Thailand and Cambodia are committed to moving ahead with a plan to set up joint special economic zones (SEZs) in Sa Kaeo-Banteay Meanchey and Trat-Koh Kong.
Deputy government spokesman Sansern Kaewkamnerd said the National Economic and Social Development Board (NESDB) had proposed joint production of agricultural and industrial products and the promotion of tourism industry.
New border checkpoints should be opened, while rail development, cross-border trade and urban development to accommodate SEZs should be promoted, the board told the cabinet this week.
The NESDB also intends to study the needs of the Thai and Cambodian private sectors to provide development that meets their demands.
Cambodia proposed Thailand develop new a permanent checkpoint at Ban Nong Ian in Sa Kaeo to boost cross-border trade.
The countries also agreed to develop and complete infrastructure and facilities along the new checkpoint by 2018.
Thailand has already completed a rail link to the border at Aranyaprathet, while Cambodia aims to finish the first phase of a six-kilometre railway linking the border with the Cambodian town of Poipet this year.
The Cambodian government has allocated US$20 million this year and next year to renovate the railway between Sisophon and Poipet.
The countries have also agreed to increase services by buses and other vehicles across the border to serve rising demand from trade volume and passengers.
The next meeting between the countries' working groups will be held late this year to monitor the progress of the project.
Mr Sansern said Cambodia was concerned about competition between the two governments in attracting foreign investors to the SEZs.
NESDB deputy secretary Chanvit Amatamatucharti said Thailand was ready to operate joint SEZs, with the government already approving investment privileges for industrial categories.
The cabinet recently agreed to halve corporate income tax for factories located in SEZs to 10% for 10 years, aimed at attracting investment and enhancing Thailand's regional competitiveness.
Investors qualifying for the tax reduction are required to put the money mainly in industrial categories that substitute for imports or focus only on exports or in sectors in which Thailand is less competitive.
Interested investors are required to submit their proposals before 2017.
However, investors asking for the corporate tax cut would not be eligible for promotional privileges recently approved.