Tak, Thailand

Business Associations, Cooperatives, SME Associations

Demographics

About a quarter of the population belongs to one of Thailand’s hill tribes: Yao, Karen (Thai Gariang), Akha (Thai Akha), Lahu (Thai Musay), Hmong (Thai Meo), and Lisu (Thai Lisaw). The largest tribe in Tak is Karen.
Source: Office of the National Economic and Social Development Board

Economic Zones

The development of special economic zone under the policy to open trade to West Gate.
Map of Maesot Special Economic Zone
Objective: To facilitate the expansion of the West corridor which links BIMSTEC countries (Thailand, Myanmar, India, Sri Lanka, Nepal, Bhutan and Bangladesh) to the Western zone namely Asia, Middle East, Europe and Africa.
Maesot Model: The idea to establish Maesot Special Economic Zone is the initiative to set up a role model for economic town in the 5 regions countrywide. The zone is expected to allocate the investment to all of the regions to link the border trade and international trade.
Maesot model was primarily designed to be the combination of industrial estate and public organization. But later on, there is a tendency that it will be changed to be the combination of the industrial estate and governmental agencies. This model proposes that the private sector is the investor while the government supports the fundamental infrastructure. The private sector will be allowed to rent the land for investment in low price.
In Maesot special economic zone, there will be fundamental infrastructure for transportation, industrial estate area, distribution center, free zone, bonded warehouse, one stop service center, single consignment area and customs check-points.
For the administration, Maesot special economic zone will have an appointed agency representing the government. The agency could hold shares in the private companies investing in the zone in order to supervise the operation of the special economic zone to follow the government’s policy.
The Maesot special zone, covering 5,603 rai, will be situated between 2 districts in Maesot, Mae Pa and Tha Sai Luad, Tak province. There is a plan to construct the second Thailand – Myanmar Friendship Bridge to link Baan Wang Ta Kien, Thai side, with Myanmar.
Latest update as of 19 April 2011, The Thai cabinet has approved a budget for hiring a team of expert planners to design a Special Economic Zone at Mae Sot on the northern Thai-Burma border. A government sub-committee focusing on legal preparations for the Mae Sot Special Economic Zone has finalized a draft royal decree that will create a special entity to run the zone.
Policy/ regulation
Related laws, regulations and incentives in doing business in the province
Zoned in BOI zone 3, interested entrepreneurs will enjoy the following benefits;
Tax and Duty Privileges:
• Exemption of import duty on machinery.
• Corporate income tax exemption for 8 years provided that a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up-date, otherwise the corporate income tax exemption will be reduced by 1 year.
• Exemption of import duty exemption on raw or essential materials used in the manufacturing of export products for 5 years.
• Deduction from net profit of 25 percent of the project’s infrastructure installation or construction costs in addition to normal depreciation, and such deductions can be made from the net profit of one or several years within 10 years form the date of first revenue derived from the promoted activity.
Special Privileges for investors in Zone 3 (36 provinces):
• 50 per cent reduction of corporate income tax for 5 years after the exemption period.
• Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity.
• 75 percent import duty reduction on raw or essential materials used in manufacturing for domestic sales for 5 years, based on annual approval (This incentive is not available to projects in Laem Chabung Industrial Estate and industrial estates or promoted industrial zones in Rayong province.)
Source: www.boi.go.th
Labor force
Number of Employed Persons Aged 15 years and over by occupation, quarterly and sex in 2009 shows that there are 304,104 labors in Tak province. 138,719 people are skilled agricultural and fishery workers. 44,532 people are service workers and shop and market sales workers. 37,468 people worked in elementary occupation. And 34,515 people are craft and related trade workers.

Source: The Labor Force Survey, National Statistical Office,
Ministry of Information and Communication technology
Statistical Forecasting Bureau, National Statistical Offic

Financial Services

In 2009, there are 22 commercial banks settling their branches in Tak province. Four purposive financial institutions have been established namely 5 branches of Government Saving Banks, 5 branches of Bank of Agriculture and Agricultural Cooperatives, 1 branch of Government Housing Bank and 1 branch of SMEs Bank.

