GDP fall for Thailand’s flagship Eastern Economic Corridor project since the COVID-19 crisis began

[webfact]

A top-level meeting at the Eastern Special Development Zone Policy Office took place last week chaired by Prime Minister Prayut Chan ocha (left) after which the Secretary-general of the government agency established by law in 2018, Mr Kanit Sangsuphan, made some hard-hitting comments on recent setbacks to the economy and the economic performance of the economic hub itself up to 2021.

 

by James Morris and Son Nguyen

 

The Eastern Economic Corridor (EEC) is a project conceived and launched by a law pushed by the junta government from 2016 to 2018. It is part of the wider Thailand 4.0 vision to develop Thailand into an added value, high tech and high-income country over the next fifteen to twenty years.

 

This week, Prime Minister Prayut Chan ocha chaired a review by the agency tasked with oversight of the project as the government is expected to persevere with infrastructural investments and tax incentives for the scheme which is supported by both the World Bank and the International Monetary Fund (IMF). 

 

The man directing Thailand’s flagship Eastern Economic Corridor (EEC) investment initiative did not pull punches this week as he referred to the economic challenges facing the kingdom and the setbacks suffered by the three provinces at the centre of the initiative which, over the last few years, have seen a significant GDP reversal with over ฿170 billion in lost GDP for the area despite the government’s perseverance to bring the project to fruition as part of Thailand’s strategy to become a developed and high income economy by 2036 and wean itself off foreign tourism.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2022/01/10/gdp-fall-for-thailand-flagship-eec-project/

 

-- © Copyright Thai Examiner 2022-01-11

 

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[RichardColeman]

36 minutes ago, webfact said:

government’s perseverance to bring the project to fruition as part of Thailand’s strategy to become a developed and high income economy by 2036 and wean itself off foreign tourism.

I wish them well, but I seriously cannot see that happening in 14 years, 140 maybe, but not 14

Edited January 10, 2022 by RichardColeman

[Laughing Gravy]

I have always thought Thailand can do much better with their abundant resources and should be a more affluent country. The major obstacles is the greed of those in power and corruption, so if they get rid of that then they maybe have a chance. But in 14 years that is way optimistic. probably take a few generations provided they stay on the trajectory of ridding the 'fat cats' and corruption out of society. If not it will continue as it always has.

Edited January 10, 2022 by Laughing Gravy

[spidermike007]

Just another in a massive series of Prayuth failures. Anything he touches turns to garbage. 

 

Out with the toxic dinosaurs. In with the youth. They are this nation's only hope of gaining any forward movement. 

[koratkarlos]

In my humble opinion the education system here must improve for this society to become high-tech and high income.

[hotchilli]

4 hours ago, webfact said:

The Eastern Economic Corridor (EEC) is a project conceived and launched by a law pushed by the junta government from 2016 to 2018.

Conceived or connived?

[morrobay]

20 minutes ago, koratkarlos said:

In my humble opinion the education system here must improve for this society to become high-tech and high income.

It's not going to improve. So any high tech is going to have to rely on foreign engineers. As all the highly technical projects here like bridges, subways, skytrains , electrical grids have only been possible with foreign engineers.

That extended link also states that Thai household debt is now 100% of GDP. And that FDI for 2020 was $17 Billion for Vietnam and $10.8 Billion for Thailand. Do you have to be a macro-economist to see major headwinds here.

[redwood1]

which is supported by both the World Bank and the International Monetary Fund (IMF). 

 

 

Well if these 2 vermin support this, then you know the whole project is tainted and up to no good...

Edited January 11, 2022 by redwood1

[Mr Meeseeks]

2 hours ago, koratkarlos said:

In my humble opinion the education system here must improve for this society to become high-tech and high income.

This is the correct answer.

[Mr Meeseeks]

1 hour ago, morrobay said:

It's not going to improve. So any high tech is going to have to rely on foreign engineers. As all the highly technical projects here like bridges, subways, skytrains , electrical grids have only been possible with foreign engineers.

That extended link also states that Thai household debt is now 100% of GDP. And that FDI for 2020 was $17 Billion for Vietnam and $10.8 Billion for Thailand. Do you have to be a macro-economist to see major headwinds here.

Funny, I got shouted down on here for saying Vietnam would surpass Thailand's economy within a matter of years. ????

