Bridge holds key to Nakhon Phanom boom

Bridge holds key to Nakhon Phanom boom

Province urged to 'unlock its potential'

A view from the Third Thai-Lao Friendship Bridge overlooking Thakhek in Laos from the border province of  Nakhon Phanom. (File Photo by Nauvarat Suksamran)
A view from the Third Thai-Lao Friendship Bridge overlooking Thakhek in Laos from the border province of Nakhon Phanom. (File Photo by Nauvarat Suksamran)

Nakhon Phanom must commercialise its land surrounding the Third Thai-Lao Friendship Bridge to "unlock its potential" as a main logistics hub for international trade in Asean and southern China, Northeastern Thai Industries Federation chairman Viroj Pipatchaisiri says.

The province has so far been unable to financially benefit from its "advantageous" location, bordering eastern Laos over the Mekong River, he said.

The 1.4km-long bridge connects Nakhon Phanom's Mueang Nakhon Phanom district to Thakhek town in Khammouane province, Laos.

It is normally used as a trade route for goods traveling to and from Laos, Vietnam and southern parts of China.

"We can observe that all this money is passing through Nakhon Phanom, but virtually none of it actually goes to the province itself, because it is considered a transit area," Mr Viroj said Sunday.

"If more factories are built in the province, the population will soar, due to the increased amount of employees stationed there.

"This will surely pave the way for businesses such as restaurants, hospitals and health clinics, which will lead to money being generated and remaining in Nakhon Phanom," he added.

Prime Minister Gen Prayut Chan-o-cha invoked Section 44 of the interim charter to establish a special economic development zone (SEZ) in Nakhon Phanom in late 2016.

To attract investors, the special economic zone allows import tax and logistics-related fee deduction benefits for businesses that are seen to promote economic activities in the area.

Nakhon Phanom's 450,000-rai special economic zone comprises parts of the province's Muang Nakhon Phanom and Tha Uthen districts, covering around 13 sub-districts. A subcommittee chaired by Interior Minister Gen Anupong Paojinda earlier reached an agreement to set aside 2,938 rai of land around the bridge for initial industrial development, due to its proximity to neighbouring Laos.

This part of the SEZ will be under the Treasury Department's supervision.

The invocation of Section 44 to establish SEZs in provinces across the country has been met with mixed reactions from pundits and members of the public.

Proponents of the government's move say it is a sure-fire way to kick-start economic developments in underdeveloped provinces.

Others remain wary of the possible, sudden effects of unregulated industrial production.

Wacharin Jiaviriyaboonya, president of the Nakhon Phanom Federation of Industries, said the use of Section 44 to establish this SEZ has eliminated the need for lengthy discussions over what to do with the land, particularly when sections of land eyed for economic development are owned by different bodies.

"Discussions with authorities like the Customs Department and the Treasury Department would have taken several years before anything tangible came about," Mr Wacharin said.

"There needs to be a start, and we believe this [SEZ] can act as a jolt for us in terms of economic development," he said.

According to Nakhon Phanom's website, the province has been placed at 57th in gross provincial product (GPP) rankings countrywide, with an annual GPP of about 73,000 baht per capita, as of 2013.

Bangkok, ranked 1st on the list, had an annual per capita GPP of about 466,000 baht.

"At the moment Nakhon Phanom lacks an able workforce to carry on these developments," Mr Wacharin said.

"The people must know they can capitalise [on the establishment of the SEZ].

"Academic institutions like Nakhon Phanom University should ideally change their curricula to keep up with these changes, something that will likely occur in the coming years," he added.

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