The government will establish the first phase of its special economic zones (SEZs) by the end of this year to strengthen trade and investment links with neighbouring countries, Prime Minister Prayut Chan-o-cha said on Friday.
A total of six zones are planned in border provinces with infrastructure investments expected to cost 11 billion baht initially. The biggest challenge, however, is expected to be acquiring the 1.8 million rai of land that planners say will be needed.
The first four SEZs will be located in Sadao district in Songkhla bordering Kedah state in Malaysia; Muang district in Mukdahan, opposite the Lao province of Savannakhet; Aranyaprathet district in Sa Kaeo, opposite Banteay Meahchey in Cambodia; Khlong Yai district in Trat bordering Koh Kong province in Cambodia. The other two zones will be located in Mae Sot in Tak province, opposite Myawaddy in Myanmar; and in the northeastern province of Nong Khai.
Speaking on his weekly Returning Happiness to Thai People TV programme, Gen Prayut said he saw no reasons to see the first step toward creating SEZs deferred.
Some critics have said the plan requires more study to determine if the investment will be worthwhile. With the Asean Economic Community about to create an integrated single market with almost no tariffs, manufacturers can locate anywhere and the need for SEZs becomes less apparent.
The government has to amend laws and regulations including town planning rules, as well as develop infrastructure to create economic zones that will be attractive to investors. generous tax breaks will also be offered.
The facilities might not be fully ready for the first five areas but the scheme must go ahead, said Gen Prayut.
He expressed concern that prolonging the first step would result in a chain reaction leading to delays in the second phase, which envisions special zones in Chiang Rai, Nong Khai, Nakhon Phanom and Narathiwat.
"It might be rough at first, but development needs to happen in these areas now," he said.
"If we don't make any progress this year, everything else scheduled for next year will be delayed."
The economic zones are seen as an integral part of the government's bid to turn Thailand into a trade, investment and transport hub for Southeast Asia.
The country plans to build a new railway network with wider track 1.435-met re tracks to slash logistics costs and create links with China and other countries in the region.
Gen Prayut echoed earlier comments by Transport Minister Prajin Juntong who said that Japan would be the next country to be courted to join the double-track project after the first two lines had been awarded to China.
The prime minister will visit Japan from Feb 8-10 and hold talks with his Japanese counterpart Shinzo Abe on the first day of the trip.
Gen Prayut did not go into details but ACM Prajin said this month that three routes were still under up for discussion: from Bangkok to Chiang Mai, Kanchanaburi to Map Ta Phut in Rayong via Bangkok, and a new line from to link two special economic zones in Mae Sot and Mukdahan.
New tracks will be able to handle faster trains running at 160 kilometres per hour and accommodate high-speed trains travelling up to 250km/h in the future.