Tak to get first border SEZ, heavy industry still on hold

Tak to get first border SEZ, heavy industry still on hold

Heavy industry estate still a fantasy

The government's attempt to launch the first special economic zone (SEZ) in Tak province is expected to start by early next year with a border trade facilitation zone, but an industrial estate zone for heavy industry is unlikely to be set up in the near term, say local businesses.

Somsak Kaveerat, chairman of the Tak Chamber of Commerce, said construction of the second Thai-Myanmar Friendship Bridge and a one-stop customs checkpoint in Mae Sot district are expected to be finished by year-end.

He said the one-stop checkpoint is expected to increase trade activity along the border between Thailand's Tak province and the Myanmar town of Myawaddy, potentially exceeding 100 billion baht a year, up from 60 billion now.

"Border trade is the main economic activity in Tak and should be the first item the government supports to boost trade and tourism," said Mr Somsak.

He said trade facilities and new infrastructures along the second Thai-Myanmar Friendship Bridge are expected to help increase the number of trade and tourism-related industries.

The Tak SEZ is projected to be first of 10 planned government border zone SEZs, serving as a model for the others. However, the launch of an industrial estate to accommodate heavy industries is unlikely to happen in the coming year, said Mr Somsak.

Although the policy committee on SEZs tried to accelerate the project by setting aside 2,000 rai of land for development as an industrial estate, the plan has failed to gain traction, he said.

The government is still negotiating for the 2,000 rai as most of the residents refused to leave the area.

"The government has acquired some of the land, but not the whole 2,000 rai. Based on progress so far, we expect it would take a long time for the government to start construction of an industrial estate," said Mr Somsak.

He said there are some investors who are interested in the industrial estate if it is finally set up. But most want to take a wait and see approach about possible investment incentives before investing.

"Most of the potential investors in the estate are in the food processing and agricultural processing sectors. They want to use raw materials in Tak and Myanmar for production and export. I have not heard of anyone from the heavy industries interested in an estate here," said Mr Somsak.

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