5 September 2012 1 5 September 2012 Kantary Hills, Chiang Mai

5 September 2012 1 www.nesdb.go.th 5 September 2012 Kantary Hills, Chiang Mai

5 September 2012 2 www.nesdb.go.th Outlines 1 Opportunity and Challenges of ASEAN community 2 Regional Co-operation in ASEAN 3 Thailands Experiences on Integration 1

5 September 2012 3 www.nesdb.go.th Overview of Regional and Sub-regional Co- operation within the South East Asia BIMSTEC GMS ASEAN IMT-GT BIMP- EAGA

5 September 2012 4 www.nesdb.go.th Fact Sheet: Greater Mekong Sub-Region (GMS) Cambodia Bangladesh Thailand Vietnam Laos Myanmar China India Malaysia Indonesia Singapore Brunei Sri Lanka Philippines Japan Afghanistan Pakistan Korea Bay of Bengal South China Sea Gulf of Thailand Middle East Europe Africa Market Potentials: 326.8 millions of population 2.6 million sq KM area US$1850 GDP per capita 6.5% average GDP Growth in past decade Connect to 2,400 millions pop. (PRC+ India) Achievements: Tourist Arrival 25 Million FDI 7,000 Million USD Export to GMS 200,000 million USD Market Potentials: 326.8 millions of population 2.6 million sq KM area US$1850 GDP per capita 6.5% average GDP Growth in past decade Connect to 2,400 millions pop. (PRC+ India) Achievements: Tourist Arrival 25 Million FDI 7,000 Million USD Export to GMS 200,000 million USD Yunnan & Guangxi

5 September 2012 5 www.nesdb.go.th From 1992 Establish ment of the GMS From 1994 Infrastru cture Develop ment From 2000 Building Competiti veness From 2012 Strateg ic Partner ship Development of GMS 3Cs Strategy ---- Connectivity Competitiveness Community Major Backbone Projects Financial Mobilization One Tourism Destination Economic Corridor Development Cross Border Transport Agreement Supply Chain & Logistics Sustainable Development ASEAN Economic Community Public Private Partnership Climate Change & Disaster Management ADB Secretariat GMS National Coordinator Strategic Framework and Action Plan GMSs Key Success Factors: - Output Oriented Approach - 2+x Approach - Strong Partnership with DP - Sense of Ownership

5 September 2012 6 www.nesdb.go.th Areas 0.57 million sqkm. > Population 70 million Areas 0.57 million sqkm. > Population 70 million Thailand : 14 Provinces of Southern Thailand Songkhla, Satun, Pattani, Yala, Narathiwat, Nakhon Si Thammarat, Trang, Phatthalung, Ranong, Chumphon, Surat Thani, Krabi, PhangNga, Phuket Indonesia : 10 Provinces of Sumatra Aceh, North Sumatra, South Sumatra, West Sumatra, Riau, Riau Island, Jambi, Benkgulu, Bunga-Belitung, Lumpung Malaysia : 8 States Kedah, Perlis, Perak, Penang, Selangor, Kelantan, Melaka, Negri Sembilan Areas of Cooperation : 6 areas (1) Infrastructure and transportation (2) Trade and Investment (3) Tourism (4) Halal Products and Services (5) HRD ( (6) Agriculture, Agro-processing and Environment Thailand : 14 Provinces of Southern Thailand Songkhla, Satun, Pattani, Yala, Narathiwat, Nakhon Si Thammarat, Trang, Phatthalung, Ranong, Chumphon, Surat Thani, Krabi, PhangNga, Phuket Indonesia : 10 Provinces of Sumatra Aceh, North Sumatra, South Sumatra, West Sumatra, Riau, Riau Island, Jambi, Benkgulu, Bunga-Belitung, Lumpung Malaysia : 8 States Kedah, Perlis, Perak, Penang, Selangor, Kelantan, Melaka, Negri Sembilan Areas of Cooperation : 6 areas (1) Infrastructure and transportation (2) Trade and Investment (3) Tourism (4) Halal Products and Services (5) HRD ( (6) Agriculture, Agro-processing and Environment Fact Sheet: Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) IMT-GT Connectivity Corridors

5 September 2012 7 www.nesdb.go.th Following The IB 2012-2016 Facilitation under the IMT-GT framework, such as Software and Hardware development. AEC 2015 Present 2012 IMT GT Development Process towards 2015 and onwards

5 September 2012 8 www.nesdb.go.th ASEAN Plan of Action for Energy Cooperation (APAEC) ASEAN Power Grid ASEAN Plan of Action for Energy Cooperation (APAEC) 1999-20042004-20092010-2015 Trans-ASEAN Gas Pipeline Coal & Clean Coal Technology Energy Efficiency and Conservation Renewable Energy Regional Energy Policy and Planning Civilian Nuclear Energy Coal Projects under the Master plan on ASEAN Connectivity ASEAN Vision 2020