Source: Office of provincial commercial affairs, Tak province

Infrastructure Facilities

Tak Province is a key communication and transportation centre of the North, with three Asian highways passing through the province. AH1 enters through the Myanmar-Thai border at Amphoe Mae Sot;[10] AH2 passes through the provincefrom north to south. Also AH16 terminates at Tak. Tak is located 426 km from Bangkok. Fligh ts between Bangkok and Mae Sot are currently provided by Nok Air and Solar Air. The flight takes one and a half hours.

How to get there?

By Car: From Bangkok, take Highway No. 1 (Phahonyothin) and Highway No. 32 to Nakhon Sawan via Ayutthaya, Ang Thong, Sing Buri and Chai Nat Provinces, then take Highway No. 1 again and proceed to Tak via Kamphaeng Phet Province. The total distance is 426 km.
By Bus: From Bangkok: Air-conditioned buses depart from Bangkok’s Northern Bus Terminal (Mochit 2 Bus Terminal) to Tak between 05.00 am. and 10.00 pm. every day. The journey takes 6 hours. Tel. 0 2936 2852-66 or visit www.transport.co.th for updated schedules. Daily bus services to Tak are also available. They are operated by private bus companies such as Thanchit Tour (Tel: 0 2551 1307), Choet Chai Tour (Tel: 0 2551 1054). From Bangkok to Umphang, take air-conditioned buses, as well as flights from Bangkok to Mae Sot, and then, take the local bus to Umphang. There is now a charter flight operated by Siam GA Co., Ltd. For more information, Tel. 0 2504 3320 ext. 197.
By Train: From Bangkok: There are no trains going directly to Tak. The nearest train transfer station is Phitsanulok. From there, tourists can take a local bus to Tak. Contact Bangkok Railway Station Tel. 1690, 0 2223 7010, 0 2223 7020 or visit www.railway.co.th for more information.
By Plane: From Bangkok : Thai Airways flies from Bangkok to Mae Sot, a district which is 86 km from the City of Tak. For more updated information, call 0 2628 2000 (24-hour reservation center) or visit www.thaiairways.com
Or fly from Bangkok via Pitsanulok Province and then transfer to the Pitsanulok-Tak shuttle. The flights are scheduled to run every Tuesday, Thursday, Saturday and Sunday. Tel. 0 2628 2000 (24-hour reservation center) or visit www.thaiairways.com for more information.
Other Facilities
Internet Network and Cellular Network are very good.

Logistic Provider

Tak provincehas 2 economic cities, Muang district and Maesot district. The available list of logistics entrepreneurs is as follows:

Macro Economic Indicators

GPP statistics 2009 at current market price by economic activities shows that the leading sectors which contribute to GPP are
• Agriculture, hunting and forestry (11,389 million baht)
• Manufacturing (7,882 million baht)
• Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods (5,435 million baht)
• Public Administration and defense; compulsory social security fund (2,686 million baht)
• Education (2,478 million baht)
Source: Office of the National Economic and Social Development Board
Key Business Sectors and Major Products
Agriculture is a major part of the Tak economy. The provinceof Tak produces rice, corn, vegetables, fruits, beef, tilapia, and other foods. Industries in Tak include mining, granite, and jewelry. Handicrafts and Myanmar products are also important for trade.

Dominant agricultural products of Tak provinces vary from maize, beans, vegetables, baby bananas, jasmine rice, etc. Though the central market of agricultural products in Maesod has been established, the pattern of selling and buying is still traditional. Local merchants and/ or merchants from other provinces travel to buy the products from farmers. Some are bought and sold by loca l traders who are the representatives of the merchants in town. While some of the farmers, who stay close to town, bring their products to directly sell to the merchants in town. When the merchants could collect the sufficient products, they will be sent to the destination by trucks.

Statistics in November 2009 indicates that there are 474 factories/ plants in Tak province. With invested capital 11,360,609,034 baht, all factories in the sector recruit 52,325 workers. Dominant industries are granite and marble process industry, zinc smelting industry, canned food industry and textile and garment industry. Factory density areas are Maesod district, Muang district and Baan Tak district.

