Managing Public Sector Managing Public Sector ReformReform

Impacts of GMS Cooperation Impacts of GMS Cooperation and Integration on Public and Integration on Public

Sector ReformSector Reform

OverviewOverview

GMS Cooperation and IntegrationGMS Cooperation and Integration GMS as center of future economyGMS as center of future economy

Thailand

Land area: 513 thou sq km

Population: 65.8 M

GDP per capita: US$3,133

Cambodia

Land area: 181 thou sq km

Population: 14.1 M

GDP per capita: US$510

Myanmar

Land area: 677 thou sq km

Population: 54.8 M

GDP per capita: US$255 (2005)

People’s Republic of China

Land area: 633 thou sq km

Population: 97.3 M

GDP per capita: US$1,135

(figures for Yunnan and Guangxi only)

Viet Nam

Land area: 332 thou sq km

Population: 84.1 M

GDP per capita: US$724

Lao PDR

Land area: 237 thou sq km

Population: 5.7 M

GDP per capita: US$601The GMS in 2006

Land area: 2.6 M sq km

Population: 323 M

GDP per capita: US$1,453*

* excludes Myanmar

The Greater Mekong Subregion The Greater Mekong Subregion (GMS)(GMS)

Map Displaying GMS Corridors NetworkMap Displaying GMS Corridors Network

Road Road Transport Transport NetworkNetwork

19921992

Road Road Transport Transport NetworkNetwork

20062006

Road Road Transport Transport NetworkNetwork

20152015

R3 a 228 km

R3 b 253 km

R 9 EWEC 246

3rd Bridge Nakhon Panom – Takek

4th Bridge – Chiang Kong - Hoisai

1992

2004

2012

Power Transmission Line

Telecommunications Backbone

• GMS GMS PowePower Gridr Grid

• Info. Info. Super Super HighwaHighway y NetworkNetwork

Energy & PowerEnergy & Power Establish Energy Power MarketEstablish Energy Power Market - Power Grid- Power Grid - Power Trade Operating - Power Trade Operating AgreementAgreement Cross Border Cooperation on Cross Border Cooperation on

Alternative Energy i.e. Biofuels Alternative Energy i.e. Biofuels Hydropower & OthersHydropower & Others

Support Energy for the Poor Support Energy for the Poor i.e. Rural Electrification, i.e. Rural Electrification, Border Power Trade Border Power Trade

Myanmar Hydro Potential

Thanlwin : 16,000 MW

MyanmarNatural Gas Potential

Yadana & Yetagun: 7.98 tcf

MalaysiaMalaysiaPower ExchangePower ExchangeExisting 300 MWExisting 300 MWFuture 300 MWFuture 300 MW

Oil & Gas in JDAOil & Gas in JDA5 tcf (Thai Share)5 tcf (Thai Share)

Lao PDRHydro Potential

Mekong Tributaries : 5,000 MW

Thailand’s Energy Infrastructure: Cooperation with Neighboring

Countries

Cross-Border Transport Facilitation in the GMS

Export/Transit Cargo

Export/Transit Cargo

As required

As required

“No-Man’s Zone”

C-L,C-V Q-L,Q-V

CCA

Physical Inspection

C-L,C-V Q-L,Q-V

CCA

Physical Inspection

Lao PDR Viet Nam

C-L+V Q-L+V I-L+V

I-V+L Q-V+L

C-V+L

C-Customs

I-Immigration

Q-Quarantine

L-Lao PDR

V-Viet Nam

CoverageCoverage

• Exchange of Exchange of Traffic RightsTraffic Rights

• Facilitation of Facilitation of Frontier-Frontier-Crossing Crossing FormalitiesFormalities

ComponentsComponents

• Framework Framework AgreementAgreement

• Annexes and Annexes and Protocols (A&P)Protocols (A&P)

