The New booming industries era in Thailand
“The landmark project to kick off Thai investment : EEC “
Eastern Economic Corridor (EEC) is Thailand major economic initiative that attracted the most public attention in 2017. The Thai government hopes to leverage the EEC as a revenue-generating hub that will upgrade the country from an increased investment in targeted industries, and also as an economic growth engine for Thailand in the future. In this light, EIC believes that the digital industry, aviation and logistics industry, and robotics industry are the three most promising industries to take place in the EEC during the initial phase of the development plan.
The Digital industry
“with great opportunity comes great understandings digital industry”
Digital industry is among the 10 targeted industries in EEC, and will play important role in providing support for other targeted industries. Digital industry is named among the industries of the future (New S-curve industry) to receive government support. New digital businesses are encouraged to invest in the EEC, as they play a key role in upgrading manufacturing industries towards the Industry 4.0. They do so through raising production efficiency and reducing costs in other industries by 30%. Hence, the government also hopes to encourage applications of digital technology in other target industries, such as the next-generation cars, smart electronics, and processed food, in order for these industries to compete successfully in the international arena.
In addition, the project is equipped with both physical infrastructures (hard infrastructures) and regulatory infrastructures (soft infrastructures). Currently, hard infrastructures include a satellite station and a submarine cable network connecting to global fiber optics network, making the area Thailand’s strategic location for high-speed communication. Digital infrastructures will also later include the Digital Academy, the IoT Institute, an international submarine cable station, and a data center.
Aviation industry
“with great opportunity comes great challenges”
Economic growth of Asia in the past decade has led to increasing demand for air travel for both business and leisure. This in turn resulted in higher demand for aircraft maintenance service. Recognizing the trend, the government prepares to develop an eastern aviation city in the Eastern Economic Corridor (EEC) with an aim to make Thailand a new aviation hub in the region. EIC assesses that during the initial phase the Maintenance Repair Overhaul (MRO) center, which offersfull services tailored for narrow body aircrafts, will emerge. In the medium term, development of the eastern aviation city will offer opportunities for Thai entrepreneurs to get involved in the multi-billion-dollar aviation supply chain.
The Thai government aims to transform U-Tapao International Airport into an Aerotropolis of eastern Thailand, just like Schiphol in the Netherlands, Songdo in South Korea, and Zhengzhou in China, all of which are important transportation hubs that crowd in urbanization in the surrounding areas. The 6500-rai U-Tapao International Airport in Rayong province is the strategic location for the plan to promote aviation industry in Thailand, which consists of 3 major components. First, the plan to develop U-Tapao Airport to be the third commercial airport in the country serving 60 million passengers within 15 years. Second, investment in 5 key businesses namely aircraft repair, passenger terminals and commercial areas, manufacturing of aircraft parts, air transportation, and training center for aviation personnel and business.Third, a future plan to promote three additional businesses, namely 1.commercial ports, 2.specialized medical centers, and 3.defense technology. All these developments will not only make U-Tapao International Airport a center for aviation industry, but also lead to urbanization in the areas within 20–30 kms. radius from the airport.
Robotics and automation system industries
“with great opportunity comes great risks”
Labor shortage and cheaper cost of robots are the main drivers for the steady rise in demand for robots and automations systems around the world, including Thailand. However, given Thailand’s technology, production capacity, as well as brand recognition, EIC believes that opportunities for Thai businesses within the robotics and automation value chain lie in System Integrator (SI) and end-users, rather than as robot manufacturers. Nevertheless, all parties should be prepared for any potential impact once the adoption of robots and automations is more widespread. Relevant government agencies and the private sector should focus on helping workers develop necessary skills that allow them to work with robots and automation systems or switch to other types of jobs.
In order to mitigate the negative impact on the labor market, the government and private sector should work together in training new skillset for workers, to help them cope with the changing demand. The government and educational institutions in Thailand have together established the Center of Robotic Excellence (CoRE), which will help promote the robotics and automation industries in the areas of 1) development of robot prototypes, 2) accreditation of SIs, 3) technology transfers and, 4) human resources developments, including building experts in the fields and reskilling workers vulnerable to the introduction of IR. In addition to this effort, the private sector should also take part in equipping workers with the skills needed to work alongside robots and automated systems, encouraging them to switch to other types of jobs, and supporting the training to raise productivity and efficiency of labor.
