Regional Connectivity &
Thailand’s Investment Plans
Dr. Porametee Vimolsiri
Deputy Secretary-General
National Economic and Social Development Board (NESDB)
Tuesday 13th November 2012, 10.30 AM
At St. Regis Bangkok
16 October 2012
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Agenda
Regional Connectivity
1 and Sub-regional Cooperation
2 Thailand’s Investment Plans
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2
Regional Connectivity and Sub-Regions
Physical
Institutional
People to People
Master Plan on ASEAN Connectivity
Major Projects :
 ASEAN & National Single Window
 ASEAN Highway
 SKRL
 Road and Railway linking Dawei
 Information superhighways
 ASEAN Power Grid
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 Connect economically and
socially to mutually benefit from
regional cooperation
 Ensure trust with neighbors
 Narrow development gap
 Provide development support in
form of equitable development
partnerships.
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3
ASEAN Community: Prospective Advantages from Economic Partnership
 Geographically, Thailand is in the center of
ASEAN, its location is close to most ASEAN
member countries.
 In recent years, ASEAN economic importance for
Thailand in terms of trade, investment and
tourism, has been increasing.
 Trade Liberalization among the member countries of
ASEAN, makes ASEAN No.1 export market for
Thailand since 2002, and Thailand’s second largest
import market since 1997 (only second to Japan).
Thailand has had a trade surplus with ASEAN since
1993.
 Foreign Direct Investment (FDI) from ASEAN is
accounted for 20 percent of total FDI
 Number of ASEAN tourists traveling to Thailand is
accounted for 30 percent of total foreign tourists
(Malaysian tourist is the highest).

• Expanded/increased opportunities for trade, investment, tourism
and employment

• The competitive edge of the entrepreneur is enhance

• Improved confidence and image from the integration.

• Increased trade facilitation among member countries
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Shared resources/ trade
partnership leads to
cost reduction.
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Economic Corridor and Special Economic Zone Development
Myanmar
Kunming
Lao PDR
Chiang
Saen
Vietnam
Huaysai
Tachilek
Mae Sai
PR China
Nanning
Chiang
Khong
Yangon/Thilawa SEZ
ChiangRai
Vientiane
Nong Khai
Tak
Udon Thani
Mukdahan
Savanh-Seno
SEZ
Dansavanh
Lao Bao
SEZ
Hue
(World
Heritage)
E
W
KhonKaen
Mawlamyine
Dongha
Nakornsawan
Open to Western Markets
(tourism)
ICD
Ladkrabang
Bangkok
Aranya
prathet
Kanchanaburi
Danang
(Deep
Seaport )
Poipet
Phnom Penh
Dawei SEZ
(Deep
Seaport)
Southern
Economic
Corridor
ESB
(Deep
Seaport)
Ho Chi Minh
City
Trat
Koh
Kong
Sadao
Malaysia
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Kota Berdana
Kota Putra
Thailand
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Vungtau
(Deep
Seaport)
Cambodia
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Regional
Connectivity
Situationconnecting to neighboring countries
Key
Infrastructure
Development
Political-Security
Community
ASEAN
Trilateral Exchange in Traffic Right
between Thailand – Laos PDR –
China and 4th Mekong River
Crossover Bridge
Economic
Community
Socio-Cultural
Community
 Thai – Laos – China
High-speed Train
 Train connecting sub-region
Singapore - Kunming
Border Economy Development
Deep Sea Port and Dawei
Industrial Estate Development
Hat Yai – Sadao Motorway
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Thailand’s Opportunities for Industrial Production Base Expansion
“Effective Link for ASEAN Connectivity”
 The linkage will be an effective link within the region
corresponding to "ASEAN Connectivity"
 Power up investment opportunities along GMS Southern
Economic Corridor
 Build up a strong connection between ASEAN countries.
Dawei
132 km
300 km
New “Logistics Short Cut” of the Region
 Distance to India from Vietnam, Thailand and Cambodia
through Dawei port could be shorten to 3,500, 2,500 and
3,000 km. reduce from distance through the Strait of
Malacca: 4,200, 4,500 and 4,200 km.
“Distribution Center & Production Base”
 The linkage will profit traders both from Myanmar and
Thailand;
 Because of the link to ASEAN highway system, Dawei could
emerge as a trading hub linking Southeast Asia with the Indian
Ocean, the Middle East, Europe and Africa, spurring growth in
ASEAN region.
 The linkage will attract rising FDI flow into the region and
create the most complementary production bases in the
region.
Source: * DHL Interview in The Nation March 5, 2012, **UNESCAP report
16 October 2012
Source: Italian-Thai Development LtD and Siam Commercial Bank
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Myanmar-Thailand Joint Mechanism
Priority Projects
Road
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Railway
Port
Industrial
Estate
Power
Plant
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Water Works
& Waste
Water System
Telecom
quality of life
& community
relocation
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Agenda
Regional Connectivity
1 and Sub-regional Cooperation
2 Thailand’s Investment Plans
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Thailand’s Regional Perspective
Vision: Building Economic Partnership within the Region
(GMS, IMT-GT,
ACMECS,
BIMSTEC)
1
2
(ASEAN)
Asia Pacific
ASEAN+3
ASEAN+6 APEC
3
Goal:
Trade & Investment
Openness
Strategic Location
1. Strengthening role of Thailand in regional
trade and investment
2. Increasing cross border trade and
investment from Thailand to neighboring
countries up to 15% (Trade) and 10%
(Investment) per year
3. Creating supply chain linkages with the region
4. Decreasing domestic and international
transaction cost and improve its standard
Strategy:
Enhanced Connectivity
& Efficient Logistics
Competitive Economy
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1. To promote Transport and Logistics linkages
at subregional level
2. To create Investment and production bases
3. To prepare for ASEAN Community
4. To build economic partnership within the region
in HRD and labor movement
5. To Jointly cooperate on preventing of drugs
protection, communicable diseases control,
terrorism and natural disasters.
6. To promote environmental friendly cooperation
activities
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Physical-Connectivity Development in Thailand
Economic Restructuring
Regional Connectivity
Balancing economic
structure for quality and
sustainable growth
Cooperating with countries
in the region for economic
and social security
Infrastructure and logistics

