25 Sept 2017
THAILAND: Government Approval of EEC Law Confirms Incentives for Coastal Corridor Investors
Incentives stipulated as part of Thailand’s Eastern Economic Corridor (EEC) development plan has now been confirmed, with the Thai cabinet approving the EEC Law on 19 September. The law is expected to come into effect within the next five months, after its publication in the Royal Gazette.
Prospective investors in the EEC, which straddles the three eastern coastal provinces of Chachoengsao, Chonburi and Rayong, will be offered a raft of incentives under the EEC Law. These incentives include a 50% cut in corporate income tax (CIT) over a five-year period; permission for foreign currency transactions within the EEC; and 50-year land leases - with the option of a 49-year extension - for sites that fall within the EEC.
Worth an estimated Baht 1.5 trillion (US$45.36 billion), the EEC development plan aims to boost Thailand’s economic growth by attracting foreign direct investment (FDI) in 10 high-tech industry sectors - smart electronics; next-generation cars; digital services; high-end medical and wellness tourism; agriculture and biotechnology; food; industrial robotics; logistics and aviation; biofuels / biochemicals; and the provision of medical services.
Further, the EEC is expected to boost connectivity by linking the region with Myanmar’s on going Dawei deep-sea port project, Cambodia’s Sihanoukville and Vietnam’s Vung Tau ports. For further details, see THAILAND: Raft of Incentives Expected for Coastal Province Investors.