A key contract for work on the Thai-Chinese high-speed railway from Bangkok to northern Thailand's Nakhon Ratchasima was signed here on Wednesday, injecting new vitality to the country's sluggish economy.

Thai Prime Minister Prayut Chan-o-cha presided over the signing ceremony.

The project helps improve Thailand's infrastructure and boost the economy and the Thai government attaches much importance to the railway cooperation with China, which is an important strategic route that would increase the country's competitiveness and development of the cities along with it, he said.

The Thai Prime Minister thanked all who have been making efforts to push forward the project, adding it strengthens the bilateral friendship between Thailand and China.

He said he has much confidence in the project, saying it will help develop Thailand as a hub for transport and logistics in ASEAN (Association of Southeast Asian Nations), while leading to new trade, investment and tourism opportunities in the areas along the rail route.

"Let's unite in concerted efforts and wish everything goes well on the project," he said in Chinese, giving his best wishes.

The contract, known as Contract 2.3, covers the railway system, electrical, signaling and communication systems, procurement of train carriages, personnel training, the operation and maintenance works and technology transfer for the 253 km rail route from Bangkok to Nakhon Ratchasima, the gateway to the northeast of Thailand.

The contract involves three parties, namely the State Railway of Thailand, China Railway International Co and China Railway Design Corporation.