• MOUs for Pilot MOUs for Pilot ImplementatioImplementationn

Strategic Framework for Action on Trade Strategic Framework for Action on Trade Facilitation and Investment (SFA-TFI)Facilitation and Investment (SFA-TFI)

Action plan to support Action plan to support trade facilitation, trade facilitation, addressing bottlenecks addressing bottlenecks along the supply chain along the supply chain on a regional level: on a regional level:

• Trade logistics Trade logistics • CustomsCustoms• Inspection, Inspection,

quarantine, and SPSquarantine, and SPS• Business mobilityBusiness mobility

• Ruili – Muse

• Mohan – Boten

• Veune Kham – Dong Kralor

• Hat Lek – Cham Yeam

• Mukdahan – Savannakhet

• Lao-Bao – Dansavanh

• Aranyaprathet – Poipet

• Bavet – Moc Bai

• Hekou – Lao Cai

• Myawaddy – Mae Sot

• Mae Sai – Tachilek

• Houayxay – Chiang Khong

• Nam Phao – Cau Treo

• Chongmek – Wang Tao

• Nongkhai – Thanaleng

Geographic Geographic Coverage of Coverage of

CBTACBTA

FIRST PHASE (commencing in 2005/06)

SECOND PHASE (commencing in 2007)

THIRD PHASE (commencing in 2008/2009)

POTENTIAL NEW BORDER CROSSING

POINTS

YOUYIGUAN (PRC) - HUU NGHI (VIE)

THAKHEK (LAO) – HA TINH (VIE)

LORK (CAM) – XA XIA (VIE)

BY 2009

FULL IMPLEMENTATION

Promoting the Promoting the GMS as a GMS as a Single Tourist Single Tourist DestinationDestination

2005: GMS Tourism 2005: GMS Tourism Sector Strategy Sector Strategy (2006-2015) – (2006-2015) –

1.1. Mekong River Mekong River CorridorCorridor

2.2. Golden TriangleGolden Triangle3.3. East-West CorridorEast-West Corridor4.4. Emerald TriangleEmerald Triangle5.5. Southern CoastalSouthern Coastal6.6. Green ClusterGreen Cluster7.7. Houphanh-Than-Hoa Houphanh-Than-Hoa

Oun La Tourism Oun La Tourism CircuitCircuit

8.8. Andaman Coast and Andaman Coast and IslandsIslands

10. Red River Valley10. Red River Valley11. Guangxi-North 11. Guangxi-North

Vietnam IslandsVietnam Islands

Yuxi

Vung Tau

Dung Quat

Quy Nhon

Nha Trang

Thap Cham

Phan Thiet

Vinh

Tanap

Dong Ha

Than Hoa

Nam Doth

Haiphong

Bei Hai

Da Nang

Hue

Cau Treo

Ngoc Hoi

Duc Co

Nam Can

Tay Trang

Pathein

Pyay

Kyeeni

Mandalay

Yatsouk

Loilem

Kengtung

Jinghong

Tachilek

Mae SaiChiang Kong

Nateuli

Mohan

Denchai

PhitsanulokMawlamyine

Nakhon Sawan

Bannet Narong

Tavoy

Nam Tok SuphanburiAyuttaya

Kanchanaburi

Petchaburi

Hua Hin

Prachuap Khiri Khan

Sattahip

Chunburi

Nakhon Ratchasima

Bua Yai

Khon Kaen

Nong Khai

ChongmekSurin

Trat

Koh Kong

Sihannoukville

Surat Thani

Svay Rieng

Kampong Cham

Stung Treng

Attapeau

Pak Mong

Vang Vieng

Xieng Khouang

Hoa Binh

Gejiu

Hekou

Nuihong

Kep

Lang Son

Myitkyina

Muse

Lashio

MangshiXiangyun

Chuxiong

Bigu

Baoxiu

Mohei

Budalin

ShanglinNapo

Bose

Tianlin

Xilin Hechi

Liuzhou

Guilin

Longsheng

Ziyuan

Zhongshan

Wuzhou

Laibin

Yulin

Dahua Yaozu

Guiyang

Dongxing

Pingxiang

Longzou

Daxing

Bagan

Ruili

Lijiang

Baoshan

Zhongdian

Siem Reap

Phuket

Udon Thani

Chiang Mai

Ben Nape

Ban Dong

Cham Toal

Ban Panghok

KilometersScale 1 : 13,000,000

0 300150

GIS Mapping by :

Asia PacificProjects Inc.

