PROJECT BACKGROUND
Special Economic Zones (SEZs) are essential for economic growth, especially in the ASEAN and Lancang-Mekong (LM) regions. With around 5,400 SEZs worldwide, over 3,000 are located in the LM region, which includes Cambodia, China, Lao PDR, Myanmar, Thailand, and Vietnam. These zones aim to attract foreign direct investment (FDI), boost export-oriented growth, create jobs, and serve as platforms for regulatory reforms.
From 2017 to 2023, intra-regional trade among LM countries significantly increased, reflecting closer economic ties. Trade between China and Thailand nearly doubled, driven by China’s Belt and Road Initiative (BRI) and Thailand’s Eastern Economic Corridor (EEC). Vietnam and China also benefited from enhanced cross-border trade through their SEZs, while Cambodia, Myanmar, and Lao PDR expanded their zones to attract investments in manufacturing and agriculture.
FDI inflows rose sharply, with China as the leading investor in infrastructure and energy. Thailand attracted significant FDI in manufacturing and technology, and Vietnam drew investment in high-tech sectors. Despite political challenges, Myanmar managed to attract FDI in energy. Overall, investments in SEZs and economic corridors have spurred robust economic growth, shifting focus toward technology and higher-value manufacturing.
Thailand’s SEZs are essential to its economic strategy, enhancing regional competitiveness and establishing the country as a trade and investment hub. The government is setting up SEZs in 10 border provinces, offering high incentives for 13 targeted investment groups and 89 activities. In 2021, four economic corridors were identified to stimulate growth. The Eastern Economic Corridor (EEC) aims to transform three eastern provinces into socioeconomic zones under the Thailand 4.0 framework. Additionally, the Land Bridge project connects the Andaman Sea to the Gulf of Thailand via Ranong and Chumphon, serving as a transit hub. These initiatives aim to boost trade and investment in the Lancang-Mekong region, promoting economic integration.
SEZs in Thailand and the LM region have great potential but face challenges like infrastructure gaps, skilled labor shortages, and inconsistent policies. The lack of accessible online information for investors complicates their effectiveness, while varying legal frameworks and political instability hinder regional progress.
To address these issues, the Mekong Institute (MI), in coordination with Thailand’s Ministry of Commerce, and in collaboration with the China-ASEAN Business Center (CABC), will implement a three-year project from 2024 to 2026, with support from the Lancang-Mekong Cooperation Special Fund of China.
The SEZs Promotion for Intra-Regional Trade and Investment in the Lancang-Mekong Region Project
aims to enhance the development of SEZs in Thailand and the LM region while promoting sustainable growth. It focuses on optimizing investment strategies, fostering green investments, and strengthening supply chain linkages. Ultimately, the project seeks to improve livelihoods and boost intra-regional trade through increased supply chain efficiencies.
TIME FRAME: January 2024 - December 2026
OBJECTIVES
- Promote SEZs: Enhance the visibility and attractiveness of SEZs in Thailand and the LM region, foster regional coordination, and boost cross-border trade and investment.
- Boost Trade and Investment: Increase intra-regional and external investment flows into SEZs to upgrade infrastructure, improve production management, and enhance the investment climate.
- Promote Sustainable Practices: Advance sustainable investment practices and eco-friendly supply chains within SEZs to align with global standards and elevate the LM region’s green credentials.
PROJECT ACTIVITIES & WORKPLAN
1.SEZ Promotion and Matching Event (China-ASEAN Expo)
In collaboration with the China-ASEAN Business Center (CABC), Mekong Institute (MI) will lead the Thai delegations, including representatives from Thailand’s Ministry of Commerce, the Board of Investment (BOI), and Special Economic Zones (SEZs) and Industrial Estates (IEs) to the China-ASEAN Expo (CAEXPO) and other trade and investment events in China. The delegations will showcase their investment opportunities, participate in the matching events, engage with SEZs stakeholders from China and ASEAN, visit industrial parks, and explore long-term investment partnerships in the region.
Activity Objectives
- Explore the latest market trends, technologies, and innovations in products, production, services, and business models across industrial supply chains in China and ASEAN countries.
- Document best practices, challenges, and solutions from SEZs in ASEAN and China.
- Identify the unique value proposition of SEZs and industrial estates (IEs) in Thailand and develop tailored trade and investment promotion strategies.
- Showcase Thailand’s SEZs and industrial estates to potential investors.
- Foster long-term cooperation with economic zones, investment promotion agencies in China and ASEAN to enhance the promotion of Thailand’s SEZs and IEs
2. Regional Training cum Workshop
2.1 Enhancing Trade and Investment Promotion of Special Economic Zones (SEZs) in Lancang-Mekong Region
2.2 Action Plan Implementation: Enhance Thailand’s SEZs Investment Promotion Strategy, Collect Data for the SEZs Web Portal and Prepare for Hosting the Investment Tour
Activity Objectives
- Review Thailand’s SEZ Policies and Investment Strategies
- Present Investment Opportunities in Thailand through border SEZs and IEs.
- Share Best Practices and Insights on SEZs Promotion in the Lancang-Mekong Region
- Guide SEZs in Developing Effective Investment Promotion Strategies
- Promote Sustainable Practices in SEZ Development and Investment Promotion
- Build Partnerships and Foster Cooperation among SEZs Stakeholders in the Region
Duration
- Training Workshop: An event combining training and hands-on workshops to share insights among SEZs practitioners.
- Action Plan: A 6-month plan to implement the strategies learned during the event.
Action Plans
Stakeholders will develop and present draft action plans based on successful case studies and recommendations. These plans will be implemented over six months to transfer learnings and boost the project’s impact within their organizations and local communities.
Focus Areas:
- Enhancing SEZs investment promotion strategies
- Developing SEZs marketing plans and content
- Co-organizing trade and investment events
- Forming an expert group for technical assistance to SEZs and IEs on investment promotion strategies
Target Stakeholders
- SEZs Authorities & IEs Developers in Thailand
- Outstanding SEZs Practitioners in LM countries
- Experts & International Organizations
- Investment Promotion Agencies, Investors and Private Sector Representatives
3.Investment Tours at SEZs & IEs along Economic Corridors in Thailand
In collaboration with CABC and other foreign trade promotion agencies, the tour aims to bring a group of investors to visit SEZs and IEs along selected Economic Corridors in Thailand.
Activity Objectives
- Promote Trade and Investment Opportunities
- Facilitate Strategic Project Matching
- Enhance Effective Stakeholder Collaboration
4.Upgrade of the Interactive SEZs Web Portal
To virtually promote investment in SEZs of Thailand and Lancang-Mekong region
Activity Objectives
- To promote investment in SEZs and IEs and provide essential information on existing economic zones in Thailand and Lancang-Mekong region for prospective investors, investment analysts, and other stakeholders.
- To facilitate online business cooperation and matching.
- To share the SEZ project activities information and document storage.
Types of Database
- Economic Zones Introduction, Investment Incentives, Investors Guide
- Business Matching Platform
- Company database along the supply chain of SEZs
- Project Information Portal
- National Information
