NSEC Symposium (Presentation III 01 Chiangrai Kunming Impact)

8/6/2019 NSEC Symposium (Presentation III 01 Chiangrai Kunming Impact)

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Impact of the Chiang Rai-KunmingRoad Improvement Project

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R3 Projects FactOn 8th GMS meeting in 1998 adopted economic corridor

1. North-South Economic Corridor (NSEC)

2. East-West Economic Corridor (EWEC)

3. Southern Economic Corridor (SEC)

Objectives.

- To develop linkages between countries in the GMS to

promote business.- To extend the benefits of transport linkages from economic

hubs to remote areas.

- To promote investment from within and outside GMS.

The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or

policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB doesnot guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their

use. Terminology used may not necessarily be consistent with ADB official terms.


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R3 Project

Central Subcorridor Western Subcorridor Eastern Subcorridor

North South Economic Corridor(NSEC)

The Kunming Chiang Rai-Bangkok via Lao PDR or Myanmar route

South China (Kunming-Yunnan-Xishuangbanna)

Lao PDR (Louang NamthaBokeo)(R3A)

Myanmar (Shun State)(R3B)

Thailand (Chiang RaiChiang MaiPitsanulok-Bangkok)

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North South Economic Corridor(NSEC)

CHINA

LAOS

VIETNAM

MYANMAR Luang Namtha

Chiang Rai

Kunming

1,200 km.

R3A


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R3A Project

Project length: 1,200 Km.

Route in Lao PDR financed by

Financier Distance Length

China Km.159 - Boten 69 Km.

ADB Km.84 - Km.159 74 Km.

Thailand Km. 0 Km.84 84 Km.

Total 227 Km. in Lao PDR.

Civil works cost 95 M.USD

Project Started: 2004

Project Finished: 2008

Luang NamthaLuang Namtha

Chiang Rai

CHINA

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Before After


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Thais government provided the concession loan via NEDA,Thai governments international development agency,to Lao PDR.

Aim to connect Chiang Rai (Thailand) to Kunming (China)via Lao PDR along NSEC under GMS cooperation in orderto reduce transportation cost, promote trade and investmentand also tourism in region.

Supported from Thailand- Huay Xai (Thai-Lao Border) to Ban Sod (Luang Namtha)

in Lao PDR.- 84 Km.

- 1,086.57 MB.

Thailand Support

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Impact of R3A to Thailand

Direct investment

Before:

Only 3 projects has invested by Thailands investor.

After:

Increasing of Thai investors in Lao PDR concentrated in

- Service sector such as ferry service, casino,

hotel, resort and golf club.

- Agriculture sector such as palm oils factoryand plantation.


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Impact of R3A to ThailandTourism

Before:

Chiang Khong District in Chiang Rai served as a rest area

before crossing to Bokeo and travel by boat to Luang Prabang.

Number of tourists through Chiang Khong was 145,127 in 2006.

After:

Many hotels and resorts being constructed along Mekong river

in Chiang Khong.

Created more opportunity for Thai investors to invest in service

sector along project areas.

The number of tourists through Thai Lao border at Chiang Rai

Province increased 55% comparing 2006 to 2008.

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Impacts of R3A to the Region

Base on NEDAs Studyconcentrated in Lao PDR by independent institute.


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Impacts on Transportation

Serves as a transport route between Thailand, Lao PDR andSouth China.

Due to geography of R3A, the project has made Luang Namthaas the centre of transportation in region.

Strengthen the infrastructural networks in various sectors. Reduce transportation cost by enhance the efficiency of

transportation of goods and people.

Reduce the travel time from Huay Xai to Ban Sod in Lao PDR,from 8 hours to 3 hours.

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Industrial sector and Foreign direct investment

Before:- Most of industries are small-scale industrials.

- Sapphires mining in Bokeo and lignites mining in Luang Namthawere the only 2 big industries in project area.

