Sharing Growth and Prosperity: Strategy and Action Plan ......2 Strategy and Action Plan for the...
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STRATEGY and ACTION PLANfor the GREATER MEKONG SUBREGION
SOUTHERN ECONOMIC CORRIDOR
Sharing Growth and Prosperity
Sharing Growth and Prosperity
STRATEGY and ACTION PLAN for the GREATER MEKONG SUBREGION
SOUTHERN ECONOMIC CORRIDOR
© 2010 Asian Development Bank
All rights reserved. Published in 2010.Printed in the Philippines.
ISBN 978-92-9092-054-0Publication Stock Number RPT101729 Cataloging-In-Publication Data
Asian Development Bank. Sharing growth and prosperity: Strategy and action plan for the Greater Mekong Subregion Southern Economic Corridor. Mandaluyong City, Philippines: Asian Development Bank, 2010.
1. Development. 2. Greater Mekong Subregion. 3. Southern Economic Corridor.I. Asian Development Bank.
The views expressed in this report are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent.
ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.
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Contents
Abbreviations vi
Introduction 1Background 1Role and Objectives of the Economic Corridor Approach 1Need for Strategy and Action Plan 3Scope 3
The Southern Economic Corridor 5Composition 5Configuration 7Possible Extensions 8
Overview of Southern Economic Corridor Areas 9Population and Land Area 9Natural Resources 12Labor Force and Employment 15Income Level and Economic Structure 17Cross-Border Trade 18Foreign Direct Investment 20Tourism 23Infrastructure 25
Development Potential and Opportunities 31Overview 31Comparative Advantages and Complementarities 32Investment Opportunities 34Opportunities for Cooperation 36
Challenges and Constraints 40Impediments and Constraints 40Key Challenges 42
Strategy for Southern Economic Corridor Development 45Development Vision, Goals, and Objectives 45Guiding Principles and Approaches 45Measures to Achieve Objectives 47Geographic Focus of Strategy 51
iv Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Implementing the Strategy 53Action Plan 53Institutional Mechanisms and Arrangements 54Financing 55Monitoring, Evaluating, and Updating the Strategy and Action Plan 58Southern Economic Corridor Action Plan Matrix 60
Appendix A: Basic Information on the Southern Economic Corridor National Components 87
Cambodia 87Lao People’s Democratic Republic 110Thailand 118Viet Nam 124
Appendix B: Key Goals of National Development Plans and the Role of Southern Economic Corridor Development 140
Appendix C: Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development 141
Greater Mekong Subregion Institutions 141Terms of Reference of the Economic Corridors Forum 144Terms of Reference of the Governors Forum 147
Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 149
Bibliography 158
Tables and Figures
Tables
Table 1: Distances between Major Points in the Southern Economic Corridor 6Table 2: Population in the Southern Economic Corridor 9Table 3: Incidence of Poverty in Southern Economic Corridor Areas 10Table 4: Unemployment Rates in Southern Economic Corridor Areas 16Table 5: Per Capita Gross Provincial Product in Southern Economic
Corridor Areas 17Table 6: Summary of Southern Economic Corridor Action Plan 53Table 7: Financing the Southern Economic Corridor Strategy and Action Plan 56Table 8: Proposed Initial Set of Indicators 59
Figures
Figure 1: Greater Mekong Subregion Economic Corridors 2Figure 2: Southern Economic Corridor 5Figure 3: Population and Land Area of Southern Economic Corridor
National Components as Percentage of Total Southern Economic Corridor 10
Contents v
Figure 4: Population and Land Area of Southern Economic Corridor National Components as Percentage of Country 11
Figure 5: Southern Economic Corridor Cross-Border Trade, 2007 19Figure 6: Status of Southern Economic Corridor Roads 26Figure 7: Southern Economic Corridor Strategy and Action Plan at a Glance 46Figure 8: Border Nodes in the Southern Economic Corridor 52Figure 9: Greater Mekong Subregion Organizational Framework 54Figure 10: Funding Requirements of the Southern Economic Corridor
Strategy and Action Plan 56
Abbreviations
ADB – Asian Development BankASEAN – Association of Southeast Asian NationsCBTA – cross-border transport agreementECF – Economic Corridors Forum EDC – Electricité du CambodgeEWEC – East–West Economic CorridorFDI – foreign direct investmentGDP – gross domestic productGMS – Greater Mekong SubregionGMS–BF – GMS Business ForumGPP – gross provincial productkm – kilometerkm2 – square kilometerLao PDR – Lao People’s Democratic RepublicLFPR – labor force participation rateNSEC – North–South Economic CorridorPPTA – project preparatory technical assistancePRC – People’s Republic of ChinaSAP – strategy and action planSEC – Southern Economic CorridorSEZ – special economic zoneSFAP – Strategic Framework and Action PlanSPS – sanitary–phytosanitary
Introduction
Background
The economic corridor approach to subregional development was adopted by the Greater Mekong Subregion (GMS) countries during the eighth GMS ministerial meeting, held in Manila in 1998, to help accelerate the pace of subregional
economic cooperation. Three priority GMS economic corridors were identified during that meeting: the East–West Economic Corridor (EWEC), the North–South Economic Corridor (NSEC), and the Southern Economic Corridor (SEC) (Figure 1). The development of these corridors was subsequently designated as a flagship initiative under the Ten-Year GMS Strategic Framework endorsed by the leaders of GMS countries during the first GMS summit, held in Phnom Penh, Cambodia, in 2002. At the third GMS summit, held in Vientiane, Lao People’s Democratic Republic (Lao PDR), in March 2008, GMS leaders stressed the need to redouble efforts to transform transport corridors into economic corridors and maximize benefits from improved physical connectivity in the subregion.
Role and Objectives of the Economic Corridor Approach
The role of economic corridors in GMS development is reflected in the joint statement of the eighth ministerial meeting, which declared that “GMS member countries will create economic corridors linking the subregion to major markets; nodal points within these economic corridors will serve as centers for enterprise development; economic corridors will be an expansion of key transport corridors so as to enhance economic activities and benefits, and over the longer term to build on the potential of the subregion as a land bridge serving the People’s Republic of China [PRC], Southeast Asia, South Asia, and East Asia.”
The development of economic corridors1 is expected to help achieve the vision of GMS as a prosperous, harmonious, and integrated subregion by providing increased connectivity, enhanced competitiveness, and a greater sense of community. It supports the strategic thrusts of the Ten-Year GMS Strategic Framework, namely: (i) strengthening infrastructure links; (ii) facilitating cross-border trade, investment, and tourism; (iii) enhancing private sector participation and competitiveness; (iv) protecting the environment and promoting the sustainable use of shared natural resources; (v) and developing human resources and skills competencies. From a broader perspective, the development of GMS economic corridors offers a means for
1 An economic corridor is not simply a connection between points A and B. The movement of people and goods can originate from and end at any intermediate point between points A and B. The effect of an economic corridor also goes beyond the main route or “line.” It extends to the areas that can be accessed, or areas whose access to major economic centers could be improved, through the connection between points A and B.
2 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Figure 1: Greater Mekong Subregion Economic Corridors
Source: ADB.
East– West
Economic Corridor
Southern
Economic Corridor
North– South
Economic Corridor
Tonle Sap
Gulf of Thailand
A NDA MA N SE A
Gulf of
Martaban
Kunming
Hekou
Mohan
Ruili
Muse
Tachileik
Yangon
NAYPYIDAW
Chiang Khong
Mae Sai
Nong Khai
Nam Phao
Cau Treo
Mukdahan
Chongmek
Hat Lei
Chan Yeam
Aranyaprathet
Poipet
Mae Sot
Myawaddy
Moc Bai
Bavet
Ho Chi Minh City
Kaysone Phomvihane
Lao Bao
Dansavanh
Wang Tau
Dong Kralor
Veun Kham
Lao Cai
Lang Son
Hai Phong
Boten
Houayxay
HA NOI
BANGKOK
PHNOM PENH
VIENTIANE
Nanning
Pingxiang
GUANGXI ZHUANG
AUTONOMOUS REGION
PEOPLE'S REPUBLIC OF CHINA
MYANMAR
VIET NAM
YUNNAN PROVINCE
PEOPLE'S REPUBLIC
OF CHINA
LAO
PEOPLE'S
DEMOCRATIC
REPUBLIC
THAILAND
CAMBODIA
Boundaries not necessarily authoritative.
National Capital
City/Town
Road
River
Provincial Boundary
International Boundary
GREATER MEKONG SUBREGION
ECONOMIC CORRIDORS
N
300
0 50 100 200
Kilometers
108 00'E
o
108 00'E
o
98 00'E
o
98 00'E
o
10 00'N
o
10 00'N
o
24 00'N
o
24 00'N
o
Introduction 3
the less-developed member countries of the Association of Southeast Asian Nations (ASEAN) to catch up with the more economically advanced member countries and to reinforce the market integration process that is increasing in East Asia.
Operationally, the economic corridor approach is aimed at (i) extending the benefits of improved transport links to remote and landlocked locations in GMS, which have been disadvantaged by their lack of integration with more prosperous and better located neighboring areas; (ii) providing a spatial focus for GMS activities, with the backbone, growth centers, and nodal points serving as catalysts to the development of surrounding areas; (iii) opening up many opportunities for various types of investment from within and outside GMS; (iv) enhancing the effect of subregional activities through the clustering of projects; (v) serving as a mechanism for prioritizing and coordinating investment among neighboring countries; and (vi) generating tangible demonstration effects.
Need for Strategy and Action Plan
Under the economic corridor approach, programs and projects in priority sectors of the GMS Economic Cooperation Program, such as those in transport, energy, tourism, and human resource development, are focused on the same geographic space—the GMS economic corridors—to maximize development effect while minimizing development costs. Several projects designed to improve transport links along the SEC have been completed in the past few years, thus enhancing physical connectivity among the national components of the corridor. Although these investments have helped establish an operational transport corridor, much more efforts are needed to transform the SEC into a full-fledged economic corridor.
The development of an economic corridor is a complex and long-term process, and the building of transport links is only the initial stage. Economic corridor development requires careful planning and close coordination of infrastructure investments and related measures to promote and support business opportunities along the corridors. The formulation and implementation of a strategy and action plan—a road map—for the development of the SEC addresses this need by (i) operationalizing a multidimensional approach to economic corridor development; (ii) sharpening the focus, improving coordination, and ensuring effective and sustained implementation of SEC initiatives; (iii) mobilizing financial and technical resources from public and private sources; and (iv) broadening the support for SEC development among various stakeholders, especially at the local level.
Scope
This report presents the key elements of a proposed strategy and action plan for the development of the SEC. It is organized into seven chapters. The introductory chapter provides a brief background on the role and objectives of the economic corridor approach in GMS development and explains why a road map is needed to promote the development of these corridors. Chapter 2 presents the spatial configuration and composition of the SEC. Chapter 3 summarizes the basic demographic, physical, and
4 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
socioeconomic characteristics of SEC areas to provide the context for its development. Chapter 4 discusses the comparative advantages and development potential of SEC areas, whereas Chapter 5 identifies the factors holding back SEC development and indicates the challenges facing such development.
Chapter 6 sets out a strategy for the SEC, indicating the vision, goals and objectives, operational principles, and approaches for its development, based on the discussions in Chapters 3 through 5. Chapter 7 discusses the mechanisms for implementing the strategy, which involves an action plan comprising specific, time-bound initiatives, institutional arrangements, financing requirements, and systems for monitoring and evaluating progress.
5
The Southern Economic Corridor
Composition
The SEC comprises the following subcorridors and intercorridor link connecting major towns and cities in the southern part of GMS (Figure 2):
(i) the Bangkok–Phnom Penh–Ho Chi Minh City–Vung Tau subcorridor (Central Subcorridor);
(ii) the Bangkok–Siem Reap–Stung Treng–Rathanakini–O Yadov–Pleiku–Quy Nhon subcorridor (Northern Subcorridor);
(iii) the Bangkok–Trat–Koh Kong–Kampot–Ha Tien–Ca Mau City–Nam Can subcorridor (Southern Coastal Subcorridor); and
(iv) the Sihanoukville–Phnom Penh–Kratie–Stung Treng–Dong Kralor (Tra Pang Kriel)–Pakse–Savannakhet Intercorridor Link, which links the three SEC subcorridors with the East–West Economic Corridor.
Figure 2: Southern Economic Corridor
Source: ADB.
6 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
The SEC covers (i) six provinces in the eastern region of Thailand, including Bangkok, Chantaburi, Chonburi, Rayong, Sakaew, and Trat; (ii) four zones across 21 provinces and municipalities in Cambodia, including the Phnom Penh zone (Phnom Penh), the Tonle Sap zone (Bantey Meanchey and Siem Reap), the Mountain zone (Stung Treng and Rattanakiri), and the Coastal zone (Koh Kong and Kampot); (iii) four regions in Viet Nam, including the Southeast region (Ho Chi Minh City and Ba Ria–Vung Tau Province), the Central Highland region (Gia Lai Province), the South Central Coast region (Binh Dinh Province), and the Mekong River Delta region (Kien Gian and Ca Mau provinces); and (iv) six provinces in the southern Lao PDR, including Attapeu, Champasack, Khammouane, Saravane, Savannakhet, and Sekong. Table 1 shows the distances between major points along the routes in the SEC.
Table 1: Distances between Major Points in the Southern Economic Corridor (km)
Subcorridor Origin–Destination DistanceCentral Subcorridor �� Bangkok–Vung Tau (RN5)
�� Bangkok–Aranyaprathet/Poipet (Thailand–Cambodia border)
�� Poipet–Bavet/Moc Bai (Cambodia–Viet Nam border)
�� Moc Bai–Vung Tau�� Bangkok–Phnom Penh (RN5)�� Phnom Penh–Ho Chi Minh City�� Poipet–Siem Reap�� Siem Reap–Phnom Penh
944
313
502129520255156314
Northern Subcorridor �� Bangkok–Quy Nhon�� Bangkok–Aranyaprathet/Poipet (Thailand–
Cambodia border)�� Poipet–O Yadov/Le Than (Cambodia–Viet Nam
border)�� Le Than–Quy Nhon�� Bangkok–Siem Reap
1,609
313
1,049247355
Southern Coastal Subcorridor
�� Bangkok–Nam Can�� Bangkok–Klong Yai/Ko Khong (Thailand–
Cambodia border)�� Ko Khong–Lork/Ha Tien (Cambodia–Viet Nam
border)�� Ha Tien–Nam Can
1,000
416
301283
Intercorridor Link �� Sihanoukville–Savannakhet�� Sihanoukville–Phnom Penh�� Phnom Penh–Kratie�� Kratie–Dong Kralor (Tra Pang Kriel)/Veun Kham
(Cambodia–Lao People’s Democratic Republic border)
�� Veun Kham–Savannakhet
1,149230315
197407
RN5 = Route No. 5.
Source: Transport ministries of Southern Economic Corridor countries.
The Southern Economic Corridor 7
Configuration
Central Subcorridor
From Bangkok, the Central Subcorridor traverses Sakaew Province in Thailand and crosses into Cambodia through the Aranyaprathet–Poipet border gate. In Cambodia, it passes through Sisophon and goes to Phnom Penh via two routes. The first is via Route No. 5, which crosses the provinces of Banteay Meanchey, Battambang, Pursat, Kampongchnang, and Kandal before reaching Phnom Penh. The second is via Route No. 6, which passes through Siem Reap, Kompong Thom, Kompong Cham, and Kandal provinces before reaching Phnom Penh. From Phnom Penh, this subcorridor follows Route No. 1 and goes through Svayrieng Province down to the Bavet–Moc Bai border gate between Cambodia and Viet Nam. From Moc Bai, this subcorridor goes to Ho Chi Minh City via National Road No. 22, after which it connects with National Road No. 51, passing through four provinces in Viet Nam: Tay Ninh, Ho Chi Minh City, Dong Nai, and Ba Ria–Vung Tau.
Northern Subcorridor
The alignment of the Northern Subcorridor is similar to that of the Central Subcorridor from Bangkok to Siem Reap in Cambodia, where it then branches off eastward and passes through Stung Treng, Mondulkiri, and Rattanakiri provinces before reaching the O Yadov–Le Thanh border gate between Cambodia and Viet Nam. From the Le Thanh border gate, this subcorridor runs eastward via National Road No. 19 to Pleiku in Gia Lai Province and ends in Quy Nhon in Binh Dinh Province in the central region of Viet Nam.
Southern Coastal Subcorridor
The Southern Coastal Subcorridor also starts from Bangkok, then runs southward, passing through Chonburi, Rayong, Chantaburi, and Trat, where it crosses into Cambodia at the Klong Yai–Cheam Yeam border gate. In Cambodia, this subcorridor traverses Koh Kong and Kampot provinces, mostly via Route No. 48, up to the Preak Chak (Lork)–Ha Tien border gate between Cambodia and Viet Nam. The subcorridor then traverses Kien Giang Province and Ca Mau Province in Viet Nam’s Cuu Long River Delta and ends at Ca Mau Cape, going via National Road No. 80 from Ha Tien to Rach Soi, via National Road No. 63 from Rach Soi to Minh Luong to Bay Sang, via the coastal road from Bay Sang to Ca Mau City, and via National Road No. 1 from Ca Mau City to Ca Mau Cape.
Intercorridor Link
The Intercorridor Link starts from Sihanoukville in Cambodia and passes through Kompong Speu, Phnom Penh, Kandal, Kompong Cham, Kratie, Mondulkiri, and Stung Treng before reaching Dong Kralor (Tra Pang Kriel) at the Cambodia–Lao PDR border. In the Lao PDR, it follows Route No. 13, traversing the southern Lao PDR provinces of Champasack, Saravane, Savannakhet, and Khammouane, connecting the three SEC subcorridors to the EWEC in Savannakhet.
8 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Possible Extensions
The SEC can be extended from Bangkok to the deep seaport in Dawei (Tavoy) on the western coast of Myanmar. The distance from the Thailand–Myanmar border is only around 100 kilometers (km), and there already are ongoing projects for the development of the Tavoy port and the Kantchanaburi–Tavoy access road, with financial assistance from the Thailand government and the private sector. This will substantially reduce the shipping distance from Bangkok to South Asia and Europe through the Indian Ocean, which at present involves navigating around the Gulf of Thailand and the Strait of Malacca. There is potential to mobilize investment along the Bangkok–Dawei extension from such sources as India, Japan, the Republic of Korea, and the PRC, as well as cofinancing with Thailand. The other extension, involving the Intercorridor Link, is the route from Savannakhet to Vientiane, Luang Prabang, and Luang Namtha, where it links up with the NSEC. This will complete the main loops between the northern and southern parts of GMS and will eventually create an integrated network of economic corridors. Finally, a more direct route can be opened from the Lao PDR to Ho Chi Minh City through Cambodia, which is shorter than the current route through Phnom Penh.
9
Overview of Southern Economic Corridor Areas
Population and Land Area
The combined population of SEC provinces in the four countries is 40.5 million, of which 40.2% is in Viet Nam, 29.5% is in Cambodia, 24.4% is in Thailand, and 5.9% is in the Lao PDR (Table 2). The population in the Central Subcorridor is
slightly more than 27 million, which is more than twice the population in the Northern and Southern Coastal Subcorridors and more than three times the population in the Intercorridor Link (Figure 3). SEC provinces in the four countries have a total land area of 304,681 square kilometers (km2), of which 49% is in Cambodia, 27% is in the Lao PDR, 15.5% is in Viet Nam, and 8.5% is in Thailand. The Intercorridor Link has the largest land area (141,089 km2) and the Southern Coastal Subcorridor has the smallest (46,419 km2).
