Border trade studied for logistics improvements

Border trade studied for logistics improvements

Part of government plan for special zones

The Industry Ministry has chosen four border areas for a study on how to reduce logistics costs for the private sector ahead of the Asean Economic Community (AEC) in 2016.

Mae Sot, Chiang Khong and Mukdahan in Thailand and Poipet, Cambodia, will be looked at for ways to improve logistics and packaging for business operators.

The study will look at the value of border trade in these areas, and a test product will be selected.

An evaluation will then be made on problems that particular product encounters in terms of logistics.

"The products traded are mostly consumer goods, oil, electronics, electrical appliances and auto parts," said Anong Paijitprapapon, director of the Primary Industries and Mines Department's Bureau of Logistics.

The project is part of government plans to develop special economic zones (SEZs) in border areas.

"Developed countries don't have SEZs. But China is a good example, and we're looking at them as a model," said Ms Anong.

The University of the Thai Chamber of Commerce will finalise a concrete framework by next February for businesses to use as a guideline for lowering logistics costs.

The Bureau of Logistics received 139 million baht this year for use in lowering logistics costs by at least 3 billion.

For the next fiscal year, the bureau is expected to receive 148 million baht for 30 projects aimed at lowering logistics costs by 3.5 billion.

In a related development, ministers and senior government officials from the six Greater Mekong Subregion (GMS) countries yesterday discussed multibillion-dollar projects under the Regional Investment Framework (RIF).

The RIF is aimed at speeding up the transformation of traditional infrastructure corridors to economic corridors using a multisectoral approach.

It emphasises strengthening rural-urban and cross-border links to create benefits for a wider range of people, said Stephen Groff, a vice-president of the Asian Development Bank (ADB), which acts as the GMS secretariat.

Projects to be considered may involve energy and power market integration, the environment and biodiversity, agriculture, human resource development, tourism, transport, urban development and trade facilitation.

The RIF targets investments for corridor development that are demand-driven, balance external and domestic connectivity and trade, carefully assess the regional dimensions of national projects and prioritise urban development projects such as SEZs, logistics schemes and investments linking remote areas with trade gateways.

The final RIF pipeline is expected to be endorsed at the 19th GMS Ministerial Conference in Vientiane in December.

Based in Manila, the ADB aims at reducing poverty through inclusive economic growth and regional integration.

Last year, it offered US$21.6 billion in funds including co-financing of $8.3 billion.

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