Office of The National Economic and Social Development Board
ACMECS and Thailand
Dr. Porametee Vimolsiri
Senior Advisor
Workshop on Investment, Trade and Transport Facilitation
in ACMECS
Outline
• Overview of ACMECS
• Priority Areas : Existing Condition &
Constraints
- Trade & Investment
- Transport
• How to overcome?
- Role of Thailand
ACMECS
Myanmar
Lao
PDR
Thailand
Andaman sea
Vietnam
Cambodia
Siam Gulf
South China
Sea
Members : Cambodia
LaoPDR Myanmar
Thailand and Viet
Nam
Population : 213 mil.
Areas :
1.94 mil. Kms2
Total GDP :
225,110 mil. USD
Established since 2003
Initiated and Drived
by member countries
Rationale : Why We need
ACMECS?
Korea
Afghanistan
China
Pakistan
India
Japan
Bangladesh
Myanmar
Laos
Thailand
Vietnam
Cambodia
Philippines
Sri Lanka
Malaysia
Brunei
Singapore
Existing Forum --GMS/BIMSTEC/IMT-GT/JDS
Indonesia
15 Year of Cooperation : Much Progress on Transport ;
Software for Trade and Investment are in Process
Competitiveness
Connectivity
Connectivity
Competitiveness
- Trade Facilitation/
Trade Logistics
Community
Private Participation
- Development Partners
Social + Global
- Infrastructure Utilization
- Economic Corridors
- ACMECS (Sister Cities)
- Cross-border Transport Agreement
- Single Stop Inspection
Software Development
Hardware Development
GMS
Master Plan
Formulation
1992
1993
- Road Network Connectivity
- Power Grid Line
1994
1995 1996
1997
2001 2002
2005
2012
Imbalance of Economic and Social
Development
GMS Country
Poverty Incidence* (%)
Gini Coefficient**
1992
2004
1992
2004
39
36
0.37
0.45
23.8
7.9
0.31
0.35
43
32.7
0.29
0.37
MYANMAR
N/A
22.9
THAILAND
23.2
9.8
0.54
0.5
58.1
28.9
0.18
0.2
CAMBODIA
PRC
LAOPDR
VIET NAM
* Based on National Poverty Line
N/A
N/A
** Measures Degree to Which an Economy’s Income Distribution Diverges from Perfect Equal Distribution
GDP Per Capita (PPP) Y2005
1993
2000
1800
1600
1400
1200
1000
800
600
394
400
332
326
300
296
200
0
Thailand
Yunnan PRC
Viet Nam
Lao PDR
Myanmar
Cambodia
Underutilization of ACMECS Core Value
Important
development
Agenda
GMS -- Connectivity
Competitiveness
Community
ACMECS –
BIMSTEC -New Emerging Economies
Poverty Eradication
Anti Terrorism
Co-Production, Sister
Cities
JDS – Stability &Security
IMT-GT –Avail Influenza
Energy Tsunami
Earthquake Security
Development Strategy of ACMECS
PRC
Myanmar
Chiang
Rai
Mukdaha
nSavannak
het
MaeSodMyawaddy
Yangon
Andaman Sea
Develop Sister Cities
as a production bases
Lao PDR
BKK.
Cambodia
Trad- Koh
Kong
Gulf of Thailand
Danang
Vietnam
EWEC
NSEC
SEC
Hochiminh City
Co-Production Concept
MYAMAR City
SMEs by
Industrial Clusters
Border Line
Road Link
Checkpoint
SMEs by
Industrial Clusters
THAI City
Border
Market
Economic Zone
ACMECS : Goals & Benefits
 Bridge the economic gap among the four countries and
Promote prosperity in the sub-region in a sustainable
manner.
 Transform the border areas of the five countries into
zones of economic growth, social progress and
prosperity, and to blend local, national and regional
interests for common benefits, shared prosperity,
enhanced solidarity, peace, stability and good
neighborliness.
 Act as a catalyst to build upon existing regional
cooperation programs, and complement bilateral
frameworks, and move ASEAN forward
Trade and
Investmen
t
Trade Opportunity: Intra-GMS
Likewise, tremendous potential for intra-GMS trade has been shown during the past decade.
MYA
THA
LAO
CAM
VIE
PRCyn
Population (million)
54.4
64.2
5.8
13.1
82.1
44.2
GDP per Capita
(Current, $)
176
2,544
406
348
500
681
1990s
% Intra-GMS trade
to total trade
2004
Note: Population and GDP per capita in 2004
Source: ADB
1. Cost of Starting/Doing
Business
• Doing business in the GMS takes more time
and resources on the average compared to
other countries in the region
(56-198 Days Vs 52 days)
• Lack of Sufficient/Standard
Information
• Difficulties in Finding Focal Point and
Partners
2. Regulatory Impediments
Legal and regulatory framework for trade is largely
primitive or restrictive in most ACMECS countries
Difference in Level of Development among countries
leads to the protection of domestic market
A number of quantitative restrictions, such as import
licensing, and other non-tariff measures still exist
Non- Tariff Barriers (NTBs)
2. Regulatory Impediments (2)
Inter-country and intra-country differences in rules
and procedures i.e. Customs
Inherent weaknesses in the system of recording
&monitoring border trade, including transit trade.
