The Industrial Estate Authority of Thailand (IEAT) expects the construction of a new "correctional industrial estate" to be completed in 3-5 years, helping the government generate jobs for inmates.
Authorities also project the operator of the estate, Sivachai Co, will list on the stock exchange to raise funds for further development of the complex.
Named Zubb Sakhon correctional industrial estate, the complex sits on 4,132 rai of land in Samut Sakhon.
"The correctional industrial estate will turn inmates into skilled labourers," said Veeris Ammarapala, governor of the IEAT.
"This facility should increase their chances of getting jobs after being released from prison. The new industrial estate will also help solve overcrowding in prisons and is expected to help prevent inmates from committing crimes once released."
The IEAT expects Zubb Sakhon to offer more than 30,000 jobs to inmates.
The authority said the industrial estate would focus on the processing of seafood and agricultural products as well as the manufacturing of steel and iron, garments and textiles, fuel, smart electronics and medical equipment.
Sivachai Co, which offered the land for the construction of the industrial estate, was chosen to develop the complex.
The company is working on the design of Zubb Sakhon, as well as a development plan and financial issues.
The push for the construction of Zubb Sakhon comes from cooperation between the Industry and Justice ministries as well as the Federation of Thai Industries.
The Industry Ministry ordered the IEAT last year to conduct a study based on a plan to have two correctional industrial estates in the country.
The first location at Ban Bueng temporary prison in Chon Buri plans to utilise 300-400 inmates to work in factories.
The second facility is slated for Samut Sakhon.
Industry Minister Suriya Jungrungreangkit said earlier Samut Sakhon is suitable for the project because the province has many factories.