Govt plans special economic zone

via Khmer NZ

Published: 30/08/2010

PHNOM PENH: The government plans to set up a special economic zone in Sa Kaeo to boost trade and investment ties with Cambodia, Deputy Commerce Minister Alongkorn Ponlaboot says.

Mr Alongkorn said in the Cambodian capital the government would consider a special zone for trade in Aranyaprathet district in Sa Kaeo.

The zone would be linked with Cambodia's 2,500 rai investment area which has been established at Poipet and O'Neang opposite Ban Pa Rai in Aranyaprathet.

The Commerce Ministry would hold talks with other agencies on the plan which was expected to be forwarded to the economic ministers for approval in three months, he said.

The special economic zone would be the second with neighbouring countries after the first which straddles Mae Sot district in Tak and Myawaddy in Burma. A special economic zone would give entrepreneurs more investment flexibility through such things as relaxed labour rules.

Mr Alongkorn, who travelled to Phnom Penh by road from Aranyaprathet, identified contract farming and the processed food industry as potential investments in the zone.

"Now the United States is the top trade partner with Cambodia followed by Thailand," Mr Alongkorn said in talks with Cambodian Deputy Prime Minister Nhek Bunchhay, Deputy Commerce Minister Kim Sitan and Information Minister Khieu Kanharit.

"The new cooperation on the economic zone with Cambodia will keep Thailand as a top partner with that country."

The plan was part of a Thai strategy to open more economic links with its neighbours and came under the Mekong subregional cooperation scheme, Mr Alongkorn said.

Nhek Bunchhay supported the plan, saying industries to be set up in the proposed zone would help end problems associated with the influx of illegal Cambodian workers into Thailand. More than 100,000 Cambodians work illegally in Thailand, including Bangkok, he said.

The Thai economic zone would allow Cambodians to cross the border to work and return home again on a daily basis, Nhek Bunchhay said. It also would contribute to peace and development, and reduce border conflicts.

"Developments along our border can take place if we help turn the boundary into a border of peace and sincerity," the Cambodian deputy premier said.

Nhek Bunchhay called for the two countries to quickly find ways to resolve the disputed territory on the border.

Khieu Kanharit urged the media in Thailand and Cambodia to play a role for the two countries to foster economic cooperation and create better understanding.