Mae Sot SEZ ready for investment

"We are more than ready to go in [to Mae Sot’s SEZ] and next week will have a press conference to announce not only our move into the development zone, but a whole new picture that the FTI is creating under the theme of pushing this country’s economy forward with new economic activity and industry," said Nilsuwan Leelarasamee, vice chairman of the FTI.

"The government has already laid down the field but it needs people to invest in it and that is the responsibility of the private sector to make it a reality," he added.

Nilsuwan said in order for the private sector to invest, the government has to provide the infrastructure in terms of banking, Internet, logistics, warehousing and facilities and "Mae Sot is the most ready and most equipped SEZ" that can become "a perfect role model" for other upcoming SEZs in border areas of Tak, Sa Kaew, Trat, Mukdahan and Songkhla provinces.

"Once the SEZ is well-established in Mae Sot, the setting up of other SEZs in the East, Northeast and the South will be easy. Mae Sot is the key that we have given the most importance on and it is not about the sales and orders it is all about the ease of doing business," he said.

"It will take around 4-5 years for the zone to be well-established enough to help with the economic expansion but it can become a role model since year one," he added.

The Tak SEZ is in Mae Sot, Phop Phra and Mae Ramat districts in the North. The Mukdahan SEZ is in Mukdahan, Wan Yai and Don Tan districts in the Northeast. The Sa Kaew SEZ is in Aranyaprathet and Watthana Nakhon districts in the East. The Songkhla SEZ is in Sadao district in the South while the Trat SEZ is in Khlong Yai district in the easternmost province of the Kingdom.

The defining of the special zones was authorised under Section 2.6 of the National Council for Peace and Order’s order No 72/2557 issued on June 19, 2014.

The Board of Investment (BOI) will offer an additional three-year exemption of corporate income tax for industries that are in Group A1 or A2 of the BOI privilege list that have investment projects located in five SEZs and the board is also promoting the creation of a distribution centre in the SEZs to position Thailand as an inland container depot for neighbouring countries’ products.

Projects with activities in Group A1 or A2 are already granted 8-year corporate income tax exemption.

In April, the BOI approved 13 target industries that will receive full privileges for investing in the five SEZs. The 13 target industries, which cover 61 sub-industries that invest in the SEZs will receive a maximum of an eight-year corporate-income-tax exemption. For the following five years, they can enjoy a 50-per-cent income-tax reduction.