Presented by Mrs. Tui Pakarat-Rutten Managing …...ASEAN TRADE LOGISTICS CONNECTIVITY THE INTERNATIONAL LINKAGE DEVELOPMENT (THAILAND, CAMBODIA AND VIETNAM.) Presented by Mrs. Tui

ASEAN TRADE LOGISTICS CONNECTIVITYTHE INTERNATIONAL LINKAGE DEVELOPMENT (THAILAND, CAMBODIA AND

VIETNAM.)

Presented by Mrs. Tui Pakarat-RuttenManaging Director of Intra Mekong / President of

TBCC Date Dec 03, 2013.H/P: +66 81 839 2452 /+855 16 912 832

E-mail: [email protected]

www.tbcccambodia.org www.intra-mekong.com

mailto:[email protected]


Outline

1. GMS Transport Linkage.

2. ASEAN Transport Linkage.

3. GMS & ASEAN.

4. The Southern Economic Transport Corridor.

5. ASEAN GDP.

6. ASEAN Trade Information.

7. Trade Between Thailand and Cambodia.

8. Thailand’s Utilization of ASEAN FTA.


1. GMS Transport Linkage

GMS Connectivity

Road Transport Network

1992

www.tbcccambodia.org www.intra-mekong.com5

GMS Connectivity

Road Transport Network

2015

www.tbcccambodia.org6


2. ASEAN Transport Linkage

Designated Transit transport Route

(Mainland)

2

140

18

141

18

14218

111

2

2

1911

1

12317

132132

1112

116

1616

16

15

11

12121

19123

131

112

13

112

15

14

14

13

1

14

14

1

1112

2

3

3

1

17

Designated Transit Transport Route

Non-Designated Transit Transport Route

1

Source: SNEC & MEF

Myanmar676,577 sq km

Population: 60 milEnroll ASEAN: July 23, 1997

Thailand513,120 sq km

Population: 67 milEnroll ASEAN: August 08, 1967

Malaysia330,252 sq km


Indonesia1,860,360 sq km


Laos236,800 sq km


Singapore710 sq km


Brunei5,765 sq km

Population: 400,000Enroll ASEAN: January 07, 1984

Philippines300,000 sq km


Vietnam331,057 sq km


Cambodia181,035 sq km

Population: 15 milEnroll ASEAN: April 30, 1999

ASEAN Members

Population: Approx 600 mil


Sectoral Cooperation2015

2009ASEANCharter

2007Cebu (2015)

2005 Bali

Concord (2020)

www.intra-mekong.com

Institutional Connectivity Framework

Regional Connectivity

(ASEAN/GMS)

InstitutionalConnectivity

BorderConnectivity

(@each border)

BilateralConnectivity

(C/T-C/L-C/V)

Private sectorconnectivity

Source : Dr.Ruth Banomyong Thammasat Business School www.intra-mekong.com

A proposed framework for institutional connectivity

1. Understand institutional structure of neighboring countries (Lao, Thailand & Vietnam)

2. Identify key negotiating counterparts both at national and border level

3. Establish linkages between regional/bi-lateral/border level committees– From regional connectivity to bilateral connectivity

(Cambodia-Lao/Cambodia-Thai/Cambodia-Vietnam)– From bilateral connectivity to border connectivity

Establish joint border development committees at each border

Purpose of institutional connectivity is to facilitate people, goods & vehicle connectivity…

However connectivity is not one way!Source : Dr.Ruth Banomyong / Thammasat Business School www.intra-mekong.com

GMS

• Economic Corridor approach

• Infrastructure funding– Road– Rail

• Cross Border Transport Agreement– 1 Framework agreement– Over 20 protocols

AEC

• Logistics service sector integration roadmap

• ASEAN Strategic Transport Action Plan (ASTAP)– All transport modes– Transport facilitation

framework agreements• Facilitation of Goods in

Transit• Multimodal Transport• Inter-State Traffic

• ASEAN TRADE (FTA)

3. Comparing GMS & ASEAN logistics related policy

Source : Dr.Ruth Banomyong Thammasat Business School www.intra-mekong.com


4. The Southern Transport Corridor .Thailand, Cambodia and Vietnam.

www.tbcccambodia.org www.intra-mekong.com16

17

Mostly 4-lane highways; not a constraint to cross-

border traffic.

