Ministry of Industry’s role in

Thailand 4.0

Somchai Harnhirun

Permanent Secretary, Ministry of Industry

Contents

• Thailand 4.0

• Industries 4.0 and Targeted Industries

• Eastern Economic Corridor

Contents

• Thailand 4.0

• Industries 4.0 and Targeted Industries

• Eastern Economic Corridor

Where we are heading to ….

Globalizat

ion-

Digitization

-

Ubanization

-

Commonizati

onRegionaliz

ation

Localizati

on

“Thailand 4.0”Transforming towards the Value-Based Economy

Strength from

Within

Connect to the

World

SPRING

Identity

Local Economy

CLMVT

As Our Home

MarketASEAN

Global

Connect

What is going

on …

What we are doing

and will do …

Laid down Foundation

Industrial transformation

Contents

• Thailand 4.0

• Industries 4.0 and Targeted Industries

• Eastern Economic Corridor

Thailand

4.0

Powered

by

Industry

4.0

The concept drives the industry toward to Thailand 4.0

The concept drives the industry toward to Thailand 4.0

Industry 4.0

The concept drives the industry toward to Thailand 4.0

Next-Generation

Automotive

Smart Electronics

Affluent, Medical

& Wellness

TourismAgriculture &

Biotechnology

Food for the Future

Level up of 5 existing potential industries by adding up technological content and innovation on current comparative advantages

The concept drives the industry toward to Thailand 4.0

Robotics

Aviation & Logistics

Biofuels &

Biochemicals

Digital

Medical Hub

Creating the new engine of growth by focusing on new industries which are based on future technology.

Strategy Map

Knowledge driven industries and link to the world

Policies on Targeted Industries

Automotive

• Excise Tax: Reduction to 2% for BEV … HEV, PHEV

• Import Tax: Exception for EV for the first two years• Financial Support for fuel station investment

Contents

• Thailand 4.0

• Industries 4.0 and Targeted Industries

• Eastern Economic Corridor

Bio Tech Health Tech Robotic Tech Culture/creativity

Thailand 4.0SMART TECHOLOGY with SMART PEOPLE

Match to the real demand and leave no one behind

EEC: Putting Thailand 4.0 in Action via Area-based Development

Bangkok

Eastern Economic Corridor:

EEC

Chachengsao

Chonburi

Rayong

•T4.0 in Action• Industrial Policies in Action

EECThe First Area-Based

Development

Thailand Eastern Seaboard Development Project

... The beginning of the Thailand’s Industrialization

• The first industrial clusters for exports:

Textiles, Electronics, Automobiles

• The first energy and petrochemical complex

Maptaput: Refinery, Gas separation plant, Plastic and chemical

• The first integrated infrastructure for industrial needs

Leam Chabang Seaport, Motorway, Double track railway

... Highly successful area development• A famous destination for FDI

• Exports raised 12%, Industry grew 12%, Economy grew 7% per

annum during the first 20 years.

EEC builds on 30 successful years of Eastern Seaboard

Gateway to Asia -

reaching more than

half of world’s

population

EEC will represent

the largest

investment projects

in ASEAN, in terms

of budget and area

Combined GDP of

East Asia, ASEAN,

India region*

represents 1/3 of

world’s GDPChina

India

ASEAN

JapanSouth Korea

To EU

To US

To Oceania

CLMV

is the best strategic location of the

region…EEC

Regional Connectivity… Center of East-West Economic Corridor and North-South Economic CorridorConnect Indian Ocean with Pacific Ocean, CLMV, South China

Laem

Chabang

Maptaput

Dawei

Cambodia

China

CLMV

Malaysi

a

Singapore

E-W

N-S

Cambo

dia

Vietnam

EEC

24

1

24

5

ICD

ICD

ICDICD

ICD

ICD

Sakaeo SEZ

Trat SEZ

Business Zone at Nakhon Ratchasima

(E saan - Kunming)

HuaHin-PattayaBangsapaan-Laemchabang

6

Kanchanaburi-Dawai

Chantaburi (Fruit Garden and Airport)

3

1

2

3

4

5

6

EEC and Related Area Connectivity

Bangkok

Eastern Economic

Corridor :EEC

1

2

5

43

ICD

ICD

EEC is Eastern part expansion of Bangkok

E saan –Kunming –Gulf of Thailand

Gulf of Thailand-

EEC and Rail & Sea Connectivity

Chachoengsao

Chonburi

Rayong

1

2

3

4

5

26

1

Thailand Aviation Competitiveness (Asia Aviation Hub) by 3 Airports Link (Don Muang- Suvarnabhumi - U-Tapao)

CLMV (Yangon, Mandalay ,Phnom Penh ,

HoChi Minh City ,Hanoi ,Vientiane)

China (Kunming ,Zhengzhou, Beijing

,Shanghai, Hong Kong) Japan (Tokyo,Osaka) Seoul – TAIPEI

Other ASEAN (KualaLumpur ,Singapore

, Manila ,JAKARTA ,Brunei)

India (NewDelhi ,Mumbai ,Chennai

,Hyderabad)

2

2

22

2

23

4

51

2

3

4

5

EEC and Air Connectivity

The Potential Industrial Corridor of GMS

Existing Industries and Infrastructures

Industrial Estate

Industrial Park

Double-Track Railway

Motorway

Deep Seaport

Airport

EEC

4 core areas will be developed… to be World-

class economic zone

Aviation HubLogistics HubTrading HubAdv. Manufacturing HubTourism Hub

Infrastructur

e

Tourism

Business, Industrial

clusters

and Innovation hub

New cities

and

communities

Ready to be upgraded… To be World-class economic

Global Business Hub

Metropolis of the Future

How to?

Innovation Hub

U-Tapao airport and aircraft maintenance

Sattahip commercial seaport

Laem Chabang port phase#3

Map Ta Phut port phase#3

High-speed rail – east route

Double-track railway

Highways and motorway

Advanced petrochemical and Bioeconomy

Medical hub

Tourism

Global Business Hub / Free Economic Zone

New Cities, Inclusive

growth

1

2

3

4

5

6

7

8

9

10

11

12

13

14

4 Core areas ...15 Crucial Investment projects

Chonburi

Chachoengsao

Rayong

Public Utilities15

How to?

+ Digital Infrastructure

- Digital Park

- Data Center

+ EECi

Innovation Hub

Next-generation automotive (EV/AV)

Aviation industry, Robotics, Smart electronics

31

- 3 million tourists

- MRO (Maintenance Repair & Overhaul center) First phase by Thai Airways and strategic alliances

- Start constructing 2nd runway

- Grant concession for new city airport

U-TapaoAirport

High Speed Rail - Provide PPP for bidding to connect 3 airports

- Provide PPP for bidding 3rd phase

- Acquire lead investors for target industries

- Develop city planning and identify location

Target Industries

Laem ChabangPort

New Cities

5 High priority projects to start in 2017How to?

Laem ChabangPort

32

33

34

35

36

Incentives and Privileges

• BOI standard package plus 50% CIT reduction for another 5 years

• Potential 15 years CIT waiver plus grants for strategic projects in EEC (Thailand competitive fund)

• Potential maximum 17% PIT for management, investor, expert of company in target industries with HQ and facilities situated in EEC

• Non-financial: – Holding foreign currency account

– VISA and work permit

EEC

Ministry of Industry’s role in

Thailand 4.0

Somchai Harnhirun

Permanent Secretary, Ministry of Industry

Thank you for your kind attention