Private sector frets over slow development of Sa Kaeo special economic zone

The Sa Kaeo special economic zone is a joint initiative of the Thai and Cambodian governments to boost cross-border trade and investment between the two countries.

The issue was raised on Wednesday when Foreign Minister Maris Sangiampongsa visited the Sa Kaeo Industrial Estate in the province to discuss with local entrepreneurs cross-border trade and investment with Cambodia.

Maris told Thai entrepreneurs that the Board of Investment (BOI) had approved investment privileges under the special economic zone initiative for various projects in four subdistricts of Sa Kaeo – Phak Kha, Ban Dan, Tha Kham and Pa Rai. These projects, with a combined value of 8.14 billion baht, focusing on plastic packaging, animal feed, sugar and sanitary products.

The minister added that Sa Kaeo also has potential for future investment in food processing industries, such as sugarcane, tapioca, and corn for animal feed, for which there is high demand in Cambodia.

Meeting attendees told Maris that the Sa Kaeo special economic zone had shown slow progress due to insufficient efforts to attract investors to invest in Sa Kaeo, despite the province having suitable infrastructure for several industries.

The entrepreneurs added that obstacles related to regulations, such as city plan and environmental protection laws also hindered the approval of new investment projects in Sa Kaeo.

They also urged the government to accelerate the opening of two border checkpoints, located in Ban Pa Rai and Nong Ian areas, to facilitate transport of goods to and from Cambodia.

The Sa Kaeo Chamber of Commerce reported that Thailand-Cambodia trade via Sa Kaeo province in 2023 amounted to 102 billion baht, or 61.35% of total cross-border trade with Cambodia.

The report said Sa Kaeo’s total trade with Cambodia last year contracted 22.11% year on year, mainly due to the competition from cheaper Chinese products and the expiry of some tax benefits offered by the Cambodian government.