Upgrading to be completed by 2008 with

ADB and Japan assistance.

Bridge over Mekong to be financed by Japan

Mostly 4-lane highways; not a constraint to cross-

border traffic

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 completed in 2007 with PRC

assistance.

In good condition

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.

GMS Southern Economic CorridorRoads

17

Cambodia – Thailand Border• Cambodia and Thailand share the border of 803 Km. • There are 6 international border crossing between the

two countries: – Chong Jom Thailand - O'Smach, Oddar Meanchey,

Cambodia– Chong Sa Ngam Thailand - Anlong Veng, Oddar Meanchey– Aranyaprathet – Poi Pet– Ban Laem Chantaburi, Thailand - Daung Lem, Battambang,

Cambodia– Ban Pakard Chantaburi, Thailand - Phsar Prom Pailin– Pailin– Had Lek, Trat, Thailand – Koh Kong :(Cham Yeam

Checkpoint)


Crossing Border Checking Point


Asian Highway Routes in Thailand• AH1: Aranyaprathet-Hin Kong-Bang pa –in

(-Bangkok)-Mae Sot: 701 Km• AH2: Sa Dao-Hat Yai-Bangkok-Chiang Rai-

Tachilek: 1,913 Km• AH3: Chiang Kong -Chaing Rai: 117 Km• AH12:Nong Khai-Udon Thani-Nakhon

Ratchasima-Hin Kong: 511 Km• AH13: Nakhon Sawan-Phitsanulok-Huai Kon

: 557 Km• AH15: Nakho Phanom-Udon Thani : 243 Km• AH16: Tak- Khon Kaen-Mukhdahan: 689 Km• AH18: Hat Yai-Sungai Kolok: 268 Km

• AH19: Bangkok-Laem Chabang-Kabin Buri –Nakhon Ratchasima: 458 Km

• AH112: Klong Loy-Bang Saphan: 29 Km• AH121: Mukdaharn-Yasothon-Buriram –

Sakaeo: 421 Km• AH123: BongTi-Kanchanaburi-Nakhon

Pathom-Bangkok-Chonburi-LaemChabang-Maptaput-Rayong-Trat-HatLek: 574 Km

• Total: 6,693 km



List of Company Signed MOU Can Run Crossing Border Between Cambodia & Thailand


The Bilateral Agreement on Road Transport between Cambodia and Vietnam

Border Gates (International and Bilateral)• 1- Bavit (Svay Rieng) RN1 - Moc Bai (Tay Ninh)• 2- Trapeang Plong (KPC) RN 6,7 - Xamat (Tay Ninh)• 3- Phnom Den (Takeo) RN2 - Tin Bien (An Giang)• 4- Prek Chak (Kampot) RN3, 33 - Xa Xia (Kien Giang)• 5- O Yadav (Rattanakiri) RN7, 78 - Le Thanh (Gia Lai)• 6- Trapeang Sre (Kratie) RN6, 7, 74 - Bu Nu (Binh Phuoc)• 7- O Reang (Mondulkiri) RN6, 7, 76 - Bu Prang (Dac Lac)

Requirements: Finance, Quota, Registered vehicles Training program (Agreement, Law, Cross border Transport operation and traffic right of

other countries) Operational Implementation (issues challenged)


Trucking Quota on Road Transport between Cambodia and Vietnam

Current Quota and Companies engaged in CBT Quota = 150 vehiclesA- Trucking Companies engaged in CBT <30 units>• 1- So Ngoun Transportation and Dry Port (operating to VN and has branch

office in HCM)• 2- Teng Lay Transportation and Dry port• 3- Tec Srun Transportation and Dry port• 4- Sokan Transport• 5- Union Transportation• 6- RTC • 7- ML Express

B- Bus Companies engaged and operating in CBT <120 units>- Capitol Tour, PP Sorya, Mekong Express, Reaksmey Angkor, Paramount

