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Developing Thailand’s industrial sector toward ASEAN Economic Community

The Office of Industrial Economics is launching three industrial development projects, linking with neighboring countries in advance of the ASEAN Economic Community (AEC).

Director-General of the Office of Industrial Economics Somchai Harnhirun said that the three projects are the results of cooperative efforts with entrepreneurs and local residents to conduct a study in target border areas, in preparation for AEC, which is due to kick off in 2015.

The first project seeks to work out strategies for the development of Thai industries in the Andaman coastal areas, connecting with such countries as Myanmar, India, Bangladesh, and Middle Eastern countries. The second project involves strategies for industrial development along the East-West Economic Corridor, which links with Lao PDR, Cambodia, Vietnam, China, Japan, and the Republic of Korea. The third project will upgrade industrial clusters and expand production networks in the ASEAN region.

The study of the three projects offers suggestions on suitable Thai industries in target areas and conceptual designs for sustainable industrial development in the suitable sites. The target areas are divided into three parts.

The first part includes border areas that can link with Dawei in Myanmar. These areas are located in six provinces, namely Tak, Kanchanaburi, Ratchaburi, Phetchaburi, Prachuap Khiri Khan, and Chumphon. The second part consists of Ranong, Phang-nga, Phuket, Krabi, Trang, and Satun. These six provinces connect with the Andaman Sea and can link with Dawei in Myanmar, as well. The third part also comprises six provinces – Tak, Sukhothai, Phitsanulok, Phetchabun, Khon Kaen, Kalasin, and Mukdahan – which link with the East-West Economic Corridor.

The study indicates that suitable industries in the Andaman coastal provinces involve oil palm, rubber, seafood, wood, and pineapple processing, garment manufacturing, and furniture production. As for the industries that can link with those in neighboring countries include iron and steel, car tires, garment, and processed seafood production.

The suitable industries along the East-West Economic Corridor involve food production and alternative energy. The areas with good potential for these industries include Mueang district in Khon Kaen and Mae Sot district in Tak.

Concerning domestic industrial clusters, the study shows that industries suitable for network links and production expansion to the ASEAN region include wood and furniture and textiles and garments.

The Director-General of the Office of Industrial Economics said that a seminar was held in Tak province to make known the results of the study and listen to the opinions of members of the public and private sectors, academics, entrepreneurs, and media representatives. They will also be used as guidelines for setting the directions of Thai industries, as the region progresses toward AEC.

Reports The Government Public Relation Department, Thailand