Transcript Mekong Development Initiatives

Development Initiatives in the
Mekong Basin
PP 9.2
Presentation Overview
Greater Mekong Subregion Economic
Cooperation Program
 Development Gap
 ASEAN Economic Community
 Challenges for Mekong Countries
 Capacity Building for Economic
Integration

People’s Republic of China
Land area: 633 thou sq km
Population: 97.3 M
GDP per capita: US$1,135
Myanmar
(figures for Yunnan and Guangxi only)
Land area: 677 thou sq km
Population: 54.8 M
GDP per capita: US$255 (2005)
Viet Nam
Land area: 332 thou sq km
Thailand
Land area: 513 thou sq km
Population: 84.1 M
GDP per capita: US$724
Population: 65.8 M
Lao PDR
GDP per capita: US$3,133
Land area: 237 thou sq km
Population: 5.7 M
GDP per capita: US$601
The GMS in 2006
Land area: 2.6 M sq km
Cambodia
Population: 323 M
Land area: 181 thou sq km
GDP per capita: US$1,453*
Population: 14.1 M
* excludes Myanmar
GDP per capita: US$510
Why do we need GMS
Cooperation?
Connectivity
 Competitiveness
 Community Building

Picture of War – Vietnam War
Powerless - picture
GMS Economic Cooperation
Vision: A more prosperous and
harmonious GMS
 Strategies

– Connectivity
– Competitiveness
– Community Building
GMS Vision – MI Vision
A more Prosperous and
Harmonious
Greater Mekong
Subregion
Capacity Building for
Regional
Development and
Cooperation
The Economic Corridor Approach
Infrastructure is developed in specific geographical
areas based on economic potential.
Usually starts with transport links, but extends to other
infrastructure as well as the “software” for their optimal
use.
Some Characteristics of Economic Corridors:
– Create links to major markets;
– With nodal points – centers of enterprise development;
– Extend the benefits of improved transport linkages to remote
locations and integrates them with more prosperous areas;
– Open up investment opportunities;
– Promote synergies through the clustering of projects;
– Provide demonstration effects.
12
13
East-West Economic Corridor (EWEC)
Progress, Issues and Way Forward
East-West Economic Corridor
VIE: East-West Corridor
(Lao Bao-Dong Ha)
LAO: East-West Corridor
(Phin-Dansavanh)
With assistance from
the Royal Thai
Government
JBIC-assisted 2nd
Mekong International
Bridge
JBIC-assisted Hai Van
Tunnel Construction and
Da Nang Port
15
Improvement
North-South Economic Corridor
Progress, Issues and Way Forward
North-South Economic Corridor
North-South Economic
Corridor
Upgrading completed
in 2006.
To be completely
upgraded by 2010
Upgraded with JBIC
assistance; in good
condition
Ongoing with ADB
loan assistance
Recently upgraded with
Govt financing
Financed by of PRC
and Thailand, and
ADB
Financing of 4th
Mekong bridge
secured from PRC and
Thailand
Completed in
Dec. 2005
ADB loan
approved in 2007
for new highway
19
Southern Economic Corridor
Progress, Issues and Way Forward
20
Southern Economic Corridor
•InterCorridor
Link
•Norther
n SubCorridor
•Southern
Coastal
SubCorridor
•Central
SubCorridor
21
•GMS Southern Economic Corridor
•Mostly 4-lane highways;
not a constraint to crossborder traffic.
•Upgrading to be
completed by 2009 with
ADB and Japan
assistance.
•Upgrading of a section in
Cambodia (70 km) to be
completed by 2010 with
assistance from Viet Nam;
Financing requested for
remaining sections.
•Road
s
•Upgrading completed in
2007 with PRC
assistance.
•Mostly 4-lane highways;
not a constraint to crossborder traffic
•In good
condition
•Upgrading completed in
2007 with Thailand,
Korea, World Bank and
ADB assistance.
•Upgrading to be completed
by 2010 with ADB, Korean,
and Australian assistance.
•Upgrading to be
completed by 2008 with
ADB and Japan
assistance.
•Bridge over Mekong to
be financed by Japan
•22
22
Road
Transport
Network
1992
Road
Transport
Network
2006
Road
Transport
Network
2015
R3 a 228 km
R3 b 253 km
R 9 EWEC 246
3rd Bridge
Nakhon Panom –
Takek
4th Bridge –
Chiang Kong Hoisai
• GMS
Power
Grid
2012
2004
1992
• Info.
Super
Highway
Network
Power Transmission Line
Telecommunications
Backbone
GMS Optical Fiber
Proposed Transmission Network
of Point to Point Architecture

