The government may need to exercise Section 44 of the interim constitution to tackle existing obstacles to the ambitious development of the Eastern Economic Corridor (EEC), says Kobsak Phutrakul, assistant minister to the Prime Minister's Office.
Mr Kobsak, a member of the working panel on EEC development, said certain legal issues are hindering foreign investment, especially in the aviation industry.
The existing Foreign Business Act, for example, only allows a 49% foreign stake in the industry.
He said the government also needs to focus on financial liberalisation to attract foreign investment in the EEC.
Mr Kobsak said investors should be allowed to invest or conduct transactions in the zone with any currency, while foreign banks should be allowed to open their representative offices in the zone.
Existing Bank of Thailand regulations require that entrepreneurs only use the baht for financial transactions made in the country.
Meanwhile, Mr Kobsak said the working group has already talked with the Customs Department on establishing the free trade zone as well as bonded warehouse development.
The EEC spans the three eastern provinces of Chon Buri, Rayong and Chachoengsao.
It has been designated for development as a high-tech industry cluster, with an eye towards becoming Asean's leading economic zone for industrial, infrastructure and urban development.
The cabinet approved in principle a minimum of 300 billion baht in state funds for the project, with the first phase focusing on Map Ta Phut, Rayong and Laem Chabang in Chon Buri.
The EEC project is meant to accommodate the 10 targeted industries being promoted as clusters by the government.
Those industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
The draft of the law governing the development of the EEC is expected to be submitted for cabinet approval next month.
The Industry Ministry has estimated that the EEC may attract up to 550 billion baht in investment to the country's eastern region over the next five years following its launch this year.