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US$44b project can link Thailand to China's Belt and Road initiative

THAILAND's Industry Minister Uttama Savanayana has said that a US$44 billion plan to add infrastructure and upgrade industry on its eastern seaboard can link up with China's Belt and Road Initiative, as part of a push to encourage economic growth.

Speaking in a Bloomberg Television interview on the sidelines of a conference in Bangkok, the minister pointed out that the Eastern Economic Corridor project could be beneficial for China and the rest of Southeast Asia, apart from bolstering Thailand's outlook.

"It's very natural, logical, and mutually beneficial for the EEC to link up with One Belt, One Road, and other regional initiatives like the RCEP or even TPP if that goes ahead," Mr Uttama said, referring to the Association of Southeast Asian Nations initiative known as the Regional Comprehensive Economic Partnership, and the struggling Trans-Pacific Partnership trade pact.

Thailand's economy has been subdued since the military seized power in 2014 and the government is seeking to speed up infrastructure projects to boost the outlook.

The eastern seaboard plan targets THB1.5 trillion ($44 billion) of investment from 2017 to 2021 for airport expansion, new railways and cities, port development and spurring modern industry. Mr Uttama expects about 80 per cent of funding from the private sector and the rest from government.

"We are pretty much on track," he said. "So far this year, it has been a year of preparation for the EEC. We have been putting in place the overall plans. Next year we are expecting to see actual investments taking place."

The EEC Act, which institutionalises the project and gives it a legal basis, will go before the National Assembly soon, Mr Uttama said. Southeast Asia's second-largest economy also realises it needs to upgrade workforce skills to support the EEC, he said.

The Belt and Road Initiative is Chinese President Xi Jinping's signature plan to open trade routes and build infrastructure from Asia to Europe to Africa. Last month, Mr Xi outlined plans to direct as much as CNY840 billion ($123 billion) to construct roads, railways, ports and pipelines in more than 60 countries.

"Today, many countries can't afford to just think about themselves in terms of sustainable development," Mr Uttama said. "We need to work together and think about the region as a whole."