Eastern Seaboard Report December 2017 – Prepared by Mark Bowling, Chairman BCCT Eastern Seaboard •
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The Finance Ministry is hoping that the beginning of the Eastern Economic Corridor project will help drive the country's economic growth above 4% in 2018, says Finance Minister Apisak Tantivorawong. The ministry's informal forecast for economic growth is 4.1% in 2018, which it feels is conservative because it does not take into account the EEC project, he said. The Government has expressed optimism about the economic outlook for 2018, with Prime Minister General Prayut Chan-o-cha saying his New Year's resolution is to push the "Smart City" concept in the Eastern Economic Corridor. Government Spokesman Maj-General Sansern Kaewkamnerd said yesterday that the government expected that the economy would boom and extreme poverty "be eradicated" this year, despite signs of a deteriorating economy, including mass layoffs in several sectors. The positive signs seen in 2017 could herald a surge of interest in the new year from players in innovative S-curve industries, writes Lamonphet Apisitniran The Industry Ministry in September held a presentation on Japanese EEC projects, which are expected to play a key role in attracting new investment in 2018. Investment in Thailand is expected to maintain momentum in the coming year as funds flow into the Eastern Economic Corridor. Marubeni Corporation started a joint feasibility study with PTT Public Company Limited, Thailand`s national petroleum and petrochemical company, which aims at implementing LNG refueling to ships in Laem Chabang Port, the largest industrial port in Thailand. The regulation of exhaust gas will be tightened from 2020, and since LNG is an environmentally friendly fuel, ships that use LNG for fuel are expected to increase. A model of a 'Ban Pracharat' project by the Treasury Department is on display at a house fair held in Bangkok in mid-August. The Treasury Department will next year start developing on state land several property projects worth 90 billion baht, including housing projects for low-income earners. Central Pattana Plc, the retail property development arm of Central Group, has set its sights on developing a combined 20 residential projects by 2022 as part of a strategy to branch out from shopping malls and sustain revenue in the long run. According to a CPN executive who asked not to be named, the new residential projects to be developed during 2018-22 will come under various formats, including condominiums and townhomes. Thai-Chinese carmaker SAIC Motor-CP has opened its new 10-billion-baht plant in Chon Buri, aiming to make it the production hub for right-hand-drive MG cars in Asean. The company held an opening ceremony yesterday attended by Deputy Prime Minister Somkid Jatusripitak, Chinese minister-counsellor to Thailand Wu Zhiwu and Charoen Phokphand Group senior chairman Dhanin Chearavanont.
British Chamber of Commerce Thailand, 7th Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 085 2828 120 Email: mwbowling1970@gmail.com www.bccthai.com
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HNA Innovation Finance and CT Bright will contribute equally to 20 per cent of a fund, which may reach US$5 billion by 2019, to invest in Thailand's US$43 billion Eastern Economic Corridor project. HNA Group is poised to invest in Thailand's biggest infrastructure development project, as the airline-to-hotels conglomerate switches its offshore acquisitions to hew closer to Chinese state policy, eight months after its global shopping spree landed it under a regulatory spotlight. The Industry Ministry has signed a strategic cooperation framework with the UN Industry Development Organization to establish the Investment and Technology Promotion Office and Industrial Intelligence Unit supporting the Eastern Economic Corridor. As of September 2017, EEC projects approved for Board of Investment privileges had a combined worth of 140 billion baht, of which 68 billion worth are in the S-curve target sectors Mazda has plans to channel more investment into its engine and transmission manufacturing plant in Rayong, Thailand before 2020 in order to handle greater capacity and newer powertrain technologies, according to the Bangkok Post. This is for the automaker to take advantage of excise tax incentives for hybridised or otherwise electrified vehicles assembled in Thailand, pending clarification of government policy. Continental A.G. has laid the ceremonial cornerstone for its $265 million tire plant Rayong, keeping the project on schedule to complete construction by year-end 2018 and start tire production by 2019. The plant, Conti's sixth in Asia/Pacific, is projected to produce 4 million passenger and light truck tires per year by 2020. An official looks at the model showing the expansion of U-tapao airport as part of the Eastern Economic Corridor scheme. The government is committed to starting big-ticket infrastructure projects worth over 740 billion baht next year in the much-touted Eastern Economic Corridor. Thailand's hospitality segment has received one of the highest investment volumes in the region this year, propelled by both local and foreign players Strong tourism growth is boosting foreign and local hotel chains as they expand their portfolios to capitalise on greater numbers of international visitors, giving Thailand some of the highest hotel investment in Asia-Pacific during the first nine months of 2017. The country welcomed 26.1 million international arrivals in the January to September period, up 5.4% from the same period in 2016. The government plans to raise the number of pilot smart cities from the current three to seven next year, using 300 million baht from the fiscal 2017 budget. The ultimate goal is to have 100 such cities within two decades to improve the quality of urban life, Deputy Prime Minister Prajin Jungtong said in a speech today. InterContinental Hotels Group is set to debut the Staybridge Suites brand in Thailand in 2019, also a first for Asia-Pacific, hoping to build on the tourism boom. The group will manage three new hotels, with the first Staybridge Suites Bangkok Thonglor, featuring 303 rooms, expected to open in 2019.
British Chamber of Commerce Thailand, 7th Floor 208 Wireless Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Tel: 085 2828 120 Email: mwbowling1970@gmail.com www.bccthai.com