Page 27 - FoodFocusThailand No.142_January 2018

SURF THE AEC

Ministry of Commerce also held a business matching event, in which 30% of total investment in Thailand). The service sector is the most
Thai products such as food, spa, beauty, automobile parts, and spare important industry of Singapore, contributing to two-third of the
parts, have gained much interests (due to the booming automobile country’s GDP and creating 70% of employment. Singapore is skillful
in finance and insurance, business service, accommodation and food
industry in Russia). The Thai-Russian relationship is in a
Special Economic Zone (SEZ) complementary manner as Russia imports agricultural/food products service, transportation and storage, with the greatest strength in
banking and finance. The expansion amid Thailand’s transformation
mainly from Thailand. Conspicuously, food products are directly crucial
to the food security of Russia. Markedly, Russia’s relationship with to become the regional logistics hub and the EEC development is
western countries are relatively fragile, and it has imported less food/ considerably a wise great move. And Thailand must be observant in
agricultural products from the west. Otherwise, Thailand imports from promoting its service sector at the same time.
Russia are mainly capital goods and input such as steel, crude oil, Setting up an economic corridor is not an easy task, but to succeed
and fertilizer, as Russia has advantageous natural resources. In April and attract serious investors is much more difficult. One can say that
2017, Thailand and Russia reached an agreement to establish a joint the Thai government is successful to some degree after it gained
working group to boost the cooperation between Thailand’s EEC and recognition from multinational corporates. The economic corridor is
Russia’s development projects. Russia is also planning to send a an answer in the 4.0 era when the global trade is competing with high
large group of investors to the EEC, similar to that of Japan’s, which technology. Undoubtedly, the EEC will attract foreign direct investment
symbolizes the strong economic cooperation as never seen before. to Thailand as the zone is not only a production base, but also a
The intention to invest in Thailand from the three countries shows rapidly growing market with high potential. Moreover, the project is
that the dynamic of the global economy is moving towards ASEAN not only interesting on its own, but it can also belinked to other special
and Asia. The Asian Development Bank (ADB) stated that the ASEAN economic zones in the region such as Dawei, Sihanoukville, Vũng
GDP will account for 40% and 52% of the global GDP by 2030 and Tàu (Vietnam), and Guangxi (near China-Vietnam borders). There
2050, subsequently. The trend is highly possible as the size of is no surprise that the EEC is alluring to investors from all over the
ASEAN+4 economy (including Japan, China, India, and South Korea) world and not only those from Japan, China, Russia, and Singapore,
has already accounted for 30% of the global GDP. as it combines the strengths of many countries. The EEC is the key
We will take a little step back to Singapore. The island country is factor to push forward Thailand in becoming a world leading trading
among the biggest investors in Thailand, second only to China, and country in the world.
has invested intensively in electronics and service sectors (roughly

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