Closing deal of Laem Chabang Phase 3, a giant private venture for a signed contract of 84,000 million baht

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Introducing the EEC Project and Laem Chabang Phase 3

The Eastern Economic Corridor (EEC) or the Eastern Economic Corridor Development Project is a continuation of the successful Eastern Seaboard Project to accelerate the social and environmental economy towards a sustainable development of Thailand. Currently, the project is of interest among private giants who want to sign contracts for area development in support of the future demand for more sea freights along with the construction of a deep sea port and facilities. Moreover, a railway freight center is developed with a coastal dock to support the country's economic expansion.

Large private companies expecting to sign contracts

There are 3 major companies ready to close the deal in signing a contract for Laem Chabang Phase 3. The GPC Joint Venture Group, which consists of G = Gulf Energy Development Public Company Limited, P = PTT Tank Terminal Company Limited and C = China Harbor Company Engineering Company Limited, with an estimated investment value of up to 84,000 million baht. The joint venture is currently in process at the Office of the Attorney General to comply with the laws and transparency requirements towards the most benefit for Thailand before further submission to the Cabinet for consideration and approval in signing the contract.

Progress report of the project

From the latest meeting minutes No. 5/2021, the project has been progressing concretely with an approval for the total investment of 1.6 trillion baht, accounting for 94% of the 5-year target plan of 1.7 trillion baht, thus exceeding the plans. Nonetheless, the project can be divided into 3 parts as follows:

The Public-Private Partnerships for Joint Venture in Infrastructure Investments or PPP which include railways, airports and 2 industrial ports.
Target industry investment - The actual investment is now over 85% (information from the issuance of BOI promotion certificate).
Investment through the EEC integrated budget worth more than 82,000 million baht. During the first half of 2021, up to 232 projects have been requested for investment promotion or an increase of 53% from the year 2020, with the approval of 195 projects in the industrial estates, where the promotion certificates have been issued for 187 projects. The most requested projects for investment promotion are for the automotive and parts manufacturing industry. Meanwhile, the most amount of investment is in electric appliances and electronics and the top three foreign investors requesting for promotion certificate include Japan, China and Hong Kong.

The aforementioned investment is extensively consistent with the Ministry of Commerce's export data, as well as tax privileges and other benefits from BOI.

The industrial estates can very well support the needs of foreign investors. Thus, investments in the EEC area have exceeded the planned targets. It is expected that more investors will apply for investment promotions after the COVID-19 pandemic crisis.

Importance of the EEC project

The Eastern Economic Corridor Management Sub-committee (EECs) plans to develop the project of the Eastern Economic Corridor Digital and Innovation Promotion Zone (EECd) to promote the EEC as a digital city in the ASEAN region, including the goal of raising income for the agricultural community in the EEC area towards more GDP in the agricultural sector that will enable it to be equivalent to the service sector.

The 304 Industrial Park offers Ready built factories for rent and Sales lands, along with services of complete infrastructure and utilities in the area of Eastern Economic Corridor.

Information source