Remote provinces of Thailand, as well as regions located along major transport routes and future economic corridors, are attracting increasing interest from foreign investors who have already begun acquiring land for the expansion of trade and manufacturing.
Surachet Kongcheep, Deputy Head of the Research Department at the international consulting firm Colliers International Thailand, stated that the most promising areas are in the North: Tak Province (Mae Sot district) and Chiang Rai Province (Chiang Khong district).
In Mae Sot, located on the border with Myanmar, the construction of hotels and condominiums is actively underway. This area is expected to gain even more popularity following the Cabinet’s decision to develop a 9 sq. km zone and attract additional investment.
In Chiang Khong, which is being developed as a special economic zone, Chinese investors are purchasing land plots for wholesale centers and commercial buildings. Mr. Surachet noted that the area’s potential is growing: a new bridge across the Mekong River was scheduled for completion in late 2013 or early 2014, while a port for exporting goods to China had already opened at the end of 2012.
The city of Phitsanulok, located in northern Thailand, is also a key junction of the country’s western and northeastern economic corridors. A future high-speed railway connecting central Thailand with other provinces will pass through this city. As a result, Chinese investors have also shown interest in Phitsanulok and are already acquiring land for factory and industrial development.
In the South, near the Malaysian border, in the towns of Sadao and Hat Yai in Songkhla Province, Malaysian investors are funding the construction of rubber processing plants.
In Ranong Province (southern Thailand, bordering Myanmar), Thai, Malaysian, and other foreign investors are purchasing land to build seafood processing factories, with products intended for export to China and Malaysia.
Mr. Surachet emphasized that border provinces have strong potential for the development of industrial parks, office buildings, hotels, serviced apartments, as well as residential and commercial real estate.
Overall, experts expect that following the establishment of the ASEAN Economic Community in 2015, remote provinces outside central Thailand will attract even greater interest from foreign investors.
Source: Bangkok Post