[mikebell]

It will be more than 14 years before the economic corridor is even finished if the Sukhumvit roadworks are anything to go by.  They open up a new lane & the Thai boy racers rev up; 100 metres later & the road narrows back to one lane with all the resultant chaos & accidents.

[Guderian]

6 hours ago, webfact said:

...to develop Thailand into an added value, high tech and high-income country over the next fifteen to twenty years.

They need to qualify that, something like this is probably closer to their intentions:

 

...to develop Thailand into an added value, high tech and high-income country for the educated and privileged elite over the next fifteen to twenty years, whilst ensuring that the peasant stock remains servile, with low incomes and poor education.

[JonnyF]

Surely Prayut can order one of his underlings to make this project a success.

 

Maybe throw a banana peel at them or spray them with alcohol hand sanitizer to remind them of his absolute authority. 

[Jen65]

21 minutes ago, Mr Meeseeks said:

This is the correct answer.

Absolutely !  I wrote a post at the beginning of this pandemic when unemployment was starting to rise and suggested it would be better for the government to invest in training schools - plumbing / electrical / building/ car maintenance etc and all to european standard so that for the future Thailand might have properly trained entrepreneurs with qualifications instead of "anyone who can glue a piece of pvc pipe together being a plumber " !!!! oh and also a jack of all trades !  

[Mr Meeseeks]

27 minutes ago, Jen65 said:

Absolutely !  I wrote a post at the beginning of this pandemic when unemployment was starting to rise and suggested it would be better for the government to invest in training schools - plumbing / electrical / building/ car maintenance etc and all to european standard so that for the future Thailand might have properly trained entrepreneurs with qualifications instead of "anyone who can glue a piece of pvc pipe together being a plumber " !!!! oh and also a jack of all trades !  

As the esteemed former British Ambassador to Thailand Sir Anthony Rumbold said,

 

"Nor do I object to our providing the Thais with various specialist services from time to time. But teaching and in particular language teaching is by far the most important of the fields in which we can help the Thais. Every pound spent would bring more direct benefits to the Thais and indirect benefits to us than many pounds spent on more grandiose engineering or road-building projects. We can leave these to the Americans and the Australians and the World Bank. If we concentrate our little aid effort on education we would be working in a domain in which the Thais have for generations been used to following our lead."

[Cake Monster]

2 hours ago, morrobay said:

It's not going to improve. So any high tech is going to have to rely on foreign engineers. As all the highly technical projects here like bridges, subways, skytrains , electrical grids have only been possible with foreign engineers.

That extended link also states that Thai household debt is now 100% of GDP. And that FDI for 2020 was $17 Billion for Vietnam and $10.8 Billion for Thailand. Do you have to be a macro-economist to see major headwinds here.

Excellent Post

I had not realized that Household debt had risen from its level of 94 % of GDP over the last Quarter, to its new level of 100 % of GDP

This means the Household Debt has risen by a whopping 10 % of GDP over the last 2 Quarters

Thailand has been losing FDI at a rapid rate over the last 3 Years specially, with large Companies moving to Vietnam, and future Investments made from other large Companies going to Cambodia and Vietnam.

Large Companies that Thailand relies upon are moving away from the Country, and these Companies were touted as future Investors in the EEC.

Companies such as Airbus pulling out of the Sattahip deal with Thai Airways.

Lego Investing nearly 1 Billion Dollars in a new Plant in Vietnam

Toyota building a new facility over the Border in Poipet 

Panasonic moving out to Vietnam.

I am sure there are many others that I dont know about

Thailand is certainly out of favour at the moment, and things have to change drastically for that to alter in any way.

[overherebc]

5 hours ago, spidermike007 said:

Just another in a massive series of Prayuth failures. Anything he touches turns to garbage. 

 

Out with the toxic dinosaurs. In with the youth. They are this nation's only hope of gaining any forward movement. 

Yes, soon will be their turn (youth) to make millions, well some of them with the family fortune behind them.

Edited January 11, 2022 by overherebc

[geisha]

A big mistake on the article is saying they should revert to communal isolation when needed .Really, has he ever seen one ? The best way to come out really sick.

[Stargeezr]

From the way the government has bee treating the Chonburi area different than the Phuket area, makes

me wonder a bit more of their intentions. The EEC project must have a clause of no help for tourism attached to it.

My opinion anyway.