Calls for reduction in Sa Kaeo land rent

Calls for reduction in Sa Kaeo land rent

Mr Srettha leads his entourage to Sa Kaeo where he discussed industrial development issues in the province.
Mr Srettha leads his entourage to Sa Kaeo where he discussed industrial development issues in the province.

Prime Minister and Finance Minister Srettha Thavisin is being urged to boost investment by telling the Treasury Department to reduce land rent when it leases out land to investors in the Sa Kaeo Industrial Estate in eastern Thailand.

The Industrial Estate Authority of Thailand (IEAT) operates this industrial complex, which covers 660 rai of land, but the Treasury Department is the landowner which sets the rate of land rent.

The rent is currently high and is not able to stimulate investment, said Veeris Ammarapala, governor of the IEAT.

"Prospective investors are interested in leasing land within this industrial estate, but they cannot afford to pay the expensive rent," he said.

"Existing factory operators in the industrial estate also want the rate to decrease."

The IEAT expects the Treasury Department, which falls under the Finance Ministry, to consider lowering the rental rate as soon as possible, following a meeting between the authority and Mr Srettha, who recently visited Sa Kaeo.

There are currently four firms investing in the Sa Kaeo Industrial Estate. The businesses are involved in garments, automotive parts and car seats.

The IEAT believes that if the government granted more investment incentives, more investors would build their production facilities on the industrial estate.

The authority also aims to promote investment by developing eco-industrial estates to ensure business people utilise good environmental management.

According to the IEAT, Mr Srettha supports a plan to have Sa Kaeo become a special economic zone and would like to support economic activities in the province, which borders Cambodia.

The Sa Kaeo Industrial Estate has the potential to be developed into a logistics hub of the Greater Mekong Subregion and the CLMVT (Cambodia, Laos, Myanmar, Vietnam and Thailand) region, said Mr Srettha.

Industry Minister Pimphattra Wichaikul said her ministry would help the government promote logistics and transport systems in this estate, as well as the development of garments, textiles, and agricultural product businesses.

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