FRIDAY, March 29, 2024
nationthailand

EEC investment forecast to accelerate as confidence rises

EEC investment forecast to accelerate as confidence rises

The government’s policy to promote Thailand’s Eastern Economic Corridor (EEC) is paying off, with investment in new factories and business expansion exceeding Bt195.69 billion, up 15.85 per cent, in the first six months of the year, said the Department of Industrial Works (DIW).

The government is now targeting 20-per-cent growth in EEC investment for a total Bt430 billion this year, thanks to policies driving higher foreign confidence, the DIW said. 
“The higher investment has come from the promotion policy in 10 targeted industries in the EEC,” Thongchai Chawalitpichaet, DIW director-general, said. 
“Investment in the latter half of the year is forecast to be higher than in the first, after formation of the new government which could prompt higher confidence among investors. 
“Meanwhile, although the US-China trade war has eased, it remains a risk that is raising concerns for investors, the government and related agencies. Investor confidence must be built up.”
In the first half of this year, 2,064 factories in have lodged requests for new operations and expansion, down 18.06 per cent. Employment dropped 5.45 per cent to 92,262 jobless.
Topping the list of total requests for new operations and expansion were petroleum companies, with investment of Bt38.53 billion, followed by food firms at Bt28.89 billion and electrical appliance producers (Bt19.57 billion).
Topping the list of investment in the total 1,659 new factories was the food industry with Bt19.30 billion, followed by the petroleum industry at Bt16.79 billion and the electrical appliances industry (Bt14.21 billion). 
The list of investment in expansion at 405 factories was headed by the petroleum products industry at Bt89.69 billion, followed by food industry (Bt9.59 billion). 
“Lower employment has resulted partly from development of workforce capacity and automation, including robots,” Thongchai said. 
He added that the department had tightened conditions for industrial waste management, particularly in the EEC, and also shifted its Chon Buri training centre to the Eastern Pollution Analysis and Safety Centre. 
The department is also promoting the creation of plants to manage industrial waste, which amounts to about 30 million tonnes per year.
The North has only one industrial waste management plant per 102 factories, while the South has one per 121 factories, and the Northeast one per 101 factories. The East meanwhile has a far higher ratio of one industrial waste management plant for every 12 factories. 
“Industrial waste management plants should be situated in industrial estates, or else an estate for industrial waste management should be established,” Thongchai said. 
The department has handed its plan to Industrial Estate Authority of Thailand for consideration and will talk to provincial governors about the possibility of establishing more plants.
So far, 48.52 per cent of the total 67,989 plants have registered for the industrial waste management system. 
The department expects most of the remainder to register within 4-5 years.

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