The Eastern Economic Corridor (EEC) of Thailand is gaining renewed attention following the signing of a strategic memorandum of understand between the EEC and HSBC Bangkok. The deal aims to attract global investment, with projected foreign direct investment (FDI) investments totaling 500 billion baht within the next five years.
Dr. Chula Sukmanop, Secretary-General of the EEC Policy Committee, emphasized the significance of the EEC as a key mechanism for driving Thailand's economic growth. “The EEC is intended to generate high-value economic activities through investment, linking to local areas and communities,” he noted. The partnership with HSBC, renowned for its expertise and extensive network across 58 countries and territories, is expected to drive investment from around the globe and connect the EEC with leading international organizations.
Under this collaborative framework, the two entities will seek potential investors and facilitate investment through various projects, leveraging HSBC's strong international business network to unravel new investment opportunities. The collaboration aims to support the EEC’s goal of securing real investment funds totaling 500 billion baht within five years and promote growth across five targeted industrial clusters. These clusters include: modern automotive, digital industry, medical and health industry, green industry (BCG), and service industry, which would bolster Thailand’s ability to connect with the global supply chain.
HSBC plans to support promotional roadshows targeting investment opportunities in key economic corridors including China, Singapore, Europe, Taiwan, and Japan by 2026. Dr. Chula commented, “The EEC aims to create suitable conditions for investment and business operations through full support from negotiation of benefits to the initiation of operations. This collaboration will enable us to access HSBC's global customer base, covering diverse industries and major economic zones, along with support for holistic financial solutions for investors.”
This partnership signals the potential to strengthen Thailand's position within the global supply chain as it reaffirms the EEC’s role as one of the region’s prime investment destinations for high-value industries.
Giorgio Gamba, Chief Executive Officer and Head of Business Customers at HSBC Thailand, reiterated the bank’s commitment to supporting investment goals within the country. “While international businesses continue to adjust their supply chain strategies, Thailand is gaining increased attention for foreign direct investment, with its strategic location and comprehensive manufacturing ecosystem,” he explained.
Reflecting on the previous year, Gamba stated, “Last year, Thailand approved FDI amounting to about 727 billion baht, marking the highest recorded investment in 20 years. The EEC has become the epicenter of this growth as 78% of the value of foreign direct investment is concentrated within the EEC, involving about 568 billion baht. This showcases the pivotal role of the EEC as a key driver of Thailand’s investment strategy.”
Notably, the highest recorded investments occurred within the smart electronics sector, which accounted for 256 billion baht, followed by the digital industry at 95 billion baht and future automotive at 87 billion baht. Gamba elaborated on China’s interest, highlighting the increase of 80% year-over-year of Chinese businesses venturing to operate within ASEAN via HSBC’s network.
Thailand is recognized as one of the region's investment hotspots, especially noted by the significant increase of investments from China. The valuation of electric vehicle manufacturing has reached approximately 275 billion baht from 2018 to the third quarter of 2024. Thailand has also attracted considerable investments within the data center market, leveraging its reliable energy sources and becoming the second-largest digital economy within Southeast Asia.
Recent agreements have expanded cooperation with China’s Ministry of Commerce, which leads to broader investment opportunities within the digital economy. Similarly, India and the Middle East are recognized as important investment corridors for Thailand as well. Gamba noted, “HSBC will leverage its expertise to facilitate global investment links, supporting the EEC in connecting with investors worldwide, particularly along significant economic corridors aligned with Thailand’s economic goals, offering comprehensive financial solutions and facilitating business commencement.”
He added, “We strongly believe this collaboration will play a pivotal role in attracting investment globally, enhancing high-skilled employment opportunities and achieving objectives to augment international competitiveness of the country, thereby bolstering Thailand’s economic strength going forward.”