The government plans to revive its special economic zones (SEZs) project to revive the local economy along with the Eastern Economic Corridor (EEC), which is designed to be a key engine to support the national economy, says Industry Minister Uttama Savanayana.
"Both EEC and SEZs will play a major role in supporting the Thai economy. The EEC will be an important engine to draw investment to next-generation industries that use innovation, while the SEZs will enhance growth in local economies," said Mr Uttama.
He said the ministry is working to resuscitate the SEZ scheme, the plan for which is expected to be concluded within a month before being submitted to a meeting chaired by Prime Minister Prayut Chan-o-cha.
The government launched the SEZ project in late 2014, aiming to attract new investment to the remote border areas, spurring spending and improving growth in provincial areas.
The SEZ areas were based on potential for border trade. They are Sa Kaeo, Mukdahan, Trat, Tak, Songkhla, Nong Khai, Kanchanaburi and Chiang Rai.
The SEZs were also aimed at linking economic activity in Thai border areas to neighbouring countries as the Asean Economic Community was introduced, hoping to make Asean a borderless trade zone.
However, land price speculation, lack of cooperation from locals in proposed SEZ areas and opposition from non-governmental organisations that did not want new factories because of environmental considerations resulted in the SEZ scheme's failure.
The SEZ project was also overshadowed by the rise of the EEC, which the government posited as a key growth engine to achieve Thailand 4.0 with high-tech industries in the designate areas with additional investment incentives from the Board of Investment.
"We expect our plan to be approved shortly and we will implement the plan immediately as we aim to see real investment in the SEZs in 5-10 years," said Mr Uttama.
He said the government will start the plan to boost the SEZs in four selective zones first -- Sa Kaeo, Mukdahan, Tak and Songkhla -- before expanding to other zones.