Proposed Transmission
Network of Ring

Architecture
Proposed Transmission Network
of Point to Point Architecture
Subregional Fiber Optic Links will
soon be completed in 3 loops i.e.
East, North and West Loops.
Lower logistic cost in
telecommunications will be enabling
factor to attract more investment
from outside the region into GMS.
POTENTIAL NEW
BY 2009
BORDER CROSSING
POINTS
FULL IMPLEMENTATION
Geographic
Coverage of CBTA
•
Mukdahan – Savannakhet
•
Lao-Bao – Dansavanh
YOUYIGUAN (PRC)
- HUU NGHI (VIE) •
SECOND PHASE
(commencing in 2007)
Aranyaprathet – Poipet
•
Bavet – Moc Bai
•
Hekou – Lao Cai
•
Myawaddy – Mae Sot
THAKHEK
(LAO) – •
FIRST PHASE
HA TINH in
(VIE)
(commencing
2005/06)
THIRD PHASE
(commencing in 2008/2009)
LORK (CAM) –
XA XIA (VIE)
Mae Sai – Tachilek
•
Chongmek – Wang Tao
•
Houayxay – Chiang Khong
•
Nam Phao – Cau Treo
•
Nongkhai – Thanaleng
•
Mohan – Boten
•
•
Hat Lek – Cham Yeam
Veune Kham – Dong Kralo
•
Ruili – Muse
95°
100°
105°
110°
30°
Promoting the
GMS as a
Single Tourist
Destination
30°
Zhongdian
North-South
Economic Corridor
Lijiang
99
Bigu
Ziyuan
Dali
Xiangyun
Myitkyina
Longsheng
Kunming
Mangshi
25°
Guilin
Chuxiong
Baoshan
Tengchong
Bose
Baoxiu
11
Dahua Yaozu
Mohei
Napo
Simao
Wuzhou
Shanglin
Guiyang
Daxing
Hekou
Budalin
Menghai
Yatsouk
22
Kengtung
Bagan
Loilem
Kyeeni
Mohan
Boten
Nateuli
Tay Trang
Ban Panghok
Luang Namtha
Nuihong
HANOI
Pyay
Haiphong
Nam Can
Gulf of Tonkin
Vinh
Pakkading
11
Ben Nape
Ban Lao
Sukhothai
Phitsanulok
Mae Sot
Lao Bao
Hue
Da Nang
Bua Yai
15°
Tavoy
Nakhon Ratchasima
Suphanburi
Ayuttaya
Ubon
Ratchathani
Chongmek
Surin
15°
Pakse
Dung Quat
Attapeau
Ban Xayden
44
Ayuthaya
BANGKOK
Kanchanaburi
33
Mukdahan
Bannet Narong
Nam Tok
Dong Ha
Savannakhet
Ban Dong
Khon Kaen
THAILAND
Nakhon Sawan
East-West
Economic Corridor
Tanap
Thakhek
Nakhon Phanom
Udon Thani
33
Cau Treo
Nong Khai
YANGON
20°
Than Hoa
Chiang Mai
VIENTIANE
Bei Hai
Cai Lan
Vang Vieng
Denchai
Dongxing
Na Duoung
Kep
Nam Doth
Louang Phrabang
Nong Haet
Xieng Khouang
Pathein
11
11
Hoa Binh
Na Meo
LAO PDR
Chiang Rai
10
10
Yulin
Nanning
Longzou
77
Pak Mong
Tachilek
Huay Xai
Mae Sai
Chiang Kong
20°
Lao Cai
Pingxiang
VIET NAM Lang
Son
Jinghong
Mandalay
Mawlamyine
Laibin
Gejiu
Lashio
2005: GMS Tourism Sector
Strategy (2006-2015) –
1. Mekong River Corridor
2. Golden Triangle
3. East-West Corridor
4. Emerald Triangle
5. Southern Coastal
6. Green Cluster
7. Houphanh-Than-Hoa
Oun La Tourism Circuit
8. Andaman Coast and
Islands
10. Red River Valley
11. Guangxi-North Vietnam
Source: GMS Tourism Sector Strategy (2006-2015)
Islands
Liuzhou
Guangxi Zhuang Autonomous Region PRC
Muse
MYANMAR
Zhongshan
Tianlin
Yunnan Province PRC
Ruili
25°
Hechi
Xilin
Yuxi
Aranyaprathet
Chunburi
66
Poipet
Phanom
Sarakham
Ngoc Hoi
Cham Toal
Siem Reap
Quy Nhon
Duc Co
Stung Treng
Petchaburi
Pak Tho
Hua Hin
Andaman Sea
CAMBODIA
Sattahip
Prachuap Khiri Khan
11
PHNOM PENH
Koh Kong
55
88
Sihannoukville
Svay Rieng
Do Dau
Ho Chi
Minh
Thap Cham
Phan Thiet
Kampot
Vung Tau
Gulf of Thailand
10°
Nha Trang
Kampong Cham
Trat
Ha Tien
Dao Phu Quoc
Southern
Economic Corridor
10°
Ko Samui
Surat Thani
1. The Mekong River Corridor
2. The Golden Quadrangle
3. East West Corridor
4. Emerald Triangle
Phuket
5. The Southern Coastal Corridor
6. The Green Triangle
7. Houaphanh-Thanh Hoa-Son La Tourism Circuit
8. Andaman Coast and Islands
9. Shangri-la/Tengchong/Myitkyina Cluster
10. The Red River Valley
11. Guangxi-Northeast Vietnam Karst Borderlands
95°
Nature/Adventure-based Tourism
Culture/Nature-based Tourism
Songkhla
Marine/River-based Tourism
Hat Yai
100°
105°
110°
Interdependency of GMS Countries
• Resources:
Available: Tin, Fisheries, Products
Needs: Manganese, Iron
Available: Copper, Lead, Zinc, Tin, Iron
Needs: Powdered Ores, Timber, Fisheries
Products
Available: Crude Oil, Gas,
Coal, Apatite
Needs: Steel, Refined Oil
Available: Gas, Teak, Gemstone
Needs: Refined Oil
Available: Timber. Hydropower, Tin
Needs: Fuel
Available: Tin, Rubber, Natural Gas
Needs: Fuel
Available: Timber, Fisheries, Product, Gemstone
Needs: Fuel
II. Diversity of GMS
Source: IMF and National Bureau of Statistics of China *Data in 2008
II. Diversity of GMS (cont)
Purchasing power in 2009:
GDP per capita
(Current USD)
GDP per capita at
PPP (Current
USD)
Thailand
3,940
8,059
Guangxi*
2,155
na
Yunnan*
1,812
na
Vietnam
1,060
2,942
Lao PDR
878
2,266
Cambodia
775
2,015
Myanmar
459
1,197
Source: IMF and National Bureau of Statistics of China *Data in 2008
“One Vision, One Identity, One
Community”
ASEAN GMS Countries - 2010
ASEAN Countries - 2010
Land area: 1.94 M sq Km
Land area: 4.48 M sq Km
Population: 232 M
Population: 614 M
Per Capita GDP – US$
Source:–AEC Chartbook 2010
Limitation of GMS EC
Uneven development – 3 LDCs
 CBTA implementation difficulties
 Large economy vs small economy
 Irregular Migration
 Need to integrate into ASEAN and
Global value chains

