Chana: A Model City for Advanced Industry Transforming the Southern Border Economy, Driving Land Prices Up by 20%
Following the Cabinet's resolution on May 7, 2019, approving the expansion of the model city project "Triangle of Stability, Prosperity, and Sustainability," the government is pushing for the development of the fourth model city in Chana District, Songkhla Province, to become a "Model City for Future Advanced Industry." The government has assigned the Southern Border Provinces Administrative Center (SBPAC) as the main coordinator. Additionally, two major companies are involved: Mr. Prachai Leowphairat, former executive of Thai Petrochemical Industry Public Company Limited (TPI Group), plans to co-invest with Chinese investors to establish a factory for producing rail transport system components worth 400 billion baht on a 7,000-rai area, and PTT Public Company Limited, through IRPC Public Company Limited, which holds over 3,000 rai of land, is negotiating with investors from South Korea to invest in an alternative energy project (energy complex) worth 290 billion baht, in line with the government's policy to designate the southern border provinces as a "battery zone" with local participation in energy crop cultivation within five years or by 2022.
Recently, a public hearing was held on July 11, 2020, to gather opinions from stakeholders, revealing both supporters, mainly locals, and opponents from outside the area.
New Economic Zone Driving Land Prices Up
Despite some opposition, current investment trends show that the land business in Chana District, Songkhla, particularly along the coastline of the Gulf of Thailand from Talung Chan, Sakom, and Natap sub-districts to Chana Municipality, which is a commercial and financial urban community approximately 5-10 kilometers long, has seen land prices rise significantly. Reports indicate that land prices in the area have increased to 1.5-2 million baht per rai, compared to around 70,000-150,000 baht per rai in 2019. Land along the main road from the border of Na Mom District to Chana District is priced between 300,000 baht to 1 million baht per rai for rubber plantation areas, with many plots being subdivided into sizes of 5-10 rai for sale.
In the outer areas, which are semi-urban and semi-rural, there is also good movement in land sales, with many individuals subdividing land for sale in smaller installments. For example, a 1-rai plot can be divided into 12-16 smaller plots, with prices ranging from 100,000 to 120,000 baht per plot, payable in installments, which is affordable for local residents.

Introducing “Chana: A Model City for Future Advanced Industry”
The "Chana: A Model City for Future Advanced Industry" project aims to expand and create mechanisms to drive a new economy. The Bank of Thailand and the National Economic and Social Development Council reported that the economic growth rate of the southern border provinces is at 1.6%, which is lower than the average for the southern region and Thailand, and has been declining continuously due to falling agricultural product prices over the past few years.
Therefore, it is essential to develop a significant new economic growth engine for the southern border provinces to create tangible and sustainable growth. This must be aligned with the national strategy for the next 20 years, considering how future generations will live in the area. Currently, there are tens of thousands of unemployed students each year, with many needing to travel to work in other regions, including Malaysia.
“Future Advanced Industry” has two significant development implications: it sets the direction for the development of the southern border provinces with industries that meet the future development needs of the country, aligning with the national 20-year strategic plan.
On another note, it lays the foundation for strengthening the local population in the sub-region so they do not have to migrate for work to other regions, which is crucial as it determines the future of local children who must live with dignity and value, receive a good education, and have job opportunities in their hometowns after graduation, allowing them to care for their parents and families closely without having to wander off to work elsewhere, enabling them to support themselves meaningfully.
This approach uses economic dimensions to connect and integrate other development aspects to achieve simultaneous growth. The framework and actions related to the development of the model city in Chana District, Songkhla Province include:
1. Community-Based Action Framework
The most crucial aspect of driving the action plan is that it must be initiated and proposed to ensure that both public and private sectors implement it concretely, benefiting the quality of life and well-being of the people to the fullest and measurable each year, as the community is a "strategic partner." Concerns or worries of the public must be addressed in every aspect.
2. Private Sector Action Framework
Chana Industrial Estate - to produce goods from local resources, creating jobs and careers, as well as being a production source for products that import raw materials from abroad, which are imported and exported through ports for transportation and tourism.
The future industries include biotechnology, biofuel and biochemistry industries, comprehensive medical industries, commercial transportation services, tourism and services, wind turbine and generator manufacturing, locomotive and freight car manufacturing, and electric vehicle (EV) manufacturing, among others.
Alternative Energy Complex - to build power plants with at least 2,813 megawatts to support future growth and electricity demand in the southern region adequately, using only natural energy or environmentally friendly power plants.
Commercial and Tourism Port - with a comprehensive transportation system, creating rail links between the port, economic zones, and border trade areas to enhance travel and goods transportation options both domestically and to neighboring countries.
Water and Environmental Management - to prevent wastewater issues and impacts on the marine environment and develop green industries that are environmentally friendly.
Quality of Life Development Fund for Southern Border Provinces Residents
3. State Action Plan
The integrated action plan will support the project, initially providing benefits as already applied in the model city "Triangle of Stability, Prosperity, and Sustainability," such as security in the area, subsidizing half of the insurance premiums for the private sector, tax and financial benefits, and reducing registration fees for legal rights.