china roles in thailand: infrastructure investment contextph.d... · result 2:china roles in...

By Dr. Chulaporn Kobjaiklang

National Institute Development Administration

China Roles in Thailand:

Infrastructure Investment Context

• Thailand Infrastructure Policies in Development Connectivity

ASEAN+6 Countries Challenges from World Trade and Investments

Affected Thailand

• China Role in Economic Expansion under OBOR project, AIIB

Establishment and Silk Road Fund to ASEAN Countries

• Eastern Economic Corridor: EEC Project, A Strategic Plan under

Thailand 4.0 Development Zone which Sprung from Eastern Seaboard

Success. The Readiness to Connect to ASEAN+6 Countries,

Transportation networks: Land, Water and Air. Trade, Investments,

Tourism, Manufacturing and Service Sectors Expansions.

• Challenging Problem and Must Study Promptly to Find Policy

Guidelines for Good Planning Process, Leading to Cooperation Target

for Optimum Benefits.

Problem Statement

• To Study Infrastructure Competitiveness: Road, Waters and Air for

the Past Five (5) years to the Current from Global Competitiveness

Index Report 2012-2017 (WEF)

• To Study Problems and Vital Barriers on Effectiveness of Thailand

Transportation and Logistics Systems Concerning Relevant

Infrastructure of Transportation System: Road, Waters and Air

• To Study China Roles for Thailand

• To Study Beneficial Gains Thailand will Obtain from Connectivity

Strategies between Thailand with ASEAN Countries and China

• To Gain Recommendations and Guidelines for Enhancing Relations

between Thailand and China

Objectives

Result 1. Global Competitiveness Index Report 2012-2017 (WEF)

0

10

20

30

40

50

60

70

80

1. Quality of

Overall

Infrastructure

2. Quality of

Roads

3. Quality of

Railroad

Infrastructure

4. Quality of Port

Infrastructure

5. Quality of Air

Transport

Infrastructure

49

39

65

56

33

61

42

72

56

34

76

50

74

54

37

71

51

78

52

38

72

60

77

65

42

Thailand Infrastructure GCI 2012-2017 (WEF)

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

Source: The Global Competitiveness Report 2012 – 2017 (World Economic Forum)

Result 2:China Roles in Thailand

• To Study Problems and Vital Barriers on Effectiveness of Thailand Transportation

and Logistics Systems Concerning Relevant Infrastructure of Transportation

System: Road, Waters and Air

1. Road Barriers in Thailand

- Lacks Integration of Transport Networks and Logistics

Management System

- Ineffective Management of Passenger Terminals and

Poorly Managed Public Transport

- Traffic System Facing Problem of the Consciousness of

Road Users. Discipline and Compliance

- City Planning Law Not Strong and Lack of Rigor in

the Past Practice. "Department of Town and Country

Planning"

- Winding Road System is not Linear, Resulting in

Additional Costs and Resulting in an Accident

- Policy Unclear by Encouraging People to Buy a Car

(First Car Policy)

- Build an “Investment Road" Rather than Building a

Road for Transportation

- Cost of Public Transport Quite High Still Legal

Problem

Thailand's Solution

- City Plan should be Revised Every 5-7

Years

- Vision and strategy of Government in

Future Development

- Focus on Providing Logistics Knowledge

to People should Develop a Motorway

Road than General Road

- Encourage People to Share in Traveling

Together

- Including the Promotion and Support of

Public Transport such as Electric Buses

- Government must Stimulate Interest to

Foreign Investors by Increasing

Incentives on Taxes, Lowering Fees and

Not Throwing at the Expense of People


• 2. The Problems of Rail Transport and High-speed Trains of Thailand .

Problems of Rail Transport and High-Speed

Trains of Thailand - Thailand's Train Network the Width of the not Western

Standard, Resulting in Delays in the Traffic

- Suffers from Inadequate Locomotive Problems, has been

Used for a Long Time and Cannot Make High Speed Make

it Unpopular

- Cross Cut and Road Shortcuts are Problematic also a

Chance of Accident

- Missing Link and Cost the Good Principle

- Employees were Longtime Implanted of a State Enterprise,

Even though it Carried a Loss. But Employees Still

Receiving Salaries and Government Support

- Currently, Thai Railways State Enterprises that are in a

State of Loss, Must be Financed by Public Sectors

- Fares are Set by Government Policy, Results Must be

Shared with the Public Sector

- Non-revenue Service Issues Organizational Problems are

Large Lots of Staff High Cost and No Capital to Borrow

Money to Invest

- A Lot of Land Assets but Cannot be Commercially

Exploited

Thailand's Solution - Focus on Improving Management

Efficiency

- Establish Distribution Centers in Key

Areas

- The link between Modes is Good Enough

and Focuses on Connecting the Transport

System from the Truck to the Train

Station

- Should be Working in Partnership with

the Private Sector, Major Driving Force

to Stop and the Country Gets the Most

Benefit

- Thai Railways Must Start with Internal

Reforms. By Paying Attention to

Employees Because Lack Understanding

of Business Operations , Business Process

Including Strategic Thinking,

- Property Management is a Lot of Land

Can be Used Commercially


3. The Problem of Water Transport and Coastal Navigation in Thailand

Problem of Water Transport and Coastal Navigation in Thailand - Lack of Development to Enrich the Resources of the Country and Still Investment in Large Commercial Vessels

