The Regional Development Policy of Thailand

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Thailand regional development policy actually starts from the 3rd socio-economic plan (1971-76). The policies focus on two strategies such as decentralization of industries and development of growth centers or cores in local regions. In 1980, Thailand succeeds in industrialization by attracting foreign direct investment. Development of policy focuses on industrialization becomes mainstream even in local regions. Regarding decentralization of industry, the Board of Investment (BOI) enacts the Investment Promotion Act in 1977 and promots inducement of foreign direct investment.

Later, in the revision of the act in 1987, Thailand divides into three zones. Specify industries to be established in each zone and give high tax incentives to zone 2 and zone 3 locates at remote from the metropolitan area.

In the 7th development plan, nine provinces specify as “industrial development centers” in succession of “regional urban growth centers” concept. A vision of wide range development adds to designate “new economic zones”. At the same time, the provision of infrastructure emphasizes as the important task.

In the 8th development plan, opportunity of industrial development creates by setting up special economic zones and tax-free zones. It encourages along the borders to promote trade and investment inside Thailand and neighboring countries.

In the 9th development plan, the development includes potentiality of each region for balanced regional development. Also targets and strengths economic relations and mutual prosperity in regions.

The Regional Development Policy of Thailand

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