Natural Resources

Tak provinceholds natural resources which are basically necessary to the development of the province. Mineral resources found in Tak are Granite (for decoration), Sodium Feldspar, Zinc, Coal, Industrial rocks (limestone) such as Tin, Wolfram, Scheelite, Potassium, Feldspar, Sodium Feldspar with Quartz compound. Forest resource covers 70.05 % of Tak provinceor 12,478.60 Square Meters. All of them are rainforest and mixed deciduous forest. There are 15 national reserved forest, 6 national parks and 5 wildlife sanctuary areas. Source: Tak market information 2009, Tak office of commercial affairs

Opportunities in Tourism

On traveling to Tak Province, expect to discover a place with long history, where natural wonders are magnificently enhanced by ethnic diversity. Once a strategic military region between Thailand and Burma, Tak is now known for its bustling border markets, ethnic diversity, and natural beauty.
Today, Tak is no longer a strategic military frontier between two great nations. It is however a trading gateway to Myanmar, particularly at Amphoe Mae Sot, where lots of economic activity takes place along the border. In addition, Tak is located at the nexus of three major highways that connect Thailand’s western border north, south, and east to Chong Mek and eventually Laos.
Apart from Tak’s military and economic importance the provinceis also an environmental and cultural center with magnificent forests, spectacular waterfalls and caves, and fascinating hill tribes such as Karen, Lisu, Musoe (Lahu), Akha, Yao and Hmong.
Tak is a beautiful provincealmost entirely off the tourist map; consequently, visitors looking for true Thai hospitality and a peek at everyday Thai culture, unspoiled by the influences of mass tourism, are in for a real treat. While there are few tourist oriented sights and activities, this does not mean Tak is absent of attractions; in fact, Tak features spectacular natural attractions, including jungle covered mountains filled with exotic animal life, many hill tribe villages living traditional lifestyles, and opportunities to go white water rafting, play golf, or visit a gibbon rehabilitation center.
This is an area of stunning natural beauty. Particularly of interest are the vast bodies of water such as the Bhumibol Dam, which was named after King Bhumibol Adulyadej. This artificial lake stops the river Ping, and covering an area of 300 km is the largest in Thailand. In the cent er of the dam is Valentine Island, where visitors can relax on the sandy shore and soak up the sun.
The Lan Sang National Parks, where visitors can stop over for a couple of days and camp for just a few baht per night. Whilst there, pay a visit to the magnificent waterfall known as Nam Tok Mae Ya Pa. Other waterfalls of interest in the area include Nam Tok Thi Lo Su, Nam Tok Thi Lo Re, Nam Tok Sepla and Nam Tok Thi Lo Cho.
In an area this picturesque, it is only natural that hiking and white water rafting are good sources of entertainment, and another great way to spend a day or two is to hire a bicycle and explore the countryside. There are many charming villages to discover in the area such as Ban Thi Po Chi and Ban Pa La Tha, where the Karen villagers still dress in their original bright costumes. Of course, there are many interesting temples to explore such as Wat Si Talaram, Wat Phra Borommathat and Wat Mani Banphot, and do not forget to check out the Tham Takhobi cave with its beautiful stalagmites and stalactites and pay a visit to the Doi Muser Hilltribe Cultural Center, which includes an informative and interesting research and cultural center and is a good source of local knowledge.

R&D Centers, Technological Hub and Technical Centers

Rajamangala University of technology Lanna Tak is the institution of higher education. Its vision is to become a leading institution in producing graduated practitioners who are expertise in technology and desire to develop the communities, society and the country with good and quality management. It encourages the vocational graduates to further their study in higher levels. Researches and academic service are a part of its mission as well.
Source: www.tak.rmult.ac.th

Why invest in Tak?

The western edge of the Tak provinceshares a boundary with the Kayin State of Myanmar. As Tak shares natural border with Myanmar, it is highly regarded as a western gateway to Myanmar, and a northern door way to Thailand’s major cities such as Lampang and Chiang Mai. It is however a trading gateway to Myanmar at Amphoe Mae Sot, where lots of economic activities take place daily along the border. In addition, the provincehas the Asian Highway that runs from Thailand’s western border towards the northeastern region at Chong Mek (Mae Sot Sukhothai Phitsanulok Ubon Ratchathani – Laos). Apart from Tak’s military and economic importance the provinceis also an environmental and cultural center with magnificent forests, spectacular waterfalls and caves and fascinating hill tribes such as Karen, Lisu, Musoe (Lahu), Akha, Yao and Hmong.