Prayut orders rethink of SEZ investment target

Prayut orders rethink of SEZ investment target

Prime Minister Prayut Chan-o-cha yesterday mandated that the National Economic and Social Development Board (NESDB) and the Board of Investment (BoI) jointly revise the investment target for 10 special economic zones (SEZs) to make them more attractive to investors.

The two agencies met the SEZ policy committee chaired by Gen Prayut and were ordered to complete a feasibility study for the SEZs to promote investment, including trade, tourism and training alongside industrial projects.

The government decided three years ago to set up industrial estates in SEZs in 10 provinces for the purposes of agriculture, industry, logistics and tourism.

Tak, Sa Kaeo, Trat, Mukdahan, Songkhla and Nong Khai were designated for the first phase.

Chiang Rai, Kanchanaburi, Narathiwat and Nakhon Phanom were named for the second phase.

Thosaporn Sirisamphand, secretary-general to the NESDB, reported that between 2015 and June this year only 59 projects applied for BoI investment privileges in the 10 SEZs, with a combined value of 9.05 billion baht.

The Tak SEZ ranked first, drawing applications for 28 projects worth 3.81 billion baht, followed by Songkhla with six projects worth 1.74 billion baht.

Sa Kaeo had four projects worth 1.31 billion baht, and Mukdahan had four projects worth 831 million baht.

The Kanchanaburi SEZ has lured two projects worth 639 million baht.

A report by the Business Development Department showed that there were 2,817 new companies established between January 2015 and June this year to do business at the 10 SEZs.

An exact time frame for the two agencies to submit their studies has not been set, with Mr Thosaporn saying only that the studies will be submitted to the next meeting of the SEZ policy committee.

In a separate development, the Regional Development Committee chaired by Gen Prayut approved 28 billion baht for the provincial development and provincial clusters plan for fiscal 2020.

Some 19.6 billion baht or 70% of the total budget would go to finance the development of each province, with 8.4 billion or 30% allocated to finance the development of 18 provincial clusters.

Each province and provincial cluster is required to propose its development projects to the NESDB for vetting by January next year.

The planning unit is scheduled to propose those proposals to the cabinet for approval in February.

Mr Thosaporn said the government's budget allocation for each province will be primarily based on poverty level and priority.

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