Thailand's Corridor Town Development

along the East-West Economic Corridor

　　　　　　　　SeksonＹＯＮＧＶＡＮＩＴ＊

Introduction

　The plan to construct ａ transport corridor from

Myanmar to Vietnam via Thailand by the ADB has

resultedin the opening of the East-West Economic

Corridor (EべNEC), a route linking Myanmar, Lao

PDR, Thailand and Vietnam. Thailand has expanded

itshighways to connect with Lao PDR and to Hue

and Da Nang, Vietnam on the eastern side and on

the western side to Myawaddy, Myanmar. The

availabilityof this economic route also has been

highly anticipatedto boost economic growth in the

immediate areas and among neighboring countries･

Thailand has extended the route to its connect-

ing borders with Lao PDR and Myanmar, which

is currently constructing the transport corridor to

Mawlamyine, ａtown expected to become an impor-

tantport in the near future.

East-West Economic Corridor Towns in Thailand

　The East-West Economic Corridor has significant-

ly contributed to the speedy growth of development

within the towns along the route, particularlythe

border towns between Thailand and Myanmar (Mae

Sot and Myawaddy) and also between Thailand

and Lao PDR (Mukdahan and Savannakhet). These

four main border towns have played ａ crucial

role in the growth of economic and commercial

development within their specific sphere of influ-

ence. With regard to the central part of Thailand,

the North-South Economic Corridor (NSEC) starts

from Kunming in China and goes via Myanmar to

the north of Thailand, passes through the central

and southern region and will be linked to Malaysia

and Singapore. The point where the ＥべMEC and

NSEC cross is located at the town of Phitsanulok,

also known as“The Indo-China Junction”.The geo-

graphical location of Phitsanulok gives it an advan-

tage as the transportation and produce distribution

depot while the two corridors serve as the driving

force for economic development in this area｡

　Another important economic route within the area

of the Greater Mekong Sub-region is the highway

that links Kunming to Lao PDR. The route runs

through Vientiane to Thailand and connects with the

East-West Economic Corridor at the town of Khon

Kaen, the center of development in the northeast-

em region. Khon Kaen is the second-largest of the

northeastern provinces, ａ university town which is

home to regional government offices. Khon Kaen

is also the economic center of the region, therefore

making it the natural central point of the East-West

Economic Corridor.

　There are four central areas of the East-West

Economic Corridor in which each place or town has

a different level of economic development which is

dependent upon their geographical conditions, ad-

ministrative management and the capabilities of the

local units or organizations. This article will focus

on the strategic plan, administrative management,

and the success or failure of Mae Sot town.

The role of EWEC in Thailand

　The　Asian　Development　Ｂａｎｋ（ＡＤＢ）has

given support to the development of the East-

West Economic Corridor pr（!ject since 1 992. In

1991 Thailand, under the government of General

Chatchai Chunhawan, announced ａ policy to turn

the conflicts within the area of the Greater Mekong

Sub-region into trade. Under this policy, each prov-

ince was required to devise its own investment plan.

Northeastern provinces, in particular, had focused

their plans on investment in infrastructure includ-

ing the construction of roads, railways and airports.

Ａ related seminar was organized in Khon Kaen to

brain-storm effective strategies for the plan with the

participants coming from various backgrounds in

both public and private sectors. One participant in

particular, who was a businessman, had raised the

* Administrative Development Program, Humanities and Social Sciences Faculty, Khon Kaen University, Thailand

-

１　－

Regional Views　Ｎ０. 24　2011

Fig. 1.　CorridorTown Development along the East-West Economic Corridor

concept of an East-West Economic Corridor that

would facilitate the link from Khon Kaen to Vietnam

and Myanmar. However, the idea was then very new,

so received only limited attention. Subsequently the

investment plan for Khon Kaen failed to mention

the link of the East-West Economic Corridor con-

cept in the plan implemented, at that time｡

　Then in 2003, the Thai government announced

ａ policy to build economic ties between Thailand

and neighboring countries in order to develop and

enhance the country's economy as well as create ａ

local link with the global economy. This policy was

encouraged in an attempt to facilitate Thailand to

be more competitive at an international level. Both

North-South and East-West Economic Corridors

would also make Thailand the center of economic

development in the Greater Mekong Sub-region･

Moreover, the northeastern region of Thailand

which is the poorest part of the country would also

benefit from this development｡

　To implement the policy, the government advised

the city mayors to set up a group of4 or 5 provinces,

so-called ‘clusters' which were located in the same

development area categorized in the 1 992 invest-

ment plan for infrastructure. These clusters would

also be grouped into regional areas and required to

-

devise ａ strategic plan at regional level. Regional

groups such as the northern and northeastern would

then be divided into provincial groups which were

required to propose ａ strategic plan for developing

the province group. The results from the process in

the northern and northeastern regions showed that

the strategic plan of all clusters had included the

strategy to link their areas to the North-South and

East-West Economic Corridors. Even those groups

that were not situated along the routes had attempted

to create such ａ connection.