The incidence of poverty in SEC areas is highest in the Lao PDR (39%) and Cambodia (37.3%), both of which have poverty rates more than three times higher than that of Viet Nam (11%) and five times higher than that of Thailand (6.8%). Among SEC subcorridors, the incidence of poverty is highest in the Intercorridor Link (38.4%) and the Northern Subcorridor (25.4%). Poverty incidence in the Central and Southern Coastal Subcorridors is around 15% (Table 3).
Table 2: Population in the Southern Economic Corridor
Subcorridor Cambodia
Lao People’s Democratic
Republic Thailand Viet NamCentral 9,227,000 – 7,374,000 10,601,000
Northern 1,882,000 – 7,374,000 2,745,000
Coastal 960,000 – 9,362,000 2,946,000
Intercorridor 6,110,000 2,386,000 – –
All SEC provinces 11,978,000 2,386,000 9,894,000 16,292,000
Total, country 14,000,000 5,874,000 – –
SEC provinces as % of total SEC 29.5 5.9 24.4 40.2
SEC provinces as % of total country 85.5 40.6 15.5 19.1
SEC = Southern Economic Corridor.
Note: Data are for Cambodia, 2005; the Lao People’s Democratic Republic and Thailand, 2006; Viet Nam, 2007. Statistics provided by the respective countries (see Appendix A for details).
10 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Thailand
SEC areas in Thailand have a population of 9.8 million, which represents 15.5% of the country’s total population (Figure 4). The population in the other provinces is comparatively smaller, ranging from 240,000 people in Trat to 1,169,000 people in
90
80
70
60
50
40
30
20
10
(%)
0Cambodia Lao PDR Viet Nam Thailand
Po��lation Land ��ea
Figure 3: Population and Land Area of Southern Economic Corridor National Components as Percentage of
Total Southern Economic Corridor (%)
Lao PDR = Lao People’s Democratic Republic.
Source: Country sources.
Table 3: Incidence of Poverty in Southern Economic Corridor Areas (%)
Subcorridor Cambodia
Lao People’s
Democratic Republic Thailand Viet Nam
Subcorridor average
Central 35.8 – 7.7 1.7 15.1
Northern 48.9 – 7.7 19.7 25.4
Coastal 26.8 – 5.0 11.8 14.5
Intercorridor 37.9 39.0 – – 38.4
Average, all Southern Economic Corridor provinces 37.3 39.0 6.5 11.0 –
Whole country 34.7 33.5 11.2 14.8 –
Note: Data are for Cambodia, 2003–2004; the Lao People’s Democratic Republic, 2002–2003; Viet Nam, 2005; Thailand, 2006. Statistics provided by the respective countries (see Appendix A for details).
Overview of Southern Economic Corridor Areas 11
Chonburi. With a population of 6.8 million, Bangkok is the most densely populated area, with a population density of 4,360 people per km2. This contrasts with the population density in other areas along the SEC in Thailand, which ranges from 74 people per km2 in Sakaew to 268 people per km2 in Chonburi. The incidence of poverty in SEC provinces is relatively low, averaging 6.8% compared to the national average of 9.5%. The incidence of poverty in Bangkok and Chonburi is the lowest, averaging just 1.5%, whereas that in Trat and Sakaew is the highest, averaging 13.1%. The literacy rate is 95.6% in these provinces, reaching 98% in Chonburi and Bangkok.
Cambodia
Cambodia’s SEC provinces have a population of nearly 12 million, or 85.5% of its total population. With the exception of Phnom Penh, these provinces are sparsely populated, having as few as 9 people per km2 in Stung Treng. Phnom Penh has the highest population density in the country, with 3,597 people per km2. The majority of the population in SEC provinces (70%–90%) lives in rural areas. The incidence of poverty is lowest in the Southern Coastal Subcorridor (26.8%) and highest in the Northern Subcorridor, especially in Stung Treng, Mondulkiri, and Rattanakiri, where more than half of the population (52%) lives below the poverty line. This is far above the incidence of poverty for the whole country (34.7%). Phnom Penh has the lowest incidence of poverty in the country (5%). The literacy rate is highest in
Figure 4: Population and Land Area of Southern Economic Corridor National Components
as Percentage of Country (%)
Lao PDR = Lao People’s Democratic Republic.
Source: Country sources.
90
80
70
60
50
40
30
20
10
(%)
0Cambodia Lao PDR Viet Nam Thailand
Po��lation Land ��ea
12 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Kompongcham, Phnom Penh, Stung Treng, and Battambang (averaging 90%) and lowest in Ratanakiri, Mondulkiri, Siem Reap, and Kompongchnang (56%–65%).
Viet Nam
The combined population of SEC provinces in Viet Nam is 16.3 million, representing 19.1% of the country’s total population. The population density in these provinces is 1.3 times greater than the national population density. The literacy rate in these provinces is relatively high, exceeding 90%. The incidence of poverty in these provinces (11%) is lower than the average for the whole country (14.8%). The Central Subcorridor, which has the largest population among the three subcorridors (10.6 million), traverses highly urbanized areas, including Ho Chi Minh City, and has an urban population comprising 63.6% of the total population in the subcorridor. Incidence of poverty in the Central Subcorridor (1.7%) is much lower than the incidence in the Northern Subcorridor (19.7%) and the Southern Coastal Subcorridor (11.6%). Around three-quarters of the people in the Northern Subcorridor and the Southern Coastal Subcorridor live in rural areas.
Lao People’s Democratic Republic
The six southern Lao PDR provinces in the SEC have a combined population of 2.4 million, which is slightly over 40% of the country’s population. Champasack and Savannakhet have the highest population density, at 40 people per km2, whereas Sekong and Attapeu have the lowest, at 11 people per km2. More than three-quarters of the population of SEC provinces in the Lao PDR lives in rural areas and is engaged mainly in subsistence agriculture. The incidence of poverty in the six provinces (almost 40%) is higher than for the whole country (33.5%), with the lowest incidence being in Champasack (18.4%). The educational level among the population aged 6 years and above is extremely low; only 15% completed basic primary schooling in 2005. Among the six provinces, the literacy rate in Champasack (82%) is higher than for the whole country (73%) and is the highest among the six provinces. The literacy rate in the other provinces is far below the national average, particularly in Saravane and Sekong (61%).
Natural Resources
Thailand
SEC provinces in Thailand (Chantanaburi, Chonburi, Rayong, Sakaew, and Trat) are located in eastern Thailand, which is characterized by short mountain ranges interspersed by river basins that drain into the Gulf of Thailand. There is ample agricultural land, particularly suitable for fruit cultivation and production, fisheries, and marine resources, as well as natural tourism assets such as forests, waterfalls, and long, white sandy beaches, making tourism a strong part of the region’s economy. Furthermore, the region’s coastal location has been a major factor in the industrial development of the eastern seaboard that, as an industrial hub and center for export-oriented industries, has played a key role in Thailand’s economy.
Overview of Southern Economic Corridor Areas 13
Chonburi and Rayong provinces, in addition to Chachoengsao and Samut Prakan, make up the eastern seaboard. The location and characteristics of the harbor in south Chonburi Province has made the port in Laem Chabang the largest in Thailand and reportedly the 20th busiest in the world as of 2008. Rayong Province comprises mostly low coastal plains and several of its islands are popular tourist destinations. Chantaburi Province, together with neighboring Trat Province, is the center of gemstone mining, especially for rubies and sapphires. Tropical fruits are one of the main agricultural products of the province. For instance, the province accounted for around 45% of Thailand’s durian production and 27% of world durian production in 2000. Besides being well known for gemstone mining and trading, Trat Province has the second-largest island in Thailand (Ko Chang), which together with more than 40 smaller islands forms part of the Mu Ko Chang Marine National Park. Its white-sand beaches, clear waters, and fresh marine resources are important assets.
Cambodia
SEC areas in Cambodia are blessed with abundant and diverse natural resources. Its two dominant topographical features are the Mekong River and the Tonle Sap Lake. The Mekong flows about 315 km through Cambodia before continuing on, via the Mekong Delta in southern Viet Nam, to the South China Sea. The sediment deposited during the Mekong’s annual wet-season flooding renders this area’s agricultural land very fertile. The Tonle Sap Lake is linked to the Mekong at Phnom Penh by a 100 km channel, which is named after the lake. The Tonle Sap is one of the world’s richest sources of freshwater fish. The center of Cambodia, around the Tonle Sap and the upper Mekong Delta, comprises low-lying, expansive, and active floodplains of lacustrine alluvial origin. The plain around Tonle Sap Lake is a well-developed lacustrine floodplain, flat and featureless, with fine-textured sediment. The formation of colluvial–alluvial plains is important in most rice-growing areas in Cambodia, particularly in Battambang, Banteay Meanchey, Siem Reap, and parts of Kompong Cham, Kompong Thom, Pursat, and Svay Rieng.
Cambodia’s dry forests are located in Mondulkiri Province in the eastern part of the country. These forests are one of the World Wildlife Fund’s important protected areas, known as the Mondulkiri Protected Forest. Dry forest consists of long-life, large tropical hardwood trees that can grow up to 30 meters in height. Many of these trees are prized for their timber. Despite years of war and isolation, Cambodia’s dry forests are still relatively intact and provide homes for one of the largest and most diverse mammal communities in Asia. The connection of these forests to one of the important Mekong River tributaries, the Srepok River, makes the whole area one of the most outstanding habitats in the region for large waterbird populations. The Srepok River is unique in the Greater Mekong area because it boasts subpopulations of at least 140 Mekong fish species and hosts an immense diversity of aquatic life. The river also is an important source of food and water for the local people.
In 2004, exploitable oil and natural gas deposits were found beneath Cambodia’s territorial waters, the result of offshore exploration in Block A within Cambodia waters. Although commercial extraction is yet to begin, interest in oil and gas has increased recently. In addition to oil and gas, geological surveys have shown that Cambodia has significant potential mineral resources such as bauxite, coal, gold, iron, precious stones, and other resources. Mining activities during the past 3 years have involved
14 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
the production of sand and crushed stone for the construction materials industry. Other minerals, such as clay, gold, iron ore, limestone, and salt, were reported to have been produced in Kompongcham, Mondulkiri, Phreah Vihear, Rattanakiri, and the coastal provinces. The mineral industry is still in an early stage of development. Most mining companies are small-scale quarries that produce construction materials such as limestone, sand, and other aggregates.
Viet Nam
By and large, SEC areas in Viet Nam are not as rich in natural resources as those in Cambodia and the Lao PDR. The Central Subcorridor is generally flat, with only a small rocky mountain in the Tay Ninh and Ba Ria–Vung Tau provinces. Oil and gas are the most economically valuable natural resources in Ba Ria–Vung Tau Province. Its oil production accounts for around 90% of oil production in Viet Nam and its production of gas accounts for about 16% of the country’s total production. Agricultural land represents 54% of the total land area in the subcorridor; around 60% of this land is suitable for industrial and commercial crops such as cashew nuts, rubber, and sugarcane. Ba Ria–Vung Tau Province includes zones suitable for fisheries exploitation and some beach areas that can be developed for tourism purposes. There is good potential for developing the deep seaport in Vung Tau as the main terminal for the whole southeast region.
Natural resources are quite rare in the Northern Subcorridor, with the exception of limestone used to produce building materials. Nearly 80% of the total land area in this subcorridor is agricultural and forest land. Agricultural land in Gia Lai Province is suitable for the cultivation of industrial crops such as coffee, rubber, and sugarcane. In Binh Dinh Province, almost 60% of the total cropland area is used for the production of food crops, mainly rice and corn. Forestry resources are abundant in this subcorridor, especially in Gia Lai Province, with an annual timber harvest of approximately 200,000 cubic meters (m3). More than 100,000 tons of seafood is obtained from the coastal zones of Binh Dinh Province. Like the Northern Subcorridor, the Southern Coastal Subcorridor is generally flat. The majority of the land in the subcorridor is used for agriculture and forestry production, with agricultural and forest land accounting for two-thirds of the total land area of the subcorridor. Agricultural land is used mainly for rice production and shrimp and prawn cultivation. The subcorridor has the largest shrimp production area in Viet Nam. Of the 13 provinces in the Mekong Delta region, Kien Giang is one of the two provinces that has limestone for building materials production.
Lao People’s Democratic Republic
The southern region of the Lao PDR is richer in natural resources than the northern part of the country. This region is mostly a hilly plateau with more moderate slopes than in the northern part of the country, and the soil is more fertile and less acidic. The plains of this region are the largest producer of rice and other lowland crops in the Lao PDR. Champasack and Savannakhet have abundant arable land. The most fertile soil is in the Bolaven Plateau, which has a mild climate and the highest seasonal rainfall (an average of 2,578 millimeters per year). Around 16.8% of the land area in Champasack was agricultural in 2007. Most of these land areas are devoted to rice and the production of cash crops such as cashew nuts, coffee, fruits, jatropha, rubber, and tea. Out of more than 328,300 hectares (ha) of arable land, 83% had
Overview of Southern Economic Corridor Areas 15
been cultivated in 2007; traditional rice cultivation accounted for 31% of the total; and coffee plantations for around 10%. The pattern of agricultural production in Savannakhet is similar to that in Champasack, with a large part of the land area being devoted to traditional rice cultivation. Recently, agriculture activity in these two provinces has moved toward plantation-type production.
The Lao PDR is well endowed with several mineral resources, such as base and precious metals, and industrial and construction materials. Many mineral deposits have been found in Champasack, including barite, bauxite, copper, iron, lead, and peat. Six exploration projects, covering 139,035 ha, are ongoing under concession arrangements involving domestic investors and investors from the PRC. Likewise, Savannakhet has various kinds of minerals with good potential for industrial development, such as copper, gold, granite, gypsum, salt, silver, and minerals for the construction materials industry. There is considerable potential for the discovery of other mineral resources, with mineral deposits having been found on only around 7.5% of the total land area and only 7.2% of the latter having been used for production. The government is promoting further exploration for coal, copper, gemstones, gold, iron ore, lead, potash, tin, and zinc.
Forest resources are still abundant in the southern part of the Lao PDR. Champasack has the greatest forest cover in this region. Forest resources are one of the sources of income in the area, supplying wood and nontimber forest products such as amomum, medicinal herbs, rattan, resins, and tree barks. Three national biodiversity conservation areas, totaling 4,700 km2 (30.4% of the provincial land area), are located in this province. The Lao PDR has one of the newest and most comprehensive protected-area systems in the region. Established in 1993, the system of national biodiversity conservation areas, which was estimated to cover 12.3% of the total land area in 2001, now covers 15.1% of the total land area, reflecting an increasing concern for environmental protection and management in the country. This is vital for the Lao PDR, where most inhabitants live in the countryside, and forests represent a source of food, medical herbs, and additional income. The government has designated national biodiversity conservation areas in various parts of the country, 11 of which are in the southern provinces. This reflects the ecologically sensitive nature of the southern provinces, which will require utmost care when planning development of the SEC.
Labor Force and Employment
The labor force participation rate (LFPR) is highest in Cambodia (74.6%), followed by the rate in Thailand (72.3%), and the Lao PDR (66.6%). Although the LFPR in the SEC provinces in Cambodia (73.2%) is also the highest among the SEC national components,2 the LFPR in the SEC provinces in the Lao PDR (70.3%) is higher than that in the SEC areas in Thailand (62%). The average LFPR in the SEC provinces in the Lao PDR is higher than that of the whole country, whereas the LFPR in SEC provinces
2 The LFPR for SEC provinces in Cambodia is assumed to be the average of the LFPR in other urban areas and rural areas, as recent LFPR estimates are not available at the provincial level. Labor force data for Thailand are for 2007, whereas those for Cambodia and the Lao PDR are for 2005.
16 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
in Cambodia is about the same as that of the whole country. In the case of Thailand, the average LFPR for SEC provinces is lower than that of the whole country. The average LFPR of women in all SEC areas is around 60.0%, with the highest rate in Cambodia (69.5%), followed by the Lao PDR (66.4%) and Thailand (50.5%).
The average unemployment rates in SEC subcorridors do not vary widely, ranging from 4.2% in the Central Subcorridor to 5.3% in the Northern Subcorridor (Table 4). However, there are significant differences in unemployment rates among the national components of the subcorridors. The unemployment rate in SEC provinces in Thailand (an average of less than 1%) is the lowest in SEC areas. The low unemployment rate in SEC provinces in the Lao PDR (also less than 1%) reflects the fact that around 80% of employment is in the form of self-employment in the agriculture sector. SEC provinces in Cambodia have the highest unemployment rates, with the rate in the Northern Subcorridor reaching 10%. SEC provinces in Viet Nam have a lower unemployment rate than SEC provinces in Cambodia. Kompong Speu, Kompongchang, Sihanoukville, and Svayrieng have the lowest unemployment rates (3% or less), whereas Kandal, Phnom Penh, and Stung Treng have the highest unemployment rates in SEC areas in Cambodia (more than 10%). In Viet Nam, the unemployment rate is highest in Binh Dinh, Ca Mau, and Ho Chi Minh City (more than 5%), and lowest in Dong Nai and Gia Lai (around 4%). The average unemployment rate in SEC areas in Cambodia is higher than that in the whole country, whereas the rate in SEC areas of the Lao PDR, Thailand, and Viet Nam are lower than in the respective countries as a whole.
The average monthly wage rate of $30 to $45 in Viet Nam is slightly higher than that in Cambodia ($25 to $30).3 In Lao PDR, the monthly average wage rate ranges from $30 to $50. In contrast, workers in eastern Thailand, where the main activities are in industry and tourism, can earn an average of $100 to $130 per month. If benefits
3 Prime Ministerial Decree No. 03/2006/ND-CP raised minimum monthly salaries for unskilled and manual laborers from $45 to $55 in Ha Noi and Ho Chi Minh City, from $40 to $50 in the suburbs of these cities, and from $35 to $45 in all other areas.
Table 4: Unemployment Rates in Southern Economic Corridor Areas (%)
Subcorridor Cambodia
Lao People’s Democratic
Republic Thailand Viet NamSubcorridor
averageCentral 6.5 – 1.2 4.8 4.2
Northern 10.0 – 1.2 4.6 5.3
Coastal 8.3 – 0.4 5.1 4.6
Intercorridor 9.1 0.7 – – 4.9
Whole country 5.3 1.4 1.4 5.1 –
Note: Data are for Cambodia, 2003–2004; the Lao People’s Democratic Republic and Viet Nam, 2005; Thailand, 2007. Statistics provided by the respective countries (see Appendix A for details).
Overview of Southern Economic Corridor Areas 17
and other allowances are included, the cost of labor in Thailand could go up to $300 per month.4
Income Level and Economic Structure
The economies of Cambodia, the Lao PDR, Thailand, and Viet Nam differ significantly from one another in terms of their overall level of economic development and their economic structures. In 2007, Viet Nam had a per capita gross domestic product (GDP) of $812. Cambodia’s per capita GDP was $625, the Lao PDR’s was $522, and Thailand’s was $3,400. Although SEC provinces in the four countries broadly reflect national characteristics, there are several differences among them and between the provinces within each national component. In terms of per capita gross provincial product (GPP), Thailand’s provinces are easily the wealthiest part of the SEC, with a per capita GPP of five to seven times the prevailing levels in SEC areas of Cambodia, the Lao PDR, and Viet Nam (Table 5). Per capita income levels also vary considerably among different provinces within the same national area. Despite these differences in income levels, the basic economic structures in most of the three SEC areas are broadly similar, with agriculture and agriculture-processing activities accounting for the major part of economic output. Exceptions are the highly industrialized areas in Thailand, such as those in Chonburi and Rayong, and in Viet Nam, such as those in Ho Chi Minh City and Ba Ria–Vung Tau Province.