After: -Large business scale invested more in the areas especially in

agriculture sector, service sector and mining. (70% from China)

- The investors invested in+ Bokeo + Luang Namtha

China and Vietnam China, Thailand and Korea

Entertainment, Mining and Agriculture Entertainment, Mining, Hydropower

and Motorbike factory

Impacts on Economic Activities


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Large Scale Foreign Investment Project that received incentive in

Luang Namtha after R3 improvement.

Source: Investment Planning Department, Luang Namtha 2010


Unit: USD

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Large Scale Foreign Investment Project that received incentive in

Bokeo after R3 improvement.

Source: Investment Planning Department, Bokeo 2010

Unit: USD



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Border Trade

Increase border trade

- After R3A completed, Chiang Khong (Thai Laos Border) has

connected with South China, thus trade continually expanded.

- Border trade through Chiang Khong custom office, Chiang Rai

Province in 2010 was 164 M. USD, which increase 230% from 2007.

Unit: USD

Source:Chiang KhongCustom,Chiang RaiProvince, 2010

-

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

Import

Export

Total

Import 21,127,423 31,890,106 32,877,715 57,709,433

Export 27,932,471 43,899,157 64,368,008 106,894,48

Total 49 059 894 75 789 263 97 245 723 164 603 92

2007 2008 2009 2010


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TourismBefore:- Number of tourists in 2004

+ to Bokeo 79,000+ to Luang Namtha 49,000

- Only eco and culture tourist attraction.After:

- Casino and entertainment facilities were established in Boten,Luang Namtha and Bokeo in order to attract tourists from Thailandand China.

- Number of tourists in 2008

+ to Bokeo 145,567 (increase 85% from 2004)+ to Luang Namtha 197,202 (increase 300% from 2004)



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AgricultureBefore:

- Subsistence Agriculture.

After:

- More foreign investment in agriculture sector, especially

in rubber and palm oil plantation.

- Become commercial agriculture.

- Expansion of farming areas.


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Others

Promote the development of rural and border regions. Facilitate cross-border trade and investment.

Increase economic activities in region.

Create more job and economic opportunities for Laosaround projects area.

Reduce poverty in northern part of Lao PDR.

GDP expansion

+ Bokeo 7.9% (Compare 2008 and 2009)

(48% in agriculture, 19% in industry and 33%in service)

+ Luang Namtha 7.8% (Compare 2008 and 2009)

(78% in agriculture, 10% in industry and 12%in service)



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Pro.

Increase living qualities in northern part of Lao PDR particularlyin water recourse access, education and public health.

Migration of Chinese in order to invest in agriculture service and

industrial sector.

Con.

Migration might create social problem from cultural conflict anddifferent social rules.

Rapid growth of agriculture sector might lead to the reduction of

forested land, thus the ecological systems in these area could beaffected.

Impacts on Social and Environment

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Complete bridge float over Mekong river with in the set time.

Develop infrastructure for convenient linkage.

Expedite cooperation among 3 countries especially on CBTA.

Facilitate the customs procedure to be more convenient.

Developing cooperation in the tourism sector especially SingleVisa.

Developing corridor towns along border in order to absorb thefuture economic and social changes.

Increasing investments in social services such as medicalcare and education for the growing town.

Developing more transportation networks in order to facilitatethe flow of goods, people and capital.

Policies Recommendation


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Co-financing is the

key success

for mega infrastructure

development project

Policies Recommendation

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Thank You

Neighbouring Countries Economic Development Cooperation Agency

(Public organization) (NEDA)

Suntowers Bldg. A 14 Fl., 123 Vibhavadi-Rangsit Rd., Bangkok 10900

www.neda.or.th

TEL. (662) 617-7676 FAX(662) 617-7683-84

www.facebook.com/neda2548 http://twitter.com/nedapr

NSEC Symposium (Presentation III 01 Chiangrai Kunming Impact)

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