　The　Internet　search　for　the　word

jｕｍヽ^ifliiHffin)四仇i〕i〕ｎ四仇gin(meaning East-West

Economic Corridor) currently shows up on more

than 1,050,700 websites which provide a11 related

information, such as investment, transportation and

international trade, but most of this information con-

cems tourism and travel among the five countries

including China, Vietnam, Lao PDR, Myanmar and

Thailand. The beginning of 2008 saw the opening

of the 丘rst direct air-conditioned bus service from

ＫＩ!on Kaen to Vientiane and from Mukdahan to

Hue in Vietnam as well as the route from Mae Sot to

Mukdahan (Table 1).

２－

Thailand's Corridor Town Development along the East-West Economic Ｃｏ�dor(Yongvanit)

　　　　　　　　　　　　　　　Table 1. Public Bus Schedule

Year DestinationTwo-ways PublicBus DepartureDistance/

Kilometer

Duration/

　Hours

Price/

US＄

2008 Khon Kaen To Vientaine Air-con Daily 270 ５ ６

2008 Mukdahan To Hue Air-con Daily 350 ８ 13

2009 Mae SotTo Mukdahan Air-con Daily 2 Buses 810 13 18.5

Case study: Mae Sot/SpecialBorder Economic

Zone

　Mae Sot is situated in Tak province, which shares

ａ border with Myanmar. The Moei River serves

as ａ natural border between Mae Sot and the town

of Myawaddy. The area of Mae Sot covers 1,986

square kilometers with a total population of 120,569

inhabitants. The Thai-Myanmar friendship bridge

was built in 1 997, with aim of facilitating trade

between the two neighboring countries. The govern-

ment's development plan of 1998 aimed to develop

and promote Mae Sot as ａ city of international trade

and ａcenter for tourism activities. Later in 2003, the

government announced ａ strategic plan to develop

the border area by building up the network and link-

ing up with neighboring countries. The pr(!ject also

included the setting up of both overall and specific

city plans. The main policy was to tackle problems

and develop ａ community basic structure. It also

aimed to encourage the establishment of an indus-

trialpark, ａ consumable goods depot and an inland

cargo depot while developing human resources and

environmental protection｡

　Tak Chamber of Commerce (TCC) played an ac-

tive part in pushing forward a11 related policies by

working closely with the Governor of Tak Province

(ＴＰ)，ＴａｋProvincial Administrative Organization,

businessmen and others from the private sectors.

The direction of the Tak development plan was

to develop effective teamwork and to enhance its

national trade to the international market. The team

was responsible for making effective strategies and

cooperating　with　national　organizations.　Policy

follow-up was also exercised to ensure the imple-

mentation of the plan｡

　Mae Sot was announced to be ａ Special Economic

Zone in 2002, followed by the land development

project of Tak province which aimed to develop

the industrial park, consumable goods depot, busi-

ness center and inland cargo depot within the area･

However, there was little evidence of further imple-

mentation of this policy in the following years up to

-

2005. Then in 2006, ａ government policy declared

皿area of ４００acres to be used for the 1皿d develop-

ment plan and this time, a feasibility study of the

area was carried out. This progress was then fol-

lowed by the action plan to set up the consumable

goods depot, business center, inland cargo depot, tax

free zone and one stop service within the area｡

　In the middle of 2009, TCC organized ａ meeting

with the Ministry of Industry to address the Mae

Sot land development plan and its progress. Ｍr･

Chaiwth Seneetantikul, the chairman of the Tak

Industrial Association had addressed the slow prog-

ress of Mae Sot land development plan, particularly

the plan to establish the industrial park which had

been intended since 2006 but was stillat the‘pend-

ing' stage. There was no further discussion about

specific directions of the plan and how it could be

implemented｡

　In terms of transportation development, TCC had

proposed a highway expansion plan which aimed to

expand the highway from Tak province to Mae Sot

to ４ lanes. This pr（!jecthad been active since 2004

but it was only towards the end of 2008 that it was

officially included in the 2009－20 1 1 TCC develop-

ment policy which was also set to expand the high-

way to ４lanes. Moreover, TCC was also working in

cooperation with the govemment to activate ａ plan

Ｒ）rconstructing a railway from Tak to Mae Sot. The

physical survey and feasibility study of this plan had

already been carried out in 2007. Air transportation

development showed little improvement in ser-

vices and availability. Phuket Airlines which oper-

ated from Bangkok to Tak had ceased its services in

2005｡

　However, two years later, the governor of Tak

province had approached Air Asia to open ａ new

route between Bangkok and Tak while the TCC had

been in talks with the PB Airlines. In January 2009,

PB Airlines opened its 丘rst service offering return

flights from Bangkok to Mae Sot and Mae Sot to

Bangkok available on Monday, Wednesday and

Friday each week. TCC was highly credited as be-

ing the driving force for this success｡

　For TCC and TP, another main focus is to develop

３－

Regional Views　Ｎ０. 24　2011

human resources to support the land development

of Mae Sot. These organizations set the policy for

human resource development and labor adminis-

tration. This resulted in ａ number of TCC related

seminars, conferences and training courses such as

Intemational business, Border trade or Intemational

Trade Management, during the year 2006-2009.