World Factory – ASEAN + 6
import of intermediate goods increased
from 26.9% to 33.1% in 2008
 and export of final goods increased
from 30.1% to 33.1%

One-third of the world export come from
this region
World Consumption Market

ASEAN + 6 occupies around 49% of the
world population and 25% in the world GDP

ASEAN 600 million people – become a trade
hub of Asia.

ACFTA covers about 1.9 billion people and
US$6000 billion in terms of GDP – making it
the largest free trade area in the world.
Free Trade Agreements
ACFTA
 ASEAN – Japan Comprehensive
Economic Partnership (AJCEP) – 2008
 AKFTA
 AANZFTA
 ASEAN – India Regional Trade and
Investment AREA (RTIA) 2002
 AIFTA - 2010

AEC 4 Pillars
Single market and production base
 Competitive economic region
 Equitable economic development 0%
tariff
 Integration into the global economy

Challenges

Spaghetti bowl effect
Mega-competition in industry
 Contract farming, agriculture land
concession
 Labor and migration issues
 Political and border disputes
 Environmental destruction

bowl effect
ASEANSpaghetti
Competitive
Advantage
EU
ACD
ASEM
India
BIMSTEC
FTAs e.g. Japan,
China, Australia,
New Zealand,
Bahrain, Peru,
India, USA,
BIMSTEC etc…
WTO
Korea
Japan
PRC
GMS
ACMECS
NAFTA
APEC
ASEAN Community
(APSC, AEC, ASCC)
IMT- GT
Megacompetitive
Economy
Chinese
Production
base in
Thailand, bring
parts and
components
from China
(ACFTA, sales
to India AIFTA
Bring skilled
workers from
Mega-competitive Economy
China move down to CLMVT
 Japan has to manage its risks, quake,
nuclear – may force SMEs to relocate
their plants to other countries

Replacement, reallocation, repositioning, geographical
realignment and reorganization of industry.
Contract Farming and Big Agri. Land Concession will
displace small land holders
Interdependent

Labor Migration
– Second Wave Migration
– Brain drain vs Brain gain
Transborder value chains
 Export dependency

Thai economy depends 70% on
export
ASEAN
 EU
 US
 Japan
 China

(NESDB 2008)
21.4%
12.8%
12/6%
11.8%
9.7%
Priority HRD/Capacity Building
Issues
1. Limited capacity to implement FTAs and trade
and investment policies
2. Limited absorptive capacity for agriculture
policies
3. Limited SME ability to integrate into GVC
4. Limited Good Agricultural Practices (GAP)
Trade and Investment
Limited
capacity to implement FTAs and
Investment Policies
Small and Medium
Enterprises
Limited
ability to integrate into ASEAN
and global value chains
Agriculture
Limited
absorptive capacity and adjustment
of agriculture policies and practices to a
larger and more competitive economy
Lack of GAPs and Good
Postharvest Practices