The government is preparing to receive a grant of 115.5 million baht from the World Bank to accelerate preparations for the floodwater drainage canal project from Chainat–Pasak to the Gulf of Thailand, valued at 165 billion baht and covering nine provinces.
On 27 Oct 2026 GMT+7, Ms. Lalida Pertwivatana, Deputy Spokesperson of the Prime Minister's Office, revealed that the government is advancing economic and trade cooperation with the People's Republic of China to increase opportunities for Thai entrepreneurs, especially in agriculture, to access the Chinese market. The Cabinet approved a draft cooperation agreement on projects under the 2025 Mekong–Lancang Cooperation Special Fund between the Ministry of Commerce and the Chinese Embassy in Thailand, and authorized the Permanent Secretary of Commerce or their delegate to sign the agreement. This allows receiving Chinese support funds of US$166,100 or up to 1,229,100 yuan to implement a project promoting agricultural trade via high-speed rail in the Mekong–Lancang region, aiming to develop entrepreneurs' capabilities and expand exports of Thai agricultural products through the Thai–Lao–Chinese railway route.
Ms. Lalida stated that the Ministry of Commerce, under the supervision of Deputy Prime Minister and Minister of Commerce Ms. Suphajee Suthumpun, prioritizes enhancing the competitiveness of Thai entrepreneurs, particularly by leveraging transport connectivity between Thailand, Laos, and China alongside benefits from free trade agreements (FTA) and necessary trade information exchange. This supports entrepreneurs in planning exports and expanding agricultural product markets more effectively.
For this project, the Ministry of Commerce has assigned the Mekong Institute (MI) to implement it, targeting 150 participants from government agencies, private sector, and agriculture-related entities. They will join training activities to develop trade skills, utilize FTAs, and connect cross-border information before jointly creating a Joint Action Plan to promote agricultural business development and trade expansion in the Mekong–Lancang subregion.
The Deputy Spokesperson emphasized that the project's key point is encouraging entrepreneurs to use the Thai–Lao–Chinese railway, an international freight transport route, to increase logistics options and support the expansion of Thai agricultural product markets. This includes building understanding of trade opportunities, regulations, and FTA benefits to prepare entrepreneurs systematically for foreign markets and improve their competitiveness regionally.
Ms. Lalida added that the Chinese side will allocate support funds of US$166,100 or up to 1,229,100 yuan for the project over three years. According to the draft agreement, China will allocate the budget within 20 working days after signing, and Thailand must confirm receipt officially within 10 working days. The signing date marks the project start, with provisions for monitoring, evaluation, budget audit, and reporting to ensure transparent and effective use of the funds.
The Mekong–Lancang Cooperation Special Fund (MLCSF) is a mechanism supporting cooperation among six member countries: China, Cambodia, Laos, Myanmar, Vietnam, and Thailand. China announced the fund's establishment at the first Mekong–Lancang Cooperation Leaders’ Meeting in March 2016 to support projects aligned with members' development needs and shared benefits. In 2025, Thailand had 19 projects approved for funding, including one Ministry of Commerce project promoting agricultural trade via high-speed rail in the Mekong–Lancang region.
Ms. Lalida noted that this cooperation brings foreign support funds to develop Thai entrepreneurs' capabilities without creating budgetary obligations for the government. The draft agreement does not impose legally binding international commitments. Project implementation will be overseen by relevant agencies to ensure funds are used as intended and benefit the agricultural business sector effectively.
“The government prioritizes expanding trade opportunities for Thai entrepreneurs, especially those with export potential in agricultural products. Cooperation with China under the Mekong–Lancang Fund will provide entrepreneurs with knowledge and tools to develop their businesses and utilize the Thai–Lao–Chinese railway to connect Thai agricultural products to broader markets. This will enhance competitiveness and create long-term economic opportunities for Thailand,” Ms. Lalida said.
The Deputy Spokesperson concluded that the government will continue to promote economic and trade cooperation with China and Mekong–Lancang subregional members, focusing on transport and logistics connectivity, entrepreneur capacity building, and leveraging FTAs to increase Thai agricultural export opportunities, strengthen businesses, and sustainably enhance national competitiveness.