TCC has also provided funding for related research

projects to ａ number of institutional organizations･

TCC main policy for 2009-20 1 1 has focused on

strengthening manpower capability｡

　Moreover, the organizations have also paid spe-

cific attention to the area of tourism by arranging

the Mae Sot Mountain Bike Cross Country 2008

and promoting Mae Sot as ａplace for adventure and

eco-tourism. The Thai government supported the

project of building the highway from Myawaddy to

Kawkareik District which can link to Mawlamyaine

town in Myanmar. TCC and TP had proposed to

promote Mae Sot as the tourism hub of the area

by integrating Tak tourism with Myawaddy and

Mawlamyaine｡

　According to the 2002 government policy, which

promoted twenty border towns in Thailand to be

economic towns, Mae Sot city had achieved the

goals set for this policy by setting up a city plan and

developing major public facilities. In 2008, Mae

Sot municipality had improved its public facilities

Government PolicySpecial Eo

．．４で

１，

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Challe

Zone

such as the water pipe system, water sewage pipe

皿d sewage management to ensure that Mae Sot is

ａ healthy and green city.The project for 2009-20 1 1

includes flood protection and ａ new city plan to ex-

pand the municipal area to the northern part of the

city,in the direction of Amphoe Mae Lamat｡

　TCC, TP and Mae Sot Municipality's slogan

is to promote Mae Sot as ａ gateway to Myanmar

through its connection with Myawaddy which is

described as its sister city and economic partner. In

2006, TCC had agreed to arrange ａ monthly meet-

ing between the customs officers of Myawaddy and

Mae Sot to discuss a11 related issues, followed by ａ

monthly meeting which has taken place since 2007.

This practice is an effort by TCC to maintain ａ good

relationship with Myawaddy. This year the two

sister cities arranged ａ friendship sports match and

TCC also took an educational trip to Myawaddy, to

observe the city trade area which has been declared

ａ Special Economic Zone. The industry zone and

trade center covers 400 acres and takes up a total

area of almost 500 acres. The future plan is to estab-

lish the business and service centers for export and

import｡

　TCC and TP policy for 2009－20 1 1　also at-

tempts to push forward the land development plan,

particularly those imfinished pr(!jects such as the

industrial park project, consumable goods depot

ｓｓ－７；；こ･；.：一岫岫岫恟

. Mae Sot

Tak Provin

Living C

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Infrastructure

Transportation

HRD

ighway 4 lanes

way

New

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Tourist

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Myawaddy

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Myawaddy Special

　Economic Zone

　　Industry Park

　　　　　Business Center

　　Service center for

　　Import and export

Fig. 2.　General Framework of Development in Mae Sot Area

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４　－

Thailand's Corridor Town Development along the East-West Economic Ｃｏ�dor(Yongvanit)

and one stop service, 4-lane highway from Tak to

Mae Sot, airport expansion as well as the 30 km

transport corridor from Myawaddy to Kawkareik

District which will be the route that links Mae Sot

to Mawlamyaine. The future plan includes ａ Long

Distance Transportation Station pr(!ject,ａ second

Thai-Myanmar bridge link, work skills training

center, contract farm, the Tak-Mawlamyaing ‘One

destination pr(!ject'and Mae Sot Tax Free Zone｡

　The Thai export industry to Myanmar via Mae

Sot has achieved an impressive record of success

over recent years. In 2004, Thailand's export val-

ues increased to US$445 million from the pervious

US$335 million while the import values accounted

for US$30 million. This success is vmdeniably due

to the joint efforts of all stakeholders, such as TCC,

the public and private sectors and the local govern-

ment. Despite slow progress in some ｐr(!jects,TCC

and TP have continued with their efforts in order

to achieve the government policy goals. Their en-

deavor obviously serves as a driving force for the

economic growth and development of Mae Ｓｏt｡

　Other areas that TCC has focused on include

the development of local businessmen to enable

them to enhance the scope of their business to an

international level, the development of manpower

capability and educational training in areas such

as languages, culture and work skills for migrant

laborers from Myanmar. TCC and TP have formed ａ

close working relationship and initiated an exchange

of culture, tradition and activities with the local of-

ficials from both countries to ensure effective coop-

eration in the long term｡

　Given the example of the Mae Sot border city ex-

perience, it is clear that development takes time and

requires govemment support and the involvement of

all stakeholders as the keys to success. In the case of

Mae Sot, when considering all contributors, includ-

ing TCC, the municipality, district administrative

councils, businessmen, traders and local people,

TCC is clearly the most significant stakeholder and

the driving force behind the city's successful devel-

opment.

-

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