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TRANSCRIPT
Presentation by Mr. Arkhom Termpittayapaisith
Deputy Minister of Transport and Secretary – General
of the National Economic and Social Development Board of Thailand
to the Mekong – Five Economic Forum
as part of the 7th Mekong Japan Summit
Tokyo, July 3, 2015
Regional Integration through Dawei Development Project
2
Topics of today's presentation
Overview of Dawei Special Economic Zone 1
Dawei SEZ as a Regional Gateway 2
Reinforcement through Thai Special Economic Zone Development 3
Cooperation between Thailand and Myanmar on Dawei SEZ 4
Current Status of Dawei SEZ 5
3
Dawei SEZ - Introduction
Dawei SEZ is located in Tanintharyi Region of Myanmar, adjacent to the Andaman Sea and ~130 km from the Thai border
Source: Dawei SEZ , NESDB, Ministry of Immigration and Population; Roland Berger
Location
> Located in Southeastern Myanmar, the
Capital of Tanintharyi Region, which
has 1.4 m population in 2014
> Strategically located adjacent to the
Andaman Sea and near the Gulf of
Thailand
Size > 196.5 km2
> One of the largest SEZs in Asia
Yangon (MM)
Vung Tao (VN)
Thai-Myanmar border (Ban Phu Nam Ron)
Bangkok (TH)
Eastern Seaboard (TH)
Chennai (IN)
Distance to
key
locations
OVERVIEW
> Distance (km.) from DSEZ to:
300
450
600
132
1,200
1,050
Andaman Sea
Myanmar
Thailand
Cambodia
Laos
Dawei Kanchanaburi
132 km
Tanintharyi
Gulf of
Thailand
1 Overview of Dawei SEZ
4
Dawei SEZ strategic location: new gateway to the West
Dawei SEZ opens a new gateway to the West, linking India, Europe, Africa and Middle East with ASEAN & East Asia
Source: Globalasia, NESDB, Roland Berger
1) from 4,500 km via the Malacca Strait vs 2,500 km via Dawei's deep sea port; 2) Mekong-India Economic Corridor
2 Dawei SEZ as a Regional Gateway
New gateway to the West Key highlights
Kunming
Nanning
Bangkok
Singapore
Dawei China, Japan, Taiwan, Korea
Vietnam
Thailand
China
India
Europe, Africa & Middle East
Traditional sea route Potential land-based routes vie Dawei
> Strategic location: New gateway to the West connecting Indian
and Pacific Oceans
– Linking between Southeast Asia and South Asia,
the Middle East, Europe and Africa
– Providing alternative trade route to the Strait of Malacca –
with time and cost savings on logistics
– Shortening the distance by approximately 50% or 2,000 km
and reducing 3 days of the shipment time from Bangkok to
Chennai, India1)
> Connecting GMS Southern Economic Corridor markets to
the West: ~USD 120 bn total trade flow of Thailand, Cambodia,
Vietnam to the Western markets
> MIEC2) linkage: complete linkage to India via Chennai – Dawei's
deep sea port
> Dawei SEZ will support Myanmar's regional development
throughout the southern area as there are no big cities in the
southern area except Dawei and Myeik
ESB Cambodia
5
Dawei SEZ completes the GMS Southern Economic Corridor
Dawei SEZ completes GMS Southern Economic Corridor, connecting regional supply chain linkage through Thailand's Eastern Seaboard
Source: NESDB
Kanchanaburi Bangkok Sisophon
Siem Reap
Phnom Penh Ho Chi Minh City
Vung Tau
Quy Nhon
Southern Economic Corridor
Myanmar
Eastern Seaboard
132 km
300 km
450 km
Dawei
2 Dawei SEZ as a Regional Gateway
GMS Southern Economic Corridor Key highlights
> Complete GMS Southern Economic
Corridor: Dawei SEZ establishes regional
connectivity and creates land bridge from
DSEZ – Bangkok – ESB – Phnom Penh –
Ho Chi Minh
> Supply chain linkage with Thailand's
Eastern Seaboard (ESB): co-manufacturing
linkages with the ESB and inducing the
economic activities along the corridor
> Strong economic and political linkage to
ASEAN
> Economic and social development:
job creation, enhanced livelihood and
basic infrastructure improvement
6
Dawei SEZ will be reinforced by the development of Special Economic Zones in Thailand, along the GMS Economic Corridors
3 Reinforcement through Development of Thai SEZ
Source: NESDB
Target Areas for Thai SEZ Development Key highlights
Target SEZ in Thailand
> 10 target areas under the 1st and 2nd phase SEZ
development are located along the GMS Economic
Corridors
> Factors for determining target areas:
– Potential and Competitiveness
– Opportunities
– Infrastructure availability
– Production factors in areas
– Border trade value
– Development policies of the neighboring countries
– Problems/Constraints
Central corridor
East – West corridor
Eastern corridor
North-South corridor
