What is the Eastern Economic Corridor for Thailand Real Estate?

Economic growth opportunities for Bangkok and Pattaya property buyers.
Those following SE Asian business news would have seen articles on the EEC. So, what is it? This article aims to answer those questions and provide some context.  

Established a few years back at the government’s direction, the EEC’s mission is to develop its eastern provinces into a leading ASEAN economic zone. Covering three regions – Chonburi, Rayong and Chachoengsao – this economic zone stretches 200 kilometres south and east of Bangkok. A combined 30,000 rai of land is allocated within these regions to accommodate specific development zones. But why, you ask?

Thailand’s Economic Development – A Brief Snapshot
The EEC evolved out of the Thai government’s plan in 2015 to reinvent the economy under the banner of Thailand 4.0. Its goal is to achieve ‘developed nation’ status within 20 years. 

Thailand’s industrial revolution started as an agricultural nation that became Asia’s major food bowl (Thailand 1.0). It shifted gear in the 1970s when it successfully developed a light industrial sector (Thailand 2.0). Those industries then became increasingly sophisticated, with Japanese, American and European carmakers and electronics companies eventually helping the country evolve into Southeast Asia’s automobile manufacturing hub and one of the world’s leading suppliers of computer hard disk drives (Thailand 3.0).

Now, the EEC Development Plan aims to transform Thailand into a value-based economy supported by innovation, technology and creativity, with extensive and efficient links to ASEAN and the world by land, sea and air. Essential for success is the need for increased and improved infrastructure plus the development of industrial clusters, innovation hubs, and sustainable tourism. New cities created using intelligent urban planning are also identified with reserved locations in Rayong and Chachoengsao provinces.

EEC Development Plan is Rolling Out 
Since its inception, the EEC has attracted investment applications totalling more than USD39 billion. In 2019, Thailand’s Board of Investment reported 59 percent of all investment applications received were for projects in the EEC.

On the infrastructure front, some USD32.93 billion system upgrades and additions are underway. Specifically, U-Tapao Airport is being developed into the country’s third full capacity international airport with a High-Speed Rail Ribbon linking it to Bangkok’s two main airports. Dual-track rail is well underway as Sattahip, Map Ta Phut and Laem Chabang expand into world-leading deep seaports.

In the EEC Aerotropolis zone (EECa), aircraft maintenance (MRO) facilities will be added near U-Tapao International Airport, with advanced aeronautical industry hubs expected to follow. 

The EEC Innovation zone (EECi) will focus on automation, robotics, agrifood and biotechnology industries. Smart electronics developed here will deliver components for the Next Generation Automotive industry, Smart Homes, and Smart Cities. Multinational corporations including Emerson, Hitachi, Samsung, Sharp, Sony, and Sumitomo, already call the EEC home.

In Si Racha’s new Digital Park, major construction is well underway accommodating centres for Advanced Big Data, Cloud & Data Centre; Thailand’s Ultra Hi-speed Broadband (5G) Test Bed; the IoT (Internet of Things) Institute; plus, Centres for Animation and Design, Digital Enterprise eXcellence, Cyber Security, Smart City, and Start-up Incubation.

Located at the Thammasat University Campus in Pattaya, a new Medical Hub (EECmd) focuses on healthcare innovation, medical robotics, medical tourism. A new University Hospital will establish a complex to support Thailand (and beyond) ageing societies.

What About the Workforce?
Developing a highly skilled and knowledgeable workforce is another aspect of Thailand 4.0. An expected 475,000 new jobs will be created over the next four years, with almost half requiring a bachelor’s degree or higher and the rest needing vocational skills. An estimated 2.5 million skilled workers will be needed over the next 30 years. 

The following initiatives are already in play to facilitate people’s needs. 

Vidyasirimedhi Institute of Science and Technology (VISTEC), Rayong Province, was funded by Thailand’s oil and gas giant PTT in 2015. It aims to be a world-class university and is already rated first in chemical sciences in Thailand and third in ASEAN, thanks to collaborations with leading Japanese, Korean and European institutions. 

To help meet vocational qualifications demand, UK-based Pearson, one of the world’s leading education companies, has signed an MOU with the EEC to develop career-focused programs offering BTEC (Britain’s Business & Technology Education Council) diplomas. In May 2020, Switzerland’s Les Roches Hospitality Management School announced it had teamed up with Thailand’s Minor Hotels to establish an Asian Institute of Hospitality Management that will offer certificates, diplomas and bachelor’s degrees. 

EEC and Eastern Seaboard Lead Thailand Forward
Thailand stands at the heart of the 10-nation ASEAN Economic Community, a South-East Asian common market of 660 million consumers. Add to that China, the world’s second-largest economy, and their ASEAN connecting Belt and Road initiatives – we are looking at a region of 3.4 billion inhabitants. That’s half the world’s population. 

Thailand’s EEC plans are about placing the Kingdom prominently within this massive trading and population block and being an ASEAN economic leader in the fast-advancing new technology global economy. Thailand’s eastern seaboard will be an integral component of the country’s new industrial revolution.  Thailand 4.0 and its goal of ‘developed nation’ status appears well underway.

What the EEC will mean for Thailand Real Estate
Growth within the business and infrastructure sector between Bangkok and Pattaya will create huge opportunities for real estate development and investors. As new businesses are set up and we see job creation will ultimately drive demand for residential options. Early speculators have already started acquiring land for future capital gains. With new residential hubs planned to start appearing close to high speed rail stations. Pattaya city property has the most to gain, which has always been heavily reliant on tourism and holiday home buyers. At the same time, reinforcing Bangkok as one of the safest property investment locations in Thailand. Those purchasing houses around the Bang Na, Samut Prakan province will gain the most as travel between the central city hub and EEC will be within an hour’s reach.