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Thailand: Mukdahan envisions border bonanza
Thailand plans to promote the northeastern city of Mukdahan to be a trading and logistics centre of Asean, expecting to pour investment into infrastructure in the province to help increase annual border trade to 200 billion baht by 2019.
Mukdahan governor Sorasit Ritsorakai said the area is in a perfect location to make use of the East-West Economic Corridor (EWEC) that links Myanmar’s Myawaddy city through Tak and Mukdahan in Thailand to Laos’s Savannakhet and eventually Vietnam, passing by millions of people along the route.
“If the planned infrastructure projects are completed, trade value along the border area is expected to rise to 200 billion baht a year in 2019, up from 135 billion,” Mr Sorasit told a forum titled “Mukdahan: Land Port Hub of Eastern Asean”.
By 2019, exports are projected to jump 113% to 75 billion baht, while imports are estimated to rise 32% to 60 billion. The trade surplus is expected to rise 19%.
The government plans to promote new investment in Mukdahan by setting up a special economic zone (SEZ) with full infrastructure and facilities as well as incentives from the Board of Investment, he said.
The provincial authority conducted a feasibility study into a plan to invest 2-3 billion baht in developing an airport and other logistics infrastructure in Mukdahan. The study is due to be submitted for cabinet approval soon, said Mr Sorasit.
Mukdahan’s location in the centre of the EWEC is a draw, linking millions of products from India, Myanmar, Thailand, Laos and Vietnam. Moreover, the link could be extended if China’s “One Belt, One Road” policy includes a rail system throughout Asean.
Rail lines from India to Myanmar and Thailand are under construction, such as the 1,600-kilometre project that includes India’s Manipur, Myanmar’s Mandalay, Thailand’s Mae Sot and Mukdahan, Laos and southern China, he said.
Mukdahan is a major border trade checkpoint where millions of goods and auto parts from Thailand’s Eastern Seaboard are transported to another production base at the Savan Seno SEZ in Laos, said Mr Sorasit. Industrial products from the Laos SEZ could also be transported to Laem Chabang deep-sea port for shipment, he said. Mukdahan is also an important checkpoint for electronics parts exports from eastern industrial estates to assembly plants at the Savan Seno SEZ.
Source: http://www.bangkokpost.com/business/news/1267431/mukdahan-envisions-border-bonanza