GMS 1 SEC The Southern Economic Corridor Development
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GMS 1 SEC The Southern Economic Corridor Development of Competitive and Inclusive Asia Training 1 24 August 2017 Copyright © FIHRD 2013
Group Name List • • Moul Thon – Cambodia Lim Savann – Cambodia Ing Kim Leang – Cambodia Nyi Swe – Myanmar Hnin Sandar – Myanmar Kurkrit Chaisirikul – Thailand Nguyen Xuan Minh – Vietnam 2
MAP of GMS-SEC Part 1 3
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Quick Facts about GMS-SEC Viet Nam Land area: 32, 931, 000 ha Myanmar Population: 92. 0 m. Land area: 67, 658, 000 ha GDP per capita: US$1, 032 Population: 50. 5 m. GDP per capita: est. at US$340 Thailand Land area: 51, 312, 000 ha The GMS in 2011 Land area: 256, 758, 000 ha Population: 323. 4 M GDP per capita: US$1, 477* Population: 65. 5 m. GDP per capita: US$3, 893 Cambodia Land area: 18, 104, 000 ha • With estimates for Myanmar Population: 15. 5 m. • Data for 2009 from World Bank GDP per capita: US$667 5
Quick Facts about GMS-SEC in 2011 -2015 6
Intercountry Distribution of the Greater Mekong Subregion Economic Corridors (%) Source: ADB, 2011 7
GMS Strategic Framework: with a focus on five strategic Strengthening infrastructure linkages; Facilitating cross-border trade and investment, and tourism; Enhancing private sector participation and competitiveness; Developing human resources; and Protecting the environment and promoting the sustainable use of shared natural resources 8
Development Strategies in the GMS-SEC • Export & FDI driven development • Agro industry development • Gradual industrialization toward products with high value added • Infrastructure development • Technology transfer & adaptation • Subregional cooperation (ASEAN, GMS, ACMECS) • SME development • Eco-industry 9
Institutional Structure of the GMS-SEC • The GMS Program is the principal facilitating institution for the GMS -SEC • GMS-CBTA as a tool for TTF • ASEAN act as regional organizations • Ayeyawady–Chao Phrya–Mekong Economic Cooperation Strategy (ACMECS), the Mekong River Commission for international cooperation • Member Countries (Myanmar-Thailand-Cambodia-Vietnam) on the stage in JC, JTC, GBC, RBC • Private Sector • Asian Development Bank (ADB) act as technical & financial supporter • *See the pyramid figure in the next page* 10
Institutional Structure of the GMS-SEC 11
GMS Part 2 a South Economic Corridors Southern Economic Corridor (2) Southern Economic Corridor (1)
GMS –South Economic Corridors Dawei Southern Economic Corridor
Part 2 b Economic Corridors Development Approach Good infrastructure (Upgrading road, getting electricity---) Good systems and procedures Good information Institutional mechanism to be the facilitator and interface Cooperation between the public and private sector to ensure sustainable success • Initially transport links, subsequently improving “software” and then other infrastructure investments for urban development, SEZ, agriculture Successful Economic Corridors : • Link major markets/ nodal points • Ensure cheap, fast and reliable transport and trade • Catalyze private investment • Benefit the local population living nearby the corridors. • • • 14
Sample Economic Corridors Part 2 c Institutional Mechanisms/ Structure 15
Part 2 c Sample Economic Corridors Institutional Mechanisms/ Structure 16
Economic Corridors Summary Part 3 Economic Corridors Type Stakeholders and Beneficiaries Southern Economic Corridors Land -People living in along based the Corridor such as Dawei , Bangkok , Siem Reap, Stung Treng, Plelku, Quy Nhon, Phneom Penh, Svay Rien, Go Dau, Hochi Minh City, Vung Ta -Traders from MTCV -Governments Subregional Dimensions, Justificatinos, Rationale Location Timeline -Tech Transfer -skill upgrading for SEZs -local Development -Empowerment of Women -Job Creation -Export Growth and export Diversification -Increase FDI -Increase in FE Earnings -Gov revenue SE Asia Strategy and Action Plan Established in 1998 17
Formulation Process for Strategies and Action Plan • Stakeholders consultations: National & Local • Confirming configuration and alignment • Preparing corridor assessments - Socio-economic characteristics -Development potential -Comparative Advantages -Constraints and Challenges -Opportunities for cooperation • Preparing strategic direction and action Plans for Southern Economic Corridor 18
Part 4 Economic Corridors Benefits and Opportunities • Benefits: o Facilitate cross border transportation & trade o Transparency of administrative procedures in CIQ complex and related govt. agencies o Link major markets/nodal points; o Ensure cheaper in doing business, low transportation cost, fast and reliable transport and trade o Catalyze private investment o Benefit the local population living nearby the corridors; o Sustainable development for the member countries • Opportunities: o Improvement of subregional trade and investment especially the border trade o More subregional cooperation can happen in the GMS-SEC e. g. energy, tourism, product development, etc o Chance to harmonize the member standards and accreditation/ certification to be the international standard o Opportunity to fulfillment of common resource or other needs among member countries 19
Challenges and Constraints Part 5 • Road infrastructures in some areas still poor and the CTS system is not developed • Fundamental Infrastructure (ex. IT Connection) • Internal Laws/Regulations among member countries • Inconsistent and difficult border crossing formalities and procedures • Different standards on vehicles and drivers across countries • Language of Communication issue • Labor exploitation and migration issues • Smuggling and Drug Trafficking issues • Natural Resource depletion 20
Example Part 5 21
Recommendation Part 6 • GMS-SEC Leaders’ “Political Will” • Supporting policy from member countries • Amending Laws/Regulations of all related government agencies to be in one line of GMS-SEC • Providing training/seminar/ business matching • Providing more opportunity of private sector participation in policy issue as a mechanism of GMSSEC goal • Sharing the experiences and lesson learned together • Commitment to implement the GMS-SEC to be the successful economic corridor 22
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