12. Conclusions and Recommendations
Thailand has been intensifying economic interdependency with bordering countries substantiated by a robust increase of local and regional cross-border trade, people’s mobility and shopping. The geographical adjacency of structural differences intensifies these flows. Border regions/nodes, which locate along the GMS corridors and main transport arteries, are now emerging new growth centers. By combining conducive factors with locational advantages, there are 10 border regions across Thailand that have high potential towards establishment as BEZs with promising industries and cross-border trade, tourism, logistics, distribution and cross-border shopping activities. The prospective locations are: (1) Cambodia (the priority locations such as Aranyaprathet district in Sakaeo province has links with Poi Pet city in Banteay Meanchey province of Cambodia, and Trat province has links with Koh Kong province of Cambodia), (2) Lao PDR (the priority locations are Mukdahan province which has links with Savannakhet province of Lao PDR, and Muang district in Nongkhai province which has links with Vientiane, capital city of Lao PDR), (3) Malaysia (the priority locations are Sadao, Hat Yai and Muang districts in Song Khla province that link with Bukit Kayu Hitam in Kedah state of Malaysia, and Sungai Kolok district in Narathiwat province that links with Kelantan state of Malaysia), and (4) Myanmar (the priority locations are Maesod district in Tak province that connects with Myawaddy district in Kayin state of Myanmar; Chiang Rai province consists of Maesai, Chiangsaen and Chiang Khong districts, which connect to Tachilek province in Myanmar; Ranong province that connects with Koh Song province in Myanmar, and Kanchanaburi province connecting with Dawei province in Myanmar).
Following the discussions in the preceding paragraphs, a few suggestions are made for realizing special border economic zones in Thailand. The recommendations are:
(1) It is strongly recommended to control and overcome the illegal cross-border trades and facilitate the tradable goods to bring them under formal trade, which would then control the large scale import of low quality agricultural products into Thailand and recover the loss of revenue to both countries along the border.
(2) The creation of a new set of regulations only for cross-border trades independent of the broader regulation of international trades is required. As observed from the country cases, the trade types between Thailand and neighboring countries are somewhat different; it is necessary to design such regulations in response to the changing cross- border trade environment.
(3) An inter-ministry coordination and integration mechanism is very much desired for bringing the responsible agencies and stakeholders associated with cross-border trade promotion and facilitation, such as the Ministry of Commerce, the Ministry of Industry, the Ministry of Finance and the Thailand Immigration Bureau, etc.
(4) An integrated mechanism for managing BEZs at different administrative levels should be set up and carried out by the Office of the National Economic and Social Development Board (NESDB) as a central planning agency.
(5) It is necessary to sustain the local backward linkages, and the Ministry of Industry and Federation of Industry should promote industrial production clusters in line with respective country needs focusing on the interests of the local communities and cities along the border.
(6) It is important to promote local direct investments in providing cross-border logistics services to be competitive with multinational logistics providers. In addition, collective efforts for nurturing entrepreneurship of all types of traders should be initiated by the Ministry of Commerce and the Thai Chamber of Commerce.
(7) Cooperation to arrange daily cross-border movement of labor in particular BEZS should be put in place. The Ministry of Labor and the Thailand Immigration Bureau should coordinate this task.
(8) Institutional capacity building for prospective BEZs should be promoted. As as the border economic zone concept is newly adopted in Thailand, a wide range of capacity building schemes should be provided by NESDB and other relevant agencies in order to efficiently deal with multifaceted issues on BEZ development. An array of aid for trade programs through the Ministry of Foreign Affairs should also be extended to CLM in order to address common issues.
12. ข้อสรุปและข้อเสนอแนะThailand has been intensifying economic interdependency with bordering countries substantiated by a robust increase of local and regional cross-border trade, people’s mobility and shopping. The geographical adjacency of structural differences intensifies these flows. Border regions/nodes, which locate along the GMS corridors and main transport arteries, are now emerging new growth centers. By combining conducive factors with locational advantages, there are 10 border regions across Thailand that have high potential towards establishment as BEZs with promising industries and cross-border trade, tourism, logistics, distribution and cross-border shopping activities. The prospective locations are: (1) Cambodia (the priority locations such as Aranyaprathet district in Sakaeo province has links with Poi Pet city in Banteay Meanchey province of Cambodia, and Trat province has links with Koh Kong province of Cambodia), (2) Lao PDR (the priority locations are Mukdahan province which has links with Savannakhet province of Lao PDR, and Muang district in Nongkhai province which has links with Vientiane, capital city of Lao PDR), (3) Malaysia (the priority locations are Sadao, Hat Yai and Muang districts in Song Khla province that link with Bukit Kayu Hitam in Kedah state of Malaysia, and Sungai Kolok district in Narathiwat province that links with Kelantan state of Malaysia), and (4) Myanmar (the priority locations are Maesod district in Tak province that connects with Myawaddy district in Kayin state of Myanmar; Chiang Rai province consists of Maesai, Chiangsaen and Chiang Khong districts, which connect to Tachilek province in Myanmar; Ranong province that connects with Koh Song province in Myanmar, and Kanchanaburi province connecting with Dawei province in Myanmar).Following the discussions in the preceding paragraphs, a few suggestions are made for realizing special border economic zones in Thailand. The recommendations are:(1) It is strongly recommended to control and overcome the illegal cross-border trades and facilitate the tradable goods to bring them under formal trade, which would then control the large scale import of low quality agricultural products into Thailand and recover the loss of revenue to both countries along the border.(2) The creation of a new set of regulations only for cross-border trades independent of the broader regulation of international trades is required. As observed from the country cases, the trade types between Thailand and neighboring countries are somewhat different; it is necessary to design such regulations in response to the changing cross- border trade environment.(3) An inter-ministry coordination and integration mechanism is very much desired for bringing the responsible agencies and stakeholders associated with cross-border trade promotion and facilitation, such as the Ministry of Commerce, the Ministry of Industry, the Ministry of Finance and the Thailand Immigration Bureau, etc.(4) An integrated mechanism for managing BEZs at different administrative levels should be set up and carried out by the Office of the National Economic and Social Development Board (NESDB) as a central planning agency.(5) It is necessary to sustain the local backward linkages, and the Ministry of Industry and Federation of Industry should promote industrial production clusters in line with respective country needs focusing on the interests of the local communities and cities along the border.(6) It is important to promote local direct investments in providing cross-border logistics services to be competitive with multinational logistics providers. In addition, collective efforts for nurturing entrepreneurship of all types of traders should be initiated by the Ministry of Commerce and the Thai Chamber of Commerce.(7) Cooperation to arrange daily cross-border movement of labor in particular BEZS should be put in place. The Ministry of Labor and the Thailand Immigration Bureau should coordinate this task.(8) Institutional capacity building for prospective BEZs should be promoted. As as the border economic zone concept is newly adopted in Thailand, a wide range of capacity building schemes should be provided by NESDB and other relevant agencies in order to efficiently deal with multifaceted issues on BEZ development. An array of aid for trade programs through the Ministry of Foreign Affairs should also be extended to CLM in order to address common issues.
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