4 Motoyoshi Susuki. 2009. Feasibility of the Industrialization Strategy of the Lao PDR. PowerPoint presentation on Expansion of Production Networks into the Less Developed ASEAN Region: Implications for Development Strategy.
Table 5: Per Capita Gross Provincial Product in Southern Economic Corridor Areas ($)
Subcorridor Cambodiaa
Lao People’s Democratic
Republic Thailand Viet NamSubcorridor
averageCentral – – 5,501 2,321 2,816
Northern – – 5,501 538 2,221
Coastal – – 9,954 793 3,790
Intercorridor – 419b – – 522c
Average, all Southern Economic Corridor provinces – 419b 6,985 1,217 –
Per capita gross domestic product 625 522 3,400 812 –
Note: Gross domestic product and gross provincial product figures are for 2007. Statistics provided by the respective countries (see Appendix A for details).
a Gross provincial product figures are not available for Cambodia.b Excludes Khammouane and Sekong.c Uses per capita gross domestic product as a proxy for per capita gross provincial product in the
Intercorridor Link in Cambodia.
18 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
In Thailand, the industrial sector accounts for 61.2% of GPP in Chonburi and nearly 80% of GPP in Rayong. These two provinces have the highest per capita GPP in the SEC areas in Thailand, with that in Rayong reaching $24,310 and that in Chonburi reaching $11,275. In contrast, Chantaburi, Trat, and Sakaew, where agriculture predominates, have a per capita GPP ranging from $1,581 to $2,635. In Cambodia, economic growth has occurred mainly in urban areas, particularly in Phnom Penh and the tourist gateway Siem Reap. The service sector accounts for the largest share, representing 44% of GDP, followed by agriculture at 30% and industry at 26% of GDP. In Viet Nam, the industry sector has the largest share of GDP, at 42%, followed by services at 38% and agriculture at 20% of GDP. Industry predominates in Ho Chi Minh City, where it accounts for 46.4% of GPP, as well as in Dong Nai (57.7% of GPP) and Ba Ria–Vung Tau (89.1% of GPP). Ho Chi Minh City, Dong Nai, and Ba Ria–Vung Tau also have the highest per capita GPP in SEC areas of Viet Nam, reaching $2,085 in Ho Chi Minh City; $1,139 in Dong Nai; and $7,424 in Ba Ria–Vung Tau. Per capita GPP in other SEC provinces in Viet Nam, where agriculture predominates, ranges from $471 in Gia Lai Province to $865 in Tay Ninh Province.
Cross-Border Trade
Cambodia and Thailand
Border trade along the SEC takes place both formally and informally.5 Data on formal cross-border trade between Cambodia and Thailand shows that total cross-border exports from Thailand to Cambodia rose from $49.7 million in 1996 to $933 million in 2007, representing an increase of 30.5% per year.6 The Aranyaprathet border checkpoint (Central Subcorridor) accounted for about half of the total cross-border exports from Thailand to Cambodia, followed by the Klong Yai border checkpoint (Southern Coastal Subcorridor), with about one-third. Around two-thirds of the total cross-border exports from Thailand to Cambodia have taken place in the Central and Southern Coastal Subcorridors of the SEC (Figure 5). The major exports from Thailand include cement, chemical fertilizers, engines, livestock feeds, motorcycles and parts, petroleum, textiles, and woven fabrics. The largest export is motorcycles and parts.
Total cross-border imports to Thailand from Cambodia fluctuated from $39.5 million in 1996 to $46.5 million in 2007, representing an annual average growth rate of 1.5%. The Aranyaprathet border checkpoint accounted for two-thirds of the total cross-border imports to Thailand from Cambodia, and the Klong Yai border checkpoint accounted for one-fifth. The major products imported by Thailand through the border include corn feeds for livestock, metal wastes, ready-made clothing, soybean grain, tapioca, and used clothing. The balance of trade has consistently been in favor
5 There are no reliable estimates of informal trade. The Ministry of Industry and Commerce of the Lao PDR estimates informal trade to be two-thirds of total trade with Thailand and one-quarter of total trade with Viet Nam. Other estimates place informal trade between Thailand and the Lao PDR at between one-third and half of formal trade, and trade between Cambodia and Viet Nam at 20%–30% of formal trade.
6 Cross-border trade covers only formal trade and is defined as trade conducted through land borders, as contrasted to trade conducted through seaborne and airborne transport. See: C. Krainara. 2008. Cross-Border Trade and Commerce in Thailand: Policy Implications for Establishing Special Border Economic Zones. PhD dissertation, Asian Institute of Technology, Bangkok, Thailand.
Overview of Southern Economic Corridor Areas 19
of Thailand, with exports 20 times greater than imports in 2007, which suggests great potential to increase Cambodia’s exports to Thailand. Improved agricultural productivity and a more diversified production structure in Cambodia will greatly help realize this potential.
Cambodia and Viet Nam
Cross-border trade between Cambodia and Viet Nam increased from $79.2 million in 2005 to $163.3 million in 2007, representing an annual average growth rate of 45.1%. Cross-border exports from Cambodia almost tripled between 2005 and 2007, whereas cross-border imports from Viet Nam expanded by 35.7% annually over the same period.7 Cross-border trade has taken place mainly in the Central Subcorridor, with the value of trade through this subcorridor accounting for nearly three-fourths of total trade through the three subcorridors. Bavet–Moc Bai is the largest international border crossing between Cambodia and Viet Nam. Total trade through this crossing more than doubled from 2005 to 2007, with the increase being
7 Numbers based on the reports of the border authorities at the Moc Bai, Le Thanh, and Ha Tien border crossings in Viet Nam. Total trade figures are from International Monetary Fund, Direction of Trade Statistics Yearbook (Washington, DC. 2007).
Figure 5: Southern Economic Corridor Cross-Border Trade, 2007 ($ million)
Note: Data on cross-border trade between Veun Kham and Dong Kralor (Tra Pang Kriel) is not available.
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20 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
accounted for mainly by the growth in exports from Cambodia. Imports from Viet Nam through this border increased one and a half times and exports more than tripled during this period. Exports from Viet Nam to Cambodia include building materials, liquid gases, office supplies, paper products, and vegetables. Exports from Cambodia to Viet Nam include cashew nuts, rice, and tobacco.
Lao People’s Democratic Republic and Thailand
The largest trading partner of the Lao PDR is Thailand, which accounted for an average of nearly three-fourths of trade with GMS countries from 2000 to 2007. Viet Nam is also a significant trade partner of the Lao PDR, although not as dominant as Thailand. Viet Nam’s trade with the Lao PDR accounted for an average of 14.4% of trade with GMS countries in 2000–2007, with a clear upward trend after 2000. Thailand has consistently registered a surplus in its trade with the Lao PDR, with cross-border exports amounting to nearly five times the imports from the Lao PDR in 2007. Cross-border trade between Thailand and the Lao PDR has taken place mostly through the Nongkhai–Tha Nalaeng and Mukdahan–Savannakhet border checkpoints, with around 50% of cross-border exports conducted through Nongkhai–Tha Nalaeng and 55% of imports passing through Mukdahan–Savannakhet. In terms of commodities traded, the Lao PDR exports natural resource–based products and imports capital goods, foodstuffs, raw materials, and other basic goods. Exports of minerals and other natural resource–based products such as copper, electricity, gold, gypsum, iron ore, and silver accounted for more than 64% of total trade in fiscal year 2007.
Share of Cross-Border Trade to Total Trade
The share of cross-border trade to total trade between Cambodia and Thailand increased substantially from 1996 to 2007. Cross-border exports as a percentage of total exports from Thailand to Cambodia expanded from just 13.8% in 1996 to 68.2% in 2007. Similarly, the share of cross-border imports to total imports from Cambodia to Thailand rose from 85.4% in 1996 to 97.5% in 2007. In contrast, the share of trade conducted by sea and air as a proportion of total trade between the two countries has generally declined over time. Cross-border trade between Cambodia and Viet Nam also has been substantial, accounting for around two-thirds of total trade in 1996–2007. These figures reflect the SEC’s growing importance in trade between Cambodia and Thailand and between Cambodia and Viet Nam, a result of improved physical connectivity, which has enabled the exchange of a wider range and larger volumes of goods. Trade facilitation and logistics development will be essential to supporting this development.
Foreign Direct Investment
Thailand
Foreign direct investment (FDI) has continued to play an important role in Thailand’s development. FDI approvals amounted to $14.2 billion in 2005, $9.9 billion in 2006, and $21.6 billion in 2007. The major foreign investors are from the European Union (EU); Hong Kong, China; Japan; Singapore; Taipei,China; and the United States (US),
Overview of Southern Economic Corridor Areas 21
with the largest investments being made in services and infrastructure, followed by electronics and electrical products, metal processing, agriculture, chemical products, and light industries. Most of the FDI is directed to the southern seaboard of Thailand, along the SEC.
Eastern Thailand is strategically located and thus has experienced significant deep seaport, industrial estate, and tourism development, with FDI playing a major role in such development. One of the few deep sea harbors in Thailand where industrial estates are located is in Laem Chabang, in the south Chonburi Province. The industrial estates in Chonburi comprise the Bang Pa Kong Industrial Estate, the Bo Win Industrial Estate, the Laem Chabang Industrial Estate, and the Pin Tong Industrial Estate. Those in Rayong are the Amata City Industrial Estate, the Eastern Industrial Estate, the Eastern Seaboard Industrial Estate, the Map Ta Phut Industrial Estate, the Padaeng Industrial Estate, and the TS 21 Industrial Estate.
In addition to attracting foreign investment, Thailand’s enterprises have dynamically pursued outward investment over the past few years to avoid the increasing internal competition and achieve greater profitability. Cambodia, the Lao PDR, and Viet Nam are among the attractive destinations for Thailand’s investment. The availability of labor at lower wages has been a major factor in this development.
Cambodia
FDI in Cambodia increased from $235 million in 2001 to $2.6 billion in 2006. The government has continued to make progress in legal and regulatory reform, and the adoption of a new concession law in 2007 is expected to result in increased investment, particularly in infrastructure. In addition to reforms introduced to make Cambodia World Trade Organization compliant, the country has rapidly adopted many laws that cover a wide range of areas, including commercial enterprises, negotiable instruments, commercial arbitration, secure transactions, concessions, and insolvency. From 1994 to the first half of 2008, a total of 1,404 projects with a combined registered capital of $5.2 billion, fixed assets of $19.3 billion, and equities of $17.8 billion were approved. The largest investments were made in tourism (42%), followed by industry (27%), services (25%), and agriculture (6%). The biggest investors are from Malaysia, the PRC, and the Republic of Korea. Other foreign investors are from the EU; Hong Kong, China; Japan; Singapore; Taipei,China; Thailand; and the US.
Many subdecrees and regulations have been enacted in the past few years, including the subdecree on special economic zones (SEZs). Cambodia promulgated regulations on the establishment and management of SEZs in December 2005. In the following year, Cambodia established a board for SEZs at the Council for the Development of Cambodia. The government has approved the establishment of 19 SEZs, which include zones in Phnom Penh, Sihanoukville, and along the Viet Nam and Thailand borders. Many SEZs are located at the borders because investors are expected to come mainly from the other side of the border. These investors will, therefore, be able to produce in Cambodia at a lower price and sell more competitively in such markets as the EU and the US. Investors in Cambodia also prefer to locate in border areas because of the ability to import electricity from Viet Nam and Thailand. A serious limitation of Cambodia in its bid to attract FDI is the lack and high cost of electricity.
22 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Most of the SEZs in the Cambodian component of the SEC are located along the Central Subcorridor, which is also the most developed among the subcorridors.
Viet Nam
FDI in Viet Nam has increased significantly in the past decade. Investment approvals reached $12 billion in 2006, which is four times the amount approved in 2002. The total registered FDI in Viet Nam amounted to $96.6 billion from 1988 to 2007, averaging around $5 billion per year. The major foreign investors are from the EU; Japan; the Republic of Korea; Singapore; Taipei,China; and the US. Almost one-half of the total FDI was in manufacturing, with real estate a distant second (12.2%). Other sectors with relatively significant shares are transport, storage, and communications (8.7%); hotels and restaurants (7.3%); mining and quarrying (6.7%); construction (5%); and agriculture and forestry (3.5%). In terms of location, 41.4% of FDI was made in the SEC’s Central Subcorridor, half of which went into Ho Chi Minh City. FDI in the Northern and Southern Coastal Subcorridors amounted to only 4.6% and 0.3% of total FDI in Viet Nam, respectively.
According to the Ho Chi Minh City government, the city is the most important economic center in Viet Nam, accounting for a large part of Viet Nam’s economy. Some 300,000 businesses, including many large enterprises, are involved in high-tech industries, light industries, construction, building materials, and processing of agricultural products. Many FDI projects are in high-tech industries, services, and real estate. Currently, the city has 15 industrial parks and export-processing zones: the Binh Chieu Industrial Park, the Cat Lai Industrial Park, the Hiep Phuoc Industrial Park, the Ho Chi Minh City automobile mechanical industrial complex, the Le Minh Xuan Industrial Park, the Linh Trung 1 Export Processing Zone, the Linh Trung 2 Export Processing Zone, the Phong Phu Industrial Park, the Saigon High-Tech Park, the Tan Binh Industrial Park, the Tan Tao Industrial Park, the Tan Thoi Hiep Industrial Park, the Tan Thuan Export Processing Zone, the Tay Bac Cu Chi Industrial Park, and the Vinh Loc Industrial Park.
Lao People’s Democratic Republic
Since the implementation of “open” trade and investment policies, the Lao PDR has become a viable destination for FDI, particularly in the industry and service sectors. FDI from 2003 to 2007 averaged $1.2 billion per year, with the major foreign investors coming from neighboring countries such as the PRC, Thailand, and Viet Nam. In the near future, it is expected that the Lao PDR will experience larger investments from neighboring countries and other East Asian countries, particularly in natural resource–based industries. At the provincial level, Savannakhet and Champasack are popular investment locations due to their rich natural resources, with nearly 40.0% of the total FDI being made in Savannakhet and 22.7% in Champasack. For example, Lane Xang Minerals has increased its investment in Savannakhet to expand copper exploration and production. Champasack is expected to see the same surge in investment because the provincial government has approved several exploration projects involving foreign investment.
More recently, relatively large foreign investments have been made in hydropower and mining, averaging 53% of total FDI in hydropower and 10% in mining. Due to
Overview of Southern Economic Corridor Areas 23
the abundance of agricultural land, fertile soil, and low-cost labor, agriculture is also becoming an attractive sector for investors from neighboring countries with an average of around 12% of total FDI. Champasack and Attapeu provide good opportunities for investment in cash crops and industrial tree plantation crops, such as cassava, jatropha, palm, and rubber. The rich historical, cultural, and natural setting is boosting investment in the service sector, especially in the tourism industry. Champasack is establishing industrial parks covering 2,284 ha in three districts located around Pakse. The government also has established the Savannakhet–Seno Special Economic Zone in Savannakhet Province, covering 954 ha and comprising four zones. Site A, which is located next to the new Mekong bridge between Savannakhet and Mukdahan, targets the service sector (e.g., residential areas, border control facilities, and shopping and marketing centers), whereas Site B targets logistics-related ventures.
Tourism
Tourism is one of the most important sectors in the development of the SEC in particular and of GMS countries in general. Tourism has a wide range of backward and forward links with the service industry (e.g., hotels, restaurants, and travel agencies) and a large number of small and medium-sized enterprises catering to the requirements of the tourism industry. The SEC has tourist attractions, many of which can be further developed and linked together in a “tourism corridor.”
Thailand
Tourism is playing an increasing role in terms of foreign exchange earnings, job creation, and business development in Thailand’s service sector, especially in the light of the global economic crisis. A number of countries have adopted tourism as a tool for economic recovery and development, given the sector’s advantage of being primarily local resource based and its comparatively low dependence on imported goods. Tourist arrivals in the SEC’s Thailand provinces total 23.1 million, with most of the tourists visiting Bangkok (13.3 million visitors), Chonburi (6.5 million visitors), and Rayong (1.9 million visitors). As a major tourist destination for domestic (7.1 million) and international visitors (16.0 million), Thailand can help increase the number of tourists visiting Cambodia and Viet Nam through the SEC.
Cambodia
Cambodia, with its rich culture, history, and natural attractions, continues to attract an increasing number of tourists to the country, with international tourist arrivals doubling from 2004 to 2007 and the number of tourist arrivals breaching the 2 million mark for the second time in 2008. More than half (55.6%) of international tourists in 2007 visited the Angkor complex in Siem Reap, with the rest visiting Phnom Penh and other destinations. Around two-thirds of the visitors arrived by air (41.6% in Phnom Penh) and one-quarter arrived by land. Only a small percentage of visitors traveled by boat. Earnings from tourism in 2007 increased by 33.5% over 2006, reaching $1.4 billion. Domestic tourism is also quite significant with the number of domestic tourists increasing by 15.5% from 2006 to 6.7 million. The most popular destinations among domestic tourists are Phnom Penh and the coastal areas, especially Kampot and Sihanoukville.
24 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Cambodia’s coast is still underdeveloped and underutilized for the purpose of tourism and thus the development and planning of coastal tourism should be strongly encouraged. Coastal tourism activities initially may be based in and around the Koh Kong area because there are existing facilities in the coastal area of the province and further developments have already been planned. Trat Province also could be a center for tourism in this region, together with Koh Kong. With its 52 islands as tourist destinations, development and improvement of coastal and multimodal transport links as well as establishment of higher-quality hotel accommodation will be the key to the success of the whole scheme. In the Northern Subcorridor, many places in Mondulkiri, Rattanakiri, and Stung Treng provinces can be visited and promoted as ecotourism destinations.
Viet Nam
Cultural tourism and ecotourism are two major priorities in transforming tourism into a spearhead of Viet Nam economy. Developing ecotourism and cultural tourism has contributed to the conservation of resources, the natural environment, biodiversity, and cultural values, and has helped increase the income of local communities and promote their overall development. Tourist arrivals in Viet Nam totaled 4.2 million people in 2007, an increase of almost 20% from 2006. The majority of visitors in 2007 came from Japan, the PRC, the Republic of Korea, and the US.
Tourist attractions in the provinces traversed by SEC subcorridors in Viet Nam are generally diversified, including marine tourism (Vung Tau), ecotourism (Ca Mau), landscape tourism (Ha Tien), ethnic–cultural tourism (Gia Lai), and historic monument tourism (Ho Chi Minh City and Tay Ninh). The number of visitors to these areas increased by an average of 17.5% annually from 2005 to 2007, with the fastest growth in the number of visitors occurring in the Central and Northern Subcorridors. Ho Chi Minh City had the largest number of visitors in 2007, at 3.3 million, followed by Kien Giang Province (2.5 million) and Ba Ria–Vung Tau Province (2 million). The visitors to the three economic subcorridors are largely domestic visitors, especially people living along the border areas and engaged in cross-border trade. Foreign visitors accounted for only around one-fifth of all visitors to the three subcorridors, although their number has been increasing recently. Ho Chi Minh City is the most popular destination among foreign visitors, who represent around half of all visitors to the city.