5 September 2012 10 www.nesdb.go.th Rano ng Satun Sing Korn Borde r Phu Num Ron Border Sittew e Seapo rt GMS Economic Corridor Approach The existing 9 economic corridors: 1.East west (EWEC) 2.North south (NSEC) 3.Southern (SEC) 4.Northern 5.Northeastern 6.Eastern 7.Central 8.Western 9.Sothern coastal corridor

5 September 2012 11 www.nesdb.go.th Pla n Southern Thailand Ports Development Program -Phuket Port -Naklua Port ICQS Bukit Kayu Hitam Hat Yai-Sadao Toll Road Sumatra Ports Development Project -Ulee Lheue Port -Malahayati Port -Belawan Port -Kuala Enok Port Sumatra Toll Roads Project -Palembang and Indralaja Toll Road Melaka-Dumai Economic Corridor Multimodal Transport Project -Dumai Port -Pekanbaru-Dumai Road Melaka- Pekanbaru Power Interconnection Development of Aceh Highway Facilities -Bandah Aceh- K.Simpang Inland Container Depot (Tung Song) Southerly section of the Eastern Highway (Bandar Lampung- Bakauheni) to Java Project Narathiwat SEZ IMT GT Priority Connectivity Projects

5 September 2012 12 www.nesdb.go.th Thailands Freight Transport and Border Trade Volumes Domestic Freight Transportation by Modes Source: Ministry of Transport and Airports of Thailand Cross Border Freight Transportation by Modes 3%3% 70% 10% 16% Source: Ministry of Commerce During the past five years, the border trade volumes between Thailand and neighboring countries have grown rapidly with an average of 13 percent per year, greater than that of international trades at 8 percent per year. It is targeted to see a 15 percent growth rate in the next five years. Source: Ministry of Transport and Airports of Thailand Border Trade Proportion by Country Border Trade Volumes Mil Baht

5 September 2012 13 www.nesdb.go.th Trade Facilitation Improvement Trade Facilitation Agreements GMS: Across Border Trade Facilitation (CBTA) Traffic right exchange on EWEC, launched 2009 face low traffic volume Customs 14 Annexes and Protocols ratified 5 CBTA Acts considered, 3 pending for Cabinet approval IMT-GT Trade Facilitation CIQ in the process of signing MOU between member countries National Single Window (NSW) Trading across Border Index (by World Bank)

5 September 2012 14 www.nesdb.go.th ASEAN Power Grid (APG) To link the electricity grids in the region to optimize the utilization of energy resources among the member countries Generation Transmission Distribution & Power Reliability & Quality Policy & Commercial Development Human Resource ASEAN Power Grid Consultative Committee (APGCC) APGCC Way Forward and Action Plan 2011 - 2012 Study on Optimization/maximization of the generation vis a vis the availability of indigenous energy resource To optimize the utilization of ASEAN resources to develop ASEAN Power Grid To seek available technical assistance to conduct further studies, benchmarking HAPUA Working Committee (HWG) Complete and On-going Study ASEAN Interconnection Master Plan Study II - AIMSII (include Operation and Maintenance, System Operation, and Planning and Inter-connection) [Complete] Fuel Security Study The study on Harmonization on Common Technical Guidelines The Financing Model/s and Investment Plan ASEAN Power Grid The Heads of ASEAN Power Utilities/Authorities Council (HAPUA)

5 September 2012 15 www.nesdb.go.th Trans-ASEAN Gas Pipeline (TAGP) To interconnect the gas pipeline infrastructure of ASEAN Member States and to enable gas to be transported across the borders of the Member States; Involved the construction of 4,500 kilometers of pipelines mainly undersea 3,020 km of existing bilateral connections with additional approx. 4,500 km of multilateral connections in the future Future Trans-ASEAN Gas Pipeline Projects - East Natuna, Indonesia-JDA-Erawan, Thailand (1500 km) - East Natuna, Indonesia-Kerteh, Malaysia (600 km) - East Natuna, Indonesia-Java, Indonesia (1400 km) - East Natuna, Indonesia-Vietnam (900 km) The ASEAN Council on Petroleum (ASCOPE) Strategies Collectively implement the ASEAN MOU on TAGP by ASCOPE Members PERTAMINA and PSC Partners to undertake detailed feasibility study for East Natuna Gas Field Development Implement the approved Roadmap for TAGP by respective ASCOPE Members Implement the approved 5-year ASCOPE Gas Centre (AGC) Work Program Review of ASEAN MOU on TAGP by considering both Natural Gas Reserve and LNG (Jul. 2013) LNG Commercial Pattern (Nov. 2012) LNG Technique : Standard and Port Management (Nov.2012) Recent Progress on Trans-ASEAN Gas Pipeline (TAGP) New MOU (Draft 2011) : Promoting LNG Import, Bilateral Connection, and Preventing Natural Gas Shortage