Western corridor
Southern Coastal corridor
Northern corridor
Southern corridor
7
Thailand's SEZ will be supported by incentives and privileges, one-stop-service centre and infrastructure
3 Reinforcement through Development of Thai SEZ
Thailand SEZ development framework
Source: NESDB
Enhance regional economic integration + Lower disparities
+ Strengthen National Security
The 1st phase SEZs are located in the border areas
Designated
Area OSS
Migrant
Labor
Agricultural
produce Center Incentive &
Privilege
Infrastructure &
Customs
Checkpoint
Special Economic Zones
8
Border SEZ is one of the potential economic areas development in Thailand
3 Reinforcement through Development of Thai SEZ
Source: NESDB
Border SEZs
• Have Potential for trade and investment
• Strengthen Connectivity with neighboring countries
• Utilize AEC
• Improve livelihood of people
• Focus on potential local economic activities + labor
intensive industries and logistics
e.g. Mae Sot, Sakaeo, Mukdahan
Border SEZs 1 Inland Area 2
Important Production Base
• Distinguish area / major production base of the country e.g. IT Industry
• Locate near Port and export channel
• Most of them are industrial estate or service industry.
e.g. Nakhon Ratchasima, ESB
Business uses high technology to support national industrial restructuring and has less benefits than border SEZ (but more advantage in Infrastructure)
Industrial Cluster 2.1
Provincial Cluster Areas/ Tourism Provincial Cluster
• Unique Areas e.g. island, world heritage sites
• Good transport system e.g. airport, train, port
• Service business e.g. hotel, shopping center
• Opportunities to develop for convention & exhibition business
Tourism / Free Zone 2.2
Areas for Specific Purpose Activities
• Granting benefit for special attractive business investment
• Potential business e.g. Science Park, Research and Development
Center, Duty Free, IHQ (International Headquarter)
Innovation 2.3
9
Thailand's SEZ will be complementary with the development of Dawei SEZ
3 Reinforcement through Development of Thai SEZ
Thailand SEZ : 1st and 2nd phase development
Source: NESDB
> Thailand's SEZ are targeted to be
complementary with Dawei SEZ, focusing
on industries and services that would be
mutually reinforcing with Dawei SEZ,
namely :
• Agro-industry, fishery industries
• Ceramic products manufacturing
• Textile and garment industries, and manufacture of
leather products
• Manufacture of furniture or parts
• Manufacture of gems and jewelry or parts
• Manufacture of medical devices or parts
• Manufacture of engine and vehicle parts, and
manufacture of machinery, equipment, and parts
• Electronics and electrical appliances industries
• Manufacture of plastic products
• Manufacture of Medicine
• Logistics
• Industrial zones / industrial estates
• Tourism promotion service
> Boosting value chain integration along the
GMS corridors
Tak
Cambodia
Laos
Thailand
Chiang Rai
Nong Khai
Nakhon Phanom
Mukdahan
Sa Kaeo
Trat
Kanchanaburi
Songkhla
Narathiwat
10
The Thai government has been fully supporting the development of Dawei SEZ, in close collaboration with the Myanmar government
Prime Minister President
Deputy Prime Minister Vice President
Minister Minister
Joint High-Level Committee (JHC)
Joint Coordinating Committee (JCC)
Joint Sub-Committee (JSC)
Thai Minister
Myanmar Deputy Minister
Thai Minister
Myanmar Deputy Minister
Thai Minister
Myanmar Deputy Minister
Thai Minister
Myanmar Deputy Minister
Thai Minister
Myanmar Deputy Minister
Thai Minister
Myanmar Deputy Minister
1. Infrastructure & Construction
2. Focuses Industry & Business Development
3. Power & Energy 4. Community Development & Relocation
5. Rules & Regulation 6. Finance
Policy-level
Coordination-level
Implementation-level
Source: NESDB
Myanmar – Thailand collaboration structure for Dawei SEZ
4 Cooperation between Thailand and Myanmar on Dawei SEZ
11
Thai and Myanmar governments have been working together on the Initial Phase development as well as the Full Phase Master Plan
Source: Roland Berger
Full-phase – Illustration II
Infrastructure overview – Initial Phase vs. Full-phase
Ambition
2 lane road Small port Initial industrial
estate
Small power plant(s)
Telecom landline Small water
reservoir Initial township
More residential housing
Deep sea port
Service industry & Commercial firms
Commercial development
Steel and fertilizer plants
Expanded/new power plant
Factories & more industrial estate
Crude oil refinery
