Related News BUSINESS INTELLIGENCE To address these challenges, Thai cities and their central government agencies are actively seeking innovative financing solutions for urban infrastructure. Feel free to schedule a consultation with Acclime for more information. The city will also features various facilities, including government buildings, offices, a convention center, a retail market, a healthcare hub, a research and development hub, a start-up community, and a world-class sports complex for major international events. PowerPoint presented at College of Interdisciplinary Studies of Thammasat University, Lampang Campus. This plan aims to attract foreign investment to facilitate economic development in peripheral regions, bordering other members of the ASEAN Community. Discussing potential future investments for Rayong city, Vice Mayor Phusit Chaichum shared his thoughts: One of the things that this city can attract besides tourism is the automobile industry. The ferry cruises at 27 knots on the 113km journey across the Gulf of Thailand with a maximum passenger capacity of 150 persons. In addition to infrastructure and utilities, the government has promoted private sectors participation in development of those areas by renting land plots in SEZs to private companies for industrial parks or facilities development to support investors. Enregistrer mon nom, mon e-mail et mon site dans le navigateur pour mon prochain commentaire. Sa Kaeo is an example, where an SEZ is being developed on the Thai-Cambodia border as part of the Greater Mekong Sub-region Southern Economic Corridor used to transport goods from Thailand to Southern Vietnam. Key findings. 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. Special economic zones (SEZ) can play an integral role in enhancing both regional and national economic growth. Laos of 6.7%, Malaysia of 5.2% and Thailand of 3.5% for example. SMEs and large investors are equally important. Les champs obligatoires sont indiqus avec *. Special Economic Zone consists of 14 sub-districts with border areas in 3 districts in Tak. Understanding special economic zones (SEZs) in Thailand - Acclime Thailand Special Economic Zones Thailand - OD Mekong Datahub 1. Special Economic Zones | Open Development Thailand The incentive includes a corporate income tax reduction to 10% of the companys net profits for 10 years. depreciation deduction), - 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. Channels for application submission: Via online application submission system: www.boi.go.th E-Investment system for requests under normal investment promotion policies;Submit the documents at the office / E-Submission for measures or special policies;One Start One Stop Investment Center: OSOS.2. Thailand has not established agreements with Cambodia and Vietnam, who also have maritime territory in the Gulf of Thailand, leading to conflicts. Ferries capable of carrying vehicles are projected for 2020. Chiang Rai Special Economic Zone 5. Thailand Now. However, it is very hard to get budget from the central government to develop projects that would have an impact on the city and that is why KKTT had to come in and help the city develop infrastructure on a bigger scale to push the economy in the city forward, he said. Ten SEZs were announced based on criteria in the policy and were prioritized on the basis of this feasibility study. Inflation fell to 2.7% in April, following March's 2.8%, thus remaining within the Bank of Thailand's 1.0-3.0% target. Following this, the NCPO issued Order 72/2014 to designate the functions of a Special Economic Development Zone Policy Committee. It is Thailand's largest port. Leased land and property in the EEC business hub and smart city will be transferred back to the government in 50 years.[12][13][14]. It is an independent public agency, reporting directly to the prime minister. The new measure will allow SMEs to increase distribution channels and expand their marketing activities utilizing strategic location of each SEZ. The Legal and Policy Framework for Special Economic Zones Target activities: 8-year corporate income tax exemption and 50% reduction for another 5 years; Exemption of import duty on raw materials produced for export; Double deduction of transportation, electricity, and water costs for a period of 10 years; 25% of the investment can be deducted from the installation or construction of facilities in addition to normal depreciation. are regions recently designated by the Special Economic Zone Development Board of the Thai Government. 26 industrial estates: WHA Rayong Industrial Estate, Eastern Seaboard I.E. Kha, 4. . Benefits and Investment Promotion Measures. Non-tax incentives, such as permission to own land and employ foreign unskilled and skilled labour. Projects with activities in These zones are designed to allow foreigners to set up their companies in Thailand, while benefiting from simplified procedures, tax advantages, property rights and full foreign ownership. Language links are at the top of the page across from the title. According to Ms. Duangjai Asawachintachit, Secretary General of the Board of Investment (BOI), BOI intends to attract more investment projects. Other expected benefits include enhanced security along border regions, enabling the stability to develop competitive business endeavours, as well as fostering linkages with neighbouring countries. Boon Ruang, Rim Khong, Vieng, Sri Don Chai, Sa Tan, HuayKho, 6 sub-districts in Chiang Saen district: Baan 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. The Eastern Special Development Zone Policy Office (ESDZPO) is the governing body of the Eastern Economic Corridor. Foreigners who wish to register a free zone company in Thailand are required to: To set up a free zone company, foreigners must fill out an application form and provide the following documents: The government provides a full range of incentives for businesses operating in 13 industries. The country is becoming the gateway to Asia and the region of the worlds greatest economic growth. Moreover most free zones have a one-stop-shop to register the company easily, and obtain all necessary permits and licenses. Trains on the route will operate at maximum speeds of 250 kmph. Enter your email address to subscribe and receive notifications of new posts by email. Thailand today has a network of thriving cities beyond the Bangkok metropolitan area offering a wealth of opportunities to local residents. Materials on the Open Development Thailand (ODT) website and its accompanying database are compiled from publicly available documentation and provided without fee for general informational purposes only. Karnchang PLC (CK); Bangkok Expressway and Metro PLC (BEM); Italian-Thai Development PLC (ITD); and China Railway Construction Corporation Limited (CRCC). Phase two of the SEZs includes five provinces, 12 districts and 55 sub-districts. Krai, 7. Their companies can be wholly foreign-owned without the requirement to secure a foreign business licence, which enables them to reduce costs and delays. (link to another sub-page on specific issues), Special Economic Zone Act and Related Laws, Guidelines and Measures for the Development of Special Economic Zones in Border Areas of Thailand, Journal of Investment Promotion, 25th Year, Issue 11. . If you continue to navigate this website beyond this page, cookies will be placed on your browser. receive additional corporateincome tax, The University of Tokyo (Japan), Kyoto University (Japan), Waseda University (Japan), Hohai University (China), Hong Kong University of Science and Technology, and the Auckland University of Technology plan to open campuses in the EEC.