Thailand's private sector is due to sign a pact today with Myanmar counterparts to ramp up border trade, investment and transportation as well as promote the use of the Myawaddy-Kawkareik road in Myanmar. Construction is due to finish in July.
A trishaw and motorcyclist pass the Friendship Bridge in Myawaddy, eastern Myanmar. Myawaddy shares a border with Thailand's Mae Sot district. EPA
The pact will be signed in Bangkok by the Thai Chamber of Commerce, the Federation of Thai Industries, the Thai Bankers' Association and the Union of Myanmar Federation of Chamber of Commerce and Industry, said Commerce Minister Chatchai Sarikulya after his meeting yesterday with Myanmar Commerce Minister Win Myint in Bangkok.
Gen Chatchai said the government would also propose the Mae Sot model to develop mutual business activities and investment.
Under the Mae Sot model, a joint border trade committee will be set up, while twinning Thailand's Mae Sot and Myawaddy in Myanmar would facilitate business activities including business matching, trade missions and business networking. The model also calls for the two countries to cooperate in developing a logistics centre as well as essential infrastructure, facilitate cross-border transportation, customs checkpoint expansion and constructing a second bridge across the Moei River as planned within 2018.
Wholesale and retail businesses and service centres and well as distribution centres will also be developed, while new entrepreneurs and investment should be jointly promoted, with attractive tax and financial incentives to be offered.
Gen Chatchai said the proposals under the Mae Sot model would be submitted to the Joint Trade Commission, which is due to meet in August, for consideration.
The National Council for Peace and Order last July designated five provinces as special economic zones (SEZs) — Tak, Mukdahan, Songkhla, Sa Kaeo and Trat.
The SEZs will span 10 districts and 36 tambons with a combined area of 2,932 square kilometres. Tak's Mae Sot was chosen as an SEZ mainly for processing industries.
The SEZ committee chaired by Prime Minister Prayut Chan-o-cha last week agreed to include Nong Khai in the first phase of SEZ development in addition to the other five locations that have already been approved.
Gen Prayut said Mae Sot would probably be the first SEZ developed this year.