The ongoing trade war between the US and China poses potential threats to our economy, which has been stagnating for many years. But there is still hope for the new coalition government of Prime Minister Prayut Chan-o-cha to revive the country's economy -- by boosting border trade.
The multi-billion-baht border trade has been one of the casualties of our ailing economy, having suffered from declines in both exports and tourism.
The state has not done enough to promote and support trade and investment in border areas. And so the private sector has taken the matter into their own hands. Recently, a Thai airline launched a new route linking Chiang Rai in the North with Myanmar's Taunggyi district in Shan State. It is a pilot project aimed at boosting the country's border trade with Myanmar, as well as the southern region of China.
Without state support, the private sector has for years been at the forefront of the promotion of border trade -- meeting and discussing investment opportunities in megaprojects and trade expansion in Shan state with Myanmar officials. They have done so in the hope of reviving the economy.
Geographically linked to Thailand, China and India, Shan state is Myanmar's second-most populated state. Even though investments from Japan, South Korea, Singapore and Thailand have been flowing into this state, the sum is still insufficient.
Thailand could have capitalised on its geographic advantage. But there has not been much progress on border trade given a lack of government support. As a result, the Thai Chamber of Commerce has to set up a specific task force to promote trade in border areas.
Even though a number of "special economic zones" have been established in Chiang Rai to cater for businesses along the border, they have turned out to be "especially quiet zones" instead. This is the exact opposite to what has been occurring in our neighbouring countries' border areas.
For instance, just 150 kilometres away from the Thai border, is the Boten-Bohan cross-border area, which was jointly-developed by Laos and China as an "economic cooperation zone". Boten is located in Louangnamtha province in northern Laos while Bohan lies within China's Yunnan province. With a total area equivalent to Bangkok, it accommodates traders and businesses from China, some of whom have moved there, attracting in turn more investors from around the world. The area is thriving, just like a big city -- complete with numerous residential complexes, shopping centres, hotels, and other amenities.
Additionally, the construction of a high-speed rail project that connects Kunming to the Boten-Bohan area has been completed. It will be fully operational once the construction of the sections within Laos and Thailand are finished. The zone is also linked to the R3A Highway, which is a significant logistics corridor for shipping produce and goods to and from Chiang Rai's Chiang Khong district onward to both Kunming and Bangkok.
Chiang Khong is a designated special economic zone (SEZ), but it is not thriving with economic activity. The same goes for the so-called SEZs in Chiang Saen and Mae Sai districts of Chiang Rai.
Chiang Saen is simply not developed enough to take advantage of opportunities that come to the area. The district's commercial activities are mainly dependent on cargo traffic coming from China along the Mekong River.
Meanwhile, Mae Sai has ended up being a mere transit hub for consumer goods for our neighbouring countries. This is because the state has not invested in infrastructure the area needs to benefit from the constant flow of goods and people.
Many are hoping that the new government can capitalise on the opportunities that come with the US-China trade war. With China increasing tariffs on imported US goods, it will increase the likelihood of China opening up its market to Thai goods.
Thailand could have also benefited from economic activities between Chiang Rai and Xishuangbanna in China's Yunnan province. Unfortunately, it is the private sector -- not the state -- that dominates trade in this strategic intersection.
The government must be more proactive in promoting border trade. The ongoing US-China trade spat will provide new opportunities for Thailand, we should have capilitalised on our good relations with our neighbours and our geographic location to boost trade and investment in border areas.
The new government must not overlook untapped opportunities in special economic zones. Instead of spending funds on populist schemes, it should promote border trade, which can generate increased revenues and attract investments. In return, this will help bring about stability for the nation.
Nauvarat Suksamran is assistant news editor, Bangkok Post.