[55][56]. Khon Kaen, situated at the heart of Thailands Northeast region, is one of the nations most rapidly expanding cities. This plan aims to attract foreign investment to facilitate economic development in peripheral regions, bordering other members of the ASEAN Community. 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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. Inflation should ease further this year, pushed down by higher interest rates. [42], The Eastern Economic Corridor is served by U-Tapao International Airport, one of three main commercial airports in the country. 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. Copy of the latest year's financial statements (if any). 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. [52] By road, the journey takes five to six hours. 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. At the same time, other businesses, especially SMEs outside SEZ, will also reap the benefits from this measure. 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. He emphasized that good urban planning is essential not only for generating income but also for maintaining a sustainable environment within the city. We believe that not everything should be centralized.. Please make sure the resources are in the public domain or fall under a Creative Commons license. Free zones, also known as special economic zones, are regions designated by the Special Economic Zone Development Board of the Thai Government. Nakhon Panom Special Economic Zone consists of 13 [44] To support this goal, the state government and private sector have developed a project plan to construct an airport with two 3,500-meter runways and 124 aircraft stands, along with supporting facilities such as an MRO Complex, an Aviation Training Center, and a Ground Transportation Center. The signing ceremony was presided over by the Prime Minister General Prayut Chan-o-cha. sub-districts with border areas in 2 districts in Sa Kaew, 3 sub-districts in Aranyaprathet District: Ban Assisted by the World Bank, cities in Thailand and their corresponding government bodies are investigating innovative methods to secure funding for the advancement of urban infrastructure. Immigration and Customs; Tourism Information. Tak Special Economic Zone consists of 14 sub-districts with border areas in 3 districts in Tak 8 sub-districts in Mae Sot District: Mae Sot, Mae Tow, Ta Sai Luad, Phra That Pha Dang, Mae Gasa, Mae Pa, Mae Ku and Mahawan. [46][45][47], The Eastern Airport City is a part of the larger initiative to improve transportation and logistics infrastructure in the EEC. In addition, some of the existing infrastructure projects are R9 route (East-West Economic Corridor: EWEC) connecting Thailand, Myanmar, Vietnam and Laos, R3A route (North-South Economic Corridor: NSEC) connecting Thailand, Laos and China, and R1 route (Southern Economic Corridor) connecting Thailand, Cambodia and Vietnam. Privileges such as, one-stop service provision, reduced taxation, and priority access to foreign labour are promised to businesses that invest in these zones.1. Tha Kho, Na Sai, Na Raj Kwai, Nai Muang, Baan Pueng, Pho In 2013, the Royal Thai Cabinet commissioned the development a feasibility study on the establishment of SEZs in Thailand. 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. : +66 2553 8111. For the Indian development, see, Special Economic Zone in Eastern Thailand, Thailand, Eastern Special Development Zone Policy Office, [r.ba st.t.kt pk t.wn.k], National Science and Technology Development Agency, Don MueangSuvarnabhumiU-Tapao high-speed railway, China Railway Construction Corporation Limited, Asian Institute of Hospitality Management, Les Roches International School of Hotel Management, Hong Kong University of Science and Technology, / , " .. While cross border trade is growing, strong economic growth in those neighboring countries is also significant. In the first nine months of 2017, statistics from Thailands Department of Foreign Trade showed that value of border trade (Malaysia, Myanmar, Laos, and Cambodia) and goods crossing the borders (from Singapore-southern China and Vietnam) totaled 971.42 billion baht, an increase of 9.68% from 885.71 billion baht in the same period in the previous year. Currently, the development of SEZs is one of major state policies and is not an easy task to implement. ", "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? Chinese Tourist Arrivals in Thailand This Year Reach 1 Million These zones are designed to allow foreigners to set up their companies in Thailand, while benefiting from simplified procedures, tax advantages, property rights and full foreign ownership. The 220 kilometre line will consist of 181 kilometres of elevated track, eight kilometres of underground track, and two kilometres of surface track. With this in mind, and to maximise the use of economic zones (including 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. Like other investment packaged offered to investors, the government offers both tax and non-tax incentives. Japanese companies then invested heavily in the region. Lampang. As urban populations surge, the need for public services, innovative infrastructure, and regular maintenance continues to grow. The cities highlighted above demonstrate the transformative potential of local administrations that take lead in tackling local challenges to pave the way for a sustainable and resilient urban future. Supporting documents for submitting an application: 2.1 Two promotion application forms.In case of submitting an application on behalf of an individual: The ID card or passport of the applicant is required. Trat Special Economic Zone consists of 3 sub-districts Double deduction of the costs for transportation, electricity and water supply for 10 years, 25% deduction of the costs of installation or construction of facilities in addition to the deduction of normal depreciation, Exemption of import duties on raw and essential materials used in manufacturing for export for five years. Read more. 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. 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. Like many cities in the developing world, those in Thailand often operate within constricting institutional and fiscal frameworks, confronting infrastructure backlogs and a heavy reliance on funding from higher levels of government. Privacy Policy | Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. 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. 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.
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