The views expressed in this paper are the views of the author and do not necessarily reflect the

views or
policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of
Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in
this paper and accepts no responsibility for any consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.

Pornpimol Varathorn
Patsaraporn Plubcharoensuk
Thailand

Thailand Country Report

Regional Workshop on Eco-Industry Cluster
2-4 December 2013, ADBI, Tokyo, Japan
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<

Contents
National Strategies/Plans
Green Growth Strategy
Department of Industrial Works, Ministry of Industry on Eco Industrial Town Development
Industrial Census in 2012: Manufacturing Industry, Vicinity and Investment in Thailand
Local government/Authority on Sustainable Production and Consumption
Requirement for implement eco industrial
References

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National Policy /Strategic Plans

Environmental
Management Plan
(2012-2016)
Bring the concept of
Green Economy/Green
Growth to be the
framework and direction
of natural resources and
environment
management of the
country

Country Strategy
-Growth and
Competitiveness
- Inclusive Growth
- Green Growth
The 11th National Economic and
Social Development
Concept Plan
(2012 2016)
-Develop human and Thai society
to quality society
- Change economy structure to
the new growth model
-Sustainable natural resources and
environment management

Earth Summit - Rio+20

-Green Economy in the
context of sustainable
development and
reducing poverty
- sustainable institutes

Other Plans
- Pollution Management
Plan
- Energy Plan
- Climate change Plan
- Disaster Plan
etc.

Concept

Green
Growth
Strategies
Environmental
Friendly/Green
Production and
services Promotion

Green House Gases

Mitigation and
Climate Change
Preparation
Promotion

Capital Natural
Resources and
Environment
Management

Environmental
Friendly Society
Establishment

Four National Strategies to Be Used to Move Thailand Forward

The Government has announced four national strategies to be used by various government
agencies to move the country forward. The present situation is that Thailand has been upgraded
from a low-income country to a middle-income country.
In the first strategy, the Government will focus on capacity-building to enhance Thailands
competitiveness in the long run for sustainable growth. In so doing, the country might develop
further, to become a higher-income nation.
The second strategy seeks to reduce social disparity between low-income and high-income
earners in the country and provide greater opportunities for the people, based on economic, social,
and political equality.
The third strategy emphasizes the green growth economy. In this strategy, the Government will
seek to promote the peoples quality of life and environmentally friendly growth.
In the fourth strategy is a balance of the three strategies by adopting His Majesty the Kings wise
advice on the Sufficiency Economy. In this regard, adjustment would be made in all areas,
especially in national administration and the networking among various agencies, with the use of
national strategies as guidance. In order to boost growth in tandem with environmental

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conservation, budget allocations would place an emphasis on infrastructure development, increases

in productivity, and human resource development for citizens of better quality. All plans have to be
adjusted to cope with the new situation. In response to the national strategies, the priorities would
be placed on such issues as preparations for the ASEAN Community, education reform,
infrastructure investment, land management, and natural resource rehabilitation.
To deal with the impact of climate change and global warming, Thailand has set up a
sustainable development committee to oversee the country's progress and strategy based on green
growth. These three key pillars of development will be a major challenge for the government to go
ahead with its plan to implement real green growth. This committee was set up a year after the
biggest United Nations conference on sustainable development - "RIO+20" - which took place in
Rio de Janeiro, Brazil in June 2012. This conference focused on the sustainable development of
each country and the need for a balance between economic growth, strengthened competitiveness,
and the sustainable use of natural resources.
Thailand has a lot to do, such as: reviewing the country's development direction; defining
green growth in a way that harmonizes with Thai society, and building an understanding of the
concept among Thais; establishing the policy, strategy, and economic tools that enhance green
development; promoting green production and consumption; and improving the organization and
the operation mechanism that will smoothly drive the implementation of a green-growth policy.
At the end of January, the Thai government announced a policy to drive the country's
economic development based on this green strategy. The Natural Resources and Environment
Ministry was tasked with overseeing the green strategy. Under this green strategic plan, an
environmental and carbon tax will be the key financial mechanism to make country's development
greener and more sustainable,
Meanwhile, the Industry Ministry has been appointed to create a green gross domestic
product (GPD) scale to measure the country's sustainable development. The existence of natural
resources will be a key index in examining progress of the country's green growth. Apart from
establishing the country's green strategy, a special committee has been set up to oversee the
direction of economic growth and the nation's development. It will be very difficult for the
government to implement this strategy as it has to balance between green development, the

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country's competitiveness, and inclusive growth - including economic growth and social
development.