Phenomenon Expansion of Informal
Trade
Inconsistency in Implementation of
laws & regulations (National-wide
and Regional-wide)
Transparency of the Procedures
3. Trade Logistics
Inefficient multimodal transport infrastructure
Ineffective logistic system i.e. competitive carriers
and service providers; competent transport
intermediaries; and fast, efficient, and transparent
cross-border procedures
Relatively High Cost
Less Competitiveness in Global
Value Chain
4. Institutions/Private Sector
institutions and organizations dealing with and
supporting business remain underdeveloped.
Financial institutions often have very restricted
lending practices to private businesses.
Educational and technical support institutions are
understaffed, ill equipped, and unable to meet the
demands of modern industry.
Business associations are relatively weak.
Less Competitiveness in Global
Value Chain/Network
Insufficient Capacity Building for
Transport
Road Transport Network
2005
2015
Key Issues and Challenges
• Equitable sharing of benefits and
costs of regional projects
• Financing of needed infrastructure
investments
• Structuring public-private partnerships
• Managing risks i.e. currency,
investment risks, socio-economic
impact of the project
• Sustainable development in transport
i.e. maintenance, capacity building, etc.
How to Achieve ?
Thailand’s Role in ACMECS
As an Active Member
Initiate ACMECS; Build Network with
Development Partners; Act as Virtual
Secretariat; Create Efficient
Mechanism
for
Cooperation
i.e.
As a Development Partners
AWG; Border Committee
Provide Technical Assistances
through TICA; Financial Assistances
through NEDA; Implement Various
Projects
underSupporter
Plan of Actions
As a Business
Create ACMECS Business Council;
Create Favorable Business
Environment through Various
Development Projects; Simplified
Economic Activities Along the
Myanmar
Lao PDR.
Vietnam
Thailand
Chiang
Corridors
Rai
Yangon
Sea Port
10,00015,000DWT
SBEZ
Tak SBEZ
Mawlam
ying
Khon Kaen
Logistics
Center/IE
Pitsanulok
Mukda
Savanhan
Hue
DistributiSeno SEZDansavan Lao Bao
SEZ
(World
on
Heritage)
Center
Dong Ha Da Nang
Logistics
Center
(Tourism) Deep Sea
Aranyapr
Poipet
athet
Bangko
k
Tra
d
Malaysi
a
Port
35,000 DWT
and Dung
Quat IE
Kota-
Phnom
Penh
Koh
Kong
กัมพู ชา
Ho Chi
Minh
Vung
Tao
Deep Sea
Port
Thailand’s Assistances to Neighboring Countries
Kunming
PRC
Myanmar
16 Projects
Total 7,792 mil. baht
14
Yangon
13
12Dawei
Construction & Improvement
of
Roads, Bridges, Railways,
Airports and Local Ports
7
2 5
4
LaoPRC.
1
6
3 8
9
Thaila
nd
Trat
Danan
10
CambodiaViet Nam
11
Vung Tau
Joint Utilization of Airport
Savannakhet - Mukdahan
Flagship Initiatives:
Cross-border Transport Agreement
Single Stop Inspection
The Negotiation of All Annexes& Protocols
has been finalized and Signed by March 2007,
waiting for the ratification from countries.
After ratification, full implementation of CBTA
has scheduled in 2008
First Step
Second Step
One Stop Service
For CBTA in Thailand
First step : Mukdahan,
Aranyaprathet , Mae Sai, Mae Sot
Second Step : Nong Khai, Chiang
Kong, Chong Mek and Trat
Thailand can Provide Assistance
in Customs &Cross Broder
Management to CLMV
Industrial Estate and Economic Zone under ACMECS
Thialand’s
Border
Economic Zone
Industrial Estate
Establishment
1.Tak
SBEZ
2.Chiang Rai
SBEZ
Thailand
provide
assistance to
Myanmar
LaoPDR and
Savan Xeno
SBEZ
Chiang Rai SBEZ
Mae Sot SBEZ
and IE in
Myawaddy
Pa-an
Mawlamyine and
Maw Taung
Koh Kong
Industrial
Estate
Existing Thailand’s SBEZ and
IEAT’s projects in CLM Countries
Other Attempts to Support ACMECS
Agriculture
Single VISA
Trading
Facilitation of Import & MOU
of Contract Farming; R&D on
field crops,livestocks, SPS Tech
Thailand and Cambodia as a
Transfer
Pilot Project; Details had
finalized, will signed MOU in
OSS at 10 Checkpoints in THA; Study of
2007 Market & Distribution Centers in
Wholesales
Cambodia; Providing AISP for CLMV products
Use of Local
Currencies
Energy
Security
Capacity
Building
Community
BOT’s Study
finished.Implementing pilot
projects at Commercial Banks
Regional
Power
Grids,
at Thai-Lao
borders.
Alternatives Energy i.e.
Biofules,Biomass,Hydropower
Scholarship provided by
Thailand and VN for
Vocational
Trainings
and
Other
Implementing
Sister
Cities;
Areas
Coordination Mechanisms
Established at the Local Level
ACMECS Midterm Review (Cebu,
January 2007)
1
2
3
4
Approved New Version of Plan of Actions
and Promote Networking with
Development Partners on resources
Expedite Investment to Complete ACMECS
mobilization
Transportation Network and software to
facilitate movement of goods, people, and
tourism
Closer Relationship among Stakeholders
i.e. Sister Cities, Central local government,
Government & Private, People to People
Priority Issues i.e. Contract Farming,
Establishment of Rice Producing Countries
Association, Alternative Energy i.e. NGV,
Hydropower and Biofules, Public Health
Thank you
www.nesdb.go.
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