Lao People’s Democratic Republic
Tourism is relatively new, having started only one and a half decades ago, but it has grown significantly to become the country’s major source of foreign exchange earnings, after the mining sector. Around 80%–90% of tourists make short visits to historical and cultural centers in Vientiane and Luang Prabang. Future tourism development will require diversification into new products and attractions, especially in the southern part of the country. SEC provinces are promoting tourism development in their respective areas based on their uniqueness in culture, history, scenic landscape, and rich tropical forests. The major attractions in these provinces include early-20th-century, French-style architecture and ecotourism in the national protected areas of Khammouane Province, trekking and wildlife viewing in the national biodiversity conservation areas of Savannakhet Province, the Tad Lo waterfall and ethnic villages on the Bolaven Plateau in Saravane Province, the Khone waterfall
Overview of Southern Economic Corridor Areas 25
and ancient temples in Champasack Province, river trips and ethnic villages in Sekong Province, and ethnic villages and parts of the Ho Chi Minh Trail in Attapeu Province.
Infrastructure
Transport
Road Transport
Road transport in SEC areas in Thailand is very convenient, with a four-lane road from Bangkok to the Trat and Sa Kreaw provinces and a two-lane road from Trat City to Hat Lek on the border between Thailand and Cambodia. According to Thailand’s Ministry of Transport, these roads are considered to be in good condition. Cambodia’s provinces along the Thailand border are becoming an increasingly popular gateway from Hat Lek in eastern Thailand, due in part to the access to the port and the beach resort town of Sihanoukville. Although this was previously a grueling journey by boat and pickup on rough roads using small ferries at river crossings, a new road built with financial assistance from the Government of Thailand has greatly improved access. The first stage of this project, in 2002, involved the construction of a 1.9 km toll bridge across the Kah Bpow River, providing road access from the Thailand–Cambodia border to the town of Krong Kaoh Kong.
Many road sections in SEC subcorridors in Cambodia have been or are being upgraded, including sections of Route No. 5 and Route No. 6 between Sisophon and Phnom Penh in the Central Subcorridor, and sections of Route No. 66 between Siem Reap and Stung Treng in the Northern Subcorridor (Figure 6). The construction of a bridge across the Mekong River in Neak Loueng, which will significantly reduce travel time from Phnom Penh to Ho Chi Minh City, has been proposed for Japanese government financing. In the Southern Coastal Subcorridor, a new sealed road (National Route No. 48) was completed from Krong Kaoh Kong to Sre Ambel in 2007, and four bridges on the river crossings along this route were opened in May 2008. A 15 km section of Route No. 33 to the border with Viet Nam at Preak Chak (Lork) will be upgraded with financial assistance from Asian Development Bank (ADB) and the Government of Australia.8
Most roads in SEC subcorridors in Viet Nam are national roads, but the roads in the Northern and Coastal Subcorridors are in generally poor condition and do not meet the requirements for the socioeconomic development of these subcorridors. The majority of these roads are categorized as class 4 under Viet Nam’s road classification system. The section from the Cau Mau provincial border to Cau Mau Cape represents a major missing link in the Southern Coastal Subcorridor; presently there is only an earth or stone road in some sections, and no road at all in some segments. As mentioned, ADB and the Republic of Korea are providing financial assistance to upgrade the road between Binh Thai and Cau Mau City.
8 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Loans Kingdom of Cambodia and Socialist Republic of Viet Nam: Greater Mekong Subregion Southern Coastal Corridor Project. Manila. Proposed loans of $82 million, with cofinancing from the Government of Australia for $33.5 million and the Government of the Republic of Korea for $50 million.
26 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
The Lao PDR still lacks physical transport links within and among its provinces. Only 13% of the country’s 36,800 km road network is paved.9 The government, thus, faces the dual task of improving the existing network, particularly in the rural areas, and expanding physical connectivity among various parts of the country, including the links between urban and rural areas. Only 9.3% of the total road length (25,675 km) in Savannakhet is tarred and concreted. Champasack has only half the road length of Savannakhet, but more than 30% is tarred. The ADB-supported Champasack road improvement project (Vang Tao to Veun Kham, totaling 194 km) was completed in 2005, and the remaining 8 km to the Lao PDR–Cambodia border was completed in April 2008.
Rail Transport10
There are two railway lines in Cambodia. The Northern Line (386 km) runs from Phnom Penh to Banteay Meanchey Province in the Central Subcorridor and the Southern Line (264 km) runs from Phnom Penh to Sihanoukville in the Intercorridor Link. The train mainly carries heavy fuel oil for generators, cement, and rice on the inbound service to Phnom Penh, and wood and stones on the outbound service to
9 According to the Lao PDR Ministry of Public Works and Transportation, 4,811 km were tarred, 12,572 km were graveled, and 19,448 km were classified as earth roads in 2008.
10 A review of the GMS railway sector is being conducted to design a unified subregional railway development strategy that addresses both the environmental issues and the need for more efficient modes of freight transport.
Figure 6: Status of Southern Economic Corridor Roads
ADB = Asian Development Bank, ROK = Republic of Korea, WB = World Bank.
Mouth o f
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Siem Reap
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Kompong Cham
Patheay
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Bien Long
Bien Hoa
Ho Chi Minh City
(Saigon)
Vung Tau
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(2010-2014)
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Boundaries are not necessarily authoritative.
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Overview of Southern Economic Corridor Areas 27
Sihanoukville. Presently, part of the rail network is not operational because the route between Phnom Penh and Poipet as well as between Sisophon and Poipet (close to the Thailand border) were badly damaged during the civil war. The railway track between Phnom Penh and Sihanoukville is usable but sometimes unreliable. ADB is providing financial assistance to Cambodia for a railway rehabilitation project to upgrade services and improve reliability, including increasing the service speed to 50 km per hour.11
The main railway line from Bangkok to Ho Chi Minh City is part of the Singapore–Kunming Rail Link, an ASEAN flagship project. There are missing links between Poipet and Sisophon in Cambodia (48 km), between Phnom Penh and the Viet Nam border near Loc Ninh (254 km), and between Loc Ninh and Ho Chi Minh City (129 km) in Viet Nam. The PRC has financed a feasibility study on establishing the section from Phnom Penh to Loc Ninh. The Viet Nam government has completed a prefeasibility study for the component linking Loc Ninh to Ho Chi Minh City, which came up with an estimated project cost of $75 million. Completing the Bangkok–Ho Chi Minh City railway connection requires extensive rehabilitation and/or new construction of the line from Poipet at the Thailand–Cambodia border to Ho Chi Minh City.
Water and Air Transport
SEC development requires not only improvement of road transport but also complementary water and air services. Thus, the planned transport development in the SEC includes the linking of three national metropolitan centers—Bangkok, Ho Chi Minh City, and Phnom Penh—to the major port cities of Laem Chabang (connecting with Bangkok), Vung Tau (connecting with Ho Chi Minh City), and Sihanoukville (connecting with Phnom Penh). Improvement of the port facilities and services in Phnom Penh and Sihanoukville in Cambodia, and in Thi Vai–Vung Tau in Viet Nam, are being undertaken to better handle both national and subregional cargo traffic. The development of secondary airports in the SEC also is envisioned. This involves upgrading the Pakse airport in the southern Lao PDR to support the promotion of a subregional tourism loop comprising the United Nations Educational, Scientific and Cultural Organization’s (UNESCO) World Heritage sites and upgrading the Rattanakiri and Stung Treng airports in Cambodia, which form part of the ADB-assisted Mekong Tourism Development Project.
Two of the three subcorridors in Viet Nam have a water transport system. The Central Subcorridor has an inland waterway from Vung Tau to Ho Chi Minh City and Dong Nai Province on the Dong Nai River. This is an important domestic waterway for transport in the southeast region of Viet Nam. The Southern Coastal Subcorridor has an inland waterway connecting Nam Can district to Ca Mau City and onward to Rich Gia City.
In Cambodia, water transport is available from Phnom Penh to Siem Reap through the Mekong River in the Central Subcorridor. Phnom Penh Port, which is a river port, was used only for general cargo in the past but now has been upgraded to handle
11 ADB Loan 2288–GMS: Rehabilitation of the Railway in Cambodia Project, approved on 13 December 2006 for $42 million, with cofinancing from the OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development and the Government of Malaysia for $15.8 million.
28 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
containers. Together with a multipurpose terminal, it will serve as a logistics and supply base for the emerging oil and gas industry in Cambodia. In the Northern Subcorridor, the waterway runs from Phnom Penh to Stung Treng and from Stung Treng to Kompongcham. In Kampot Province in the Southern Coastal Subcorridor, there are two ports—a small port in Kompongkandal and a medium-sized port in Koh Toch. There is a deep seaport in Sihanoukville and some private ports in the Intercorridor Link.
Because the Lao PDR is landlocked, water transport is limited to inland water and river transport. The existing water transport route on the Mekong River is from Vientiane to Pakse (Champasack), with a navigable length of 860 km. Further navigation to Cambodia is impossible due to the Khone Pha Pheng waterfall. Most trade and transport of people and goods between the two countries takes place across the Mekong River, but this has been declining in volume since the completion of the two bridges across the Mekong in Vientiane and Savannakhet. Only 18% of the goods and 2% of the passengers transported use inland water or river transport in the Lao PDR.
Air transport is currently one of the least developed but most important modes of transport in the Lao PDR. Only 12 of 51 airports have paved runways (1,524 km); 39 other airports have unpaved runways. The airports in Vientiane and Luang Prabang are the only ones that can accommodate Boeing 737–type airplanes. The four main airports, located in Luang Prabang, Pakse, Savannakhet, and Vientiane, are managed directly by the Lao Aviation Authority. Although all four were recently upgraded to cope with increasing demand, particularly from tourism, they need to be further upgraded and expanded to accommodate larger aircraft. One Boeing 737, four MA-60s, and other smaller aircraft presently provide regional and domestic flight services.
Presently, only the airports in Vientiane and Luang Prabang can handle regional and domestic traffic and provide basic customs, immigration, and quarantine services. Along with airports in Vientiane and Luang Prabang, four new routes have been opened recently: Pakse–Bangkok, Pakse–Siem Reap, Pakse–Phnom Penh, and Savannakhet–Bangkok. A Savannakhet–Da Nang route is in the planning stage. The rapid development of the international tourist industry requires that the Lao PDR gradually expand and improve its airport facilities, including runways, terminal buildings, equipment and supply, and airport services. The Government of Thailand has extended a soft loan to the Government of the Lao People’s Democratic Republic to upgrade Pakse Airport to accommodate Boeing 737–type airplanes.
Power
The power situation in the Thailand component of the SEC is good, and power in Viet Nam and the Lao PDR are adequate, although there remains a need to reach more villages in the Lao PDR and Viet Nam components. The power supply situation in Cambodia is poor—electricity in many border towns is supplied by neighboring countries. However, Cambodia has substantial hydropower potential, which could be developed to relieve power supply constraints.
The Generating Authority of Thailand is responsible for generating, transmitting, and distributing electricity to consumers throughout Thailand. Within the Thailand
Overview of Southern Economic Corridor Areas 29
component of the SEC, there are five major substations, the largest being a 230–115–22–kilovolt (kV) substation in Chantaburi. Elsewhere, there are 115–22 kV substations at Trat and Watana Nakhon (Sra Kaew). The distribution system is very comprehensive, reaching even the border villages. In anticipation of power trading with neighboring Cambodia provinces, the Provincial Electricity Authority is constructing 22 kV transmission lines to selected border locations.
Cambodia’s electricity supply comes from 22 small, isolated power systems, most are diesel generators. There is no high-voltage transmission system outside Phnom Penh, so the country’s electricity supplies are mostly isolated, unreliable, and in poor condition. Generation capacity is generally well below demand, so most would-be consumers must install and operate individual diesel-fueled and automotive-battery units. In several cases, the power supply along SEC subcorridors in Cambodia is provided by neighboring countries such as Viet Nam and Thailand. For instance, in the provincial town of Battambang, the power supply is imported from Thailand through the Poipet border gate and managed by the Electricité du Cambodge. In the Kamrieng, Phnom Preuk, and Sampov Loun districts of Battambang Province, the power supply also is imported from Thailand and managed by a private company.
All SEC subcorridors in Viet Nam are connected to the national power grid. Presently, the national electrical network completely serves the urban areas but reaches only 80% of the rural areas in the three subcorridors. Viet Nam supplies power to the following border areas in Cambodia: Bavet, a district of Svayrieng Province in the Central Subcorridor, located on the border adjacent to Viet Nam’s Tay Ninh Province; Ponhea Krek, a district of Kampongcham Province in the Central Subcorridor and the Intercorridor Link; Memot, a district of Kampongcham Province; and Kampong Trach, a district of Kampot Province in the Southern Coastal Subcorridor, located near Cambodia’s border with Viet Nam.
Although the Lao PDR is an electric power–exporting country, not all households in the Lao PDR have access to electricity. Only 41.7% of all villages are connected to the national transmission network. The state-owned enterprise, Electricité du Lao, is the main electricity provider. There is a plan to expand the electric power network in the country, but its implementation is constrained by lack of financing. Except for Sekong and Attapeu, more than half the villages in SEC provinces in the Lao PDR have access to electricity.
Telecommunications
Telecommunication services are adequate in Thailand and along the Central Subcorridor in Viet Nam. Substantial improvements are needed in Cambodia and, to a certain extent, in the Lao PDR. In Viet Nam, facilities in the provinces along the Northern and Southern Coastal Subcorridors require further upgrading.
The upgrading of telecommunication services in Cambodia will be an important element in the development of the SEC and the promotion of economic activity in the country. Telephone density in Cambodia is only 3%, one of the lowest densities in Southeast Asia. The current telecommunication network is inadequate for business activities that require heavy data transfer over the internet. Cambodia has only two fiber-optic cable lines, at Poipet (on the Cambodia–Thailand border)–Phnom Penh–Bavet (on the Cambodia–Viet Nam border) and at Sisophon–Siem Reap. Other
30 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
main cities are connected through wireless communication technologies, which have limited access capacity. Mobile telephones account for about 90% of the market, with only 10% of users covered by fixed telephones. Maintenance costs for mobile telephone users are low due to the prepaid card system, whereas fixed-line users have higher costs and less reliability, due to cable accidents. The fixed telephone network infrastructure has remained undeveloped because private investors find the present market situation to be unattractive.
Telecommunication services in the Lao PDR have grown significantly during the past decade in terms of number of service providers and users. The number of fixed-line and mobile phone subscribers increased by 36.2% annually. The annual growth rates were 34.1% in Champasack and 25.2% in Savannakhet. In 2007, the telephone density was 201 per 1,000 inhabitants for the whole country; 180 per 1,000 inhabitants for Savannakhet; and 139 per 1,000 inhabitants for Champasack. As of the end of 2007, 93.4% of the total telephone capacity was being used by 1,711,850 subscribers.
Telecommunication services also have expanded rapidly in three SEC subcorridors in Viet Nam. This has helped ensure reliable communications among the regions and areas in the country. The number of telephone subscribers in the three subcorridors grew by 21.4% annually from 2000 to 2007, with an average annual increase of 19.6% in the Central Subcorridor, 27.5% in the Northern Subcorridor, and 32.5% in the Southern Coastal Subcorridor. The number of telephone subscribers per 100 people in the subcorridors increased from 7.2 in 2000 to 24.9 in 2007, or by three and a half times during this period. Nevertheless, there is still much room for improvement, especially in the Northern and Southern Coastal Subcorridors.
31
Development Potential and Opportunities
Overview
The SEC has considerable potential and excellent prospects for development, as it has the key ingredients to effectively integrate economic activities within the corridor. The SEC is economically diversified in terms of income and
economic structure, natural resource endowments, and labor markets, giving rise to many complementarities that could be pursued to promote its development. These complementarities provide a good base for the development of production networks that may be plugged into global value chains. The corridor has the necessary drivers of growth, including established markets, an agricultural and industrial base, and world-class tourism assets. With the appropriate physical, policy, and institutional framework, the SEC could very well be a primary generator of economic growth in GMS.12
Thailand and Viet Nam have a strong manufacturing base in the Central Subcorridor, specifically on the eastern seaboard of Thailand (in Chonburi and Rayong) and in Ho Chi Minh City and Vung Tau in Viet Nam. The industrial heartland of Thailand, which includes Bangkok and the eastern seaboard, is becoming a dominant region for heavy industries in Southeast Asia. The connection of these two manufacturing hubs will create many business opportunities along the SEC for both domestic and foreign investors. On the other hand, the Northern and Southern Coastal Subcorridors have advantages in agriculture, forestry, and fisheries production and processing, which also provide many investment opportunities in the SEC. Manufacturing enterprises can be promoted in areas where supply chains and logistics can be efficiently operated, with the effort being spearheaded by FDI in special economic zones in designated areas. Supply chain and logistics management would involve joint ventures with foreign investors, including investors from Thailand, in many supporting industries.
Thailand and Cambodia can attract more than 20 million tourists, given that Thailand is an aviation hub in Southeast Asia and Cambodia has a world-class tourist attraction such as Angkor Wat. In addition, the coastline along the SEC has good potential for tourism development, which can help create employment and raise incomes in the communities along the Southern Coastal Subcorridor, especially in SEC areas in Cambodia and Viet Nam. Indeed, increased connectivity along SEC subcorridors can facilitate the development of multicountry and circuit tours of its diverse tourism resources.
12 The relative effectiveness of the SEC, the EWEC, and the NSEC are analyzed in: M. Ishida. 2005. Effectiveness and Challenges of Three Economic Corridors of the Greater Mekong Subregion. Chiba, Japan: Institute of Developing Economies (IDE); and 2007. Evaluating the Effectiveness of GMS Economic Corridors: Why Is There More Focus on the Bangkok–Hanoi Road than the East–West Corridor? Chiba, Japan: IDE.
32 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Comparative Advantages and Complementarities
There are differences and similarities among SEC subcorridors and among the national components of these subcorridors in terms of their state of development and their comparative advantages, giving rise to many complementarities and opportunities.
The major strengths of the Thailand component include its high-level infrastructure development and services, skilled labor force, strong management capacity, dynamic private sector, good technological base, well-established export-oriented manufacturing activities (particularly in skill-intensive industries), and strategic location in the Gulf of Thailand for deep seaport and industrial estate development. However, there is a growing shortage of unskilled labor, with the monthly average wage being around three to four times higher than in Cambodia and the Lao PDR.
The Cambodia component has the advantages of abundant agricultural land, water resources, forestry and fishery reserves, mineral resources (including oil and gas), world-renowned tourism assets such as those in Siem Reap and Phnom Penh, a large supply of unskilled workers, and coastal areas and scenic landscapes suitable for tourism development. However, the education and skills of the country’s labor force are still relatively low, and infrastructure, especially power supply, is inadequate.
The Viet Nam component has abundant agricultural land, forest and marine resources with substantial fishery reserves, mineral reserves (especially oil and gas), a strong science and technology base, a highly educated and skilled labor force, a strong industrial base, and major tourist attractions such as those in and around Ho Chi Minh City and the Mekong Delta.
The Lao PDR component also has abundant natural resources, including agricultural land, forests, minerals, water resources with substantial hydropower potential, an ample supply of unskilled labor, and a diversity of culture and landscapes. It is strategically located, connecting the SEC to the EWEC and, further northward, to the PRC. Like the Cambodian component, however, the education and skills of workers in the Lao PDR are still low, and infrastructure facilities and services require substantial improvement. Nevertheless, the relatively young population of Cambodia and the Lao PDR means that there is a growing labor force and an expanding consumer market that would support SEC development.