- No Ocean Liner there is Only a Small Cargo Ship

- Still Attached to Maritime Law , Result has to Hire Foreign Companies to Carry out Both Import and Export Operations

- "Navy" and "Harbor Department" of Thailand Still Inefficient

- Water Transport and Coastal Navigation Thailand's Main Port is Not on the Main Route of World

- International Shipping or Coastal Navigation Shipping Companies are Usually Foreign Rather than Thai operators

- Mekong River between Thai-Laos also a Rocky Island, Obstructing Barriers to Transportation

- Domestic Transportation Only a Heavy Cargo Transport, such as sand, Timber

- The Expansion of Service Areas of Domestic Ports Along the Banks of the Chao Phraya and Pa Sak Rivers. The Community

may Need to be Dismantled, so it's a Problem Surrounding the Community and May be Followed by the Opposition.

- Dredging of Canals and Rivers is Still Lacking in the Overall Picture of the Country

- Facing a Shortage of Budget

- Expansion of Ports It may be Necessary to Use a Suitable Source of Funding Without being too Burdensome on Debt in the

Future.

- Lack of Standard and Adequate Public Transport

- Coastal and Riverbank Erosion Problems Including Shallow Embankment Problems. Dredging Must be Carried Out in

Order to Allow the Ship to Carry a Large Amount of Cargo and Continue Along the Route

Thailand's Solution - Domestic Water Transportation Systems should be Prepared to Dredge to Broaden the Route to Accommodate

Larger Boats or Vehicles to Meet the Greater Mekong Sub-region (GMS), the Ayeyawady-Chao Phraya-Mekong River

Region (GMS). Need to Discuss Concrete

- The Port is not Focused on Driving the Country's Water-intensive Strategy. It also Works in the Same Way without

Re-adjusting their Roles

- Therefore, it is Necessary to Accelerate the Implementation of the New Strategic Plan. Which Must Look at the

Overall Picture of the Country. (Do not Look at the Original Image Lacking Development and Long-lasting)


4. Thai Air Transport Problems and Obstacles

Thai Air Transport Problems and Obstacles

- Currently, Transports Network Systems are Still Cannot be Connected

- Problems and Limits of the Airport Link also are Still Cannot be Connected

- Passenger Circulation Airport Cannot Undertake Number of Flights and Passengers Especially Fast

Increasing Low-cost Airlines, Effectively

- Thailand has not Fully-optimized Regional Airports, Suitably (Most Operation of Airport Constructions are

Invested at the Location that Local Politicians Support)

- Lack of Supportive Measures to Create Business, Activities and Services in the Airport

- Thailand Faces Competitiveness Problem in Producing Limited Human Resource Including Lacks of

Promoting R&D for Effective Air Transportation Business

- Currently, Thailand Stuck with Aviation Problem from The Department of Aviation Warning from

International Civil Aviation Organization (ICAO)

- The Congestion of the Airport

Thailand's Solution - Ministry of Transport Lacks strategies in Air Transport Development and Must Make Master Plan in Thai Air

Transportation Using it as Guidelines in Planning of Infrastructure and Management to Undertake Changing

Situations of all Units to be in One/Same Direction

- Thailand must have Master Plan Immediately by Having Aviation Safety Standard Measure with Strictness and

Organized


1. China's Role in Expanding Economic Space from Southern of China to Thailand

Strategies

1. Economic Framework Strategies of Greater Mekong Sub region: GMS Consisting 6 Countries;

Thailand, Myanmar, Laos, China (Yunnan & Guangxi), Vietnam and Cambodia

Positive Factors (+) 1. Creating Relation Connection and Continuous Mutual Development

2. Most Thai Manufacturing Sectors must Depend on Buying Power from China which has Lots of

Population

3. Thailand can Buy Goods from China with Cheap Price as Port Transportation through Mekong

4. High Speed Train between Thailand – China Creates Cooperation Opportunities for High -speed

Train Technology

5. Port Transportation through Mekong is Good and Beneficial as it Saves lot of Transportation Cost

Against Thailand (-) 1. China AIIB for Thailand is not clear in interest rate.

2. Manufacturing Sector may be Affected as Chinese Goods Lower Price than Thai Goods.

3. Risk in Agricultural Price Chinese Middleman has Influence Over Price Setting and Dumping

Price.

4. Connectivity for Mekong Route must be on the Basis of Negotiation for all Relevant Parties/Sides.


1. Positive Factors for China (+) to Expand the Economic Area from South China to Thailand

1. Strategic Development of Economic Areas in the Greater Mekong Sub-region

Cooperation Framework. There are 6 countries: Thailand, Myanmar, Laos, China

(Yunnan and Guangxi), Vietnam and Cambodia.

