The government expects its two technology megaprojects — the development of a digital innovation park and smart cities — to attract foreign Chinese direct investment this year.

The prospect follows the Digital Economy and Society (DE) Ministry’s recent signing of a five-year memorandum of understanding (MoU) with the Shenzhen municipal government on collaboration supporting the development of Thailand’s digital economy.

The MoU signing was a highlight of the Thai government’s roadshows in Hong Kong and mainland China last month as the state aims to boost economic ties and link the country to China’s new overseas investment strategy.

The agreement covered collaboration in the development of five areas: digital parks; smart cities; the Internet of Things; local tech startups; and national broadband infrastructure.

DE Minister Pichet Durongkaveroj said the government plans to provide attractive tax incentives, including a 15-year corporate income tax exemption for a group of selected industries, plus personal income tax reductions for expatriates and foreign specialists working in the Eastern Economic Corridor (EEC).

“The DE Ministry expects foreign direct investment in the Digital Innovation Park and smart city development projects this year, with particular interest in the EEC,” he said.

The 10-billion-baht Digital Innovation Park, a collaboration between CAT Telecom and the Industrial Estate Authority of Thailand, is under construction on 500 rai in Chon Buri province.

For the smart cities project, Mr Pichet said the government started transforming Phuket island into a smart city last year, followed by Chiang Mai in early 2017 and Khon Kaen scheduled for this year.

The government plans to develop another three provinces as smart cities by 2018: Rayong, Chon Buri and Chachoengsao.

He said the MoU with Shenzhen is expected to assist innovation businesses in Thailand and help the development of a digital economy ecosystem.

China and Hong Kong, meanwhile, can use Thailand as an investment gateway to enter the markets of Cambodia, Laos, Myanmar and Vietnam, said Mr Pichet.

He said the first group of foreign investors from Hong Kong is scheduled to visit Thailand’s EEC project on Monday.

Another group of Chinese investors plans to meet with Thailand’s DE Ministry by September.

Source: Bangkok Post