Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Abstract

Revisiting Competitiveness of Special Economic Zones Comparison between Thailand and Vietnam

Author(s): Sari Wahyuni, Noverio Cesar

Globalization has brought the idea of special instrument which will enable a country to be competitive in attracting investments. One of the most viable instruments is Special Economic Zones (SEZ). The success of SEZs development in China has inspired many countries to develop the same concept, including Southeast Asian countries. This paper aims to know how Thailand and Vietnam, as members of Southeast Asian countries, developing success special economic zones in their countries. Thailand has successfully brought the local economies to the global value chain through SEZ. While Vietnam has recorded remarkable economic growth through the development of SEZs. Using in-depth interview and thorough literature review as the main methodology, this paper will discover some aspects in comparing the development of SEZs in both countries. Several key success factors of Thailand founded in this research are: 1) clear incentive schemes; 2) strong government participation in promoting local economies; 3) good investment services. While in Vietnam, the success factors are: 1) strong government direction; 2) high-tax incentives.