. Import restrictions for goods or materials for export are also relaxed. 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. The Don MueangSuvarnabhumiU-Tapao high-speed railway will connect Don Mueang International Airport, Suvarnabhumi Airport and U-Tapao International Airport. We have put together a guide on understanding special economic zones in Thailand. By accessing this ODT website or database users agree to take full responsibility for reliance on any site information provided and to hold harmless and waive any and all liability against individuals or entities associated with its development, form and content for any loss, harm or damage suffered as a result of its use. The port occupies 2,572 acres (1,041ha) and is capable of handling the largest (Post-Panamax) vessels. Mukdahan, 5 sub-districts in Muang District: PDF INCLUSIVE AND SUSTAINABLE GROWTH ASSESSMENT - Asian Development Bank 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. Inflation fell to 2.7% in April, following March's 2.8%, thus remaining within the Bank of Thailand's 1.0-3.0% target. Investing in the development of infrastructure and custom houses help facilitate the expansion of cross-border trade between Thailand and neighboring countries. Years Economic Growth (GDP, ann. November 2014. The Airport City will feature various commercial areas, including hotels, shopping malls, convention centers, and office buildings. 1. Rayong: Center of the Eastern Economic Corridor. In short, registering in a Thailand special economic zone allows a business to benefit from all the cost savings inherent to Thailand such as low labor costs, low utility costs, and low overhead, without any of the import/export issues.. (link to another sub-page on specific issues). 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These include: Economic co-operation on initiatives such as SEZs can be difficult to implement due to the different levels of development of each member country. [9] Planners see the region as strategically important as it borders the gulf as well as being close to Bangkok, and two major airports. for Special Economic Zones, 3-year additional exemption At Thailand-Laos Border, A Shadow Economy Thrives Machinery import duty exemption; Special Economic Zone consists of 13 sub-districts in 2 districts, 12 sub-districts in Muang district: Kai Bok These are the following ones: First of all, foreigners need to propose an application to cover the BOI promotion status. Foreigners who wish to register a free zone company in Thailand are required to: To set up a free zone company, foreigners must fill out an application form and provide the following documents: The government provides a full range of incentives for businesses operating in 13 industries. In this case, the BOI will provide up to five years of CIT exemption (with 100 per cent cap of investment capital of the investment in SEZ, excluding land and revolving capital). 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. which started in 2015, includes the 5 provinces of Tak, Mukdahan, Sakaeo, Trat and Song Khla comprising 10 districts and 36 sub-districts; The Special Economic Development Zone policy committee has formulated the Special Economic Zone Development Plan providing a framework for how these zones will develop. Airport tax in Thailand, if the passenger does not fly, can the tax be refunded? BOI : The Board of Investment of Thailand Like other investment packaged offered to investors, the government offers both tax and non-tax incentives. 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. The proximity to one of the worlds fastest growing regions also provide investors with an easy access to 600 million ASEAN consumers and 3 billion Asian consumers. Creating an enabling environment for subnational infrastructure investments from both public and private sources is essential to addressing these challenges. It takes only 1-4 hours by air within ASEAN countries and 4-5 hours to China and India. Following this, the NCPO issued Order 72/2014 to designate the functions of a Special Economic Development Zone Policy Committee. While cross border trade is growing, strong economic growth in those neighboring countries is also significant. Lineage: Various sources. Moreover most free zones have a one-stop-shop to register the company easily, and obtain all necessary permits and licenses. experts to work, - USA. 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. The experiences and empirical evidence from OECD countries underscores the importance of empowering cities and local governments for a country's competitiveness and economic development. When people think of Khon Kaen, they think we are only doing the Light Rail Transit (LRT) project. 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.6. This plan aims to attract foreign investment to facilitate economic development in peripheral regions, bordering other members of the ASEAN Community. The Special Economic Development Zone Policy Committee has invited the selected border provinces to submit proposals for developing each SEZ including the types of economic activity to be developed in each zone, the required infrastructure and the most effective investment incentives. Increased cross border flows of goods allow consumers in neighbouring countries to access a wider range of goods at cheaper prices, but this has both benefits and disadvantages for these economies. 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. [1] It claims an EEZ of 200nmi (370.4km; 230.2mi) from its shores, which has long coastlines with the Andaman Sea and Strait of Malacca to the west and the Gulf of Thailand to the east, although all of its EEZ is limited by maritime boundaries with neighbouring countries. (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. It leads to the expansion of opportunities that are essential for growth, poverty reduction, and shared prosperity. As part of this order, six sub-committees were established to take responsibility for the following portfolios at both the national and regional levels. of corporate income tax, Exemption of corporateincometax up to 8 years. Therefore, to present Rayong on an international level in the future, we should focus on the electric vehicle industry to be developed in the Eastern Economic Corridor. Source: Foreign Office, Royal Thai Government. Thailand Economic Monitor June 2022: Building Back Greener: The Polymath: An Interdisciplinary Arts and Sciences Journal. Do you have a new idea that could help transform the Open Development Thailand website? 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. News article summaries are extracted from their sources, as guided by fair-use principles and are copyrighted by their respective sources. Thailand's Special Economic Zones (SEZ) and new opportunity connected 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.