Thai junta's key economic project draws $9 billion investment

[rooster59]

Thai junta's key economic project draws $9 billion investment

By Panu Wongcha-um and Patpicha Tanakasempipat

 

BANGKOK (Reuters) - The Thai military government's plan to expand the industrial east drew more than $9 billion in pledges of private investment last year and nearly $7 billion more is expected this year, the head of the state investment agency said on Friday.

 

The Eastern Economic Corridor (EEC) is a centrepiece of the junta's policy to boost growth in Thailand and targets investment into hi-tech industries, as it transitions from those reliant on cheap labour. Thailand's economic growth has fallen behind other Southeast Asian economies since the 2014 coup.

 

The EEC drew 297 billion baht ($9.3 billion) in promised investment in 2017, Duangjai Asawachintachit, secretary-general of the Board of Investment told reporters. This year, it expects 216 billion baht in planned investment - or nearly a third of the total 720 billion baht Thailand expects to receive.

 

The junta, which has promised an election this year, says the project will revitalise an area whose industries have been flagging with a total $43 billion in public and private investment in the first five years.

 

The goal is to make the east a centre for hi-tech industries such as robotics and electric vehicles as well as a regional hub for aircraft maintenance.

 

"In the past we relied on labour intensive industries, but these are hollowing out now. Some have moved to our neighbours," Kanit Sangsubhan, the secretary-general of the Eastern Economic Corridor Office, told Reuters.

 

To support growth, the government has approved $17 billion worth of infrastructure projects - including an upgrade of the Vietnam War era U-Tapao International Airport and Thailand's largest deep sea port.

 

Improved road and rail links will connect it with nearby Bangkok as well as the rest of mainland Southeast Asia and with China, to link up with Beijing's Belt and Road Initiative.

 

Kanit said that once parliament passes new legislation for the project, probably in the first quarter of this year, it will be a draw for new investors.

 

($1 = 31.9500 baht)

 

 

-- © Copyright Reuters 2018-01-14

[Ulic]

Sounds like there will be plenty at the trough for everyone. 

[johnarth]

Sounds good, but if a new Gov. was to take over and has different ideas for the money what happens then?

[Media1]

lost in space. Prawit what are our co ordinates? I don't know Khun P

Well what is the time. I know you have that 

[Srikcir]

6 hours ago, rooster59 said:

The Thai military government's plan to expand the industrial east drew more than $9 billion in pledges of private investment last year

The only reference I could find for private investment in EEC industries for 2017 was from the Japanese business sector that had applied initially for investment privileges worth Bt65 billion, or about half of all foreign direct investment (FDI) in Thailand. 

http://www.nationmultimedia.com/detail/politics/30326436

Japan was Thailand's biggest investor in 2016 with more than 57 billion baht ($1.7 billion)

https://www.thaivisa.com/forum/topic/1001694-huge-japanese-business-delegation-visits-thailand-focuses-on-eec/?utm_source=newsletter-20170912-0647&utm_medium=email&utm_campaign=news

Also,

Japan's Industry Minister Uttama Savanayana said .... that he expects new investment from Japanese investors in the first five years of the Eastern Economic Corridor (EEC) development project to be at least Bt500 billion. 

http://www.nationmultimedia.com/detail/business/30326621

Otherwise, I haven't seen any reference to Thai private investors in the EEC.

But perhaps more disturbing:

• "Regardless of which government is in office, or when the election will be held, the EEC plan will continue, with certainty," ... "long after elections expected next year, at the earliest. "It is law, an act embedded within the 20-year national strategy, and supported by the national development plans." - Prayut (ditto thaivisa link above)

• TDRI’s trade and investment expert Somkiat Tangkitvanich said that considering the generous tax and other incentives the government was offering investors in EEC, it could be said that the government was effectively staging a “Thailand Grand Sale”.... . But the large benefits being offered investors will not attract their attention to the programme as much as is hoped “and will cost the country a lot,” http://www.nationmultimedia.com/detail/Economy/30328298

If the EEC program falters on its expected economic return, an elected government (assuming it's not Prayut) will be powerless for the next 20 years to alter the plan but be responsible for any adverse economic impact, ie., take on more national debt, cut social programs.

