Investment Promotion Policy in Potential Border Zone

Recently, border zone is regarded as a potential advantage area to foster cross-border based economic activities. The Association of Southeast Asia Nations (ASEAN) makes an attempt to push forward its own border areas to become the gateway to neighboring countries and third countries through the presence of special economic zone, industrial estate, and regional economic hub. This is one of ASEAN's strategies to accomplish to be ASEAN Economic Community in 2015. This paper presents a preliminary result from the first phase of a research project that explores the emergence of domestic and foreign investment in the Northern border zone of Thailand. It focuses on case studies conducted in “Chiang Khong” border area of Chiang Rai province in Thailand, and examines the design of investment promotion policies in this potential border zone. Using in-depth semi-structured interview method, the preliminary findings reveal that borderization is as a starting point to open up border and cross-border economic activities, whereas border city identity, the influence of emerging border city and the role of mutually inclusive growth between border cities are as a driver to bring them together. Hence, economic and investment promotion policies should be initiated from the onset of the context of border zone in order to trigger the actual border circumstances. In addition, comprehensive and integrated economic promotion policies with regional and national policies could be provided in the best available manner.