Green Growth Strategy

The Green Growth Strategy (between 2014 2018) has four main strategies as:
1) Environmental Friendly/Green Production and Services Promotion
2) Green House Gases Mitigation and Climate Change Preparation Promotion
3) Capital Natural Resources and Environment Management
4) Environmental Friendly Society Establishment
The strategic plans under the strategy of the Environmental Friendly/Green Production and
Services Promotion and the indicators of Environmental Friendly/Green Industry Promotion are
shown as below;
The Green Growth Strategy
(between 2014 2018)
Environmental Friendly/Green
Production and Services Promotion
Strategic Plans
1. Environmental Friendly /Green
Agriculture Promotion
2. Environmental Friendly/Green
Industry Promotion
3. Environmental Friendly /Green
Transportation Development
4. Environmental Friendly/Green
Tourism Promotion
5. Green City Development

Indicator
Increase the Ratio of Green
Industrial Products to total
Industrial Products
Increase the number of
certified Green Industry
10 Eco-Industry Town in 2018

-5-

Department of Industry Work, Ministry of Industry on Eco Industry/Eco Industrial Town

Development
Background information
In 2010: the cabinet approved the concepts of Eco Industry Town Development proposed
by National Economic and Social Development Board (NESDB) and assigned the National
Industry Development Committee and Eastern Seaboard Development Committee to set up
and regulate development plan both in the national and regional levels
Between 2011 2012: The 11th National Economic and Social Development Plan (2012
2016) formulated the Eco Industry Town Development and rehabilitation of the environment
in the area of main industrial zone. Ministry of Industry developed the indicators of Eco
Industry Town Development coverage 5 dimensions of Physical, Economic, Social,
Environment and Management aspects. Industrial Estate Authority of Thailand (IEAT)
developed the Industrial Estate to the Eco Industrial Town.
In 2012: Current business industry faces pressures from both competition and market
acceptance of society and to prepare entrepreneurs to enter the ASEAN Economic
Community (AEC), it is necessary to take into account the environment and society.
Simultaneous involvement of the private sector and create awareness of entrepreneurship
in sustainable development , thereby bringing the concept of industrial development
ecological (Eco - Industry) , which combines concepts of economy aimed profit to ecology
focuses on the coexistence equilibrium in the ecosystem to focus on the dependence of the
environmental community and the use of natural resources
In 2013: Government policy on the development of eco-industrial town.
Prime Minister of Thailand, Ms.Yingluck Shinawatra has provided the country strategic
policy to drive economic industry restructuring. Policies, development of Eco Industrial
Town has categorised into 2 groups.
Group 1 The developed industrial areas are emerging to support the investment in
non-polluting industries. And accelerate the development industry to be environmentally
friendly.
Group 2 It is an old industrial area and has been developed industrial already. This
case, it should take lessons from the past to appropriate adaptation with the development
concept of eco-industrial town.

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In 2013: The cabinet assigned the Ministry of Industry, Ministry of Interior and Ministry of
Natural Resources and Environment set up the committee to study the model of Eco
Industry in the existing Industrial Estate and set up the development plan on enhancing the
Industrial Estate to Eco Industrial Town and propose to the cabinet. The Ministry of Industry
set up the committee to drive the Eco Industial Town Development followed the country
strategy framework.

-7-

Status of Thailand Eco Industrial Town Development

National Level
National Level
Rayong
Province
s

Ministry of Industry is the main organization to develop Eco

Industrial Town.
Set up the committee as the mechanism to drive the plan
Set the target of five year Eco Industry Town Development
plan (2014-2018) and develop 11 Eco Industrial Town
Model.
Set up the master plan of Eco Industry Town Development
in 11 areas.