system development
 Modernization of information
technology and Communications
 Economic legal and regulatory 
reforms
 Development of water supply

provision capacity
 Energy securitization
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Develop the network of
transportation and logistics
systems under different
regional frameworks
Create standards of
service and facilities at the borders
Integrate area-based development plan
with neighboring countries
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Infrastructure Development Target
• Shift the Rank of Thailand’s economic competitiveness to 16th in the IMD ranking
• Rank among the world’s top ten countries for the ease of doing business
• Reduce logistics costs to be lower than 15% of GDP
• Increase the proportion of the Rail transport to 5%
• Increase the proportion of the renewable and the
alternative energy consumption to the final energy
consumption to be at least 19%
• Reduce energy import by at least 3%
• Interconnect regional supply chains that can facilitate
economic development over a period of time
• Increase in Thailand’s cross-border trade and direct
investment with neighboring countries to reach
15 percent and 10 percent per annual respectively
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Financing for Reconstruction and Future Development Plan
Infrastructure Sector Development’s
Financing
Land Transport
2% 5%
Total 72.064 Billion USD
Air and Marine
Transport
22%
Energy
Telecommunication
65%
6%
Utility
More private
participation &
involvement
Development’s Financing Source
32%
SOEs and Loan
PPP
50%
Government
To upgrade administration
of government projects and
to stimulate the use of a
more innovative private
sector’s technology.
18%
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Infrastructure Development
Transport
Energy
Telecom
Border Town
Development
Efficiency + Shift Mode + Tackle Impact from Flood
 Motorway and highway
 Linking with EWEC , NSEC,
SEC for economic
expansion and AEC
Land Transport
Network
Development
Connecting
Main Economic
Zones & Cities
in the Region
and GMS
 Railways Development Master
Plan 2010-2015 (176,808 mil.
baht)
 Intermodal facility and
NSW
 High speed Train linking GMS
(742,000 mil. baht)
 Develop Mass Transit
Networks within the capital
perimeter
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Infrastructure Development : Road and Bridge
Projects
Parts of Economic
Corridors in Thailand
 Expansion of
The 4th Mekong bridge (T-L-PRC)
 Under Construction, will be
completed in 2013
2-lane to 4 lane
highways
 Maintenance
.
Route No. 11 in Lao PDR 82 km.
 Under construction, will be
completed in 2014
Western side of EWEC in Myanmar
 Rehabilitation of 18 km. Road
(Myawaddy-Kawkareik)
 New construction of 28 km. road
(Myawaddy-Kawkariek/mountainous
area section)
 Rehabilitation of 1st Mae Sai bridge
Future
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 Poo Doo – Pak Lai route (L)
 Ban Hwouk – Muang Kob (L)
 Road link new border crossing
points at Aranyaprathet (C)
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 Infrastructure linking
Dawei (M)
-
Motorway Bang Yai-Kanchanaburi 97 km. :
Details design complete. Searching for fund.
- Kanchanaburi-Border 70 km. Preparing for
F/S and Detail Design.
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Infrastructure Development : Railway Projects
Proposed GMS Railways Routes
Cost of Construction – R1 (1.09) R2 (5.32) R3 (2.29) R4 (6.28) $billion
 Nong Khai – Thanalang (Rail) - Completed Construction 6 km.
 Aranyaprathet – Poipet (Rail) – Missing link 6 km. in Thailand, in
process for budget allocation.
MOU on High
Speed Rail
From
To
Distance
(KM)
Amount
(Mill. USD)
North
Bang Sue
Chiang MAi
745
7,300
North-East
Bang Sue
Nong Kai
615
3,100
East
Makkasan
Rayong
330
2,300
South
Bang Sue
Huahin
225
2,600
Route
SKRL Development
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Infrastructure Development: Airport and Port
Projects
Transport
Energy
Telecom
Border Town
Development
Air Transport :
“Suvarnabhumi Airport to become a key airport of the region.”
 Improve capacity and quality services to handle a volume
traffic of 65 million people/year.
 Utilize information and communication technology to
enhance to international standard.
Maritime Transport :
“Laem Chabang port to be one of major ports in ASEAN.”
 Modernize management of Laem Chabang Port
 Information technology system to be upgraded to “E-Port”
with connection with other international ports
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Infrastructure Development : Energy
Transport
Energy
Telecom
 A search for new energy sources
both domestic and aboard.
Border Town
Development
Cooperation with potential
neighboring countries
Link with Dawei
 Renewable Energy
Technology shall be developed.
