CROSS-BORDER IMPACTS OF THAI SEZS ON LAO SEZS AND COLLABORATION IN THE MIDST OF REGIONAL INTEGRATION Alay Phonvisay, Viengsavang Thipphavong and Thantavanh Manolom1 Abstract Out of the 10 new SEZs of Thai Government, five will be located in the Thai provinces along the border with Laos where SEZs have already been set up and some are in operation. To attract investors to these planned SEZs, Thai Government has proposed a new measure to facilitate cross border labor movements of both skilled and unskilled types. This paper aims to address potential impacts of Thailand‟s SEZ initiative on Laos‟ SEZs by combining desk studies and semi-structured interview based on locational choice model in majors Laos‟s SEZs. Considering SEZs in Laos tends to be more attractive to investors because of cheaper electricity, treated water supply, land lease, and labor cost. Moreover, the direction and the objective of SEZ development has been cleared compare to Thailand‟s SEZs which are not clearly identify. Moreover, there is high probability of cooperation between those SEZs along the border in order to gain the most benefit. In order to gain the most benefit from SEZs for Laos and Thailand, strengthening coordination between public and private sector is necessary. Key words: SEZs, cross-border impacts, Thai-Lao, regional integration. 1 Dr. Alay Phonvisay, Economic lecturer, Faculty of Economic and Business Administration, National University of Laos (
[email protected]). Viengsavang Thipphavong, Director of Trade Policy Research Division, The Economic Research Institute for Industry and Trade (ERIIT), MOIC, Lao PDR (
[email protected]). Dr. Thantavanh Manolom, Research Fellow, The Economic Research Institute for Industry and Trade (ERIIT), MOIC, Lao PDR (
[email protected]).