The EEC: Thailand’s 1.5 Trillion Baht Ambitions

Thailand has recently announced a major investment for what is being called the Eastern Economic Corridor initiative. It will involve significant construction plans and a major overhaul of the infrastructure which is currently in place. With some of the construction due to take place as soon as 2018, many will be wondering how this will impact the local economy, as well as how it might benefit the country as a whole. Here are some considerations.

Eastern Economic Corridor

The Eastern Seaboard has been Thailand’s most important manufacturing and trade hub for more than thirty years, and consists of Rayong, Chonburi and Chachoengsao. Now the Thai government has set ambitious plans to revolutionise the area, naming the project the Eastern Economic Corridor.

The investment money will mostly come from direct foreign investment. There will likely be more developments to come as construction begins, and many private investors who are involved in market trading (through platforms such as LCG) may well see opportunities to invest in the individual projects/companies which arise from the initiative.

Construction

The main aim of the EEC project is to modernise the various industries which already exist in the area, as well as develop new cutting edge industries like robotics and aviation maintenance. U-Tapao International Airport is set to receive a significant revamp, whilst the railways and cities in the area are also set to receive large investments.

There will be large amounts of construction opportunities as a result, and so the Thai construction industry may well see a major boost in growth and revenues.

Potential Problems

One of the most significant questions raised about this project has been how the junta government will find a workforce skilled enough to see the project through, especially given that there is a skills deficit amongst the Thai population. This may easily be solved, as they are planning to import skilled workers at the beginning of the project, and work on educating local workers to the necessary standards in the meantime.

Another potential difficulty which may arise is that the government will soon transition back to a democracy, meaning that the current military government, which has initiated EEC project, will have to hand over the project to whoever is voted in. Having foreseen this, however, Prime Minister Prayuth Chan-Ocha has made the national strategy to boost growth part of the constitution, and thus legally binding for future governments.

Target Industries

Some further industries which will be targeted by this project include next generation cars, smart electronics, biotechnology, logistics, and many others. This shows just how extensive the project will be, and just how many job opportunities it may create in the future.

Whilst it may take many years to complete, it is likely that the economic benefits felt by Thailand will last for the long term future, and it could well develop into a major hub for innovative, high tech industries.

The EEC is set to be one of the largest projects in Thailand’s history, and a major development for its economic strategy. When it is complete, it will             likely dominate the economy of this area and see many workers flock to the country as a result, potentially leading to economic growth and prosperity.