Develop Eco Industrial Town and Low Carbon City in Rayong

Province, cooperation b/w Ministry and Industrial sector.
Set up the sub-committee in provincial level to assign the Roadmap
and action plan.
Local Authority and entrepreneur cooperate to develop Eco
Industrial Town and Low Carbon City

The development of eco-industrial in the past up to present

1. Ministry of Industry, Department of Industrial Works has started to promote the ecoindusrial complex since 2009 up to present. We has operated continuously throughout and
Comprised of the following industry areas.
Rojana Industrial Park, Ayutthaya Province
Bang Ka-di industrial Park, Pathumthani Province
IRPC Industrial Zone, Rayong Province
I.P.P Industrial Community, Rayong Province
Hemaraj Rayong Industrial Land Rayong Province
Saha Group Industrial Park Sriracha, Chonburi Province
Saha Group industrial Park- Kabinburi, Prachinburi Province
304 IndustrialPrachinburi Province Park, Prachinburi Province

-8-

2. Ministry of Industry by Industrial Estate Authority of Thailand has been elevated into an
industrial estate for the development eco-industrial pilot project since 2009, such as Northern
region industrial estate. Amata City Industrial Estate, etc.
The target of eleven Eco Industrial Towns (2014-2018) is as following:
Rayong, Samutprakarm, Samutsakon, Prajinburi, Chacheongsao, Chonburi, Ayutthaya,
Lumpoon, Khonkaen, Nakonrachsima, and Songkla provinces
Definition of the development of Eco Industrial Town
The development of industrial economic to grow along with a growth of the community
and environmental as well as the sustainable development via the cooperation of all stakeholders
including government sectors, entrepreneurs, local administration organizations and citizen in target
area.
The principle development of eco industrial town, there are solution following as:
1. The city has already dense industrial development, such as Eastern Seaboard industrial
estate in Rayong province have accumulated for the industry along with difficult people. They focus
on reducing pollution and improving the quality of the people that is the most important objective.
2. The city has expanded for industry sector. It will focus to plan ahead to get the city
features as needed.
The process to develop Eco Industrial Town
1. Study and survey the current status of the target area
2. Compare the status with indicator by Gap & Potential Analysis
3. Study the requirement of stakeholder by participation process (Stakeholders Analysis)
4. Assign the sector and target of development (Business Model)
5. Set up the draft of Master Eco Industrial Town Development Plan
6. Public Hearing of the Master Development Plan
7. Assign the Master Eco Industrial Town Development Plan

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Industrial Census in 2012: Manufacturing Industry, Vicinity and Investment in Thailand

The data presented the operation information of manufacture establishment in vicinity in the
year 2011 (January 1 December 31, 2011) are classified by Thailand Standard Industrial
Classifications. The main findings are as follows:
The results of the 2012 Business and Industrial Census, there were totally 24,997
manufacturing establishments in the Vicinity. The highlight industries of this region were
manufacture of fabricated metal products (excepts machinery and equipment) and manufacture of
Division 13 Manufacture of textiles

Division 14 Manufacture of wearing

apparels
Division 20 Manufacture of chemicals
and chemical products

13%
21.4%

3%
3.4%

17.1%

24,997
establishments
20.7%

3.3%
5.7%
3.6%
3.1%

Division 22 Manufacture of rubber

and plastic products
Division 23 Manufacture of other
non-metallic mineral products
Division 24 Manufacture of basic
metals
Division 25 Manufacture of
fabricated metal products (excepts
machinery and equipment)
Division 31 Manufacture of furniture

Division 32 Other manufacturing

Other division, i.e. 15 19, 21, 26

30, 33, 37 39 and 58

Figure A Percentage of manufacturing establishments by division of industry

wearing apparels, which had the proportion, of about 20.7 and 17.1 percent respectively. The
followings were manufacture of food, beverages and tobacco products (about 13.0 percent),
manufacture of textiles and manufacture of rubber and plastic products, were very close proportion
of about 5.7 percent. The other divisions of industry, not mentioned
For the foreign investment share holding in the Vicinity, about 96.0 percent of the corporate
establishment (company limited and public company limited) had no foreign investment or share
holding. For the establishments with foreign share holding about 4.0 percent did. Out of these,