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Energy Security for
Thailand
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Infrastructure Development :
Telecommunications
Transport
Telecom
Energy
Border Town
Development
 Telecommunications
Infrastructure Development
 ICT System
High speed internet
and broadband network
National Single Window
ICT supporting trade
logistics
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Infrastructure Development
Transport
Mae Sai
Energy
Chaing Khong
Nakhon Phanom
Mae Sot
Kanchanaburi
Potential
Border Town
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Mukdahan
Aranyaprathet
Border Town
Development
Telecom
• Urban Infrastructure
• Special Border Economic Zone
• Cross Border Facilities
Urban Utilities
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SBEZ
Facilities & CCA
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Thank You for Your Kind Attention
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Back up
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11TH NATIONAL ECONOMIC AND SOCIAL
DEVELOPMENT PLAN Summary of 6
Development
Strategies
Creation of quality
Human capital and
Society
• Creation of Justice in Society
11th
Plan
Good
Governance
and implementation
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th
(Strategy 1)
• Creation of Learning Society
(Strategy 2)
Economic
Restructuring
• Strengthening of Agriculture
sector and food & energy
security
(Strategy 3)
• Restructuring of the economy
towards quality growth and
sustainabilityof Natural
Management
(Strategy 4)
Resources
• Preparation
Regional Connectivity
for effects of Climate
(Strategyand
5) Transfer to lowChange
carbon & environmentally
friendly society
(Strategy 6)
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Economic Restructuring to Regional
Connectivity
Economic Restructuring
Restructuring of Trade and
Investment Sectors
• To create linkages in investment,
production and value chains in
markets with potential
• To expand investment abroad
• To promote SMEs to have quality
growth
Investment to develop STI,
Infrastructure, and Energy
security
• To create enabling environment
for economic restructuring
• To develop infrastructure and
logistics system
• To secure power supply
adequately
Creation of Regional
Connectivity
Subregion
1.
Connectivity/Logistics development
2.
Supply chain development along economic
corridors
ASEAN
Strengthening of Agriculture sector and food &
energy security
Asia-Pacific
Preparation for
To constructively
ASEAN Community,
participate in
esp. human capital
cooperation
frameworks
• To develop national resources as strong production base for
agricultural sector
• To increase production efficiency and to generate additional value for
production chain
• To generate food and energy security and to develop renewable
energy
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Overview of the Project
Cooperation
• 1st MOU signed in 2008
Total Area :
Location :
204 sq km
Taninthayi District
Distance :
132 km from Thai-Myanmar border
• Framework Agreement signed in
2010
• Sign
2nd
202 km from Kanchanaburi
342 Km from Bangkok
472 km from ESB
MOU signed in July 2012
• Scope of Cooperation is in process.
• Joint Committee and Master plan
on
Dawei Development will soon be
developed.
Investment : approximately 9,000 mil. USD
(exclude resettlement cost)
Concession : 60 years + possible extension
Land Lease : Up to 75 years
Full Capacity of Dawei Port (in 2037 est. )
• 200 mil. Ton per year or 14 mil. TEU
compared to capacity of LCB port stage II
which is 7.7 mil.TEU per year
(not include container ports D1, D2, D3)
• 100,000 DWT
compared to 80,000 of LCB port
• 25-40 meter-depth
compared to 14-16 meter-depth of LCB
port
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Corridor Development between Dawei Project and Laem Chabang Seaport
1
Basic
Infrastructures
Development in
Myanmar e.g. Road
and Port
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2
Border
Development ,
Trade and
Transport
Facilitation
3
Domestic Development: Enhance Current
Logistics Infrastructure
and Economic area
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Challenges of Infrastructure Development
linking Asia and GMS
Sharing of
Benefit & Cost
Negative
Effects
Cross Border
Movement
Financing
• Urban Vs rural areas • Managing of the • management and • Financing of
• Advance Vs lessnegative effects of
facilitation of cross
infrastructure
develop countries
infrastructure
border trade and
investment and
investment
maintenance
Private Sector
• Public-private risk
sharing
Some of Key Measures to Overcome the Challenges
 Transform Transport Corridor to Economic Corridor Development
 Cross Border Transport Agreement
 ASEAN Infrastructure Fund
 Public and Private Partnership (PPP)
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