Edited January 14, 2018 by Srikcir
delete blank lines

[Srikcir]

20 minutes ago, johnarth said:

Sounds good, but if a new Gov. was to take over and has different ideas for the money what happens then?

It's stuck with Prayut's 20-year plan. See my Post #4.

[sawadee1947]

sounds still they are in Disney World

[Wake Up]

I am not a fan of China but in my adult life time since 1981 the Chinese have mastered EEC. Shenzhen and other Chinese EECs have made many people fortunes and elevated China economicly. Thailand doing an EEC is a great bet on their future. They will need to do the infrastructure properly and get the politics settled ( still to be seen) If those two things happen the Thailand EEC will be a great money making area. 

[Srikcir]

2 minutes ago, Wake Up said:

Thailand doing an EEC is a great bet on their future.

If the funding is coming largely from foreign investors (and mostly Japan it seems), there's going to be only scraps left for Thailand.

How did China funds its EEC's? Given its huge favorable trade balance with Western countries (especially the US), I'd expect it would have the capacity to fund EEC's domestically.

[Wake Up]

7 minutes ago, Srikcir said:

If the funding is coming largely from foreign investors (and mostly Japan it seems), there's going to be only scraps left for Thailand.

How did China funds its EEC's? Given its huge favorable trade balance with Western countries (especially the US), I'd expect it would have the capacity to fund EEC's domestically.

The USA and Europe and Japan almost completely funded the first Chinese EEC like Shenzhen and others. Now China can self fund but Germany is still a big source of industrial funding of China’s EEC and they have companies everywhere wanting to invest in their EEC near the ports. Not necessarily the ghost cities they built not near the ports. Outside investment is a good thing and necessary for rapid growth. Thailand will prosper. Take a day trip to Shenzhen or Ningbo or Guangzhou and then look at their photos from 1982, 1992, 2002, 2012 and today. Fortunes of business go through there daily 

Edited January 14, 2018 by Wake Up

[Srikcir]

10 minutes ago, Wake Up said:

The USA and Europe and Japan almost completely funded the first Chinese EEC like Shenzhen and others.

"Shenzhen first became an SEZ in 1980 and was expected to attract investors from across the globe however, by the end of 1981, 91% of all foreign investment in the city came from Shenzhen’s neighbour, Hong Kong." http://internshipschina.com/development-chinas-special-economic-zones/

Are you guessing or have some reliable reference(s)?

[Wake Up]

Just now, Srikcir said:

"Shenzhen first became an SEZ in 1980 and was expected to attract investors from across the globe however, by the end of 1981, 91% of all foreign investment in the city came from Shenzhen’s neighbour, Hong Kong." http://internshipschina.com/development-chinas-special-economic-zones/

Are you guessing or have some reliable reference(s)?

Hong Kong was British controlled. Back then every Chinese investment went through Hong Kong because Hong Kong had the rule of law.  If you think Chinese money went through Hong Kong you are mistaken. It was all foreign investment money. 

[Media1]

1 hour ago, Srikcir said:

The only reference I could find for private investment in EEC industries for 2017 was from the Japanese business sector that had applied initially for investment privileges worth Bt65 billion, or about half of all foreign direct investment (FDI) in Thailand. 

http://www.nationmultimedia.com/detail/politics/30326436

Japan was Thailand's biggest investor in 2016 with more than 57 billion baht ($1.7 billion)

https://www.thaivisa.com/forum/topic/1001694-huge-japanese-business-delegation-visits-thailand-focuses-on-eec/?utm_source=newsletter-20170912-0647&utm_medium=email&utm_campaign=news

Also,

Japan's Industry Minister Uttama Savanayana said .... that he expects new investment from Japanese investors in the first five years of the Eastern Economic Corridor (EEC) development project to be at least Bt500 billion. 

http://www.nationmultimedia.com/detail/business/30326621

Otherwise, I haven't seen any reference to Thai private investors in the EEC.

