Thailand’s Economic Prosperity: SEC viewed as new magnet to drive investment

Report: Chatrudee Theparat

Thailand’s Economic Prosperity: SEC viewed as new magnet to drive investment

Infrastructure development in the Southern Economic Corridor (SEC) is viewed to have more progress than other economic corridors in other regions, leading to help drive the country’s economic growth.

Anek Meemongkol, deputy secretary general to the National Economic and Social Development Council (NESDC) said the infrastructure development in the SEC has shown the enormous progress because the government has implemented infrastructure development scheme since the cabinet approved infrastructure projects in 2019.

The southern corridor comprises parts of Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat provinces. This project aims to promote five areas of connectivity -- land, marine, energy, digital and people -- under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

“The progress of infrastructure projects will be evident to attract more investors for consideration to invest in the areas,” he said.

The cabinet on Jan 22, 2019 approved the SEC’s infrastructure projects, covering 116 projects worth 106.79 billion baht. Under the plan, all of them have been developed on a combined 300,000 square metres in Chumphon, Ranong, Surat Thani and Nakhon Si Thammarat during 2019-2022.

However, Mr Anek said the development of some infrastructure projects were delayed in the past three years from its initial plan because the government had tightened the budget during the spread of Covid-19.

The first plan covers 11 projects worth 50.3 billion baht, including the upgrade of Ranong deep-sea port and airports in four provinces. Upgrading the first and the second Ranong deep-sea port is aimed at having a container capacity of 320,258 TEUs per year, up from currently 78,000 TEUs per year. The project is expected to be completed by 2026.

Moreover, the development of the third Ranong deep-sea port is scheduled to be completed by 2040, resulting in having a total container capacity of 494,266 TEUs per year. While the improvement of four airports in Chumphon, Ranong, Surat Thani, and Nakhon Si Thammarat will be completed from this year to 2025.

The second plan is relevant to the development of tourism links between the "Royal Coast" tourism cluster, which includes Phetchaburi, Prachuap Khiri Khan, Chumphon and Ranong and the Andaman Sea, with 33 projects worth 39.6 billion baht in combination. Under its goal, the government wants to promote the high-end tourism in western coastal provinces in order to boost local economy in the region.

For its details of the plan, the government is committed to upgrading and increasing the value of hot springs and the construction of a highway along the coast from Samut Songkhram, Phetchaburi, Prachuap Khiri Khan, Chumphon to Ranong.

Mr Anek said the 659 km highway along the coast will be completed by this year.

The third plan, aimed at the development of bio-based and processed agriculture products covering 33 projects, is worth 7.37 billion baht such as the development of an integrated herbal center, a research centre for aquatic animals and pilot plants for rubber innovation. Currently, the projects have yet implemented.

The fourth plan includes 39 projects valued 9.6 billion baht, spent on natural resource preservation like Ranong mangrove conservation, the construction of a service centre for the elderly in Chumphon, and the development of infrastructure for telecommunication in order to upgrade Ranong as smart city.

Currently, Ranong Mangrove conservation and infrastructure for telecommunication are in the process, except for a service centre for the elderly in Chumphon, currently is not implemented.

The Transport Ministry reported the study of the 120-km landbridge of double track rail and road from Chumpho-Ranong will be completed by next year. A related project of the 421 km double track-rail from Nakhon Pathom-Chumphon of the State Railway of Thailand will be completed in 2023.

The Special Economic Zone Policy Committee chaired by the prime minister on May 5 approved four new special economic corridors, meant to resemble the flagship Eastern Economic Corridor (EEC), in a move to spur the economy and decentralize income to the regions.

The new zones comprise the Northern Economic Corridor (NEC), Northeastern Economic Corridor (NEEC), Central-Western Economic Corridor (CWEC) and the Southern Economic Corridor covering 16 provinces. New four economic corridors are projected to draw investment 313 billion baht both the public and private sectors between 2022 and 2032.

If the implementing was driven according to the initial plan, four corridors are projected to drive average 5.8% of Thai economic growth. Mr Anek said the Board of Investment is in the process of considering offering privileges for the investment in four economic zones.

The new terminal building of Nakhon Si Thammarat airport partly of one infrastructure project in Southern Economic Corridor, is under construction while a schedule to be operated by this September.