Key Policy of Thailand Special Economic Zone

Abstract

Indonesian government is now aiming to develop SEZs as investment destination that have special policy to attract foreign direct investment (FDI). This strategy is intended to bring higher economic growth as the country wants to boost the performance of manufacturing sector. However, there are some cases of unsuccessful SEZs as the government of the countries fail to develop competitive SEZs. Thus, it is important for Indonesia to learn from other countries, particularly its competitive neighboring countries, such as Thailand of how this country can develop its SEZs. Thailand is becoming the center of world class manufacturing through the development of SEZs. This qualitative study aims to gives ideas on how Thailand develops its SEZs by looking at several factors, such as political-economy landscape, industrial policy, investment services, growth of SEZs, global value chain participation, and green industrialization. This research finds out that SEZ’s contribution towards FDI growth in Thailand has fluctuated in recent years due to political instability and tighten environmental policy. This study also reveals that Thailand has very clear industrial objectives with coherent investment incentive schemes as the main attractiveness for investors.