for Special Economic Zones, 3-year additional exemption Thanks to its abundant resources and its geographical location, Thailand is nestled in the heart of ASEAN. are regions recently designated by the Special Economic Zone Development Board of the Thai Government. Rayong, a province nestled along Thailand's eastern coast, is not only known for its sun-soaked shores but also for its vital role as part of the Eastern Economic Corridor, a special economic zone fostering high-tech industries that could catalyze Thailand's growth. Permission for unskilled foreign workers; Must be a project with the type of business being promoted at the time of application submission and ready to comply with the conditions specified by the type of business; Must have a minimum capital of at least 1 million baht (excluding the cost of land and working capital); Must invest in new machines for the whole production line; Must have a debt to registered capital ratio of no more than 3:1 in. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. It simplified the rules for starting a business: the rule that requires a company to obtain a business stamp before it is created has been removed. These facilities will be seamlessly connected to the airport by a Ground Transportation Center, which will include a high-speed train, buses, and taxis. In an effort to bridge the gap left by solely relying on public budgets, several cities in Thailand are exploring creative ways to mobilize finance for urban infrastructure development. Following this, the NCPO issued Order 72/2014 to designate the functions of a Special Economic Development Zone Policy Committee. According to the 2018 report on the Doing Business business environment recorded by the World Bank in 2018, the country ranked 26th (out of 190 countries in total). Get notified of the best articles of the week. Do you have a new idea that could help transform the Open Development Thailand website? Nakhon Phanom, Nong Khai, Mukdahan, and Kanchanaburi. Enabling migrant workers to cross borders easily to work in SEZs in Chiang Rai, Tak and Kanchanaburi Provinces. Suradech pointed out that the majority of the 4.6 billion baht budget allocated for developing cities goes mostly to Bangkok and its neighboring regions. Kanchanaburi Special Economic Zone 8. Thailand's GDP growth has picked up modestly since the surge in COVID-19 cases last year, but economic activity remained below pre-pandemic levels in the first quarter of 2022. BOI general list, Incentives for targeted activities Privacy Policy | Investing in SEZs also provide investors with tax and non-tax incentives, one-stop service provisions, access to foreign workers and infrastructure development. Mukdahan, 5 sub-districts in Muang District: Site users are encouraged to do additional research in support of their activities and to share the results of that research with our team, contact us to further improve the site accuracy. Les champs obligatoires sont indiqus avec *. For example labour costs in Thailand are 3 to 5 times higher than its neighbouring countries of Myanmar, Cambodia and Laos, which threatens local wages, while Thailands economy benefits from the labour of up to 6 million unskilled labourers. receive additional corporateincome tax, Lineage: Various sources. Those who are interested in investing in business in these zones may wonder what tools to promote investment will be implemented. (2nd Project), Yamato Industries I.E., Smart Park I.E., Asia Clean, Rojana Nongyai, Rojana Lamchabang, WHA Industrial Estate (Rayong), and EGCO Rayong Industrial Estate. Dan, Pa Rai and Tha Kam, 1 sub-district in Wattananakorn District: Pak period of 5 years, Incentives for projects in Special SMEs and large investors are equally important. Please see the profile page on Open Development Thailand for access to all resources. Under this scheme, the center located in any SEZ will be eligible for eight years of corporate income tax (CIT) exemption, with 100 per cent cap of investment capital, excluding land and revolving capital) plus 50 per cent tax reduction for another five years at the end of the CIT exemption period. Thailand Economy: GDP, Inflation, CPI & Interest Rates - FocusEconomics These needs arise in the context of a host of global challenges, including environmental crises and natural resource scarcities, which exacerbate the financial pressures faced by local governments and cities. For Thailand, the spatial distribution of economic activities must change to promote growth, reduce inequality and poverty and to move the country toward high-income level, said Fabrizio Zarcone, World Bank Country Manager for Thailand. Headline inflation has breached the Bank of Thailand's target range of 1-3%, reaching a 13-year high of 7.1% in May largely due to surging oil prices. Tak SEZ is the highest investment zone with 28 projects in textile and garments, plastics, automotive, machinery and parts, etc. As a result, the work department no longer needs to validate the internal regulations of the company. [5] The Thai government approached the World Bank for funding, but was turned away as, in the eyes of the bank, the project lacked "economic rationality". In 2014, the National Council for Peace and Order (NCPO) of Thailand announced a new Policy on Special Economic Development Zones as a means to create economically productive areas in border cities linked to other