Despite controversy over a border closure, the Commerce Ministry will propose to the Cabinet establishment of an economic zone at Mae Sot, Tak province, covering 5,000 rai (800 hectares) to boost border trade between Thailand and Burma.
To ensure efficient operation, the ministry will allow the private sector to manage it with support by the government. The economic zone will be set up along the Moei River, which forms the border between the two countries.
Deputy Commerce Minister Alongkorn Ponlaboot, chairing the ThailandBurma Business Development Committee yesterday, said the ministry would also seek Cabinet approval to set up a committee to oversee and develop the economic zone.
The zone would be managed as a mixed form between a public organisation and an industrial estate. Its facilities would include infrastructure, an inland container depot, a bonded warehouse, singleservice inspection and a customs office.
"The government will support investors by granting privileges such as tax reduction," Alongkorn said.
The setting up of the economic zone has been accelerated in line with tentative Cabinet approval last October.
If finally approved, concerned government agencies will have to consider in detail regulations affecting the targeted zone, which has been defined as forestry area.
As of yesterday, the Mae Sot border checkpoint was closed because of a dispute between the two countries. Burma had reportedly objected to a Thai construction project on the riverbank.