-10-

about 71.3 percent was between 10 - 50% of share holding and about 24.0 percent was over 50%
of share holding. Those with less than 10% of share holding was 4.7 percent.
In 2011, the value of gross output of manufacturing establishments was totally 2.8 trillion
baht. The intermediate consumption and value added were totally 2.1 trillion baht and 663,598.2
million baht respectively. Comparing the value added to value of gross output was about 24.1
percent. For the average value of gross output were about 110.2 million baht per establishment
and 2.4 million baht per person. In terms of the average value added, these were about 26.5
million baht per establishment and 567,254 baht per person respectively. Considering by division of
industry, it was found that establishments engaged in manufacture of computer, electronic and
optical products had the highest average value of gross output per establishment about 1,217.9
million baht and average value of gross output per person about 4.8 million baht. For the
establishments engaged in manufacture of computer, electronic and optical products had the
highest average value added per establishment and per person had about 308.0 million baht and
1.2 million baht respectively. The following engaged in manufacture of electrical equipment had
average value of gross output, and value added per person, of about 98.2 million baht and 814,864
baht respectively.
Table A: Principal data of manufacturing establishments in year 2006 and 2011
Data items
2006
2011
% Change
Number of establishments (Establishments)
Number of persons engaged (Persons)
Average establishment (Persons
Number of employees (Persons)
Average establishment (Persons)
Remuneration (Million baht)
Average annual per employee (Baht)
Value of gross output (Million baht)
Average per establishment (Thousand baht)
Average per person (Thousand baht)
Intermediate consumption (Million baht)
Average per establishment (Thousand baht)
Average per person (Thousand baht)
Value added (Million baht)
Average per establishment (Thousand baht)
Average per person (Thousand baht)

25,995
1,241,219
7.7
1,212,904
46.7
143,462.2
118,279.9
2,415,822.9
92,934.1
1,946.3
1,816,616.4
69,883.3
1,463.6
599,206.5
23,050.8
482.8

24,997
1,169,843
46.8
1,149,377
46.0
156,967.2
136,567
2,755,009.2
110,213.6
2,355.0
2,091,411.0
83,666.5
1,787.8
663,598.2
26,547.1
567.3

-3.8
-5.8
-1.9
-5.2
-1.5
9.4
15.5
14.0
18.6
21.0
15.1
19.7
22.2
10.7
15.2
17.5

-11-

Comparing the data of the 2012 Business and Industrial Census and the 2007 Industrial
Census, which the operation period was of the year in 2011 and 2006, the results showed that
number of manufacturing establishment decreased by 3.8 percent and percent, while the average
number of person engaged per establishment decreased by 1.9 percent. In terms of employment,
number of employees and average number of employees per establishment decreased about 5.2
and 1.5 percent respectively and the annual remuneration during 5 year increased by 9.4 percent.
For the value of gross output, intermediate consumption and value added of manufacturing
establishments during 5 year increased by 14.0, 15.1 and 10.7 percent respectively. The
performance of establishments in the Vicinity during 5 years ago has gradually grown due to the
world economy slowed down and flood crisis.
Thailand Board of Investment (BOI) has set a new record for the value of investment
promotion applications received. By 20 December 2012, the Board had received applications
valued at more than THB1.1 trillion. That is the highest level ever achieved. As in previous years,
the number one country for applications was Japan, which accounted for about 60% of the total.
The increase in the percentage of Japanese investment, which contributed to the high total, was
due in part to decisions made following the tsunami and earthquake that hit Japan, and the
subsequent energy problems, which prompted some companies to look abroad. With many
Japanese companies already invested in Thailand and having in place a linkage with supply
chains, the country seemed a natural overseas location. Too, Japanese are familiar with Thai
culture, religion and customs and find integration easy to accomplish. Additionally, the Yen
continues to be very strong and has been a factor for some companies moving their operations
into Thailand.
While 2013 looks to be another strong year for the BOI, it will likely be more in line with
previous growth trends as the boost from Japanese relocation subsides. The target set for 2013
will be in the neighborhood of THB 600,000 million, and should easily be met. Nevertheless, BOI
does anticipate continued relocation of small and medium sized enterprises from Japan, as they
must take measures to deal with the aforementioned energy and currency issues. In fact, the
foreign investors will continue to look positively at Thailand as the government continues to
stimulate the domestic economy and channel additional funds into infrastructure spending,
particularly flood prevention projects. Over the coming year the BOI will continue to give focus to
industries such as automotives, electronics and electrical appliances, and alternative energy.