cities in the ASEAN Community. Special economic zones Asean / Border trade / Economic Policy / SBEZ Thailand's Special Economic Zones (SEZs) are regions recently designated by the Special Economic Zone Development Board of the Thai Government. The industrial estates are:[40][41], The EEC Livable Smart City, in its ultimate phase, will span over 10,000 hectares (100 square kilometers) and accommodate 2 million inhabitants. Chiang Rai Special Economic Zone 5. News article summaries are extracted from their sources, as guided by fair-use principles and are copyrighted by their respective sources. The country is becoming the gateway to Asia and the region of the worlds greatest economic growth. Playing a significant role in fostering public-private partnerships for urban infrastructure development in the city is Somsak Arunsurath, President of the Nakhon Sawan City Council. This plan aims to attract foreign investment to facilitate economic development in peripheral regions, bordering other members of the ASEAN Community. These are the following ones: First of all, foreigners need to propose an application to cover the BOI promotion status. No. Volatile energy and food prices and China's economic reopening pose risks. Tak Special Economic Zone 7. There are a lot of concerns and impacts that have been criticized. in Klongyai District in Trat: Khlong Yai, Had Lek, and Mai Rood, 5. [1] It claims an EEZ of 200nmi (370.4km; 230.2mi) from its shores, which has long coastlines with the Andaman Sea and Strait of Malacca to the west and the Gulf of Thailand to the east, although all of its EEZ is limited by maritime boundaries with neighbouring countries. Strategic and financial advantages can be mentioned when registering a free zone company in Thailand. Read more. The zone was established on 17 January 2017, at the direction of the National Council for Peace and Order (NCPO), with the mission of promoting economic integration across the (Eastern seaboard). It is an independent public agency, reporting directly to the prime minister. var divElement = document.getElementById('viz1533272193632'); var vizElement = divElement.getElementsByTagName('object')[0]; vizElement.style.width='800px';vizElement.style.height='427px'; var scriptElement = document.createElement('script'); scriptElement.src = 'https://public.tableau.com/javascripts/api/viz_v1.js'; vizElement.parentNode.insertBefore(scriptElement, vizElement); The development of SEZs at the border regions of Thailand has been facilitated by several legislative changes regarding SEZs (link to a sub-page on legal issues). It is an independent public agency, reporting directly to the prime minister. In these zones, the state has planned to provide support for infrastructure development, investment incentives, and administrative services to enable access to foreign workers based to stimulate economic development through attracting new small to medium enterprises (SMEs). Special Economic Zone consists of 14 sub-districts with border areas in 3 districts in Tak. For more information, please visit www.boi.go.th. permission to own land and permission to bring in Machinery import duty exemption; Their companies can be wholly foreign-owned without the requirement to secure a foreign business licence, which enables them to reduce costs and delays. Sa Kaeo Special Economic Zone 3. Sri Bun Ruang, Mukdahan, Bang Sai Yai, Kam Ar Huan and Na Si Nuan, 4 sub-districts in Wanyai District: Bang Sai [52] By road, the journey takes five to six hours. 1. These industries are: Those running businesses in the 13 target industries can avail the following incentives from the BOI of Thailand: Businesses operating within the SEZs that are not within the 13 targeted SEZ industries can also benefit from the general BOI promotion scheme: the corporate income tax exemptions may vary from three to eight years. Information is publicly posted only after a careful vetting and verification process. Tak Trains on the route will operate at maximum speeds of 250 kmph. ", "EEC (3): Influence of Chinese Concepts on Thai Economic Development", "The Fifth National Economic and Social Development Plan", Office of the National Economic and Social Development Council, "Thailand's iconic railway project set to deepen economic divisions", "THAILAND CHASES CHINESE MONEY, BUT AT WHAT COST? To address these challenges, Thai cities and their central government agencies are actively seeking innovative financing solutions for urban infrastructure. The Airport City will feature various commercial areas, including hotels, shopping malls, convention centers, and office buildings. Next-generation automotive,[19] intelligent electronics,[20] advanced agriculture and biotechnology,[21] food for the future,[22] and high-value and medical tourism. The country has signed a free trade agreement with 17 other countries including India, Japan, New Zealand, Australia, Chile and Peru, as well as the 10 ASEAN countries. According to the government policy that aims to develop the country's economy and national security in order to increase competitiveness, increase employment, and create well-being for the people, and to solve the problem of foreign workers being smuggled into the country, the smuggling of illegal agricultural products from neighboring countries, and congestion at border checkpoints, as well as promoting important trade and investment to support the