(Yicai) April 20 -- Thailand is stepping up efforts to attract Chinese investment into green industry and emerging technologies, such as batteries and artificial intelligence, as its Eastern Economic Corridor project seeks to push the country beyond traditional manufacturing.

"We are very impressed with Chinese technology," Angsutorn Wasusun, executive director overseeing the bio-circular-green economy at the EEC Office, said at the IE Expo China 2026 in Shanghai yesterday. “I saw many potential technologies that can be utilized in Thailand, particularly in terms of green investment.”

Initiated in 2017, the EEC project covers the three eastern provinces of Rayong, Chonburi, and Chachoengsao, with five core objectives: developing modern and environmentally friendly economic activities, providing comprehensive government services, creating efficient infrastructure and public utilities, determining the appropriate use of land, and developing cities suitable for living and doing business.

Angsutorn was one of the Thai delegates attending the IE Expo to show Chinese companies that Thailand has moved from traditional manufacturing to electric vehicles, batteries, the circular economy, and AI-related infrastructure.

"More than 16 percent of EEC area's investment is from China, so the ecosystem from Chinese companies is already there," Angsutorn told Yicai, noting that the next phase will depend on whether that ecosystem can evolve into higher-value, greener industries.

At the beginning, the EEC was more focused on investment in the supply chain, as well as the automotive, metal, chemical, and traditional industries, Angsutorn noted. Printed circuit board manufacturing, smart electronics, and data centers made the second wave, new energy vehicle firms such as BYD marked the third wave, and the fourth one will be centered on batteries, the circular economy, and AI.

"We are also talking about the sodium-ion battery, which may be one of the key industries that are located in Thailand," he said.

"We've seen a trend that consumers change their cars from internal combustion engine to EV," Angsutorn pointed out. “This year, we've seen a growth of more than 10 percent.”

Thailand registered 120,301 battery vehicles last year, up 80 percent from 2024. In three to five years from now, demand for recycling car batteries will increase, supporting the circular economy, according to Angsutorn.

Investors Are Still in Assessment Mode

Chinese firms attending the IE Expo still have questions. A wastewater treatment equipment manufacturer told Yicai it was unsure whether the Thai market demand justified investment. Meanwhile, a plastic recycling firm said its concern was whether electricity prices are competitive and stable enough.

Angsutorn also acknowledged these issues. Having a complete supply chain is key for Chinese companies considering investing in Thailand, as after relocating manufacturing, they seek more green solutions to reduce energy use while keeping competitiveness, he explained.

The EEC's Rayong circular economy pilot has recycled more than 2,900 tons of plastic and cut emissions by about 3,000 tons of carbon dioxide equivalent. Local authorities target full recyclability of certain plastics by 2027.

On energy costs, the Industrial Estate Authority of Thailand has introduced a 'Utility Green Tariff' priced at 4.55 Thai baht (14 US cents) per kilowatt-hour, including renewable energy certificates, aimed at helping exporters meet European carbon standards.

The Thai delegation's attendance at the expo is part of a broader regional initiative. The mission is funded by the Lancang-Mekong Cooperation Special Fund of China and organized by the Mekong Institute, an intergovernmental body established in 1996 by the six governments of China, Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam. 

The project aims to promote green investment and sustainable development of special economic zones across the Lancang-Mekong region. Market intelligence gathered at the expo is intended to feed into a Regional Green SEZ Forum and Investment Tour planned for October 2026, when targeted Chinese investors will be invited to Thailand for direct engagement with industrial estates and EEC infrastructure, including U-Tapao Airport and Laem Chabang Port, according to a Mekong Institute representative.

Tailor-Made Incentives

The EEC offers partner investors up to 15 years of corporate income tax exemption under the EEC Act, ceiling for green technology projects. "Our incentive is tailor-made," Angsutorn said.

Qualified investors receive import duty waivers on machinery and raw materials, free-trade-zone-equivalent customs treatment, dedicated EEC visas and work permits, and land ownership rights. The EECO can also directly issue permits under 14 laws, reducing multi-agency procedures that have historically slowed factory setup in Thailand.

Additional support is available for projects that go further, such as those involving research and development, energy storage, carbon capture, or collaboration with Thai universities. "If you invest more in innovation, like energy storage and carbon capture utilization, Thailand also has a supporting scheme for that," Angsutorn noted.

"When you come to Thailand, you must contact a specific organization for the task," said Buppa Kawinvasin, deputy governor for sustainability at the Industrial Estate Authority of Thailand. That is because you cannot set up a factory in some areas that are not designated industrial areas, she explained.

Thailand's network of 17 free trade agreements covers 24 countries. This allows Chinese companies in Thailand, including BYD, to not only produce in the Southeast Asian country for local customers but also to export to the global market, Angsutorn said.

Geopolitical tensions are also reshaping demand. “The conflict in the Middle East has increased the demand for renewable energy.”

The Grid Problem and IEAT's Carbon Play

Thailand generates only around 15 percent of its electricity from clean sources, leaving a heavy reliance on fossil fuels.

Angsutorn quoted the forthcoming National Energy Plan 2026. “We almost announced our new national energy development plan, which is to increase the percentage of renewable energy to 50 percent by 2050.”

The IEAT is also adjusting its role. "The IEAT is the regulator, but now the policy is set up, so its position has changed to facilitator," Buppa said. The authority is prioritizing compliance with the European Union's Carbon Border Adjustment Mechanism, helping exporters -- particularly those in sectors such as aluminum recycling -- meet regulatory requirements.

"We try to find out the factories under the regulation of CBAM and how to support them to pass in this area," she noted.

Companies should think beyond the Thai domestic market and consider Southeast Asia more broadly, Angsutorn suggested. They should also consider the co-creation method, using Thailand as the launching pad to Southeast Asia, he added.

Editor: Futura Costaglione