But perhaps more disturbing:

• "Regardless of which government is in office, or when the election will be held, the EEC plan will continue, with certainty," ... "long after elections expected next year, at the earliest. "It is law, an act embedded within the 20-year national strategy, and supported by the national development plans." - Prayut (ditto thaivisa link above)

• TDRI’s trade and investment expert Somkiat Tangkitvanich said that considering the generous tax and other incentives the government was offering investors in EEC, it could be said that the government was effectively staging a “Thailand Grand Sale”.... . But the large benefits being offered investors will not attract their attention to the programme as much as is hoped “and will cost the country a lot,” http://www.nationmultimedia.com/detail/Economy/30328298

If the EEC program falters on its expected economic return, an elected government (assuming it's not Prayut) will be powerless for the next 20 years to alter the plan but be responsible for any adverse economic impact, ie., take on more national debt, cut social programs.

Yes the JUNTA have confirmed there long time earning capacity. But there is no such thing as powerless. lf all parties stand together in a real parliament. These policies can be removed. 

Just as Prayut removed the politicians and will do his best to continue his pillage of the table.

[Wake Up]

3 hours ago, Srikcir said:

"Shenzhen first became an SEZ in 1980 and was expected to attract investors from across the globe however, by the end of 1981, 91% of all foreign investment in the city came from Shenzhen’s neighbour, Hong Kong." http://internshipschina.com/development-chinas-special-economic-zones/

Are you guessing or have some reliable reference(s)?

You have used a quote to mislead your readers from an article that does not support your argument while asking me if I am guessing.  I must assume you have no experience working or investing in an EEC like Shenzhen or others. Bless your heart but find something to discuss that you actually participated in during your career or have some working knowledge of the subject. 

[Happyman58]

If they say is true (The Junta) it would be good The only problem is who will work in these factories? They would have trouble getting Thai People to work in these factories UP pops that awful word again WORK   I would say there be another million foreign workers coming in from Maymar Laos Cambodia or prob some from India 

[steven100]

good news but still the TV nayers bash their keyboards to chant their dismay and disbelief .....   lol 

 

Good job from the Government and Khun Prayut Chan O Cha ......  

[steven100]

Where are you Becker and Yellowboat  !!     good news hey   !!   I guess your all hiding .....  lol 

you guys have been so wrong all the time .....

Thailand is thriving with economic development .....   but you guys try to say it's not ...   sorry guys , you lose ...  hahaha

[Srikcir]

38 minutes ago, Happyman58 said:

The only problem is who will work in these factories?

According to Prayut's DPM Somkid, "Japanese investors were worried about the shortage of skilled [Thai] labour." Says Somkid, “It [sic] not easy to lead all people into Thailand 4.0 since a large number of labourers are in the agricultural and services sectors,”

http://www.nationmultimedia.com/detail/politics/30326436

So we may initially see an influx of skilled foreign workers - from Korea, Japan, Malaysia?

Thus in the short term (3-5 years?), the economic benefit from the EEC program will inure largely to foreign owners and workers, likely without any significant tax revenues to Thailand given the substantial tax subsidies extended to program investors. And not to Thai low income to middle income working classes.

To be realistic, the EEC program will be a 20-year financial gamble for which the next elected governments cannot alter.

Edited January 15, 2018 by Srikcir
correct quote

[colinneil]

7 minutes ago, steven100 said:

Where are you Becker and Yellowboat  !!     good news hey   !!   I guess your all hiding .....  lol 

you guys have been so wrong all the time .....

Thailand is thriving with economic development .....   but you guys try to say it's not ...   sorry guys , you lose ...  hahaha

Steven keep calm, your to old to be getting excited.

You can have 2 different bodies come up with 2 different outcomes from the same facts, and it is well known that your bestest pal likes distorting/ massaging figures.

[Happyman58]

23 hours ago, steven100 said:

Where are you Becker and Yellowboat  !!     good news hey   !!   I guess your all hiding .....  lol 

you guys have been so wrong all the time .....

Thailand is thriving with economic development .....   but you guys try to say it's not ...   sorry guys , you lose ...  hahaha

Its ok Steve If you believe what these  guys tell you then you can believe i am the King of Australia You believe me dont you? I tell you now the real truth My wife is a business lady and she said to me she has never seen it so bad in Thailand as it is now economically Shops are shutting Roads are falling apart The whole infurstruture  seems to falling down You be careful Steve they might give you a job  there as an advisor to the PM  Oh sorry you cant have one because you were not a general in the Thai army as it is the  main qualification for getting a job there

[midas]

On 1/14/2018 at 1:42 PM, Ulic said:

Sounds like there will be plenty at the trough for everyone. 

"Nice little earner"