Special Border Economic Zones’ progress revealed
As of June 2024, 89% completion reported with investments of more than 51 billion baht
Development policy for the Special Border Economic Zones spans 10 areas across the country: Tak, Sa Kaeo, Mukdahan, Trat, Songkhla, Nong Khai, Nakhon Phanom, Kanchanaburi, Narathiwat, and Chiang Rai.
The government initiated the policy in 2015, and after nine years, significant progress has been observed in various aspects, with continuous private-sector investment in these areas.
The government has supported this initiative by providing investment incentives, establishing one-stop service centres for labour management and investment, developing infrastructure and customs checkpoints, and identifying development areas for investment purposes.
The Special Economic Zone (SEZ) Development Policy Committee has been the main driving force behind these operations. However, this committee was dissolved by order of the National Council for Peace and Order (NCPO) on July 9, 2019.
Currently, the SEZ Development Policy Committee operates under the regulation of the Prime Minister's Office on Special Economic Zone Development, 2021.
Recently, the Office of the National Economic and Social Development Council (NESDC) reported the latest progress as of June 2024. The total investment value, including investment by the private sector and the Industrial Estate Authority of Thailand (IEAT) in the Special Economic Zones amounts to 51.654 billion baht (from 2015 to present), including:
Investment Promoted by the Board of Investment (BOI):
A total of 84 projects have been promoted and already implemented, amounting to 25.840 billion baht. These projects include sectors such as garments, plastics, animal feed, automotive, machinery and parts, construction equipment, hospitals, and medical rubber gloves (from a total of 121 promoted projects worth 30.236 billion baht).
Private Sector Investments:
Investments on state land in Special Economic Zones in Trat, Kanchanaburi, and Nakhon Phanom amount to 5.106 billion baht.
Industrial Estate Investments:
Investments in Special Economic Zones in Sa Kaeo and Songkhla, totalling 5.731 billion baht (including IEAT investments and private sector investments within the estates).
New Business Establishments:
A total of 7,701 new businesses have been established with total registered capital of 14.439 million baht. These businesses are predominantly SMEs (98%) and include sectors such as general building construction, logistics, garment manufacturing, real estate, hotels, resorts, condominiums, aquaculture products, electricity generation, and wood product manufacturing.
Establishment of Duty-Free Zones:
Duty-free zones have been established in Tak, Nong Khai, and Songkhla, with bonded warehouses in Tak, Mukdahan, Songkhla, Nong Khai, and Chiang Rai, totalling 510 million baht, which are eligible for customs benefits.
Credit Facilities:
The Export-Import Bank of Thailand (Exim Bank) has provided loans for investments in Special Economic Zones in Chiang Rai and Songkhla, totalling 27.6 million baht.
Infrastructure Development:
The development of infrastructure in the 10 areas covers transportation, utilities, border and customs facilities, industrial estates, and social infrastructure. Progress has been made according to the plan, with an average completion rate of 89%. Key projects have been completed or are scheduled for completion between 2019 and 2025.
Completed Projects in Special Economic Zones:
Highway No 12: Tak-Mae Sot (completed in 2019)
Mae Sot Airport Terminal: (completed in 2019)
Second Mae Klong River Bridge: (operational since 2019)
Customs and Border Facilities: New Sadao Customs House (completed in 2019)
Second Mae Sot Border Crossing: (completed in 2019)
Ban Phu Nam Ron Border Crossing: (completed in 2020)
New Chiang Saen Customs Office: (completed in 2020)
Extension of Mae Sot Airport Runway: to accommodate larger aircraft such as the Boeing 737 (completed in 2021)
Ongoing Projects in Special Economic Zones:
Nakhon Phanom Border Transport Centre
Highway No 81: Bang Yai-Ban Pong-Kanchanaburi
Nong Khai Bypass Road: Eastern sector
Aranyaprathet Customs House: (expected completion in 2024)
Road MH 3019: Intersection of Highway 212 to Mueang District, Mukdahan (Phase 2)
Nong Khai Freight Terminal: (expected completion in 2025)
Second Mae Sot Customs House: (expected completion in 2026)