Central Subcorridor
This subcorridor is the largest among the four subcorridors and is the most developed region in Cambodia, with a labor force that is relatively more educated and skilled than the labor force in other subcorridors. The economy of this subcorridor has been growing rapidly and is expected to continue to do so in the future. The two international airports in Cambodia are located in this subcorridor, at Phnom Penh and Siem Reap, which also have the most attractive tourist destinations in the country. Almost all of the provinces in the subcorridor have abundant resources for agriculture development, especially for the cultivation of cassava, rice, rubber, sugarcane, and beans. Many garment factories have located their production bases in this subcorridor,
Development Potential and Opportunities 33
particularly in Phnom Penh and Kandal Province. With a per capita GDP that is higher than for Viet Nam as a whole, the subcorridor is expected to maintain a high rate of economic growth in the coming years. This subcorridor is close to the Cuu Long Delta region, which is rich in natural resources for agricultural production. The areas around the Cuu Long Delta region are suitable for the development of processing industries and for supplying industrial products to rural areas in this region.
Northern Subcorridor
The areas traversed by this subcorridor in Cambodia are rich in water, forest, and mineral resources (e.g., bauxite in Mondulkiri). It has many areas with large potential for hydropower development, particularly in Rattanakiri and Mondulkiri. The potential for ecotourism development in this subcorridor is very promising. In Viet Nam, this subcorridor has a low population density and relatively large agricultural and forestry land areas that are suitable for industrial tree plantations and commercial crops such as coffee, rubber, sugarcane, and beans. It also has marine resources and has the potential to be a major seaport serving the provinces in the Tay Nguyen region of Viet Nam and the southern Lao PDR. Binh Dinh Province can develop fisheries industries and supply marine products to the Tay Nguyen region, whereas Gia Lai Province can focus on timber-processing industries and production of livestock such as cattle and buffalo.
Southern Coastal Subcorridor
Hydropower development in Koh Kong and tourism development in coastal areas are the key opportunities in the areas traversed by this subcorridor in Cambodia. This subcorridor is engaged mainly in agricultural production and has a large agricultural labor force. Among SEC areas of Viet Nam, the Kien Giang and Ca Mau provinces have advantages in the development of rice production and fisheries. There are prominent landscapes with good potential for tourism development. The eastern and western parts of the Kien Giang and Ca Mau provinces have access to the sea and a long coastline, providing an advantage in developing marine and marine product–processing industries.
Intercorridor Link
This subcorridor includes a coastal area (Sihanoukville) that has white sand, beautiful beaches, and islands. It has a deep seaport in Sihanoukville and many SEZs are located along the subcorridor. There are mineral resources such as oil and gas in the Gulf of Thailand, in the vicinity of Sihanoukville. There also is potential for hydropower development, especially in Kratie and Mondulkiri. The areas covered by the SEC in the Lao PDR have abundant fertile agricultural land and forest areas that, combined with a relatively low labor cost, provides a competitive edge in the production of cash crops such as coffee, fruit, rice, tea, and other agricultural products, as well as in the processing of agricultural and forest products. Investors can be granted long-term land concessions to further reinforce this advantage. The presence of minerals and abundant water resources in this region also is a major strength, making it suitable for investment in mineral-processing industries and power generation.
34 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Although SEC areas share broad similarities, several important complementarities also are evident, namely
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Investment Opportunities
The sectors and subsectors shown below have been identified as providing good opportunities for investment in SEC subcorridors, considering the comparative advantages and complementarities of SEC areas in the four countries. Although most investment opportunities are relevant to all of the subcorridors, there is some room for each of the subcorridors to emphasize certain activities.
Central Subcorridor
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Development Potential and Opportunities 35
Northern Subcorridor
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Southern Coastal Subcorridor
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�� �������� ����������� ����� �������� ������������� �������� ���������������resorts, restaurants, tour operations, transport services, rest areas, and recreational facilities.
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�� ?��������������������}����������������~���������������������� ����������industries.
�� <��������������������������������������������������� ��� ���� �����and ethanol from sugarcane.
Intercorridor Link
�� ��������}���������� ���&������������'"
�� <�����������������>�������� ���������������������������������� ������rice, rubber, tapioca, tea, and fruits and vegetables.
�� ?������������������������������������ �������������"
�� !����������������� ���&������������'"
�� ��������������� ���&������������'"
�� {����������������� ��"
�� ����������������������������� �����������������������������������������hotels, resorts, restaurants, tour operations, transport services, rest areas, and recreational facilities.
36 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Opportunities for Cooperation
The comparative advantages and complementarities among SEC areas also suggest certain opportunities for subregional cooperation to promote SEC development.
�� Agriculture and agro-industry, including livestock production, fisheries, and forestry. Promoting multicountry production and processing links can relieve raw material supply constraints, raise productivity, expand value-adding activities, and improve capacity utilization and marketing.
The realization of benefits from SEC development will require the promotion not only of subregional agro-industrial production on the basis of the comparative advantage of SEC components but also development of the subregional competitive advantage as a whole. This can be achieved by assisting each of the national areas to (i) identify and develop commercially viable agro-industrial projects, including subcontracting arrangements; (ii) facilitate the combination of different factors of production across national boundaries;13 (iii) pursue suitable policies (“software” aspects) to establish appropriate trade and investment regimes and accelerate human resources development efforts; and (iv) implement public investment programs (“hardware” aspects) to address physical infrastructure requirements.
�� Manufacturing. Promoting multicountry production networks that take into account differences in skills, wage differentials, natural resource endowments, and access to capital and technology.
The opportunities for manufacturing collaboration among the national areas of the SEC emerge from the comparative advantages of each national component and the economic complementarities among them. The opportunities in light manufacturing industries in the SEC can be classified as (i) natural resource–intensive industries such as agricultural, forestry, and mineral products processing, including production of alternative energy such as ethanol and biodiesel; (ii) unskilled labor–intensive industries such as production of garments and apparel; and (iii) human capital– and technology-intensive industries such as the production of electronics, medical products, pharmaceuticals, plastics, and rubber. These industries can be further classified into those having immediate or short-term potential and those having medium-term to long-term potential, which depends on the evolving labor supply-and-demand situation and wage rates among SEC national components, among other elements.
�� Cross-border investment and trade. Facilitating cross-border investment and trade (including transshipment of exports and imports) by simplifying and streamlining regulations and procedures.
Although SEC trade will undoubtedly be motivated by the inherent differences among the geographic areas that make up the corridor, it is equally clear that trade will be driven by the desire of businesspeople to exploit economies of scale and various gains from specialization. The
13 For instance, the transfer of agriculture technology across the borders from Thailand and Viet Nam can help improve agriculture productivity in Cambodia and the Lao PDR.
Development Potential and Opportunities 37
proposed initiatives in this area of cooperation are (i) establishment of an SEC trade and investment information system; (ii) development of regional marketing facilities; (iii) implementation of a trade valuation system at customs checkpoints, including training of personnel for implementing such a system; (iv) institutionalization of traditional informal trade; and (v) enhancement of mechanisms to facilitate small and medium-sized enterprise exporters’ access to working capital.
�� Tourism development. Developing tourism products that combine and link two or more countries.
The overall goal of tourism development and cooperation in the SEC is to make tourism a significant and sustainable contributor to economic growth, employment, foreign exchange earnings, and poverty reduction in the areas along the corridor while minimizing adverse social and environmental impacts. The completion of improvements in transport infrastructure along the SEC will boost the realization of the SEC’s vast tourism potential. Neighboring SEC provinces in Cambodia, the Lao PDR, Thailand, and Viet Nam can coordinate the development and promotion of their respective areas as tourist destinations, focusing on ecotourism and cultural and heritage tourism. The initiatives proposed within the framework of the ongoing GMS cooperation program in tourism include (i) joint promotion, marketing, and product development; (ii) facilitation of travel; (iii) creation of tourism infrastructure and related facilities; (iv) development of private sector–driven, community-based tourism models; and (v) capacity building. Joint promotion, marketing, and development of tourist attractions in the SEC are important to raising the awareness of such attractions in potential niche markets.
�� Cross-border economic zones and industrial estates. Establishing cross-border economic zones involving Cambodia, the Lao PDR, Thailand, and Viet Nam, and improving the planning, management, and marketing of existing and planned industrial estates.14
The development of cross-border economic zones can help SEC countries, such as Cambodia and the Lao PDR, create employment, transfer technology, and generate foreign exchange. However, it will be necessary to carefully plan and coordinate the creation of these zones to address matters such as location, taxes and tariffs, logistics and utilities, import and export procedures, and raw materials and parts supply.
The products that have been identified for production in many of the industrial estates or zones are mostly natural resource–intensive products and unskilled labor–intensive products, with a relatively smaller number of human capital– and technology-intensive products. The manufacturing of most natural resource– and unskilled labor–intensive products does not require very sophisticated facilities but only basic infrastructure that normally can be provided most efficiently in industrial estates. To assess
14 See: T. Tsuneishi. 2005. The Regional Development Policy of Thailand and Its Economic Cooperation with Neighboring Countries. Chiba, Japan: IDE; and 2008. Development of Border Economic Zones in Thailand: Expansion of Border Trade and Formation of Border Economic Zones. Chiba, Japan: IDE.
38 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
the opportunities for establishing industrial infrastructure in SEC areas, it is necessary to clearly differentiate among the various types of integrated industrial facilities that are needed in the SEC, and their functions and characteristics. The most basic facility is an industrial estate that enables manufacturing for both export and domestic markets. Export-oriented firms can qualify for bonded-warehouse types of schemes that give them tax and duty privileges. The zone also should permit nonmanufacturing, value-adding activities such as grading, sorting, bulk breaking, consolidation, branding, repacking, and simple assembly operations that normally are performed in a free trade zone setting.
�� Transport, power, and telecommunications. Improving coordination in transport planning and investment, pursuing power development and trade,15 rationalizing and upgrading telecommunication services, and mainstreaming environmental considerations in major infrastructure projects.
The general strategy for developing competitive advantage is to improve logistical support to reduce the transaction costs for traded goods. This strategy requires a broad definition of infrastructure. The initial focus is on physical infrastructure, specifically transport, power, and telecommunications. This has to be subsequently expanded to include the basic services needed to provide such infrastructure. Because of the importance of cross-border trade, this definition needs further extension to include trade in transport services, power, and telecommunications. Because new sources of financing are needed to fund infrastructure and facilitate trade, financing services also must be included in corridor infrastructure. In recognition of the rapidly evolving role of information technology in manufacturing and trade, the corridor’s infrastructure requirements should include various forms of data interchange, especially e-commerce via the internet. Environmental considerations are a major concern in GMS and should be an integral part of the process of planning and implementing major subregional infrastructure projects.
�� Skills development and migration. Improving the skills profile of the SEC’s Lao PDR and Cambodia components and addressing migration issues that have, at times, clouded bilateral relations.
Although wage differentials among SEC countries, especially between Thailand and Cambodia and between Thailand and the Lao PDR, would be a motivation for cross-border investment, this may not be immediately feasible on a major scale because the education and skill levels of workers in the Cambodia and Lao PDR components are still low. Improvement in primary and secondary education, adult education, and vocational training, as well as cross-border recognition of education and skills, will be necessary to enable these countries to maximize the benefits of closer subregional integration. Cooperative efforts among SEC countries can complement national programs to address this need.
15 There are many opportunities for investment in hydropower development and power interconnection and trade among neighboring countries in the SEC, which can be realized through cooperation. This is particularly true in Cambodia, where the supply of electric power falls substantially short of the demand despite the existing potential for hydropower development.
Development Potential and Opportunities 39
Another issue requiring joint action among SEC countries concerns the movement of labor, which includes such issues as illegal entry or illegal workers, security, infectious diseases, human trafficking, and poor labor conditions. The resolution of many of these issues will benefit both the sending and the receiving countries. For instance, counterflows of remittances, if properly channeled, could be a major source of local subregional investment. Cross-border migration is particularly heavy on the Thailand–Cambodia border. A significant portion of the incomes of these migrant workers is remitted to their place of origin, whether through informal channels or in kind, such as in the form of gold and jewelry. In the medium and long terms, the development of the SEC could induce migrant workers, who may have absorbed new skills or established contacts, to return to their places of origin and invest in their local economies.
40
Challenges and Constraints
Impediments and Constraints
The realization of the SEC’s full potential requires that certain impediments and constraints be addressed to improve the corridor’s competitiveness and to make possible the integration of economic activities along the corridor. These
impediments and constraints include both “hardware,” or physical infrastructure, requirements of economic corridor development and “software” aspects, such as policies, rules and regulations, procedures and standards, institutional arrangements and mechanisms, and activities aimed at developing nonphysical assets (e.g., capacity- and institution-building and management and control systems). The factors regarded as major impediments to and constraints on SEC development are discussed below. Because these factors are closely interrelated, it is necessary to take a coordinated approach to dealing with them.
Physical Infrastructure
There are differences in the availability and quality of infrastructure among SEC national components and among SEC subcorridors, with the Thailand component having the highest level of infrastructure development and the Cambodia and Lao PDR components having the lowest level. A critical constraint on the development of SEC provinces in Cambodia and the Lao PDR is the lack and poor state of physical infrastructure and facilities, especially of feeder roads connecting to the main transport routes. Limited storage and warehousing facilities, information technology equipment, and communication facilities also represent major bottlenecks. As mentioned previously, a major problem in Cambodia is the lack and unreliability of the electricity supply. In the urban areas of SEC countries, rapid growth in urbanization and industrialization has outpaced the provision of the necessary infrastructure, thus resulting in many bottlenecks. Among the subcorridors, infrastructure is most developed along the Central Subcorridor. There remain missing road links in both the Northern and Southern Coastal Subcorridors; segments in the Cambodia component of the Northern Subcorridor and the Viet Nam component of the Southern Coastal Subcorridor have very poor or nonexistent roads. Border-crossing facilities, especially along the Cambodia–Lao PDR border traversed by the Intercorridor Link, are undeveloped. Facilities at the Aranyaprathet–Poipet border checkpoint are not adequate to handle the volume of traffic, resulting in congestion and substantial delays.
Policies, Regulations, Procedures, and Standards
A major impediment to the efficient flow of people and goods in SEC subcorridors is the delay in the implementation of the cross-border transport agreement (CBTA). Specifically, there is an urgent need to implement arrangements involving the
Challenges and Constraints 41
exchange of traffic rights under the CBTA.16 Cambodia, the Lao PDR, Thailand, and Viet Nam are all signatories to the GMS CBTA. The CBTA is a compact and comprehensive multilateral instrument that covers in one document all the relevant aspects of cross-border transport facilitation, including (i) single-stop/single-window customs inspection; (ii) cross-border movement of people; (iii) transit traffic regimes; (iv) requirements that road vehicles must meet to be eligible for cross-border traffic; (v) exchange of commercial traffic rights (i.e., the ability of vehicles in one country to be operated in the neighboring country’s territory); and (vi) infrastructure issues such as road and bridge design standards, road signs, and signals. The CBTA will apply to selected and mutually agreed-upon routes and points of entry and exit in the signatory countries.
To allow for the early identification of implementation-related issues and demonstrate the efficacy of the CBTA, GMS ministers agreed at their 12th meeting in 2003 to carry out pilot testing of the CBTA at 7 of the 17 agreed-upon border-crossing points along 3 of the 11 agreed-upon routes. In the SEC, the pilot CBTA implementation is to be carried out at the Poipet–Aranyaprathet and Bavet–Moc Bai border checkpoints along the Central Subcorridor. This is to be done on the basis of bilateral memoranda of understanding between Cambodia and Thailand, signed in 2005, and between Cambodia and Viet Nam, signed in 2006. However, pilot CBTA implementation has yet to commence. A related bilateral road transport agreement, signed by the governments of Cambodia and Viet Nam in Ha Noi in October 2005, allows the exchange of commercial traffic rights between the two countries on a limited basis, thereby helping address the issue of time-consuming and costly transshipment of cargo at the border areas. The bilateral road transport agreement has been in effect since September 2006, and the current quota of vehicles allowed to cross borders has been increased from 40 per day to 150 per day. A similar agreement between Cambodia and Thailand, which was attached to the memorandum of understanding on pilot implementation at the Poipet–Aranyaprathet border checkpoint, was signed by the two during the third GMS summit but has not yet been implemented. A related agreement, signed by Cambodia and Thailand on the sidelines of the second Economic Corridors Forum (ECF) in Phnom Penh in September 2009, is expected to accelerate the exchange of traffic rights and address the current problem of transshipment that is causing bottlenecks in cross-border trade between the two countries.
Human Resources
There are two concerns involving human resources. The first is the availability, skill level, and mobility of labor in SEC areas. Cambodia and the Lao PDR have ample supplies of labor at low wages, which could complement the tightening labor market
16 Clearing border formalities at the Bavet–Moc Bai border crossing takes less than an hour, given the current low cross-border traffic, but it takes almost 5 hours, on average, to transship goods at the no-man’s zone because the exchange of traffic rights between Cambodia and Viet Nam has yet to apply to cargo trucks. The Aranyaprathet–Poipet border crossing is heavily congested with high volumes of border crossers and commercial vehicle traffic. Based on a time-release study conducted in December 2005, the total elapsed time for exports to Cambodia from Thailand averaged almost 405 minutes, with processing time averaging 67 minutes. The elapsed time is high due to congestion at the existing border facility, largely brought about by the transshipment rules, which require unloading and reloading of cargo at the border area.
42 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
in the Thailand component of the SEC. However, the low level of education and skills in Cambodia and the Lao PDR is impeding the pursuit of this complementarity. Workers in the subcorridors, especially in the coastal and mountainous areas of the Northern and Southern Coastal Subcorridors, have low levels of skills and knowledge and are unable to apply advanced technology and management practices to raise productivity or improve competitiveness. Policies and measures affecting labor migration also are inadequate. The second concern has to do with the low level of awareness, knowledge, and skills of officials carrying out transport and trade-facilitation measures. There is a substantial gap in this area, which requires the concerted training and capacity development of officials at the border areas, in the provinces, and in the capitals of SEC countries.
Institutional Factors
Weak coordination among agencies involved in transport, trade, and investment facilitation at both the central and local levels is a major issue. There also is a lack of connection between the higher levels and the operational levels of government. These issues have contributed to problems and delays in implementing agreements already adopted and ratified, including those in the CBTA. The involvement of local authorities and communities in developing the SEC has been inadequate. Mechanisms to effectively promote and support private sector participation in economic corridor development also have been deficient. The ECF was established in June 2008 to help improve coordination of GMS Economic Cooperation Program measures to develop economic corridors, institutionalize the involvement of local officials, and reinforce efforts to expand the participation of the private sector in economic corridor development. The ECF is a new mechanism that needs to be supported to ensure its effectiveness.
Internal and Bilateral Issues
There are also some internal (national) and bilateral issues involving social, economic, security, and political matters that may slow down the implementation of measures to develop the SEC. For instance, there are persistent questions regarding delineation of some border areas that need to be satisfactorily resolved before border-area development projects can be fully implemented.
Key Challenges
There are two principal challenges in SEC development: (i) how to fully integrate the less-developed areas of the SEC with the more-developed areas so that they can obtain meaningful benefits from the development of the corridor, and (ii) how to effectively address social and environmental concerns during SEC development.
