THE BOARD of Trade of Thailand and the Thai Chamber of Commerce yesterday agreed with the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) to draw up a joint master plan to develop special economic zones in the two countries.

At a meeting between Thailand’s and Myanmar’s leading private-sector organisations, both sides agreed that the setting up of the SEZs would help promote trade, industry and tourism growth for the two nations under upcoming Asean integration.

For Thailand, the SEZs will cover areas in three provinces: Mae Sot, Mae Ramat and Phop Phra in Tak, Sing Khron in Kanchanaburi, and Mae Sai in Chiang Rai. Myanmar, meanwhile, plans to set up such zones in Myawaddy, Pha An and Mawlamyine.

Somkiat Anuras, vice chairman of the Thai Chamber of Commerce, said Thailand and Myanmar had agreed to establish a bilateral committee on Thai and Myanmar SEZ to proceed with ideas for their development.

A master plan will be drawn up with a view to facilitating more trade and industrial investment, as well as tourism growth in the two countries.

It will include plans to develop customs procedures; reduce duplicate transactions; allow the free flow of labour from Myanmar to work in Thai SEZs, and for Thai skilled labour to work in Myanmar’s zones; and other issues on trade and investment facilitation. Somkiat said details would be discussed and the master plan drawn up over the next six to nine months, before being proposed to the two countries’ governments. The development plans for the Thai and Myanmar SEZs should proceed in the same direction, so that investment and trade can grow equally strongly on both sides of the border, he added.

The issues to be discussed under the development plans include infrastructure, logistics, rules and regulations, transactional issues such as the financial system, tax privileges, and trade promotion activities.

Under a bilateral infrastructure development plan, meanwhile, the countries are proceeding with the project to build a second Thai-Myanmar Friendship Bridge, construction of which is expected to commence next year. Moe Myint Kyaw, secretary-general of the UMFCCI, said his country’s private sector believed that the drawing up of a master plan for SEZ development would lead to the facilitation of trade and investment growth.

The private sector also urges Thai investors to build a distribution centre in the country as there is high demand for Thai goods, he said.

It also wants the Kingdom to build a hospital and medical-service centre in Myanmar, as many of its nationals currently have to travel to Thailand for treatment.

Isara Vongkusolkit, chairman of the Board of Trade and Thai Chamber of Commerce, said the Thai private sector was confident that cross-border trade with Myanmar would expand by more than 10 per cent each year – and that trade at the Mae Sot checkpoint in particular could grow significantly – thanks to the introduction of SEZs.

Currently, about one-third of Myanmar’s global trade value is contributed by commerce with Thailand, with most of it being cross-border trading, he said.

By: Petchanet Pratruangkrai, The Nation