Thailand to develop SME-focused industrial estate in EEC

The Industrial Estate Authority of Thailand (IEAT) is planning to develop a new industrial estate tailored specifically for small and medium-sized enterprises (SMEs) within the Eastern Economic Corridor (EEC). Sumet Thangprasert, the acting governor of IEAT, confirmed that a portion of an IEAT-owned industrial estate in the EEC would be utilised for this project.

The EEC, encompassing regions like Chon Buri, Rayong, and Chachoengsao, is designed to be Thailand’s high-tech industrial nucleus. It is intended to host 12 targeted industries, such as next-generation automotive and smart electronics, said Sumet.

“We are in discussions with several industrial estate developers to assess their interest in supporting SMEs, but ultimately, the government may opt for IEAT to spearhead this initiative.”

This initiative to aid SMEs is driven by Industry Minister Akanat Promphan’s commitment to providing enhanced financial and technical support to these enterprises. Promphan previously mentioned his plans to discuss the development of a new industrial estate for SMEs with the IEAT.

Building factories within industrial estates typically demands significant investment but the proposed estate aims to accommodate SMEs with limited budgets. The government aims to ensure that SMEs do not face prohibitive costs when accessing estate facilities, Sumet added.

“The IEAT seeks to establish agreements between industrial estate developers and SMEs on reasonable facility usage costs under build-to-suit leases.”

The IEAT has developed a robust network of industrial estates, comprising 68 locations across 16 provinces. This network has attracted cumulative investments exceeding 17 trillion baht (US$520 billion) and generated employment for 953,630 people.

The IEAT plans to collaborate with the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) and the Industry Ministry to support businesses interested in investing in the SME industrial estate, Thangprasert.

“We aim to provide SMEs, which are crucial for economic growth, with improved access to financial resources.”

Pichit Mitrawong, Managing Director of SME D Bank, highlighted that over three million SMEs are registered with the government, reported Bangkok Post.

“This initiative offers a significant opportunity for SMEs to advance their business growth within the new industrial estate. The government can simultaneously manage the estate by promoting eco-friendly manufacturing and digital technology.”