Thailand targets US$10b investments in industrial corridor this year

A deserted road at a usually packed tourist area in Phuket. The tepid response to Thailand’s reopening illustrates the difficulties faced by tourist-reliant countries as they try to shore up economic growth while also protecting citizens from Covid-19. — Bloomberg

BANGKOK: Thailand aims to boost investment in the country's industrial east this year by 44% to around $10 billion, a deputy prime minister said on Monday, after a 45% drop last year due to the impact of the Covid-19 coronavirus pandemic.

The country hopes to receive investment projects worth 300 billion baht ($10 billion) in the Eastern Economic Corridor (EEC) this year, after 209 billion baht last year, or 43% of the country's total investment, Supattanapong Punmeechaow told a briefing.

"Given the outbreak, last year's figures were still OK. The EEC still attracted foreign investors," he said, adding Japan and China remained the biggest two foreign investors.

The EEC straddles eastern provinces and is a centrepiece of government efforts to boost growth and encourage investment particularly in high-tech industries. Investors are allowed to rent land for up to 99 years.

This year the government will encourage both domestic and foreign investment, including by providing competitive incentives and meeting investors, Supattanapong said.

More investors should return to Southeast Asia, including Thailand, after the coronavirus situation improves, he said.

Thailand is targeting the immunisation of 19 million people against the coronavirus in a first phase of inoculations starting later this month.

While the country has yet to lift a travel ban imposed last April to curb the outbreak, it started late last year to allow some foreign tourists to return on long-stay visas.

For most of last year Thailand was able to keep infections low, but a second wave broke out in December, bringing total cases to 19,618, with 77 deaths. - Reuters