Integrating Development of Less-Developed Areas
There is a wide variation of income and poverty levels among the national components of the SEC as well as among SEC subcorridors. Thus, a principal challenge is to achieve balanced development of SEC areas, with the less-developed countries significantly moving up the income ladder and not simply serving as transit zones. This requires
Challenges and Constraints 43
the integration of the less-developed national components into the more-developed ones and, similarly, the integration of the less-developed subcorridors—the Northern and Southern Coastal Subcorridors—into the more-developed Central Subcorridor. The Intercorridor Link will play an important role in this process. Efforts in this direction will have to deal with certain problems inherent in the less-developed areas of the SEC, including (i) inadequate physical infrastructure, (ii) low incomes that cannot support a higher level of investment and production, (iii) remoteness from the major economic and population centers, (iv) the presence in some SEC provinces of ethnic minority groups that use low levels of production technology and continue to practice shifting cultivation and nomadic living, and (v) low population density over widely dispersed residential areas.
Addressing Social and Environmental Concerns
Although the development of the SEC is expected to bring benefits to the local populace in terms of increased trade and investment and greater income-generating opportunities, there are potential undesirable consequences for the SEC and the people residing in the corridor and surrounding areas. These are already being experienced and need to be addressed effectively. Such consequences include the following:17
Social Impact
�� Displacement of local communities. Many subregional infrastructure projects require the relocation and resettlement of local inhabitants, causing their displacement and changes in their economic, social, and cultural situations. The effect of such displacement could be particularly severe among marginalized groups, such as residents of small and remote rural communities.
�� Spread of communicable diseases. The increased mobility of people, arising from improvements in physical connectivity, could lead to the spread of communicable diseases, such as HIV/AIDS and avian flu. Reports show the emergence of HIV/AIDS hot spots along GMS economic corridors following the increase in itinerant populations such as workers, drivers, and tourists in once-isolated rural communities.
�� Trafficking of women and children and illegal trade. Improved mobility and access may exacerbate the trafficking of women and children in border areas. Activities involving illegal trade in goods and wildlife also may increase.
�� Increased land prices. Land prices around road construction sites tend to rise due to speculation and expected increase in demand. This increases the vulnerability of small landowners, who may be prematurely enticed into selling or may be dispossessed of their property, particularly in areas where land rights are not properly defined or enforced.
�� Increased incidence of accidents. Road construction and expansion along the corridor may result in increased accidents, which could cause the loss of
17 Mekong Institute. 2006. Papers and Proceedings of the Second Regional Policy Formulation Meeting on Social and Environmental Impacts of Economic Corridors. Khon Kaen, Thailand, 18–20 September.
44 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
life or community assets such as cows and water buffaloes, or damage to property.
Environmental Impact
�� Deforestation and loss of biodiversity. Large subregional infrastructure projects and increased mobility of people and goods may create opportunities for the rapid exploitation of natural resources along the corridor. For example, road upgrading and expansion could lead to deforestation and loss of biodiversity by facilitating logging and transport of timber along the corridor. Land clearing for industrial and commercial purposes, due to increased demand and economic opportunities, also could result in deforestation and biodiversity loss.
�� Environmental degradation. Expanding industrial and economic activities along the corridor could lead to pollution and waste disposal issues or failure of ecosystem service functions such as carbon sequestration, water flow regulation, and nutrient dispersal in affected areas. Pollution is already a major concern in SEC population centers such as Bangkok, Ho Chi Minh City, Phnom Penh, and the Ba Ria–Vung Tau and Dong Nai provinces.
Social and environmental concerns in the SEC involve not only the negative effect of SEC programs and projects but also the broader issues affecting the overall sustainability of the SEC. In this regard, climate change is a critical issue with important implications for food security and the lives of the people in affected areas. Cambodia, Thailand, and Viet Nam have the most vulnerable areas in the SEC due to their long coastlines and the important role of agriculture in their economies. The potential effects of climate change on these areas include loss of agricultural land due to rising sea levels, falling crop yields, increasing frequency and intensity of typhoons and natural disasters, and decreasing groundwater quality.18 In particular, an increase in sea levels would seriously affect areas in and around the Mekong Delta in Cambodia and Viet Nam. Besides potentially submerging large tracts of land currently devoted to agriculture production, an increase in sea levels also could increase salt intrusion into the Mekong Delta. Such effects would have serious consequences for habitat and for the livelihoods of a large number of people living in these areas.19 It will be necessary not only to consider and implement adaptation measures but also to take climate change into account during project design and development.
18 ADB. 2009. The Economics of Climate Change in Southeast Asia: A Regional Review. Manila.19 An ADB–International Center for Environmental Management study has been conducted, in partnership
with the Ho Chi Minh City People’s Committee, to help the city respond to climate change. The study examines climate change threats and their effect on areas, communities, and sectors, and recommends adaptation options. Ho Chi Minh City has been identified as a city at high risk from the effects of climate change. See ADB. 2009. Final Report: Ho Chi Minh City Adaptation to Climate Change. Manila.
Strategy for Southern Economic Corridor Development
Development Vision, Goals, and Objectives
The vision for the SEC is to create a dynamic, prosperous economic corridor that increases the well-being of the people in the corridor, while ensuring that its development is inclusive and sustainable. It will serve as an engine of economic
growth and social development in the southern part of GMS. Based on this vision, the goals of SEC development are to create jobs, increase incomes, reduce poverty, and improve the living conditions of the people in the corridor and the surrounding areas.
To realize this vision and these goals, the objectives of the strategy and action plan (SAP) for SEC development are to (i) strengthen infrastructure and connectivity among the areas in the corridor, (ii) promote and facilitate trade and investment based on the underlying and evolving complementarities and comparative advantages of SEC areas, (iii) address social and environmental concerns during SEC development, and (iv) enhance mechanisms for promoting private sector participation and public–private sector collaboration in the development of the SEC. These objectives will be achieved through closer cooperation among the national components of the SEC in areas such as agriculture and agro-industry, manufacturing, cross-border trade and investment, tourism, transport, power and telecommunications, environment, and skills development and migration. Special attention will be given to spreading to the people in the provinces and local areas of the corridor the benefits of SEC development and to advancing the “software” aspects of economic corridor development, the implementation of which has fallen behind progress in addressing physical infrastructure constraints. Figure 7 summarizes the main elements of the SEC’s SAP.
Guiding Principles and Approaches
Implementation of the SAP for SEC development will be guided by the following basic principles and approaches:
�� #���������������������������������� ����������������� �������������������public sector establishing a conducive policy and regulatory environment, providing basic infrastructure and utilities, and facilitating cooperation among SEC countries and areas.
�� ���� ������ �� ��� �������� ������� ��� �������� ����� ���� �������development plans and priorities of SEC countries. (Appendix B shows the key goals of these plans and the contribution of SEC development to their achievement.)
46 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
�� ������������������������ ����������������������>���������������������������share in the benefits of SEC development.
�� <�������������������������������������������� �����������������������to realize early results on which further successes may be built.
�� �����������������������������������~������������������~��������������bottom–up approaches should be employed together with top–down approaches.
�� ������ ����������� ������� ��� ������������ �� ��� �� ��� ���������� ������ ���activities, in view of financial and human resource constraints.
Figure 7: Southern Economic Corridor Strategy and Action Plan at a Glance
Sharing Growth and Prosperity: A Strategy and Action Plan for the Southern Economic Corridor
�ision
Goals
���ecti�es
Action plan
Guidingprinciples
A dynamic and prosperous economic corridor that impro�es the well��eing of the people in theSouthern Economic Corridor and ensures that de�elopment is inclusi�e and sustaina�le�
Create �o�s� increase incomes� reduce po�erty� and impro�e li�ing conditions in the corridor�
Strengtheninfrastructure and
connecti�ity
�� measures���� �illion
�� measures���� million
�� measures���� million
� measures�� million
�easures to
� address missing lin�s� connect rural areas to primary Southern Economic Corridor roads� strengthen�e�pand utilities �power� telecommunications� and water�� impro�e �order facilities
�easures to
� facilitate and support cross� �order transport agreement implementation� promote in�estment in agriculture and agro�industry� manufacturing� tourism� and logistics� promote de�elopment of cross��order economic �ones and industrial clusters
� �ed �y pri�ate sector� Pu�lic sector as catalyst and facilitator� Pragmatic and results oriented� Effecti�e integration of less de�eloped areas� Close coordination with related framewor�s and initiati�es
�easures to
� promote dialogue� increase in�ol�ement of cham�ers of commerce� impro�e access to funding� promote pu�lic� pri�ate partnership pro�ects
� Social: measures to upgrade la�or s�ills� deal with negati�e effects� and address migration issue� En�ironment: measures to maintain long�term sustaina�ility and address negati�e effects and climate change
Promote and facilitatetrade and in�estment
Address social anden�ironment concerns
Enhance pri�ate sectorparticipation
Strategy for Southern Economic Corridor Development 47
�� ������������������������������������������������� ��� �����������and with other frameworks and initiatives focused on the development of SEC areas (e.g., the Ayeyawaddy–Chao Phraya–Mekong Economic Cooperation Strategy; ASEAN, especially the Initiative for ASEAN Integration, the ASEAN Mekong Basin Development Cooperation, and the various ASEAN–Japan cooperation programs and projects; and the Emerald Triangle Cooperation Framework involving Cambodia, the Lao PDR, and Thailand).
Measures to Achieve Objectives
Strengthen Infrastructure and Connectivity
Many deficiencies remain in the infrastructure in SEC areas, especially in Cambodia and the Lao PDR, which constrains connectivity and investment in agro-industry, manufacturing, tourism, and other service industries. Although many road sections along the SEC have been improved, especially along the Central Subcorridor, there still are important missing links in the Northern and Southern Coastal Subcorridors for which further infrastructure investment is needed. The construction of a bridge across the Mekong River in Neak Loueng, Cambodia, in the Central Subcorridor is necessary to resolve the bottleneck there. In addition to these missing links, there also is a need to connect rural areas to the primary roads to improve access to the main corridor routes and enable these areas to benefit from the development of the corridor. Other important infrastructure requirements include developing multimodal transport links and providing power, water, and telecommunications in SEC areas that have poor or nonexistent services. Key measures include
�� ���������� �������������������� ��������~�����������������������������to reduce travel time and increase carrying capacity, safety, and reliability;
�� ������������������������������������������������� ������������������and to support priority agriculture, industry, and tourism projects in the corridor;
�� ���������� ���� �������������������������������������������������������
�� �����������������������������������������������������������^��� ���to facilitate the clearing of formalities at border checkpoints; and
�� ��������� ������� ������ &������� ������ �������� ��� ����������'�� ���telecommunication services in underserved, poorly served, or unserved areas in the corridor.
Promote and Facilitate Trade and Investment
The promotion and facilitation of trade and investment in the SEC entails measures to improve the competitiveness of the SEC for investment and exports, which in turn requires the reduction of transaction costs, including production, transport,
48 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
and distribution costs.20 The objective is to increase and diversify trade not only within the SEC but also among GMS countries and with the rest of the world. The development of transit trade will be important in facilitating access to large markets in Southeast, East, and South Asia, using the most efficient routes and means of transport. Investment promotion will cover not only cross-border investment but also investment coming from non-GMS countries. Emphasis will be on agriculture, agro-industry, manufacturing, tourism, and logistics. Efforts also will be taken to develop industrial clusters and value chains in the corridor and surrounding areas on a complementary basis. Key measures include components related to trade facilitation, investment promotion, agriculture and industry, tourism, and logistics.
Trade Facilitation
�� \���������� ����� ��������� �� ���� �������� ��� � ��� ����� �������� ��#<�provisions (especially the exchange of traffic rights) and modernizing border checkpoint management.
�� �� ���������������� ��������� �������������������������>������inspection, risk management, and the use of information and communication technology, and facilitating transit arrangements in coordination with ASEAN-related initiatives.
�� ��������������������������������������������������������������������the central and local levels.
�� ������������������������>�������������� ��� ����������������and border officials to raise awareness, knowledge, and skills in transport and trade facilitation.
�� ������������ ��������� ������� � �� ���������� �������� ��� �������centers in strategically located areas in the corridor.
Investment Promotion
�� �������� ����� ������� ���������� ����������� ����������������opportunities.
�� ����������� ��������������� ��������� ����������������� �����about the SEC, including a prospectus on business opportunities in the key sectors and subsectors in SEC subcorridors.
�� �� �������������� ��������������� ������� ����������������������� ���documentation requirements covering investment in SEC areas.
�� � ��� ����� �������� ��� ���������� ���� ��������� ��� �������� �������and other permits, including setting up one-stop centers for approving investment applications, and institution/capacity building to support the operations of these centers.
20 A comprehensive set of measures has been proposed to more effectively implement trade and transport facilitation measures in GMS. See: ADB. 2009. Strategy and Work Program for Transport and Trade Facilitation in the Greater Mekong Subregion. Manila.
Strategy for Southern Economic Corridor Development 49
Agriculture and Industry
�� |�� �������������� ����������������������������������������������countries.
�� |�� ��������������� ��}���������������������������� �����������planning, management, and marketing of existing and proposed zones.
�� � ��� �������� ������� ���������������������������������� ������small and medium-sized enterprises in SEC areas by upgrading production standards, management, and marketing, and developing the link of small and medium-sized enterprise production processes with existing large enterprises.
�� |�� ����������������������� ���������������������������������������industrial expansion and relocation.
Tourism
�� �������� ����� ������ � ��� ����� ��� �������� ������ ��� �������road shows focused on key SEC tourist attractions.
�� � ������� ��� ���������� �������� �������� ��� ���������� �� ���� ��������destinations in the corridor.
�� |�� ���������������� ��������� ���������������������}����������the private sector in the corridor through programs such as skills training for the tourism industry and the setting of standards for facilities and services.
�� � ������������������������������������� �������� ����������������roads, power, water, and other utilities.
Logistics
�� |�� ����� ���� ��������� �������� �������� ������������ ��� ��������foreign participation, where possible and applicable, including cross-border investment in logistic-related services.
�� ������������ ������ ���������������������������������������skills in logistics concepts, operations, and development in SEC national components with less-developed logistic services.
�� ���������������?����������������������������"
Address Social and Environmental Concerns
Three social aspects of SEC development present special concerns. The first is the need to upgrade labor skills in the Cambodia and Lao PDR components of the SEC, which is necessary to take full advantage of complementarities in labor supply and wages and to enhance the competitiveness of the corridor. The second is the need for cooperation among SEC countries in adopting policies and regulations that will benefit and safeguard the interests of sending and receiving countries and at the same time ensure the welfare of migrant workers. The third requires a proactive
50 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
approach to address the possible negative effects of SEC development, such as the spread of communicable diseases, the increase of drug and human trafficking, and the displacement of local communities. The broad objective in terms of environmental concerns is to institute measures to maintain the long-term sustainability of SEC development, which includes action to effectively address the negative consequences of climate change and of major SEC programs and projects, such those involving tourism, industry, and infrastructure development. Key measures are as follows:
Social Concerns
�� �������� ������� ������� ��� ������ �� ����� �� ������� ����� �� ����less-developed areas of the corridor, such as those in Cambodia and the Lao PDR.
�� �~������ ���������� �� ������������ �������� ����� �� ����������surveillance, public awareness, and response.
�� ������������������{���<���������������������"
�� |�� ��������������������������������������������� �����������trafficking of women and children.
�� �������� ����������� �� �� �������� ������� ��� ������ �� � ���educational and training institutions located in SEC areas.
�� \�� ������� ��� � ��� ����� ������� ������ �� ���� ���������� ���marginalized groups.
�� |�� ������������������������������������������>��>����������� ��the SEC.
Environmental Concerns
�� ���������������������� ����������� ������������������������������information systems and other tools, and considering these findings and recommendations when developing the SEC.
�� ����������������� ������������������������������������ �����������is pursued in a sustainable manner.
�� ������������� ��������������������������������������� ���� ���and protection of natural resources in SEC areas, especially within national protected areas and environmental hot spots in the corridor.
�� |�� �������������������������������������������������� �����������agricultural production and living conditions, especially in and around the Mekong Delta.
Enhance Private Sector Participation and Public–Private Sector Collaboration
Although the private sector is expected to serve as the primary engine of growth in SEC development, many factors have prevented this from being realized. First, the environment for private investment, in terms of the requisite infrastructure, policy, and regulatory framework in many SEC areas, is not conducive to greater private
Strategy for Southern Economic Corridor Development 51
sector involvement. The access to financing for cross-border investment, particularly for small and medium-sized enterprises, also is still limited. The private sector in the Cambodia and Lao PDR components of the SEC is still underdeveloped compared to the sector in Thailand and Viet Nam. A closer collaboration between the public and private sectors in the SEC will be necessary to address factors of concern to the private sector. Key measures include
�� ������������������������������������������������������������������SEC through various means, including discussions at the subregional level (e.g., the GMS Economic Corridors Forum and the GMS Business Forum) and the national and provincial levels;
�� ������������������ ��������������������������������������� �����of commerce in the development of the SEC, including closer cooperation between the chambers of commerce of border provinces;
�� ������������������������������ ����������������������������������������and investment funds; and
�� ��� ����� �������� ������ ������������ �� ������������� �������� ��������various public–private sector modalities.
Geographic Focus of Strategy
In terms of geographic focus, emphasis will be given to the major nodes within the SEC (Figure 8), the development of which is expected to radiate to the surrounding areas and through the main axis, or backbone, of the subcorridors. The presence of major growth centers in the SEC—Bangkok, Ho Chi Minh City, and Phnom Penh—will help drive this process. These nodes include the following:
�� Gateway nodes: Bangkok, Laem Chabang, Sihanoukville, and Vung Tau;
�� Border nodes (towns on the two sides of the border): Aranyapraphet–Poipet and Bavet–Moc Bai in the Central Subcorridor; Klong Yai–Koh Kong and Preak Chak (Lork)–Xa Xia in the Southern Coastal Subcorridor; O Yadov– Le Thanh in the Northern Subcorridor; and Dong Kralor (Tra Pang Kriel)– Veun Kham in the Intercorridor Link;
�� Interchange node (intersection between the SEC and the EWEC): Savannakhet; and
�� Other nodes: Capitals of provinces traversed by SEC subcorridors.
The focus of interventions in the short and medium terms will be primarily on the border nodes along the SEC because they represent a major impediment to the movement of people, goods, and services, thus limiting production and trade exchanges;21 because they are natural enclaves, where it is possible to introduce
21 A simulation of the dynamics of location of population and industries in East Asia concluded that border costs play a significant role in the location of population and industries, and that physically connecting subregions is not sufficient to facilitate cross-border trade and investment. See: S. Kumagi et al. 2008. The IDE Geographical Simulation Model: Predicting Long-Term Effects of Infrastructure Development Projects. Chiba, Japan: Institute of Developing Economies.
52 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
a range of services to promote production and trade and where there is sufficient existing demand to justify private sector participation; and because many areas between the major border nodes have relatively low population densities and insufficient demand at this time. These interventions will include both “hardware” and “software” aspects of economic corridor development. As bottlenecks in the border areas are resolved, it is expected that the increased flow of trade and investment along SEC subcorridors will create economic opportunities in other SEC nodes and will catalyze their development. Nonetheless, special programs, such as the development of secondary and tertiary roads connecting rural areas to the main corridor routes, will be necessary to extend benefits to the less-developed areas of the corridor.
Figure 8: Border Nodes in the Southern Economic Corridor
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53
Implementing the Strategy
Action Plan
The strategy for the development of the SEC is translated into an action plan containing specific, time-bound measures to achieve its goals and objectives. Covering a 5-year period (2009 to 2013), the action plan for SEC development
shows the following information for each of the objectives of the strategy: (i) the result or output expected, (ii) the indicators of progress and performance, (iii) the agency or body responsible for implementation, (iv) the time frame or target date for completion, and (v) the current status of the objective. It includes both measures that presently are being implemented and measures that are planned or proposed to be initiated within the 2009–2013 time period. The action plan matrix is given at the end of this chapter; a summary is presented in Table 6.