5 September 2012 17 www.nesdb.go.th Opportunities from Regional Integration Regional Economic-social Prosperity Competitiveness Regional Economic-social Prosperity Competitiveness AS W Market Expansion Trade & Transport Facilitation Natural Resource Utilization Skills & Knowledge Exchange Enhanced Transparency

5 September 2012 18 www.nesdb.go.th Challenges Attached with Economic Integration Disparities in economic growth and endowments Communicable Diseases Human Trafficking Natural Resource Exploitation Illegal Immigration and Trades Drug Smuggling Crimes and Violence Transport to Economic Corridor Transformation

5 September 2012 19 www.nesdb.go.th www.nesdb.go.th Thank You for Your Kind Attention

5 September 2012 20 www.nesdb.go.th Thailand Source: The Japan Chamber of Commerce and Industry Number of Japanese firms that are member of the Japanese Chambers of Commerce and Industry in other countries Thailand is still a sizeable investment base of Japanese firms, comparing to other countries in ASEAN. It can be seen that nearly 30 percent of Japanese firms are currently investing in Thailand, which is double the investment proportions in neighboring countries. Proportions of Japanese Firms Invested in ASEAN Thailand ( ) Proportions of Japanese firms in ASEAN Numbers of Japanese firms in ASEAN

5 September 2012 21 www.nesdb.go.th Da Nanag Port Constuction completed (5 million tons per annual / 35,000 DWT) 2h Thai-Lao Friendship Bridge construction completed in 2007 Hai Van Tunnel construction completed in 2005 The Myawady - Kokariek- Thaton road (189 km) first 18 km road development financed by Thailand. - detail design of the 40 km uphill portion completed with Thailands assistance Nongkhai - Ta Na Laeng Rail route Thailand assisted in helping financing 6 km of the route to completion in 2009 Construction of 82 km section of the R11 route in Lao Thailands financial assistance costs 1,392 million Baht 3rd Thai-Lao Friendship Bridge at Nakhon Phanom province, construction completed in 2011 Roads in Thailand mosty 4 lanes, except Tak -Kalasin -Mukdahan and Mukdahanand borders that are still under expansion to 4 lanes GMS- East West Economic Corridor

5 September 2012 22 www.nesdb.go.th 22 Kunming 2 lanes of the 256 km- road network from Mae Sai - Tachilek - Dali Luoyang in Myanmar construction -completed, fair condition 296 km Hanoi - Lao Cai /Huaykoh Rail route - costs 120million US dollars, under construction Kunming-Nanning Railway cost of 12,900 million Dollars, financed by Chinese government and ADB, about start construction 228 km Road infrastructure construction in Lao Completed/ 84.77 km- Road in Thailand rehabilitation nearly finish. 4th Thai-Lao Friendship Bridge (Chiang Khong - Huay Sai) completion expected next year 110 km road expansion connecting Chiang Rai - Chiang Khong completed within 5 years 60 km road extension between Chiang Rai - Mae Sai expansion to 4 lanes and construction of the 8 km bypass completed. High-speed rail route from Nong Khai - Bangkok - Thai- Chinese governments agreed to support in August 2010. high-speed rail route from Chiang Mai - Bangkok Government of Thailand China signed MOU on December 2011 620 km expressway between Jinghong - Kunming expansion to 4-6 lanes) The Dali-Ruili rail route - under construction by Chinese Govt and road rehabilitation financed by ADB GMS- North South Economic Corridor (NSEC)

5 September 2012 23 www.nesdb.go.th Southern Economic Corridor Road rehabilitation completed in 2007, assistance from WB, ADB and Thailand Construction completed by ADB and Japan River Bridge under construction and expected for completion in 2012 with assistance from Japanese government Under construction, financed by ADB, EDCF, AUS, GOV Construction Completed with assistance from China Road rehabilitation completed in 2008 by Japan and ADB 4-lane road (except Prachin Buri- Kabin Buri and Aranya Prathet inbound sections) GMS- Southern Economic Corridor

5 September 2012 24 www.nesdb.go.th Infrastructure projects in Thailand under IB 2012-2016 Naklua : FS and detailed design and EIA completed. However, there are still some enquiries regarding the EIA that need to be resolved. Once resolved, the project will commence in the current budget year. Funding for this project has been secured Phuket : negotiations to extend the concession agreement on the design of the passanger facilities are still on-going to allow adequate profit for the private sector. Hat-Yai Sadao Intercity Motorway: A review of the feasibility study will be done in 2012 (April 2012-April 2013) Southern Thailand Ports Development: Inland Container Depot in Tungson : The project involve construction of cargo distribution center. Narathiwat Special Border Economic Zone ; The Development of Special Border Economic Zone in the Clustering areas linking Narathiwat province-Pattani province and Yala province with Kelantan state.

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5 September 2012 1 5 September 2012 Kantary Hills, Chiang Mai