opening of the ASEAN Economic Community, a total of 10 special economic zones (SEZs) have been established, namely Tak, Sa Kaeo, Trat, Mukdahan, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat, which are considered a new economic mechanism used by many countries to create interest and attract investment from foreign investors. The development of incentives for investors. Responsible party 1. [{"have_node":0,"menu_link":"index.php?page=policies_for_investment_promotion","type_click":"_self","menu_name":"Policies for Investment Promotion"},{"have_node":0,"menu_link":"un/Policy_EEC","type_click":"_self","menu_name":"Investment Promotion Measure in the EEC"},{"have_node":0,"menu_link":"un/SEZ_policy","type_click":"_self","menu_name":"Investment Promotion Policy for Investment in SEZ"},{"have_node":0,"menu_link":"un/southern_policies","type_click":"_self","menu_name":"Investment Promotion Policy for Industrial Development in Border Provinces in Southern Thailand"},], Investment Promotion Policy for Investment in SEZ, Projects with activities in The acquisition of land in each zone and the development of infrastructure, such as, roads, customs houses and industrial estates, which are intended to be leased to private investors. there are several issues that are important to address. As urban populations surge, the need for public services, innovative infrastructure, and regular maintenance continues to grow. Thailand has not established agreements with Cambodia and Vietnam, who also have maritime territory in the Gulf of Thailand, leading to conflicts. In 2013, the Royal Thai Cabinet commissioned the development a feasibility study on the establishment of SEZs in Thailand. The SEZ policy was first launched in 2015 based on the governments belief in the strong potential of the 10 areas to connect with the neighboring countries in terms of trade, economy and investment. 19/2565 aims to promote investment in Special Economic Zones and distribution of socioeconomic growth at both local and regional levels thoroughly. Dashboard: COVID-19 and Thai Labor Market, 9 Tips to Stay Safe Online in the Age of COVID-19, Essential Information on Covid-19 in Thailand, Thai Civil Societys Efforts to Achieve SDGs, Ethnic minorities and indigenous peoples profiles, Social and Environmental Impacts from SEZ, Thai foresters complete data literacy training to advocate for improved forest governance, [Closed!] At Thailand-Laos Border, A Shadow Economy Thrives 26 industrial estates: WHA Rayong Industrial Estate, Eastern Seaboard I.E. This is neither a commercial research service nor a domain managed by any governmental or inter-governmental agency; it is managed as a private non-profit open data/open knowledge media group. The 30-day tourist visa, Por.30: How to get one, and how to extend it, Countries/Territories entitled for visa exemption for a visit of not exceeding 30 days, How to Apply for a Visa for Foreigners Entering Thailand, Special Economic Zone (SEZ) Investment Guide. The signing ceremony was presided over by the Prime Minister General Prayut Chan-o-cha. Thailand.go.th is a Thai government website under the responsibility of the Public Relations Department, providing accurate and comprehensive information for Thai people and foreigners. Security Policy A high-speed rail line is planned to serve the EEC. Learn how your comment data is processed. Phra, 3 sub-districts in Mae Ramad District: Mae Ja. World Banks East Asia and Pacific Economic Update forecasted strong GDP growth in CLMV countries with Cambodia leading the group with 6.8% GDP growth, followed by Laos of 6.7%, Malaysia of 5.2% and Thailand of 3.5% for example. Mukdahan Special Economic Zone consists of 11 sub-districts with border areas in 3 districts in (Rayong), WHA Eastern Industrial Estate (Map Ta Phut), WHA Eastern Seaboard I.E.1, WHA Chonburi I.E.1, WHA Chonburi I.E.2, WHA Eastern Seaboard I.E.2, WHA Eastern Seaboard I.E.3, WHA Eastern Seaboard I.E.4, CPGC I.E. Ferries capable of carrying vehicles are projected for 2020. However, ODT cannot guarantee accuracy, completeness or reliability from third party sources in every instance. Increased cross border flows of goods allow consumers in neighbouring countries to access a wider range of goods at cheaper prices, but this has both benefits and disadvantages for these economies. Town planning for SEZs entailing land use and transport planning, neighbourhood zoning, and public utilities. The 220 kilometre line will consist of 181 kilometres of elevated track, eight kilometres of underground track, and two kilometres of surface track. Saew, Pa Sak, Mae Ngern, Yo Nok, Vieng, Sri [11] The project will be divided into three phases, with the business and financial hub being constructed by 2025 and developed into one of the world's top 10 smart cities by 2037. Tax measures Target activities: 8-year corporate income tax exemption and 50% reduction for another 5 years; General businesses are divided into: - Groups A1-A2: 50% reduction of corporate income tax for an additional 5 years; - Groups A3-A4 and B: additional 3-year corporate income tax exemption. Thailands export growth plan is currently focused on growing trade with secondary cities in partner countries using mini FTAs, often known as little free trade agreements. Disclaimer: Open Development Thailand will thoroughly review all submitted resources for integrity and relevancy before the resources are hosted. The experiences and empirical evidence from OECD countries underscores the importance of empowering cities and local governments for a country's competitiveness and economic development. Special Economic Zone consists of 2 sub-districts in Muang Rental rate: 50-year lease and may be extended for another 50 years, rental rate/rai/year (Increased by 9% every 3 years); Copy of the latest juristic person certificate, not older than 6 months; Copy of the latest shareholder list (Bor.Or.Jor.5) or shareholding distribution report. With this in mind, and to maximise the use of economic zones (including There are also exemptions from import duties, export duties, VAT and excise taxes. Import restrictions for goods or materials for export are also relaxed. 