Table 6: Summary of Southern Economic Corridor Action Plan
Objective Sector or activityNumber of measures
Cost estimate ($ million)
1. Strengthen infrastructure and connectivity
1.1 Transport1.1.1 Roads1.1.2 Rail1.1.3 Water transport1.1.4 Air transport
1.2 Power1.3 Telecommunications1.4 Border Facilities
158232513
1,615.41,461.4
148.0TBD6.0
902.410.035.0
2. Promote and facilitate trade and investment
2.1 Trade and transport facilitation2.2 Investment promotion
2.2.1 Southern Economic Corridor– wide investment promotion2.2.2 Business information2.2.3 Promotion of investment in priority sectors/subsectors
AgricultureTourismLogisticsSpecial economic zones and industrial clusters
728
34
395
4
11.4339.7
0.30.2
50.1195.6
1.1
91.5
3. Address social and environmental concerns
3.1 Environmental concerns3.2 Social concerns
612
287.9114.3
4. Enhance private sector participation and public–private sector collaboration
4.1 Private sector participation4.2 Public–private partnership
51
0.90.1
TBD = To be determined.
54 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Institutional Mechanisms and Arrangements
The implementation of the strategy and action plan (SAP) for SEC development will require substantial resources and close coordination of activities within the national components of the SEC and among existing GMS institutions. Such institutions include the GMS ministerial meetings, senior officials’ meetings, forums, and working groups; the GMS Business Forum (GMS–BF); and supporting GMS bodies such as the GMS Environment Operations Center, the Mekong Tourism Coordination Office, and national transport facilitation committees. In June 2008, GMS countries established the Economic Corridors Forum (ECF) in accordance with the directives given by GMS leaders at the third GMS summit. A Governors Forum, constituted under the ECF, is envisioned to increase and institutionalize the involvement of local authorities in economic corridor initiatives. The roles and tasks of GMS institutions, including the ECF, are summarized in Appendix C. Figure 9 shows the overall GMS organizational framework and indicates how the ECF fits into this framework.
The establishment of the ECF was a response to a significant gap in the institutional mechanisms necessary to coordinate and accelerate GMS economic corridor development. The ECF will serve as the main advocate and promoter of GMS economic corridor development. Its more specific functions are to
�� ����������������������������������������������������������������������GMS economic corridor development;
�� ������������������ ����?������ ������������������������ ���areas along the economic corridors;
Figure 9: Greater Mekong Subregion Organizational Framework
NATIONAL
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CentralLevel
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Private Sector Public Sector Private Sector
SUBREGIONAL
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corridors.c Prooposed.
Implementing the Strategy 55
�� ��� ��������������������������������������� ����������������������GMS economic corridors; and
�� ������� ���� ������ ��� ��� ����� ������������� ������������ ��� ���� ��������sector, and collaboration between the public and private sectors in GMS economic corridor development.
The ECF is a standing body dealing with economic corridor development within the GMS organizational framework. Next to the leaders summit, the GMS ministerial-level conference remains the highest policy-making and coordinating body under the GMS Economic Cooperation Program. The ECF will review the progress of implementation of the SEC’s SAP and will recommend actions to resolve major policy and implementation issues. These recommendations will then be considered by the GMS ministerial meeting, senior officials’ meeting, forums, and working groups, and appropriate actions will be taken by the concerned ministry or agency in GMS countries in accordance with agreements reached among them.
Financing
The implementation of the SAP will require approximately $3.3 billion over the next 5 years, or an average of $660 million per year (Table 7).22 This amount is less than the estimated financial requirements of the NSEC strategy and action plan ($5 billion) but more than that of the EWEC strategy and action plan ($1.5 billion). The largest cost component is for infrastructure, which comprises about three-quarters of the total. Roughly two-thirds of the estimated cost of infrastructure is for transport projects. Of the non-infrastructure components, investment promotion and facilitation measures account for the largest share (45%), followed by those for environment (38.2%) and social concerns (15.2%). Investment promotion and facilitation measures include programs and projects involving specific sectors, such as agriculture, tourism, and logistics (Figure 10).
In terms of funding commitments, around 46% of the total estimated cost has secured financing in the form of either actual or indicative commitments. The funding gap—those measures for which funding is still being or will be sought—is around $1.8 billion, or slightly over half of the total cost. Among the action plan components, environment, social, and transport and trade facilitation measures have the highest level of funding, with commitments or indicative commitments reaching nearly 100%. This is followed by investment promotion and facilitation measures, which have a 49.1% commitment or indicative commitment rate, and infrastructure, with a 36.5% commitment or indicative commitment rate. The unfunded amount for infrastructure includes two large power projects and a road project that are suitable for public–private partnership arrangements. Without these projects, the unfunded part of the SEC would be around $250 million. More than half of SEC transport projects (53.3%) have commitments or indicative commitments. There still are no funding commitments for measures to promote private sector participation. To effectively implement the action plan, it will be necessary to ensure that the indicative
22 Cost estimates for some projects in the action plan are not available.
56 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table 7: Financing the Southern Economic Corridor Strategy and Action Plan ($ million)a
Program/project component
Cost estimates
Total Committed
With indicative
commitment
Funding being/to be
soughtInfrastructure 2,562.8 498.8 460.0 1,604.0
Of which transport 1,615.4 436.4 425.0 754.0
Transport and trade facilitation
11.4 0.8 10.5 0.1
Investment promotion/ facilitation
338.7 155.0 11.4 172.3
Environment concerns 287.9 270.4 17.0 0.5
Social concerns 114.3 114.3 0.0 0.0
Promotion of private sector participation
1.0 0.0 0.0 1.0
Total 3,316.1 1,039.3 498.9 1,777.9a See Appendix D for details.
Figure 10: Funding Requirements of the Southern Economic Corridor Strategy and Action Plan
Implementing the Strategy 57
commitments are translated into firm commitments and that funding is secured for the unfunded programs and projects.
The traditional sources of finance for GMS projects have been the participating governments as well as multilateral and bilateral development institutions. However, financing from these sources is substantially short of the requirements. Accordingly, future efforts should increase funding not only from traditional sources but also from nontraditional sources, especially the private sector. Moreover, greater efforts are needed to achieve closer coordination and integration of SEC programs and projects with related initiatives, such as those under ASEAN, the Ayeyawaddy– Chao Phraya–Mekong Economic Cooperation Strategy, the Emerald Triangle Cooperation Framework, the Japan–Mekong Cooperation Program, and GMS development partners. In this regard, a mini development partners meeting, focusing on the SEC and involving key development partners in the area, is proposed to be held in 2010 to coordinate activities and generate support for SEC development.
Although there has been private sector financing of some GMS power and transport projects, there remain many opportunities for private sector participation in GMS infrastructure projects through various public–private partnership schemes. More efforts are needed to promote such partnerships in the SEC, such as the establishment of frameworks and approaches to make infrastructure ventures more attractive to the private sector. These include measures to offset or mitigate investors’ commercial and sovereign risks in these undertakings.23 More generally, achieving a more conducive business environment will be important.
Private sector investors need to tap various sources to finance their projects. Traditional bank lending may meet the requirements of relatively small commercial and industrial projects, although special facilities may be needed to finance small and medium-sized enterprises.24 For larger projects involving public–private partnerships, private investors need to tap other sources of financing. Some possible ways of raising funds for these projects include (i) corporate bond issues; (ii) debt and/or equity financing from ADB’s private sector window or the International Finance Corporation, an affiliate of the World Bank; (iii) cofinancing arrangements between commercial banks, ADB, and the World Bank; (iv) funding from bilateral development agencies, such as the Japan Bank for International Cooperation, which is engaged in both public and private sector lending; and (v) credits from industrial country export credit agencies, which are increasingly financing transactions without the need for government counter guarantees. It will be necessary to provide the private sector with more information about these possible funding sources, including how they can avail themselves of these opportunities.
23 A regional guarantee facility has been proposed to promote private sector investment in GMS. Envisioned as a mechanism for reducing country risks, this proposed facility would issue guarantees and risk-mitigation services to investors, contractors, exporters, and traders operating in GMS. The proposal is still under consideration by the GMS Subregional Investment Working Group.
24 A GMS small and medium-sized enterprise development fund has been proposed to improve small and medium-sized enterprises’ access to financing for working capital, pre- and post-shipment export financing, and export credit insurance. The GMS–BF also has been studying the feasibility of establishing a pre-shipment export finance guarantee organization and a shippers’ performance guarantee organization.
58 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Innovative financing measures can be considered to bridge the shortfall of public financing of environmental investments. For instance, payment for ecosystem service mechanisms must be explored. Without development of sufficient, tangible incentives to mitigate economic pressures, the fragmentation of natural landscapes, loss of habitat and ecosystem functions, and deterioration of environmental services will likely result in increased costs to both urban and rural economies. Strengthening emerging environmental services markets offers great potential to address these issues. The payment for ecosystem service approach is being piloted in the Dong Nai watershed in Viet Nam. Moreover, forest protection for erosion and flood control in Viet Nam has been pursued together with measures to increase production of coffee and other high-value crops.
Monitoring, Evaluating, and Updating the Strategy and Action Plan
One of the tasks of GMS forums and working groups will be to monitor the implementation of the SAP for the SEC (as well as for the EWEC and the NSEC), with the assistance of the GMS secretariat and national coordinators. The following actions are envisaged to be taken by GMS forums and working groups after approval of the SAP by SEC countries: (i) inclusion of the relevant component of the SAP in a forum’s respective work program (for example, the Subregional Transport Forum would take care of the transport component of the action plan, the Working Group on Tourism would extract the tourism component of the action plan, and so on);25 and (ii) discussion of the progress in implementing the SAP. The proceedings and reports covering the implementation of the SAP will be collated and synthesized by GMS secretariat and submitted to the senior officials’ meeting, the ministerial meeting, and the ECF.
Implementation of the SAP will be reviewed periodically and adjusted as appropriate and necessary. The results of the strategic environmental assessment of the SEC will be taken into account during such review, revision, and updating. Monitoring and evaluation of the SAP will examine not only the progress in delivering outputs (e.g., kilometers of roads improved or number of individuals trained) but also the progress toward achieving the desired effects, outcomes, and results. Reporting on the first set of indicators is fairly straightforward; these are compiled as part of project progress reports. Obtaining data on the second type of indicators is more difficult due to the lack of timely, consistent, and comprehensive statistics.
To establish a monitoring and evaluation system for SEC development, it is proposed that SEC countries initially agree upon a relatively small number of quantitative indicators of effects, outcomes, and outputs, after which baseline data covering these indicators will be established and data will be collected, compiled, and reported periodically. The proposed monitoring system initially can be implemented on a pilot
25 This process would be interactive, with initiatives on the EWEC, the NSEC, and the SEC identified by GMS ministers, senior officials, and the ECF (top–down), with the GMS forums and working groups (bottom–up) forming part of the SAPs for these economic corridors.
Implementing the Strategy 59
basis, after which the number of indicators would be expanded.26 To start with, the set of indicators shown in Table 8 is recommended.
After they are approved, these indicators will form part of the monitoring and evaluation system for SEC development, together with the output indicators emanating from various SEC programs and projects. Certain statistics, such as those on incidences of poverty, may not be available on an annual basis because SEC countries have varying schedules and time frames for collecting such information. Nevertheless, what is important is to be able to agree on and establish a workable tracking system, even with a limited coverage. Further progress can be made as experience is gained. In this regard, the inclusion of environmental performance indicators has been proposed. However, SEC countries need prior agreement on the indicators to be included in the monitoring and evaluation system, due to the sensitive nature and large number of these indicators.27
26 Qualitative analysis will supplement the use of quantitative indicators to come up with a fairly comprehensive report on progress in achieving expected results.
27 Environmental performance assessment at the subnational level is being undertaken through the GMS Environment Operations Center as part of the Biodiversity Conservation Initiative to identify environmental trends within the SEC and to assess the effectiveness of measures under this initiative and of sector environmental assessment interventions being implemented within the corridor.
Table 8: Proposed Initial Set of Indicators
Aspects to be monitored Proposed quantitative indicatorsImpact Poverty incidence in Southern Economic Corridor (SEC)
provinces/subcorridors
Per capita gross provincial product in SEC provinces/subcorridors
Outcomes/results Cross-border trade at the main border checkpoints
Volume of traffic at the main border checkpoints
Processing time for passengers and freight at the main border checkpoints
Tourist arrivals in SEC provinces
Approved/registered investment in border special economic zones
Foreign direct investment in SEC provinces
Outputs Data from project monitoring reports (e.g., kilometers of roads or railway constructed, upgraded, or rehabilitated); percent completion of civil works; number of training courses, programs, or workshops conducted; number of trainees; number and type of promotional fairs and meetings organized; studies completed (many of these can be obtained from the reports of Greater Mekong Subregion forums and working groups on the implementation of their respective strategies and action plans)
60 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
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lic
Wor
ks a
nd T
rans
port
, C
ambo
dia
2009
–201
1Fu
ndin
g be
ing
soug
ht
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 61
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
��Im
prov
emen
t of
the
St
ung
Tren
g–Ra
ttan
akir
i Se
ctio
n (R
oad
No.
66)
Trav
el t
ime
from
St
ung
Tren
g to
the
C
ambo
dia–
Vie
t N
am
bord
er r
educ
ed
Perc
ent
com
plet
ion
of
road
impr
ovem
ent
Min
istr
y of
Pub
lic
Wor
ks a
nd T
rans
port
, C
ambo
dia
2008
–201
0O
ngoi
ng w
ith
fund
ing
from
the
Cam
bodi
a an
d V
iet
Nam
go
vern
men
ts
��U
pgra
ding
of
250
kilo
met
ers
(km
) of
cla
ss
4 to
cla
ss 3
roa
d fr
om
Cam
bodi
a–V
iet
Nam
bo
rder
to
Quy
Nho
n
Trav
el f
rom
the
C
ambo
dia–
Vie
t N
am
bord
er t
o Q
uy N
hon
faci
litat
ed
Perc
ent
com
plet
ion
of
upgr
adin
gM
inis
try
of T
rans
port
, V
iet
Nam
To b
e de
term
ined
Prop
osed
Sout
hern
Coa
stal
Sub
corr
idor
��Re
habi
litat
ion
of 1
5 km
of
Road
No.
33
in
Cam
bodi
a to
bor
der
wit
h V
iet
Nam
, and
93
.6 k
m o
f na
tion
al
high
way
s 80
and
63,
in
clud
ing
cons
truc
tion
of
tw
o br
idge
s ac
ross
C
ai B
e an
d C
ai L
on r
iver
s (P
hase
I)
Trav
el f
rom
Cam
bodi
a to
Vie
t N
am a
long
th
e So
uthe
rn C
oast
al
Subc
orri
dor
faci
litat
ed
Perc
ent
com
plet
ion
of r
ehab
ilita
tion
w
orks
and
bri
dge
cons
truc
tion
Min
istr
y of
Pub
lic
Wor
ks a
nd T
rans
port
, C
ambo
dia;
Min
istr
y of
Tr
ansp
ort,
Vie
t N
am
2009
–201
2 (C
ambo
dia)
; 200
9–20
14 (
Vie
t N
am)
Ong
oing
, wit
h fin
anci
al
assi
stan
ce f
rom
A
sian
Dev
elop
men
t Ba
nk (
AD
B) (
$82
mill
ion)
, Aus
tral
ia
($33
.5 m
illio
n), a
nd
the
Repu
blic
of
Kore
a ($
50 m
illio
n)
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
cont
inue
d on
nex
t pa
ge
62 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
��Ex
tens
ion
of t
he V
iet
Nam
sec
tion
und
er
Phas
e I t
o C
a M
au C
ity,
N
am C
an, a
nd C
a M
au
Cap
e (P
hase
II)
Trav
el f
rom
Ca
Mau
C
ity
to C
a M
au C
ape
faci
litat
ed
Perc
ent
com
plet
ion
of
reha
bilit
atio
n w
orks
Min
istr
y of
Tra
nspo
rt,
Vie
t N
amTo
be
dete
rmin
edIn
clud
ed in
AD
B in
dica
tive
pip
elin
e fo
r 20
09–2
011
($10
0 m
illio
n);
cofin
anci
ng
($30
mill
ion)
bei
ng
soug
ht. L
iste
d in
the
V
ient
iane
Pla
n of
Act
ion
as S
outh
ern
Coa
stal
C
orrid
or, P
hase
II
��U
pgra
ding
of
Thai
land
se
ctio
n of
the
Su
bcor
rido
r fr
om t
wo-
lane
to
four
-lane
div
ided
hi
ghw
ay s
tand
ard
Trav
el a
long
the
Th
aila
nd s
ecti
on o
f th
e So
uthe
rn C
oast
al
Subc
orri
dor
impr
oved
in
ter
ms
of t
ime
and
conv
enie
nce
Perc
ent
com
plet
ion
of
upgr
adin
gM
inis
try
of T
rans
port
, Th
aila
ndTo
be
dete
rmin
edW
ith
finan
cial
as
sist
ance
fro
m A
DB;
lo
an o
f $1
10 m
illio
n in
clud
ed in
200
9 pi
pelin
e, c
over
ing
sect
ions
of
the
Sout
hern
Eco
nom
ic
Cor
rido
r (S
EC)
and
the
East
–Wes
t Ec
onom
ic
Cor
rido
r (E
WEC
). L
iste
d as
Gre
ater
Mek
ong
Subr
egio
n (G
MS)
H
ighw
ay E
xpan
sion
Pr
ojec
t in
the
Vie
ntia
ne
Plan
of
Act
ion
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 63
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
1.1.
2 R
ail
��Re
habi
litat
ion
of t
he r
ailw
ay in
C
ambo
dia
(600
km
for
re
habi
litat
ion;
48
km f
or
reco
nstr
ucti
on)
Railw
ay s
yste
m in
C
ambo
dia
fully
op
erat
iona
l; sa
fety
and
ef
ficie
ncy
incr
ease
d;
com
peti
tive
ness
of
railw
ay in
crea
sed;
roa
d da
mag
e an
d ac
cide
nts
due
to m
ovem
ent
of
heav
y ca
rgo
redu
ced
Perc
ent
com
plet
ion
of r
ehab
ilita
tion
/re
cons
truc
tion
of
line;
ach
ieve
men
t of
m
ainl
ine
spee
d of
at
leas
t 50
km
per
hou
r
Min
istr
y of
Pub
lic
Wor
ks a
nd T
rans
port
, C
ambo
dia
2008
–201
0O
ngoi
ng, w
ith
finan
cial
as
sist
ance
fro
m A
DB
($42
mill
ion)
, OPE
C
(Org
aniz
atio
n of
the
Pe
trol
eum
Exp
orti
ng
Cou
ntri
es)
Fund
fo
r In
tern
atio
nal
Dev
elop
men
t ($
13 m
illio
n), a
nd
the
Gov
ernm
ent
of
Mal
aysi
a ($
2.76
mill
ion)
��C
onst
ruct
ion
of r
ailw
ay
line
from
Phn
om P
enh
to
Vie
t N
am b
orde
r at
Lo
c N
inh
(254
km
) an
d fr
om L
oc N
inh
to H
o
Chi
Min
h C
ity
(129
km
)
Railw
ay li
nk b
etw
een
Cam
bodi
a an
d
Thai
land
com
plet
ed,
thus
mak
ing
oper
atio
nal t
he r
oute
fr
om K
unm
ing
to
Sing
apor
e
Com
plet
ion
of
feas
ibili
ty s
tudi
es f
or
the
two
sect
ions
of
the
line;
neg
otia
tion
/fin
aliz
atio
n of
fin
anci
ng
arra
ngem
ents
; co
mm
ence
men
t of
co
nstr
ucti
on
Min
istr
y of
Pub
lic
Wor
ks a
nd T
rans
port
, C
ambo
dia;
Min
istr
y of
Tr
ansp
ort,
Vie
t N
am
To b
e de
term
ined
The
Peop
le’s
Rep
ublic
of
Chi
na (
PRC
) is
fin
anci
ng a
fea
sibi
lity
stud
y fo
r C
ambo
dia
sect
ion;
pre
feas
ibili
ty
stud
y fo
r V
iet
Nam
se
ctio
n co
mpl
eted
w
ith
esti
mat
ed c
ost
of
$75
mill
ion
1.1.
