The Commerce Ministry hopes to work closely with local businesses to help them cope with the imminent regional economic integration.
Deputy Commerce Minister Apiradi Tantraporn said yesterday at a seminar on trade strategies that three key partnerships will drive business after the Asean Economic Community (AEC) takes effect in late 2015: special economic zones and border trade development, enhancing the competitiveness of Thai entrepreneurs and using the AEC as a production base for the global market.
"Special economic zones in particular will be developed to drive regional economic growth," said Ms Apiradi. "The Thai government is committed to upgrading key transport infrastructure and logistics systems, especially for the planned massive investment in a double-track rail network to link regional transportation."
Two months ago the cabinet endorsed in principle an eight-year infrastructure development scheme running from 2015 and 2022 worth 3.3 trillion baht. The budget is well above the 2.4-trillion-baht infrastructure plans outlined by the National Council for Peace and Order in July for the same period, as well as the 2-trillion-baht plans of the previous government.
Thailand's border trade with Malaysia, Myanmar, Laos and Cambodia has recorded average growth of over 10% a year over the past five years. Next year, the Commerce Ministry set a target for border trade of 1.5 trillion baht, up from an estimated 1.1 trillion this year.
Ms Apiradi said Thailand planned to team up with border countries to develop twin provinces along the border areas to ensure mutual growth. For example, in October Thailand and Myanmar signed memorandums of understanding to declare Chiang Mai and Myanmar's Kentung, Prachuap Khiri Khan and Myeik, and Ranong and Kawthaung as sister provinces to foster a closer relationship between the border provinces.
Nopporn Thepsittha, the Thai National Shippers' Council president, said companies remained concerned about Thai manufacturers' ability to adjust to the AEC market as they have worked for years as original equipment manufacturers.
"Thai manufacturers still face challenges, particularly in creating their own customer and marketing bases to make them more competitive in the global market," he said.