Private firms keen to invest in SEZs

Private firms keen to invest in SEZs

Call for tax and loan privileges for investors

The private sector in five locations designated for the establishment of special economic zones (SEZs) is set to invest in facilities and infrastructure.

Somporn Siribhorananint, chairman of Songkhla's Chamber of Commerce, said the private sector is due to meet representatives of the National Economic and Social Development Board next month to discuss in more detail the development of an SEZ in Sadao district.

The chamber also plans to ask the military junta to establish a duty-free shop on Chang Loan Road, which is about three kilometres from the border checkpoint, and a green industrial estate at Padang Besar, where a bonded warehouse and green industries could be allowed to enjoy promotional privileges from the Board of Investment.

Mr Somporn said investors should be allowed to enjoy the highest privileges of eight-year corporate income tax waivers and soft loans with interest rates as low as 3% to finance factory construction.

"Infrastructure such as a motorway from Hat Yai to Sadao and a road from the industrial estate to the border with Malaysia should be developed first," he said.

"Later, a dual-track railway from Chumphon to Padang Besar could be developed to increase goods transport, especially rubber, from other provinces such as Surat Thani and Nakhon Si Thammarat."

Once all the projects are completed, trade at Sadao's border checkpoint is expected to double from 500 billion baht this year.

Sadao was one of five locations approved early this month by the National Council for Peace and Order for SEZ development. The others were Mae Sot in Tak, Khlong Luek in Sa Kaeo, Khlong Yai in Trat and Mukdahan.

Somsak Kaveerat, chairman of Tak's Chamber of Commerce, said a study on establishing an industrial estate on 5,600 rai in Mae Pa is now completed, with the first phase expected to develop 1,000 rai.

The industrial estate can be expanded to more than 5,600 rai because there is more than enough space in the area.

Mr Somsak also wants a second bridge to be built on the Mei River to handle goods transport because the existing two-lane bridge is facing congestion.

The chamber also proposes the expansion of the road linking Mae Sot and Tak to four lanes to handle increased transport.

Pramual Kaewkham, secretary-general of the Sa Kaeo Chamber of Commerce, said the private sector in the province has proposed two locations for the establishment of an SEZ — 1,000 rai at Ban Nong Yai in Watthana Nakhon district and 700 rai area at Pa Rai in Aranyaprathet district.

The chamber also urges the setting up of a logistics centre and bonded warehouse for small and medium-sized enterprises.

Mr Pramual said the chamber proposes to establish a new checkpoint at Nong Kian in Khlong Luek to raise border trade.

Phamorn Chaosirikul, chairman of Mukdahan's Chamber of Commerce, said businesses in the province have proposed that the junta establish a logistics centre and an SEZ for ago-industry and green industry, saying the location is suitable for goods distribution to Laos and tourism.

He also proposed the speedy completion of a road linking the East-West Economic Corridor from Mae Sot via Mukdahan to Laos and Vietnam, plus building a road network along the Khong River to promote tourism and facilitate transport of agricultural products.

The Thai Chamber of Commerce last week predicted the presence of SEZs would increase Thailand's border trade by at least 20% a year.

Border trade is expected to grow by 7-8% this year from last year's 924 billion baht. It increased by 5.7% in the first five months to 405.25 billion baht.

Trade with Malaysia contributed the most at 215 billion baht, followed by Myanmar (81.6 billion), Laos (62.3 billion) and Cambodia (46.3 billion).

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