1. Road, Rail and Water Transport are Great Importance and More Convenient for China to

Distribute its Products to Thailand and Other Countries in ASEAN.

2. China has Low Production Costs. Products and Outputs are Moved to GMS Countries by Moving

along the Mekong River.

3. Mekong River Flow rom China to Thailand and Sub-regional Countries of the Rivers and Streams

Flowing Down as a Result, China has the Advantage of Moving Goods and Products into the Southern

Countries Conveniently and at Low Cost

4. Can Increase the Volume of Goods from China to Thailand and Countries in ASEAN Region

Considering China's export figures to ASEAN

5. Shipping on the Mekong River is Easy and Straight Forward for China.

6. China's Chances of Releasing AIIB Bank Loan. To Provide Opportunities for Countries to Invest in

Infrastructure Development in the Country who Lack the Budget to Implementation

Thailand's Approach to

Negotiations

• China must Sincerely in the Implementation of (Greater

Mekong Sub region: GMS) Countries that China Wants to

Expand to Develop the Connectivity as China Intended.

Want to Win-Win Situation, as Well as China to Take

Care of Security for the Country

China's Engagement with Thailand in the

Context of Infrastructure Investment

• 1. China's Contribution to Financial Support

• 2. China's Role in Supporting Innovation and Technology

• 3. China's Participation Role in Supporting Technology

Transfer and Academia



• 1. China's Contribution to Financial Support

• China must Consider Lowering Interest Rates Fairly with

Thailand and Must be the Same Standard in Every Country

• AIIB (The Asian Infrastructure Investment Bank) to Ensure the

Interest of China

• China should have come in as The "State Counterpart" and the

Rules for Joint Investment Should be General Trading



• 2. China's Role in Supporting Innovation and

Technology

• China Expert in High-speed Train Construction, Benefit for

Thai Rails Development as Thailand can Depend on “High

Tech Low Cost” Technology and Process

• High-speed Train is a Must as it is for Public and Balances

for other Transport Competition. Especially with Air

Transport



• 3. China's Participation Role in Supporting Technology

Transfer and Academia • China has Sophisticated Technology and Continuous Development

• China must emphasize aspects: Service, Human Resources Development, Building

and Maintaining Network and Locomotive Including being a Manufacturing Parts

and Spare Parts Hub

• Exchange and Technology Transfer are Necessary. The Exchange of Innovations and

Technologies, as well as the Transfer of Technology

• China Supports Human Resources Development must be Planned and Developed

Together to Lead to the Development of Thailand as the Regional Logistics Base

• Thailand's Ability to Negotiate with China Focus on Negotiation skills.

(Negotiation) As a Country that has a Long Lasting Relationship

4. Benefit of Thailand from Connectivity Strategy

Benefit in Economic, Social and Culture and

Political follow:

• Economic Benefit. Transportation and Logistics System Development

will Chance Trade, Investment, Tourism, and Hospitality Sections Making

Incensement Average of National Income

• Social and Cultural Benefits Utilities for Development of

Infrastructure and Facilities the Distribution of Urban Development Along

the Economic Corridor that will Enhance the Well-being of the People in the

Region, Especially the Greater Mekong and Border Areas, Include

Opportunities in Terms of Human Resource Development, Education,

Training and Sports

• Political and Security Benefits Promote Political Cooperation both

National and Local Decentralization and Spread of Prosperity to the Region

and the Country Direction of Cooperation Must Take into Account the Win-

Win and the Relationship between the People of each Country is Important

To Gain Recommendations and Guidelines for

Enhancing Relations between Thailand and China

Key Factors in China Cooperation

• Thai Government and Chinese Governance, Entrepreneurs Private and

Public Sectors of Both Countries Need to Focus on Mutual Benefits

• Equitable and Mutual Benefits Sincerely

• Thailand - China has a Good Relationship for a Long Time must Continue to

Develop Relationships Economic, Social, Political, and Military Security

• China Emphasizes “China's Go to South Policy” Main China has to Rely on

Transportation and Communication is Safe. China Needs to Focus on Safety

and Security

• “One Belt One Road Policy”, Basic Structure Infrastructure in China is

Expected in the 13th Five-Year Plan for National Economic and Social, where

China Cannot Look only for Short-term Benefits to Realize the Benefits in

the Long Run

Key Factors in Thai Cooperation

• Thailand Key Factor to Build Understanding with Civil Society in

Order to Gain Support for Large-scale Collaborative Projects

• Thailand Needs Long-term Development Strategies Focus on

Continuity of Long Term Policy

• Must be a Quality Working Group, Information is Well-informed, to

Negotiate and Maximize the Benefits of Both Parties

• Being Aware of the Benefits of the People is Important Focusing on

Partnership Rather than Ordinary Commodity Trading

• Thailand should Reform the Domestic System, Economy, Society,

Politics and Way of Life Ready to Accept Changes in high

Technology Imports from Abroad

THANK YOU

china roles in thailand: infrastructure investment contextph.d... · result 2:china roles in...

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