-12-

World business is in a period of transition and many factors have changed. The trend in the
world economy is towards creative industries and environmentally friendly industries. The new
policy will focus on attracting those industries that support Thailand's move to become a
knowledge-based economy, where economic growth is determined by creativity and value-added
manufacturing. By adapting to the new realities in the region and in the world economy, investors
will continue to maintain their confidence in Thailand as the place to invest in Asia.
Promotion of foreign and domestic investment for in Industry and Business sectors by
Ministry of Industry
(1) Policy Plan
The Ministry of Industry has created the business opportunities by improving people,
increasing knowledge- based, technology, innovation and creativity based on the concept of
environmentally-friendly manufacturing industries. Moreover, the government has adopted His
Majesty the Kings idea of "Sufficiency Economy in order to continually develop the country
forward sustainability.
In addition, the Ministry of Industry as the main department of industry development has
strategically planned to support the development of the industry and the sustainable development.
(2) Achievements for Promotion of 3Rs
The goal of environmentally -friendly production is to cause Thailand become a low-carbon
society, create appropriate rules to make the balance between industrial development and
environmental sustaining, and promote the "Polluter Pays Principle and the idea of "Payment for
Ecosystem Services in a concrete way.
The Ministry of Industry launched the project of "Green Industry in 2011 so as to
encourage the industries in the Country to be more environmentally-friendly, and more responsible
to the society. This is according to the fact that we need the society to stay happily together with
the industry while the sustainable development could be achieved.
It is such a pleasure that the Green Industry project has received a great deal of
cooperation from all parts. This has made the project grow as planned. It can be seen as a good
sign of the country. The Ministry of Industry would like to thank all partners on this occasion and
hopes that all organizations which have received the Green Industry license will continue to move
up to the next steps. The Ministry of Industry also would like to persuade anyone who havent

-13-

applied for the Green Industry to take part in this project so that Thailand can achieve the
development equilibrium and have the bright future.
The Ministry of Industry, Department of industrial works has created many projects related
about development of green industry such as CSR GREEN NETWORK-DIW: Flagship project,
EMS for SMEs project, Energy Management System, Eco Industrial Town to become Green
Industry.
(3) Become Green Industry in 5 levels
In order to honor His Majesty the King for the 7th anniversary in the great auspicious year
2011, Industry Ministry has joined forces with all related industrial organizations including network
institution, Provincial Industrial Bureau, Provincial Industrial Estates and all industrial estates to
promote all national entrepreneurs pay more attention in doing business that being friendly to
environment and continual development to become "Green Industry in 5 levels as follow:
Level 1:
Green commitment is the commitment to reduce affected environment and form efficient
communication in organization for all recognition.
Level 2:
Green activity is the implementation to reduce affected environment that can achieve the
set target.
Level 3:
Green systems is the systematic environmental management, following up monitoring,
evaluation and revision for continual development including recognized environmental awards and
environmental standard accreditations.
Level 4:
Green culture is the co-operation of employee in all level in organization to Implement
friendly environment in all aspects of business operation until it becomes a part of organization
culture.
Level 5:
Green network is the demonstration of network extension throughout green demand chains
by promotion business partners and allies entering into accredited green industry process.

-14-

(4) Achievements project to support the Green Industry plan

The Ministry of Industry has joined forces with all related industrial organizations including
network institution, Provincial Industrial Bureau, Provincial Industrial Estates and all industrial
estates to promote all national entrepreneurs pay more attention in doing business that being
friendly to environment and continual development to become "Green Industry in 7 project
dimensions as follow:
Dimension 1:
Green Database such as LCI-LCA Product database, Carbon Footprint data, GHG
Management, and Green Industry database.
Dimension 2:
Green Knowledge such as The Development of staff efficiency and network efficiency, and
to give knowledge and understanding about Green Industry.
Dimension 3:
Green Process/Manufacturing such as Promotion of Clean Technology project, Energy
Saving for Small Enterprises project, Management of Resource Efficiency by Using 3Rs Principle,
Green Productivity project, Reduction CO2 emission by CDM.
Dimension 4:
Green Material such as Zero Waste to Landfill by Waste Utilization Demonstration Project
(2009-2013) to promote 3Rs activities in Industrial Waste Management and to reduce waste to

