Towards Enhancing Regional Connectivity: Expanding, Widening, and Deepening

Economic Corridors in the GMS

Mr. Craig SteffensenCountry Director

ADB Thailand Resident Mission

Outline

• New GMS Strategic Framework 2012-2022• GMS Corridors• Trade and Transport Facilitation (TTF) in GMS• Overlap of GMS and Thailand strategies

New GMS SF 2012-2022

• 4th GMS Summit, Myanmar, 2011• Anchored on corridor development – widening and

deepening• Multisector approach• Software emphasis (including TTF)• Knowledge intensive

3

• Roads

• Telecommunications

• Power Transmission Line

Infrastructure Development in GMS (1992)

• Roads

• Telecommunications

• Power Transmission Line

Infrastructure Development in GMS (2010)

• Roads

• Telecommunications

• Power Transmission Line

Infrastructure Development in GMS (2015‒2020)

Trade in GMS: Exports 2001-2009 (USD bn)

0

200

400

600

800

1000

1200

1400

1600

2001 2002 2003 2004 2005 2006 2007 2008 20090

50

100

150

200

250

300

PRC

GMS (excl PRC)

GMS5 trade: Growing regional focus(Share in total GMS5 exports)

Intra-GMS5

PRC ASEAN5 Rest of World

2000 3.4 6.3 15.1 75.2

2009 6.4 14.0 13.6 66.0

Average annual growth of GMS5 exports, 2000-09

19.1% 21.2% 9.7% 9.3%

Source: UNCOMTRADE and authors’ estimates. Note: All growth rates are average annual growth rates during 2000-09

GMS and TTF: Overview

• About $15 billion invested in GMS since 1992; from ADB, member countries and Development Partners (1/3 each)

• Transport major sector, about 70% of total investments• Early and high-level (Summits, Ministerial) recognition of

need to complement increased physical connectivity by improved TTF to develop economic corridors

• Initial emphasis on the Cross-Border Transport Agreement (CBTA)

• Action Plan for TTF endorsed by the 16th GMS Ministerial Conference in 2010

ADB Partnerships for TTF

• Formulation, negotiation and initial implementation of the CBTA supported through series of TAs

• Action Plan for TTF developed and endorsed by the 16th GMS Ministerial in Ha Noi in 2010; implementation supported by ongoing AusAID RETA for $6 million

• $25 million Government of Japan initiative for trade facilitation in Asia (focus: custom modernization);– Implementation being piloted in SE Asia; first project

approved May 2012 and a second (for Myanmar) in Oct 2012

Recent Outcomes and Activities (1)

• Progress in CBTA ratification: Myanmar 15 annexes and protocols; Thailand 14. Remaining in process

• Establishment of GMS Freight Forwarders and Transporters Association (FRETA), a private-sector platform for TTF

• Greater recognition of need to align with ASEAN agreements on TTF

• De-emphasis on transit (GMS Customs Transit System) leading to separation of trade facilitation from transport issues

Recent Outcomes and Activities (2)• Extension of the EWEC to GMS capitals (Bangkok, Ha Noi and

Vientiane) and deep sea ports (Laem Chabang and Hai Phong);

• Exchange of traffic rights Aranyaprathet-Poipet (14 June 2012);

• Agreement on scheduled passenger transport service between Bangkok and Phnom Penh (by 1 August 2012);

• Protocol for PRC-Viet Nam Bilateral Road Transport Agreement;– Signed on 31 May 2012 and implementation in Q4 2012– Trucks and buses will be able to operate on the Kunming‒Hekou‒Lao Cai‒

Ha Noi‒Hai Phong, and Ha Noi‒ Friendship Gate‒Nanning-Shengzhen route

Overlap of GMS and Thailand Strategies

• 11th National Economic and Social Development Plan Strat 4: Restructuring of the economy towards quality

growth and sustainability Strat 5: Creation of regional connectivity for social and

economic stability• Strategies for Reconstruction and Future Development

Strat 3: Spatial Development for New Economic Areas Strat 4: Infrastructure Development of 2012‒2020

Thank you!