Finnish Corporates enter EEC in Thailand
EEC (Eastern Economic Corridor) is a special economic zone located in Thailand. The Eastern Economic Corridor is a development project initiated by the Thai government to promote economic growth and investment in the eastern part of the country. The EEC encompasses three eastern provinces: Chonburi, Rayong, and Chachoengsao, which are strategically located near the Gulf of Thailand and are well-connected to Bangkok.
The EEC aims to attract foreign investment, especially in industries such as advanced technology, aerospace, robotics, biotechnology, and electric vehicles, among others. It offers various incentives to businesses, including tax breaks, infrastructure development, and streamlined regulations to encourage investment and innovation.
The new elected government has officially announced, in the open policy document to the parliament and public, to embed an EEC program in the new set of government policy. Therefore, the ongoing investments and the continuous incentives will not be affected. More Foreign Direct Investment is promoted and will be supported. The newly appointed Secretary-General Dr.Chula Sukmanop is aiming to develop the infrastructure in the EEC area with more than 5 billion Euros, expecting to attract a 10 billion Euro investment in EEC and to comprehensively upgrade the communities in economic, social and environmental aspects.
For Finland, who has been at the bottom part of the list in term of investment in Thailand comparing to other European and Non-European countries, could take an advantage in the growing EEC of Thailand without struggling to boost up the investment neither in volume nor value. From the cooperation T&M office has been handling with the staff and management level in EEC head office found out that the industries or businesses with high-value is currently the main focal target that the Office is actively supporting and promoting.
Any of the 12 targeted industries, with current available technology, could be raised in term of economic value. Finnish corporates who can provide products or services which are aligned with those industries, are packaged with innovation and expect to deliver high-value solutions, would be able to expect a high return on investment as well as EEC incentives. To physically invest in manufacturing facilities, Finnish corporates should not look at EEC as the local target location in Thailand for incentives but should consider EEC as the hub to enter the ASEAN or East Asian markets. On the other hand, instead of allocating big investments in factories or huge physical facilities, entering the markets and generating sales in the growing EEC can be carried out through the company’s remote office. The alternatives of having a remote office are varied depending on the company’s objectives. A representative office, sales and marketing office, coordinating office, or even a branch office would be a perfect way to penetrate the market with minimal investment. The main reason of testing the water, especially in exporting Finnish technology to the target clients in Thailand, is because most of the foreign manufacturing facilities setup in Thailand come with technology solutions from their origin countries. The Chinese factory brings its own Chinese technology and machinery, as well as those from Japan, Korea, etc.
Finnish digital innovation and technology could be interesting to industrial clients not only if it meets the cost-benefit criteria, but also if the solution and communication are aligned with the social and cultural context of the clients and their workers. At this ending, we suggest that Finnish corporates would more or less need to have local peers and partners who understand both ends and be able to blend the business target with the business society integratedly.
If you need more information and details, please don’t hesitage to take contact:
Director, Puntipa Sukjit, (Thai, English)
Partner: Dr. Tuomo Rautakivi (Thai, English, Finnish)