When Chakramon Phasukvanich became industry minister early last month, the workload awaiting him included hundreds of applications for factory operating permits.
The Industry Ministry’s top priority is setting up special economic zones to stimulate border trade, says Mr Chakramon. PORNPROM SATRABHAYA
The delay in issuing Ror. Ngor. 4 permits by the previous government reflected the red tape and lack of cooperation among state agencies that have hindered investors in Thailand for years.
The National Council for Peace and Order set about fixing bureaucratic impediments, shortening the process of awarding plant operating permits to 30 days from 90 days.
The change has enabled Mr Chakramon to approve 715 Ror. Ngor. 4 licences to manufacturers, out of nearly 900 applicants that have been pending for years.
“Industry is a crucial sector driving the economy, and we’re considering ways to beef up the role of certain industries to help push overall industrial growth,” said Mr Chakramon.
Electronics, automobiles and agribusiness are among the key industries the minister will focus on, as they not only generate substantial export revenue but are lucrative industries that contribute largely to the economy.
Last year, the country raked in US$3.16 billion from the export of electronics and 1.45 trillion baht from agribusiness exports.
Thailand also exported more than 1 million cars last year from a total output of 1.85 million vehicles.
The Bank of Thailand said the industrial sector accounted for 31.9% of GDP last year.
Although the World Bank has slashed Thailand’s economic growth to only 1.5% this year, Mr Chakramon is optimistic the figure could be higher in the following years if the Industry Ministry achieves all its mapped-out projects under five priorities that could proceed within one year.
Mr Chakramon said his first priority was to pursue the government’s agenda to promote special economic zones (SEZs) to accelerate border trade.
The five provinces of Tak, Trat, Sa Kaeo, Songkhla and Mukdahan have been designated SEZs.
The government is pinning its hopes on the SEZ agency, which along with the Industrial Estate Authority of Thailand (IEAT) will drive the economy in border areas.
Mr Chakramon also backs the establishment of a halal food hub in the Deep South’s Pattani province.
Besides moving out the IEAT, the Industry Ministry has become even smaller after the cabinet decided to transfer the Board of Investment to the Prime Minister’s Office.
“We want to downsize the Industry Ministry and supervise manufacturers under the provided industrial laws. In the future, the minister will have no power to approve major projects or huge budgets to prevent corruption,” Mr Chakramon said.
The minister will now ensure manufacturers adhere to regulations, particularly factories that have violated industrial laws.
“About 96,000 factories lack proper waste management, and some release toxic waste into the air. This is one problem we must solve,” Mr Chakramon said.
Another focus should be enhancing the role of small businesses so they can drive the economy and strengthening them to catch up with global competition.
Mr Chakramon, who is also a former industry permanent secretary, said political hiccups in recent years had impeded annual promotions and transfers in the ministry, resulting in inefficient management.
Some issues have been resolved, but others will take time to fix, he said.
However, Mr Chakramon expressed confidence the government would achieve its targets within one year in office.
“These plans will not only improve the economy in the long run but lay a more solid foundation for the industrial sector, as we’ve already set safeguards against dishonest politicians and officers,” he said.