Thai-Cambodian ties ‘a risk for SEZ’

“This is the issue that is the most worrisome,” Chen Namchaisiri, chairman of the Federation of Thai Industries, said yesterday.

The FTI chairman was speaking at a seminar held by the Transport Commission Committee of the National Legislative Assembly to present its study on the Sa Kaeo SEZ, one of six SEZs designated by the government for promotion in the first phase.

Chen voiced doubts over the attractiveness of Sa Kaeo to draw in investment from manufacturers, reasoning that it might be more suitable for trading activities such as logistics.

“The point is if the [target] market [for prospective investors in Sa Kaeo] is Cambodia, if there is a conflict with Cambodia, we will face a direct impact.”

Investors “must bear in mind that this could happen and that you have a long enough ‘thread’ to go on, since it is difficult to send [your goods from Sa Kaeo] to other markets,” he said.

However, Verapong Chaiperm, governor of the Industrial Estate Authority of Thailand, said the Sa Kaeo SEZ would aim to cater to not only the Cambodian market but also manufacturers through transhipment. 

Manufacturers might like to extend their activities in neighbouring countries for further processing in Thailand and eventually shipment via Laem Chabang Port.

“Historically, industrial estates were built near gateways such as ports and airports. Today, economic corridors will woo estates,” he said.

 

CLMV markets 

“With the growing customer base in the CLMV [Cambodia, Laos, Myanmar, Vietnam], whose economies are growing rapidly, there will be both cross-border and transhipment of goods,” he said.

The IEAT, which was slated to start building its 660-rai industrial estate at the Sa Kaeo SEZ late this year, had already received queries from investors for sites that almost filled up all of the available space.

“SCG Logistics will build the logistics park. 

“This evening I will meet with PTTGC [PTT Global Chemical] executives,” he said. 

Hiranya Sujinai, secretary-general of the Board of Investment, said a survey conducted by the BoI to gauge investor interest in the 10 planned SEZs, had found that Sa Kaeo attracted the second most interest from investors, following only Mae Sot.

Actual investment applications also follow this result.

Since last year, Sa Kaeo has lured three investment applications for projects worth Bt845 million, the second most among the 10 SEZs. 

Mae Sot is the most popular with 22 applications for total investment of Bt3.81 billion.

“Sa Kaeo’s advantage is not only in relation to border trade but also because it is next to Prachin Buri, which houses automobile and electronics clusters. 

“If we can draw in some labour-intensive parts production, IEAT’s 660 rai won’t be enough,” she said.