The Finance Ministry is hoping that the beginning of the Eastern Economic Corridor (EEC) project will help drive the country's economic growth above 4% in 2018, says Finance Minister Apisak Tantivorawong.
The ministry's informal forecast for economic growth is 4.1% in 2018, which it feels is conservative because it does not take into account the EEC project, he said.
"The EEC will be Thailand's new engine to drive growth," Mr Apisak said. "Without the EEC, our glory will not be seen regardless of what we do in the next 10 years, as our economy will run out of gas before that. Without the EEC, the economy may splutter."
The government initiated its flagship EEC project with the aim of attracting funds from Thai and foreign investors. The EEC spans more than 30,000 rai in the three eastern provinces of Chon Buri, Rayong and Chachoengsao. The corridor has been designed to accommodate next-generation industries.
Private investment is expected for industrial areas, while state investment in infrastructure projects should help kick-start the project and sharpen the country's competitive edge, given the cheap cost of logistics, Mr Apisak said.
He expects the global economic recovery to enable foreign investors to loosen their purse strings, with Thai investors following their lead.
Investors have expressed interest in the EEC, and neighbouring countries are proposing similar projects to compete with Thailand, he said.
Malaysia is developing 4-5 investment zones aimed at decentralising development.
The EEC's progress might appear slow when compared with private-sector development standards, Mr Apisak said, but it is fast in light of state ones.
To attract investors, the government has offered tax incentives and funding to serve demand. Authorities have also attempted to spur investment by easing rules and regulations, on top of plans to establish a university to supply workers for and attract talent to the corridor, he said.
Foreign experts working in the EEC do not need to pass a Thai language examination, as is required for those working in other areas of Thailand, Mr Apisak said.
"The EEC is like a locomotive," he said. "If we have a strong one, it can pull laggards."
Over the next two years, the government plans to lay the economic foundations for a subsequent decade of growth, Mr Apisak said.
With the US economic recovery, the euro zone's better management of some large economies like Spain and Italy, all parties getting a better handle on Brexit, and China's economic growth pace remaining strong enough to give a boost to the global economy, the coming year's outlook is brighter, he said.
But the World Bank has cautioned that the ongoing recovery is attributable to a commodity price rebound, which might not be sustained, Mr Apisak said.