10°

30°

25°

20°

15°

10°

30°

25°

20°

15°

95° 100° 105° 110°

95° 100° 105° 110°

Gulf of Thailand

Andaman Sea

Gulf of Tonkin

HANOI

VIENTIANE

BANGKOK

YANGON

PHNOM PENHHo Chi Minh

Nanning

Kunming

Poipet

MYANMAR

Yunnan Province PRCGuangxi Zhuang Autonomous Region PRC

Hat Yai

Dali

Tengchong

Menghai

Lao Cai

LAO PDR

CAMBODIA

Dao Phu Quoc

Mae Sot

Chiang Rai

BotenLuang Namtha

Louang Phrabang

Pak Tho

Songkhla

Ko Samui

Aranyaprathet

PhanomSarakham

Ha Tien

Kampot

Pakse

Mukdahan

Nakhon Phanom Thakhek

Na Duoung

Cai Lan

THAILAND

VIET NAM

Do Dau

Legend :

The Greater MekongSubregion

Priority Tourism Zones

Shoreline

Railway

Proposed Subregional Road

Major River Network

National Capital

City / Town

Nature/Adventure-based Tourism

Culture/Nature-based Tourism

Marine/River-based Tourism

Map 11

1. The Mekong River Corridor

11. Guangxi-Northeast Vietnam Karst Borderlands10. The Red River Valley9. Shangri-la/Tengchong/Myitkyina Cluster8. Andaman Coast and Islands7. Houaphanh-Thanh Hoa-Son La Tourism Circuit6. The Green Triangle5. The Southern Coastal Corridor4. Emerald Triangle3. East West Corridor2. The Golden Quadrangle

North-South Economic Corridor

East-West Economic Corridor

Southern Economic Corridor

999999999

222222222

111111111111111111101010101010101010

777777777

111111111

333333333

444444444 666666666

333333333

888888888555555555

111111111

111111111

UbonRatchathani

Ayuthaya

SukhothaiSavannakhet

Ban Lao

Pakkading

Lao Bao

Na Meo

Simao

Ban Xayden

Huay Xai

Nong Haet

Source: GMS Tourism Sector Strategy (2006-2015)Source: GMS Tourism Sector Strategy (2006-2015)

22

Will new economic centers appear Will new economic centers appear within GMS over the next 20 years? If within GMS over the next 20 years? If so, where will it likely be located and so, where will it likely be located and why? why?

ASEAN Community(APSC, AEC, ASCC)ASEAN Community(APSC, AEC, ASCC)

Global Trends of Regional Global Trends of Regional IntegrationIntegration

IMT- GTIMT- GT

GMSGMS ACMECSACMECS

GMSGMS ACMECSACMECS

BIMSTECBIMSTEC

NAFTA

APEC

EUEUASEM

WTOWTOWTOWTO

KoreaKoreaJapanJapanPRCPRC

ACDACD

FTAs FTAs e.g. Japan, China, Australia, New Zealand, Bahrain, Peru, India, USA, BIMSTEC etc…

IndiaIndia

JDS – Stability & Security

IMT-GT – Avian Influenza Energy,

Natural Disaster and Earthquake Security

Strengthening Capacity by Promoting Subregional Cooperation

ACMECS -- Sister Cities Contract

Farming Narrowing Economic Gap

GMS -- Connectivity

Competitiveness Community

BIMSTEC

-- New Emerging Economies

Poverty Eradication

Anti-Terrorism

Strategic Location of Thailand in Southeast Strategic Location of Thailand in Southeast