Tourism
Chemical factories
Recreation complex
Resort
Time Initial projects to materialize launch … ... that will lead to much bigger projects in
the future
LNG terminal
Initial-phase – illustration I
5 Current Status of Dawei SEZ
12
For example, the Thai government has submitted a soft loan proposal for the 2-lane road between Thailand and Dawei SEZ
Dawei SEZ – Current status
Initial Phase
> Negotiations with selected developer have been finalized, including initial industrial estate of 27 km2, power plant, water supply, telecom landline, LNG terminal, initial township, 2-lane road, small port
> Signature expected by July – August 2015
Full Phase master plan
> Long-term master plan has been developed, including:
– Target industries
– Required infrastructure
– Spatial plan
> Soft loan for the construction of the 2-lane road between Dawei SEZ and Thai border (pending Myanmar government approval)
> Funding of the development of the master plan
> Signatory party to the MOI with Myanmar and Japan regarding further collaboration in the long-term development
Source: Roland Berger
Status
Support from Thailand already provided
5 Current Status of Dawei SEZ
13
5 Current Status of Dawei SEZ
The infrastructure development plans to enhance connectivity between Dawei SEZ and Thailand
Andaman Sea
Gulf of Thailand
Myanmar
Thailand
Laem Chabang deep sea port
DSEZ deep sea port
and industrial estate
construction projects
Bangkok Ban Phu Nam Ron border
Kanchanaburi
Bang Yai
Nakhon Pathom
Infrastructure Development in Myanmar
i.e. Road and Port
1 Border Development
i.e. NSW & Kanchanaburi border SEZ
2 Domestic Development in Thailand to enhance logistic infrastructure and Economic areas
i.e. Motorway & Railway
3
The 2 – Lane Road linking DSEZ Motorway Bang Yai (Bangkok) – Kanchanaburi to MM/TH Border
The current existing routes in TH Motorway Kanchanaburi – Ban Pu Nam Ron
Source: NESDB
DSEZ – MM/TH border – Kanchanaburi – Bangkok – ESB
Eastern Seaboard
14
In summary, Dawei SEZ is of strategic importance for the region, which is why the Thai government has been supporting its development
Summary
Summary
> Dawei SEZ opens a new gateway to the West, linking India, Europe, Africa and Middle East with ASEAN & East Asia
> Dawei SEZ completes GMS Southern Economic Corridor, connecting regional supply chain linkage through Thailand's Eastern Seaboard and beyond
> Dawei SEZ will be reinforced by the development of Special Economic Zones in Thailand, along the GMS Economic Corridors
– Thailand's SEZ will be supported by incentives and privileges, one-stop-service centre and infrastructure
– Thailand's SEZ will be complementary with the development of Dawei SEZ, for example focusing on higher value added services
> As a result, the Thai government has been fully supporting the development of Dawei SEZ, in close collaboration with Myanmar, providing concrete commitment to the project
Source: NESDB, Roland Berger
Questions and Answers
16
Back Up
17
Incentives & Privileges offered in the SEZs
SMEs Revise condition for SME’s investment in SEZs by BOI
Customs Revise condition for establishment of bonded warehouse and duty free zone in the SEZs
by Customs Department
Ministry of
Finance Reduce taxes from 20% to 10% for 10 accounting periods*
* for projects that are not include in BOI’s investment promotion list
BOI Offer up to 8 year-tax holiday* with other privileges
including permission to employ foreign unskilled workers
* 13 target activities will get 8 year tax holiday, others will get +3
3 Reinforcement through Development of Thai SEZ
18
Target Activities Tak
(13)
Sa Kaeo
(12)
Trat
(4)
Muk
dahan
(5)
Song
khla
(6)
Nong
Khai
(5)
Chiang
Rai
(10)
Kanchan
aburi
(13)
Nakhon
Phanom
(13)
Nara
thiwat
1 Agro-industry, fishery industry, and related
activities
All
eligible
activities
list
in the
Announc
ement
of BOI
no.
2/2557
2 Ceramic products manufacturing
3 Textile and garment industries, and
manufacture of leather products
4 Manufacture of furniture or parts
5 Manufacture of gems and jewelry or parts
6 Manufacture of medical devices or parts
7 Manufacture of engine and vehicle parts, and
manufacture of machinery, equipment, and
parts
8 Electronics and electrical appliances
industries
9 Manufacture of plastic products
10 Manufacture of Medicine
11 Logistics
12 Industrial zones / industrial estates
13 Tourism promotion service and activities to
support tourism
13 Target Activities by each SEZ