Angkor, Bus Express & Travel, Cambodia Asia Travel, Kampuchea Angkor,



Southern LinePhnom Penh-Sihanoukville Port

264km

Southern LinePhnom Penh-Sihanoukville

Port264km


Two International Ports:– Sihanoukville Autonomous Port (PAS)

– Phnom Penh Autonomous Port (PPAP)


Comparison of Alternative Routes

PP - HCM - S’pore - USAPP - Cai Mep - USA

⇒Cost reduce by at least $200usd⇒At least 2 days shorter lead time

PP - SHV - S’pore - USAPP - Cai Mep - USA

⇒Cost reduce by at least $100usd⇒Up to 3 days shorter lead time



5. ASEAN GDP

ASEAN GDP 2012 est

Source: IMF Apr 2013

0

100

200

300

400

500

600

700

800

900

ID TH MY SG PH VN MM BN CA LA

US$ Million

Country

895

377

307268

241

138

5417 14 9


5.5 5.5

6.5

7.0

2.8

4.5

6.4

6.7

4.0

5.0

6.2 6.3

4.8 5.0

7.97.7

6.06.3

2.6

3.2

0

1

2

3

4

5

6

7

8

TH CA SG ID MY VN PH LA MM BN

20122103

Source: ADB April 2012

% Growth

ASEAN GDP Growth



6. ASEAN Trade Information

ASEAN – 2nd Largest Market

• ASEAN is the second largest emerging market in terms of international trade after China.

• The total international trade of ASEAN is larger than the total international trade of Russia, India, and Brazil combined.


ASEAN – 2nd Largest Market

• ASEAN is also the second largest emerging market in terms of GDP.

• ASEAN Free Trade Agreement (AFTA) enable the free flow of goods within ASEAN.


Trend of ASEAN Trade

Source: ASEAN Trade Databasewww.tbcccambodia.org www.intra-mekong.com

Top 10 ASEAN Export Commoditiesin 4 digit-HS, 2011


Trend of Total Exports in 7 PriorityIntegration Goods Sectors

Source: ASEAN Trade Database www.intra-mekong.com

Export Product diversification

No. 1 exports Share of no. 1 exports

Share of top 10 exports

Cambodia Textiles and clothing 56.29% 70.69%

Lao PDR Copper 48.58% 79.17%

Myanmar Petroleum gas 42.83% 79.75%

Viet Nam Crude petroleum oil 10.48% 40.00%

Thailand Automatic data processing machines

7.33% 34.51%


Cambodia’s export destinations


Thailand’s export destinations


Viet Nam’s export destinations


Top 10 ASEAN Import Commoditiesin 4 digit-HS, 2011


Thailand Top 5 Import from GMS, 2010

Source : Global Trade Atlaswww.tbcccambodia.org www.intra-mekong.com

Thailand Top 5 Export to GMS, 2010

Source : Global Trade Atlas



7. Trade Between Thailand and Cambodia.

Border Trade Thailand – GMS, 2010Country Import ExportCambodia 1. Iron

2. Oil plants and products3. Grains4. Aluminum and products5. Vegetables and garnish of vegetables

1. Sugar2. Fabric and yarn3. Internal combustion piston engine and components4. Tire5. Vehicles and components

China 1. Garments2. Vegetables and garnish of vegetables3. Video and voice Transmitter and composition4. Fruit and fruit flavored5. Furniture

1. Computers and equipment2. Diesel fuel3. Vehicles and components4. Palm oil5. Iron and steel products

Laos 1. Copper and products2. Industrial machinery and components3. Lumber4. Garments5. Vegetables and garnish of vegetables

1. Diesel fuel2. Vehicles and components3. Machine used in construction and components4. Gasoline5. Iron and steel

Myanmar 1. Natural gas2. Aquatic animals3. Timber products4. Timber5. Vegetables and garnish of vegetables

1. Diesel fuel2. Non-alcoholic beverages3. Gasoline4. Fabric and yarn5. Alcoholic beverages

Vietnam 1. Video and voice Transmitter and composition2. Computers and equipment3. glass and products4. Wire and cable5. textile products

1. Non-alcoholic beverages2. Iron and steel products3. Fresh fruit, chilled Frozen and dried4. Microwave and appliances to heat5. Refrigerators, freezers and components


8.Thailand’s Utilization of ASEAN FTA

Thailand’s utilization of tariff preferential

source: Author’s calculation base on 2009 data

Why tariff preferential is not fully utilized??