AsiaAsia

CambodiaCambodia

BangladeshBangladesh

ThailandThailand VietnamVietnam

LaosLaosMyanmarMyanmar

ChinaChina

IndiaIndia

MalaysiaMalaysia

IndonesiaIndonesia

SingaporeSingaporeBruneiBrunei

Sri LankaSri Lanka

PhilippinesPhilippines

JapanJapanAfganistanAfganistan

PakistanPakistan

KoreaKorea

Bay of Bengal

South China Sea

Gulf of Thailand

Middle EastEuropeAfrica

USA

Southeast Asia’s Pop. = Southeast Asia’s Pop. = 555 555 mill. mill. in 2006 -> 700 mill. expected in 2030in 2006 -> 700 mill. expected in 2030

GNI accounts for GNI accounts for 785 785 bill.bill. USD USD 22 2200006 -> could attain 6 -> could attain 22 ,, 465 465 bill.bill. USD USD 2030 2030

Southeast Asia’s Pop. = Southeast Asia’s Pop. = 555 555 mill. mill. in 2006 -> 700 mill. expected in 2030in 2006 -> 700 mill. expected in 2030

GNI accounts for GNI accounts for 785 785 bill.bill. USD USD 2in 2in00006 -> could attain 6 -> could attain 22 ,, 465 465 bill.bill. USD USD 2030 2030

Market Potentials:Market Potentials: 312 millions of pop. in GMS 312 millions of pop. in GMS 67.5 millions of pop. in IMT-GT67.5 millions of pop. in IMT-GT 2,400 millions in PR China + India2,400 millions in PR China + India

Market Potentials:Market Potentials: 312 millions of pop. in GMS 312 millions of pop. in GMS 67.5 millions of pop. in IMT-GT67.5 millions of pop. in IMT-GT 2,400 millions in PR China + India2,400 millions in PR China + India

Building Economic Partnership within the RegionBuilding Economic Partnership within the Region

Thailand’s Regional Development Thailand’s Regional Development OutlookOutlook

Strategic Location Strategic Location

Trade & Investment Openness

Trade & Investment Openness

Competitive EconomyCompetitive Economy

Enhanced Connectivity & Efficient Logistics

Enhanced Connectivity & Efficient Logistics

What will be the impact of tighter What will be the impact of tighter infrastructure and economic infrastructure and economic integration between the regions integration between the regions (e.g., GDP growth in the country/ (e.g., GDP growth in the country/ region, level of trade activities, region, level of trade activities, migration) vs. standalone case? migration) vs. standalone case?

Aggregate Annual Cross-Border Trade Export and Import Aggregate Annual Cross-Border Trade Export and Import Between Thailand and Four-Neighbouring Countries and Transit Between Thailand and Four-Neighbouring Countries and Transit

Trade To/From China During 1996-2008 (January-April)Trade To/From China During 1996-2008 (January-April)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Jan-April)

Mill

ion

Bah

t

Aggregate cross-border trade export values from Thailnd to four-neighbouring countries and transit trade to China

Aggregate cross-border import values from four-neighbouring countries and transit trade from China to Thailand

Aggregate cross-border trade values between Thailand and four-neighbouring countries and transit trade with China

ImpactsImpacts

Close the development gap between Close the development gap between GMS countriesGMS countries

Regular Migration, open borderRegular Migration, open border InterdependenceInterdependence Over exploitation of NROver exploitation of NR

Words of AdviceWords of Advice

You cannot solve today You cannot solve today problem with yesterday problem with yesterday solutionsolution

Do not cut Do not cut Don’t cut people feet to Don’t cut people feet to meet your shoes, meet your shoes,

Train and show them to Train and show them to make the shoes that fit make the shoes that fit themthem