16 June 2017
THAILAND: Land Rent Slashed on Latest Tranche of SEZ Sites
Land rents are to be slashed in a bid to boost investor interest in the latest tranche of Special Economic Zones (SEZs). According to the Thai Treasury Department, this will come in to effect with regard to the proposed new SEZs set to be established in 10 provinces across the country, namely Tak, Sa Kaeo, Songkhla, Trat, Mukdahan, Chiang Rai, Kanchanaburi, Narathiwat, Nakhon Phanom and Nong Khai. It is hoped that the rental cuts will provide a sufficient incentive to attract investment in those areas still requiring a substantial infrastructure upgrade.
The rent reductions will only apply to SEZ projects that have not yet been opened for tender. The introduction of these incentives also coincides with moves to liberalise the process of approving the conversion of state-owned land for SEZ use. To date, the next round of land auctions with regard to SEZ developments has yet to be formally scheduled.