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landfill. Metal Recovery Project (2009-2012) to conduct simplified metal recovery technology for Ewaste and to transfer simplified technology for commercials
Dimension 5:
Green network is the demonstration of network extension throughout green demand chains
by promotion business partners and allies entering into accredited green industry process such as
Eco-Industrial Development Pilot Project (At Rojana Industrial Park 2010-2014) to implement EcoIndustrial Town Concept and 3R activities in industry and communities and to enhance network
capacities of Recycling-Oriented Society
Dimension 6:
Green Product such as Green Label and Carbon Label Project, Road map for promotion of
green product.
Dimension 7:
Green Technology such as Waste Recycling Technology and Waste to resource.

Local government/Local Authority on Sustainable Consumption and Production

Sustainable Consumption and Production: Policy Support Component THAILAND
The project is funded by the European Union under the framework of the SWITCH Asia
Programme. The objective of the SWITCH Asia Programme is to promote sustainable consumption
and production in Asia, i.e. to develop less polluting and more resource-efficient products,
processes and services, and to promote sustainable consumption patterns and behavior.
The overall objective of the project is to support the Thai government in selecting, adapting
and implementing suitable economic and regulatory policy instruments to promote SCP, hereby
enhancing the long-term sustainability of Thai consumption and production patterns. The purpose
of the project is to strengthen the institutional policy framework ensuring a joint and effective SCP
effort in Thailand. The Project divided into four components:
Component 1: To strengthen the institutional framework for SCP in Thailand and develop a
national SCP monitoring system. This component is in charged by National Economic and Social
Development Board (NESDB) and Office of National Environment Board (ONEB).
Component 2:To update the Green Procurement Policy and develop a Green Procurement
(GP) action plan as well as build capacity for implementing the Green Procurement Policy and
action plan of the municipality. This component is in charged by Pollution Control Department
(PCD).

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Component 3: To conduct a number of pilot projects in order to demonstrate sustainable

production principles and approaches in selected sector(s). This component is in charged by
Department of Industry Work (DIW).
Component 4: To introduce the issues and concepts of sustainable consumption and
production and apply awareness campaigns and driving forces for behavioural change of the local
authorities, while Department of Environmental Quality Promotion (DEQP) is in charge this
component.
The objective of Promoting SCP Awareness in local authority Project (2011 2014) is
to promote awareness of sustainable consumption and production (SCP) in local authorities. The
concept of SCP, practical examples and other information will be communicated with the purpose
of achieving behavioural changes in the local authorities. The activities are as followed:
1. Conduct baseline study on SCP awareness of the target group (local authorities)
2. Support development of awareness policy and strategy plan for local authorities
3. Support implementation of awareness policy and strategy plan for local authorities
4. Feed-back lessons learned into policy and regulatory framework.

Requirement for implement Eco industrial strategies

The requirement for implement Eco Industry are the knowledge exchange, technology
transfer, networking and lesson learn in practical ways of increasing the efficiency of the green
products, the value added, increase awareness and incentive and the Industry community linkage.
References
1. Board of investment of Thailand (2013). Clear time frame for new investment policy
announced New policy to become effective in Jan 2015, Press Release No.89/2013(O.46)
22 May 2013
2. Board of investment of Thailand (2013). BOI Secretary General Prepares for the Future.
Retrieved from the website: http://www.bot.go.th/tir/issue/201301_23_1

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3. Department of Government Public Relations (2013). Four National Strategies to be used to

Move Thailand Forward. Retrieved from the website:
http://Thailand.prd.go.th/view_news.php?id=6614&a=2
4. Ministry of Industry and the Federation of Thai Industries (2013). The Annually Technical
Seminar in 2013: Leadership in Eco Industrial Town Development, 28-29 Oct. 2013, BITEC
Convention & Exhibition, Thailand.
5. Ministry of Natural Resources and Environment (2013). The Meeting of Public Hearing of
Draft Green Growth Strategy (2014-2018) 31 July 2013, Century Park Hotel, Thailand
6. National Statistic Office of Thailand (2012). Data Summary Report of the 2012 Business
and Industrial Census: Manufacturing Industry, Vicinity, Ministry of Information and
Communication Technology, Thailand