• cost of complying with the rules of origin (ROO)

• Complexity in getting the certificate of origin(CO)

Therefore, efficient trade facilitation could help easing the process and lower trade cost (time wise and moneywise)


Rules of OriginRules of origin are used to determine the

nationality of product.

This is to determine whether a product shall be given preference or whether the MFN tariff should be paid when a product is imported.



TBT and SPS

– ‘Agreement on Technical Barriers to Trade’ –TBT

– ‘Agreement on the Application of Sanitary and Phytosanitary (SPS) measures’

Lessons Learned from CURRENT Situation 2012 Symposium Conclusion.

1. NO real ASEAN Cross Border Transport has been operated - all operationalisation are based on Bilateral Agreement, Triparties MoU and CBTA-GMS.

2. GMS-CTS but just only once implement as trial only on l-1th June 2009 and less than 100people understand how GMS-CTS operate

3. Operators complain on the delay in crossing border because of customs procedure and high expenses incurred. Customs inspection has been done every posts.

4. Some protocols of the ASEAN Framework Agreement on Facilitation of goods in transit still do not complete and still not be ratified by member states such as Protocol 2 designated Frontier Post and especially Protocol 7 Customs transit system.

5. information of ASEAN SWI & SSI & CCA concept has been referred at all time, but at present no body fully understand what and how CTS would be. is it similar to CBTA GMS-CTS with Three Set of Documents? TICCD,CTAD, MVTAD or Paperless (e-documents)

6. Readiness of NSW of each member states will not be ready at same time, electronic and manual operation have to be done.

7. The implementation on ASEAN FTA / The CO from D.

What will we do next ?


Useful link

www.investincambodia.comwww.ccb.com.khwww.tbcccambodia.orgwww.asean.orgwww.affalog.netwww.adb.org/GMS/Cross-Border/about.aspwww.adb.org/GMS/Economic-Corridorswww.eastasiawatch.in.thwww.unescap.org/ttdw/FFmeeting/FFForum_2010/7.pdfwww.worldbank.org/etools/tradesurvey/mode1b.asp#moreinfowww.nesdb.go.thhttp://www.tbcccambodia.org/index.php?option=com_content&view=article&id=130%3A-road-show-23-26-2556-&catid=46%3Alastest-event&Itemid=155&lang=enhttp://www.tbcccambodia.org/index.php?option=com_content&view=article&id=87&Itemid=149&lang=enhttp://www.tbcccambodia.org/docs/Cambodia.pdf


http://www.investincambodia.com/

http://www.ccb.com.kh/

http://www.tbcccambodia.org/

http://www.asean.org/

http://www.affalog.net/

http://www.adb.org/GMS/Cross-Border/about.asp

http://www.adb.org/GMS/Economic-Corridors

http://www.eastasiawatch.in.th/

http://www.unescap.org/ttdw/FFmeeting/FFForum_2010/7.pdf

http://www.worldbank.org/etools/tradesurvey/mode1b.asp%23moreinfo

http://www.nesdb.go.th/

http://www.tbcccambodia.org/index.php?option=com_content&view=article&id=130:-road-show-23-26-2556-&catid=46:lastest-event&Itemid=155&lang=en

http://www.tbcccambodia.org/index.php?option=com_content&view=article&id=87&Itemid=149&lang=en

http://www.tbcccambodia.org/docs/Cambodia.pdf

THANK YOUSO MUCH

FOR YOUR ATTENTION

Presented by Mrs. Tui Pakarat-RuttenDate: 20-Feb-2013

Managing Director of Intra Mekong / President of TBCCH/P: +66 81 839 2452

E-mail: [email protected]


mailto:[email protected]