10-yeardoubledeductionsfrom the costs of transportation, electricity, and water supply, - This work and any original materials produced and published by Open Development Thailand herein are licensed under a CC BY-SA 4.0. In 2015, total investment in SEZ was 280.1 million baht before it jumped to 8.31 billion baht in 2016. Agriculture, fisheries and related businesses, Automotive, machinery, and parts industry, Electrical appliances and electronics industry, Product and by-product or agricultural scrap business, Manufacturing of metal structures for construction or industry, Manufacturing of animal feed or animal feed ingredients, Manufacturing of construction materials and manufacturing of prestressed concrete products for public utilities, Manufacturing of additives for body cleansing, such as medicated soap, shampoo, toothpaste, and cosmetics, Manufacturing of plastic products for consumer products, such as plastic containers, Manufacturing of articles from pulp or paper, such as paper boxes, Development of buildings for industrial factories and/or warehouses. Ten SEZs were announced based on criteria in the policy and were prioritized on the basis of this feasibility study. Free Economic Zones in Thailand: The Ultimate Guide Kanjanaburi Policy Mechanism for Developing Special Border Economic Zones in Thailand. To learn more about cookies, click here. Nongkhai It leads to the expansion of opportunities that are essential for growth, poverty reduction, and shared prosperity. It is Thailand's largest port. Cross-Border Trade between Thailand and Bordering Countries. Songkhla Special Economic Zone Construction of the rail line will begin 12 to 24 months from the date of contract signing. SEP for SDGs Partnership; ASEAN and Dialogue Partners; Thailand's Anti-Human Trafficking Actions; Thai Business Information Center; Visiting Thailand. Unlocking Cities' Potential to Promote Sustainable Growth and Inclusive The Eastern Economic Corridor (Abrv: EEC; Thai: , romanized:Rabang Stthakit Phk Tawan-k, RTGS:Rabiang Setthakit Phak Tawan-ok, pronounced [r.ba st.t.kt pk t.wn.k]) officially the Eastern Special Development Zone (ESDZ), is a special economic zone of three provinces in eastern Thailand. Border Special Economic Zones Development Policy. In December 2022,[10] the Thai government approved a 1.35 trillion baht ($44 billion) plan to develop the Eastern Economic Corridor (EEC) into a regional financial hub and a world-class smart city by 2037. Language links are at the top of the page across from the title. We have put together a guide on understanding special economic zones in Thailand. Moreover most free zones have a one-stop-shop to register the company easily, and obtain all necessary permits and licenses. It is a planned mixed-use development that will be integrated with U-Tapao International Airport, serving as a hub for aviation-related industries, logistics, and tourism. Source: Foreign Office, Royal Thai Government. Rayong, a province nestled along Thailand's eastern coast, is not only known for its sun-soaked shores but also for its vital role as part of the Eastern Economic Corridor, a special economic zone fostering high-tech industries that could catalyze Thailand's growth. [9] Planners see the region as strategically important as it borders the gulf as well as being close to Bangkok, and two major airports. Finally businesses operating in a free zone can bring foreign experts in Thailand, in particular through a fast-track and simplified procedure. It still remains an attractive destination for investors with its promising economy and has demonstrated remarkable economic progress. Thailand Board of Investment (BOI) application tips, Five common challenges when starting a business in Thailand, Announcement on the Board of Investment No. The Eastern Economic Corridor is served by the State Railway of Thailand's (SRT) Eastern Line. In 2013, the Royal Thai Cabinet commissioned the development a feasibility study on the establishment of SEZs in Thailand3 with the intention of implementing these plans as part of a road map for the economic development by better connecting the ASEAN Community. After the 2014 coup, the NCPO announced the creation of a special economic zone (SEZ) called the Eastern Economic Corridor (EEC) with a budget of 1.5 trillion baht (US$43 billion) over its first five years. The Tourism Authority of Thailand is maintaining its official forecast of Chinese visitors at 5 million during 2023, generating some 446 billion baht ($12.8 billion) of tourism revenue. Narathiwas Special Economic Zone consists of 5 sub-districts in 5 districts, 1 