Bangkok: The Eastern Economic Corridor (EEC) has been identified as the primary driver for Thailand's new economic landscape. However, global volatility and various challenges present a turning point from the Eastern Seaboard era, as highlighted by Mr. Meesak Chunharakchote, Managing Director of Life and Living Co., Ltd., and former president of the Thai Real Estate Association.
According to Thai News Agency, during the Eastern Seaboard era, Thailand witnessed significant benefits from Japanese investment, especially amidst the Indochina War. The country's natural gas drilling and automotive industry investments propelled its GDP growth to double digits for nearly a decade, establishing Thailand as the "Fifth Asian Tiger." This period saw factories operating round-the-clock, employees enjoying substantial income and job security, and a buoyant urban expansion driven by increased spending and housing developments.
The EEC era, however, presents new challenges. Emerging economies such as Vietnam and the rise of China as the "world's factory" have intensified competition. The China-ASEAN Free Trade Agreement (FTA), with its tariff-free imports, has resulted in Chinese factories within the EEC sourcing construction materials from outside Thailand, impacting local SMEs and income distribution.
Employment patterns have also transformed significantly. Modern Chinese developers focus on efficiency and cost-effectiveness, favoring outsourcing and regular productivity assessments, contrasting with the traditional job security offered by Japanese companies. This shift has impacted workers' confidence in making long-term home purchases, slowing home sales in Chonburi even before the COVID-19 pandemic and prompting developers to shift housing projects towards rentals.
A notable phenomenon is the emergence of "cities without children" in industrial areas like Bowin. Migrant workers, seeking temporary income, leave their children in the care of grandparents elsewhere, resulting in no permanent settlement intentions. Additionally, the current EEC urban plan, based on unrestrained expansion reminiscent of past eras, faces challenges due to Thailand's declining population and restrictive urban planning regulations.
For sustainable development, Mr. Yuthasak suggests the EEC should focus on creating livable cities with complete infrastructure, schools, hospitals, and public transport. This approach should be coupled with service sector development, wellness tourism, cultural enhancements, and addressing inequality and household debt among lower-income groups, transforming industrial cities into vibrant hubs that enhance residents' quality of life.