Sub-district in Muang district: Khok Kian, 1 sub-district in Tak Bai district: Jae Hae, 1 sub-district in Yi Ngor district: La Han, 1 sub-district in Wang district: Loh Jood, 1 sub-district in Su Ngai Ko Lok district: Su Thailand today has a network of thriving cities beyond the Bangkok metropolitan area offering a wealth of opportunities to local residents. Page 9. To explore the relationship between regional growth and the presence of an SEZ in Songkhla province, Thailand, the CD Vine-Copula AutoRegressive (CD-Vine COPAR) models were constructed using annual datasets of Songkhla's economic performance from 1995 to 2016. In 2014, the National Council for Peace and Order (NCPO) of Thailand announced a new Policy on Special Economic Development Zones as a means to create economically productive areas in border cities linked to other cities in the ASEAN Community. Copyright 2017 - Thailand Board of Investment - All Right Reserved. When starting a company in Thailand, you should consider setting up one in the special economic zones around the country, as investors will be entitled to a vast range of incentives. It is focused on industries such as agriculture, furniture, gems, electronics, plastics, medicine, tourism, and more. Special Economic Zones | Open Development Thailand This bustling city is a commercial and export nexus for the broader Indo-China region. general activities on These include an exemption from corporate income tax for eight years, with a possibility to extend for another five years; double tax deductions for transportation, electricity and water costs; and an exemption from import duties on machinery and raw materials involved in the manufacturing of products for export. Must have an added value of not less than 20% of income, except agriculture, electronics, and parts businesses, and metal cutting businesses must have an added value of not less than 10% of income; Must have the measures to prevent and reduce the impact on the environment; In the case of SMEs, installments with minimum investment conditions of not less than 500,000 baht. We will then be able to invite and attract interested global investors and stakeholders in the electric vehicle industry to invest in Rayong., Phusit also expressed concerns about budget limitations, elaborating that Infrastructure development is a critical factor for a secondary city to achieve economic growth and to expand opportunities to more people. ODT makes no representation or warranty, either expressed or implied, in fact or in law, with respect to the accuracy, completeness or appropriateness of the data, materials or documents contained or referenced herein or provided. Source: https://unsplash.com/photos/TreyJD0mps4. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Krai, 7. Thailand Now. Projects with activities in Wan, Nai Muang, Baan Duer, Phra Tat Bang The SEZs in Thailand are categorised into two phases; the first phase, which started in 2015 and the second phase in 2016. The consortium will have the right to operate and manage the rail line for 50 years after which project assets will revert to the government. Airport tax in Thailand, if the passenger does not fly, can the tax be refunded? Must not claim tax incentives under the following: Corporate income tax exemptions and reductions under the law on investment promotion, Corporate income tax reductions for Regional Operating Headquarters granted under Article 6 of the Royal Decree No.530 and amendments, Income tax exemptions for SMEs under Article 7 of the Royal Decree No.530 and amendments, Income tax reductions for investors in SEZs under Article 4 of the Royal Decree No.591, Must have separate accounts for business activities in the SEZ for projects receiving incentives and projects not receiving incentives. . The Office of the Board of Investment is a government agency under the Office of the Prime Minister. [42], The Eastern Economic Corridor is served by U-Tapao International Airport, one of three main commercial airports in the country. Non-tax incentives e.g. 19/2565 (Thai Version), Thailand Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak Bangkok 10900 Thailand Special Economic Zones | Open Development Thailand For investment in special economic zones as of November 2022, the value is 38,895.57 million baht, which has been promoted by the BOI for 73 projects, a total amount of 18,495 million baht, from a total of 106 projects applying for investment promotion, a total amount of 29,036 million baht. Power of Attorney affixed with stamp duty; Copy of ID card or passport of the authorized person with a certified true copy; ID card or passport of the authorized person. Global data and statistics, research and publications, and topics in poverty and development, The World Banks digital platform for live-streaming, Environmental and Social Policies for Projects, International Development Association (IDA), Press Release: World Bank Partners with Five Cities in Thailand on Urban Infrastructure Financing, Video: Empowering Thai Cities for Sustainable Growth. Immigration and Customs; Tourism Information. which started in 2015, includes the 5 provinces of Tak, Mukdahan, Sakaeo, Trat and Song Khla comprising 10 districts and 36 sub-districts; The Special Economic Development Zone policy committee has formulated the Special Economic Zone Development Plan providing a framework for how these zones will develop.