3 W
ater
tra
nsp
ort
��C
hann
el, n
avig
atio
n,
and
port
impr
ovem
ents
on
the
Mek
ong
Rive
r an
d fo
r ac
cess
to
the
port
in S
iem
Rea
p;
deve
lopm
ent
of
inte
rmod
al t
erm
inal
at
Khon
e Fa
lls
Use
of
the
Mek
ong
Ri
ver
for
tran
spor
t m
axim
ized
; tra
vel f
rom
Kh
one
Falls
in t
he L
ao
Peop
le’s
Dem
ocra
tic
Repu
blic
(La
o PD
R) t
o C
ambo
dia
mad
e
poss
ible
thr
ough
us
e of
inte
rmod
al
faci
litie
s
Del
inea
tion
of
proj
ect
scop
e; c
ondu
ct o
f pr
efea
sibi
lity/
feas
ibili
ty s
tudy
; fin
aliz
atio
n of
fin
anci
ng
arra
ngem
ents
; co
mm
ence
men
t of
civ
il w
orks
Min
istr
y of
Pub
lic
Wor
ks a
nd T
rans
port
, C
ambo
dia
2009
–201
1Pr
opos
ed
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
cont
inue
d on
nex
t pa
ge
64 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
��V
ung
Tau
port
re
habi
litat
ion
Cap
acit
y an
d
effic
ienc
y of
por
t in
crea
sed
Com
plet
ion
of
reha
bilit
atio
n w
orks
Min
istr
y of
Tra
nspo
rt,
Vie
t N
am20
09O
ngoi
ng, w
ith
Japa
n Ba
nk f
or In
tern
atio
nal
Coo
pera
tion
(JB
IC)
finan
cing
��La
em C
haba
ng, P
hase
2
cons
truc
tion
of
C a
nd
D c
onta
iner
ter
min
als
Add
itio
nal c
apac
ity
inst
alle
d at
Lae
m
Cha
bang
por
t,
impr
ovin
g it
s ab
ility
to
han
dle
incr
ease
d fr
eigh
t vo
lum
es
Com
plet
ion
of
cons
truc
tion
of
C
and
D t
erm
inal
s
Min
istr
y of
Tra
nspo
rt,
Thai
land
2006
–201
1Pr
opos
ed. F
undi
ng
from
the
Gov
ernm
ent
of T
haila
nd
1.1.
4 A
ir T
ran
spo
rt
��U
pgra
ding
and
ex
tens
ion
of
Siha
nouk
ville
Air
port
Jets
the
siz
e of
Boe
ing
737s
acc
omm
odat
ed,
faci
litat
ing
trav
el t
o Si
hano
ukvi
lle f
rom
Ja
pan,
the
Rep
ublic
of
Kor
ea, S
inga
pore
, Th
aila
nd, a
nd V
iet
Nam
Com
plet
ion
of
upgr
adin
g an
d ex
tens
ion
Min
istr
y of
Pub
lic
Wor
ks a
nd T
rans
port
, C
ambo
dia
Targ
et c
ompl
etio
n
date
is 2
009
Prop
osed
��U
pgra
ding
of
Ra
ttan
akir
i and
Stu
ng
Tren
g ai
rpor
ts in
C
ambo
dia
Prom
otio
n of
su
breg
iona
l tou
rism
lo
op c
ompr
isin
g th
e U
nite
d N
atio
ns
Educ
atio
nal,
Scie
ntifi
c an
d Cu
ltura
l O
rgan
izat
ion ’
s (U
NES
CO) W
orld
H
erita
ge S
ites
prom
oted
an
d su
ppor
ted
Com
plet
ion
of
airp
ort
upgr
adin
gM
inis
try
of P
ublic
W
orks
and
Tra
nspo
rt,
Cam
bodi
a
2009
Part
of
AD
B-as
sist
ed
Mek
ong
Tour
ism
D
evel
opm
ent
Proj
ect
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 65
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
1.2
Pow
er
��Tr
ansm
issi
on li
ne:
220-
kilo
volt
(kV
) lin
k be
twee
n Ka
mpo
t an
d Si
hano
ukvi
lle
Ava
ilabi
lity
and
relia
bilit
y of
pow
er
supp
ly im
prov
ed
in K
ampo
t an
d Si
hano
ukvi
lle
Inst
alla
tion
of
tran
smis
sion
line
Elec
tric
ité
du
Cam
bodg
e (E
DC
),
Cam
bodi
a
2010
Ong
oing
, wit
h fin
anci
ng f
rom
AD
B ($
20 m
illio
n) a
nd J
BIC
($
22.3
mill
ion)
��Tr
ansm
issi
on li
ne:
115
kV li
ne f
rom
Tay
N
inh
in V
iet
Nam
to
Kom
pong
cham
and
Kr
atie
in C
ambo
dia,
in
clud
ing
two
115
kV
pow
er s
tati
ons
Elec
tric
ity
impo
rted
fr
om V
iet
Nam
; C
ambo
dian
vill
ages
el
ectr
ified
alo
ng t
he
rout
e
Inst
alla
tion
of
tran
smis
sion
line
and
co
nstr
ucti
on o
f th
e po
wer
sta
tion
s
EDC
, Cam
bodi
a;
Elec
tric
ity
of V
iet
Nam
To b
e de
term
ined
Poss
ible
Wor
ld
Bank
(In
tern
atio
nal
Dev
elop
men
t A
ssoc
iati
on [
IDA
])
finan
cing
, tog
ethe
r w
ith
EDC
��Tr
ansm
issi
on li
ne:
115
kV li
ne f
rom
Ban
H
at in
the
Lao
PD
R to
Stu
ng T
reng
in
Cam
bodi
a
Elec
tric
ity
impo
rted
fr
om t
he L
ao P
DR;
av
aila
bilit
y an
d re
liabi
lity
of p
ower
su
pply
in a
reas
alo
ng
the
rout
e im
prov
ed
Inst
alla
tion
of
tran
smis
sion
line
EDC
, Cam
bodi
a;
Elec
tric
ité
du L
ao, L
ao
PDR
To b
e de
term
ined
Poss
ible
Wor
ld B
ank
(IDA
) fin
anci
ng w
ith
EDC
and
Ele
ctri
cité
du
Lao
��Fe
asib
ility
stu
dy a
nd
cons
truc
tion
of
Nho
n Tr
ach
4 C
ombi
ned
C
ycle
Pow
er P
roje
ct
(720
-meg
awat
t [M
W])
Elec
tric
ity
supp
ly t
o H
o C
hi M
inh
Cit
y an
d su
rrou
ndin
g ar
eas,
in
clud
ing
indu
stri
al
zone
s, in
crea
sed
Com
plet
ion
of
feas
ibili
ty s
tudy
; fin
aliz
atio
n of
fin
anci
al p
acka
ge;
com
men
cem
ent
of
cons
truc
tion
Elec
tric
ity
of V
iet
Nam
2013
–201
5Pr
opos
ed. F
inan
cing
be
ing
soug
ht
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
cont
inue
d on
nex
t pa
ge
66 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
��Sr
e Po
k II
hydr
opow
er
proj
ect
(200
MW
),
incl
udin
g 22
0 kV
tr
ansm
issi
on li
ne t
o St
ung
Tren
g an
d V
iet
Nam
bor
der
whe
re it
in
terc
onne
cts
wit
h
Vie
t N
am g
rid
Pow
er s
uppl
y
situ
atio
n in
St
ung
Tren
g an
d su
rrou
ndin
g ar
eas
impr
oved
; C
ambo
dian
sys
tem
at
the
area
con
nect
ed t
o
the
Vie
t N
am g
rid
Com
plet
ion
of
feas
ibili
ty s
tudy
; fin
aliz
atio
n of
fin
anci
al p
acka
ge;
com
men
cem
ent
of
cons
truc
tion
Min
istr
y of
Indu
stry
, En
ergy
, and
Min
es a
nd
EDC
, Cam
bodi
a
Targ
et d
ate
for
com
mis
sion
ing
of
hydr
opow
er p
lant
is
2017
Prop
osed
. Fin
anci
ng
bein
g so
ught
1.3
Tele
com
mu
nic
atio
ns
��G
MS
Info
rmat
ion
Supe
rhig
hway
N
etw
ork
Phas
e 2,
Th
aila
nd–C
ambo
dia
com
pone
nt: e
xpan
sion
of
fib
erop
tic
netw
ork
at
Ara
nyap
rath
et–
Poip
et b
orde
r ch
eckp
oint
fr
om 1
2- t
o 24
-cor
e
Info
rmat
ion
and
com
mun
icat
ions
te
chno
logy
fac
iliti
es
and
serv
ices
in t
he S
EC
area
s in
Tha
iland
and
C
ambo
dia
impr
oved
Com
plet
ion
of
upgr
adin
g of
fib
er
netw
ork
Com
mun
icat
ions
m
inis
trie
s in
Tha
iland
an
d C
ambo
dia
2009
–201
0Pr
ojec
t is
ong
oing
. Th
ere
is e
xist
ing
inte
rcon
nect
ion
betw
een
Tele
com
s C
ambo
dia
and
Tele
com
s of
Tha
iland
. U
pgra
ding
to
be
unde
rtak
en u
pon
com
plet
ion
of t
echn
ical
su
rvey
at
Poip
et s
tati
on
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 67
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rs
Imp
lem
enti
ng
A
gen
cies
/B
od
ies
Tim
e Fr
ame/
Targ
et D
ate
Stat
us/
Rem
arks
1.4
Bo
rder
Fac
iliti
es
Cen
tral
Sub
corr
idor
��Ex
pans
ion
and
impr
ovem
ent
of
bord
er f
acili
ties
at
Ara
nyap
rath
et–P
oipe
t be
twee
n C
ambo
dia
an
d Th
aila
nd a
nd
Bave
t–M
oc B
ai
betw
een
Cam
bodi
a
and
Vie
t N
am
Acc
ess
of p
eopl
e an
d bu
sine
ss e
nter
pris
es
to b
asic
urb
an
infr
astr
uctu
re a
nd
serv
ices
incr
ease
d;
econ
omic
dev
elop
men
t of
bor
der
area
s en
hanc
ed; c
onge
stio
n re
lieve
d an
d se
rvic
es
impr
oved
, res
ulti
ng in
fa
ster
cro
ssin
g ti
mes
, es
peci
ally
for
fre
ight
tr
affic
Con
stru
ctio
n an
d/or
im
prov
emen
t of
loca
l ro
ads
and
brid
ges,
dr
aina
ge, f
lood
con
trol
, w
ater
and
san
itat
ion
faci
litie
s, p
ublic
m
arke
ts, b
us t
erm
inal
s,
and
othe
r lo
gist
ical
su
ppor
t fa
cilit
ies
com
plet
ed
Con
cern
ed m
inis
trie
s/
agen
cies
and
pro
vinc
ial
auth
orit
ies
in
Cam
bodi
a, T
haila
nd,
and
Vie
t N
am
2011
(pr
ojec
t ap
prov
al);
im
plem
enta
tion
pe
riod
to
be
dete
rmin
ed
To b
e im
plem
ente
d un
der
the
prop
osed
G
MS
Cor
rido
r To
wn
Dev
elop
men
t pr
ojec
t,
whi
ch is
in t
he A
DB
loan
pip
elin
e fo
r 20
11
Inte
rcor
rido
r Li
nk
��C
onst
ruct
ion
of b
orde
r fa
cilit
ies
at N
a N
uk K
ien
(Lao
PD
R)–T
ra P
iy K
an
(Cam
bodi
a), l
inki
ng
Nat
iona
l Roa
d N
o. 7
in
Cam
bodi
a to
Nat
iona
l Ro
ad N
o. 1
3 in
the
Lao
PD
R
Abi
lity
of b
orde
r of
fices
to
han
dle
clea
ranc
e pr
oced
ures
and
re
quir
emen
ts im
prov
ed
Con
stru
ctio
n of
of
fice
build
ings
an
d in
stal
lati
on o
f ne
cess
ary
equi
pmen
t co
mpl
eted
Con
cern
ed m
inis
trie
s an
d ag
enci
es in
C
ambo
dia
and
the
Lao
PDR
2009
–201
1Th
e ro
ad s
ecti
ons
in
Cam
bodi
a an
d th
e La
o PD
R le
adin
g to
th
e re
spec
tive
bor
ders
w
ere
com
plet
ed in
20
07 w
ith
a lo
an f
rom
th
e PR
C. T
he L
ao P
DR
has
recl
assi
fied
the
bord
er c
ross
ing
as a
n in
tern
atio
nal
bord
er g
ate
Stre
ngth
en In
fras
truc
ture
and
Con
nect
ivit
y co
ntin
ued
68 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Pro
mo
te a
nd
Fac
ilita
te T
rad
e an
d In
vest
men
t
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
2.1
Trad
e an
d t
ran
spo
rt f
acili
tati
on
��Im
plem
enta
tion
of
key
prov
isio
ns o
f th
e cr
oss-
bord
er t
rans
port
ag
reem
ent
(CBT
A),
es
peci
ally
fac
ilita
tion
of
exch
ange
of
traf
fic r
ight
s an
d m
oder
niza
tion
of
bord
er m
anag
emen
t (in
clud
es in
form
atio
n di
ssem
inat
ion;
si
mpl
ifica
tion
, ha
rmon
izat
ion,
and
ra
tion
aliz
atio
n of
for
ms
and
proc
edur
es; a
nd
bord
er-c
ross
ing
faci
lity
impr
ovem
ents
)
��Tr
aini
ng/c
apac
ity
build
ing
for
impl
emen
ting
CBT
A
and
trad
e fa
cilit
atio
n in
itia
tive
s
Free
r an
d fa
ster
cro
ss-
bord
er m
ovem
ent
of
peop
le, g
oods
, and
ve
hicl
es; i
ncre
ased
cr
oss-
bord
er t
rade
, in
clud
ing
tran
sit
trad
e
Incr
ease
d sk
ills
and
capa
city
am
ong
pers
onne
l im
plem
enti
ng C
BTA
an
d tr
ade
faci
litat
ion
mea
sure
s
Volu
me
of c
ross
-bo
rder
tra
ffic
; pr
oces
sing
and
w
aiti
ng t
imes
at
bord
ers,
num
ber
of
truc
ks e
xam
ined
, and
ex
tend
ed r
educ
tion
of
tra
nssh
ipm
ent
requ
irem
ents
Num
ber
of
trai
ning
pro
gram
s an
d w
orks
hops
im
plem
ente
d; n
umbe
r of
per
sonn
el t
rain
ed
Min
istr
ies
of
tran
spor
t, f
inan
ce;
trad
e; h
ealt
h;
cust
oms,
imm
igra
tion
, qu
aran
tine
; and
oth
er
conc
erne
d bo
rder
co
ntro
l aut
hori
ties
of
SEC
cou
ntri
es
Min
istr
ies
of
tran
spor
t;
finan
ce; t
rade
; he
alth
; cus
tom
s,
imm
igra
tion
, qu
aran
tine
; and
oth
er
conc
erne
d bo
rder
co
ntro
l aut
hori
ties
of
SEC
cou
ntri
es
2009
–201
3
(Cen
tral
Sub
corr
idor
);
2010
–201
3
(Sou
ther
n C
oast
al
Subc
orri
dor)
; 20
11–2
013
(N
orth
ern
Subc
orri
dor)
2009
–201
3
Con
tinu
ing.
AD
B is
sup
port
ing
the
impl
emen
tati
on o
f th
e C
BTA
in p
ilot
bord
er c
heck
poin
ts.
Prio
rity
is o
n th
e fo
llow
ing
bord
er
chec
kpoi
nts:
Po
ipet
, Cam
bodi
a–A
rany
apra
thet
, Th
aila
nd; B
avet
, C
ambo
dia–
Moc
Bai
, V
iet
Nam
Init
ial f
ocus
on
the
Cen
tral
Sub
corr
idor
; to
cov
er o
ffic
ials
at
the
cent
ral a
nd lo
cal
leve
ls, i
nclu
ding
tho
se
in b
orde
r ar
eas
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 69
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��C
usto
ms
faci
litat
ion,
in
clud
ing
sing
le-
win
dow
insp
ecti
on, r
isk
man
agem
ent,
use
of
info
rmat
ion
tech
nolo
gy,
and
hand
ling
of t
rans
it
trad
e
��Im
prov
emen
t of
ha
ndlin
g of
san
itar
y–ph
ytos
anit
ary
(SPS
) re
quir
emen
ts in
GM
S cr
oss-
bord
er t
rade
(C
ambo
dia,
the
Lao
PD
R,
and
Vie
t N
am)
��Se
ttin
g up
of
com
mon
w
hole
sale
mar
kets
or
dist
ribu
tion
cen
ters
in
maj
or b
orde
r ar
eas
to
faci
litat
e an
d su
ppor
t tr
adin
g ac
tivi
ties
��A
dopt
ion
of a
mic
able
an
d ef
ficie
nt
arra
ngem
ents
for
fin
anci
al s
ettl
emen
t co
veri
ng c
ross
-bor
der
trad
e in
the
Nor
th–S
outh
Ec
onom
ic C
orri
dor
(NSE
C)
Stre
amlin
ed s
yste
m
and
proc
esse
s fo
r cu
stom
s in
spec
tion
at
bord
er c
heck
poin
ts,
incl
udin
g th
ose
for
tran
sit
trad
e
Risk
-bas
ed s
yste
m
of S
PS in
spec
tion
de
sign
ed a
nd a
pplie
d;
diag
nost
ic a
nd
test
ing
capa
citi
es
stre
ngth
ened
; ac
adem
ic t
rain
ing
for
man
agin
g SP
S pr
omot
ed (
Cam
bodi
a an
d th
e La
o PD
R)
Com
mon
who
lesa
le
mar
kets
or
dist
ribu
tion
cen
ters
es
tabl
ishe
d in
maj
or
bord
er a
reas
Suit
able
ar
rang
emen
ts f
or
finan
cial
set
tlem
ent
of c
ross
-bor
der
tran
sact
ions
in t
he
NSE
C im
plem
ente
d
Sing
le-w
indo
w
insp
ecti
on
impl
emen
ted;
ri
sk m
anag
emen
t an
d in
form
atio
n te
chno
logy
te
chni
ques
app
lied;
cu
stom
s tr
ansi
t sy
stem
est
ablis
hed
Sect
or a
naly
sis
of S
PS
capa
citi
es c
ompl
eted
; pr
opos
al f
or c
apac
ity
deve
lopm
ent
prep
ared
; pro
ject
ai
med
at
deve
lopi
ng
capa
citi
es a
nd
init
iati
ng r
isk-
base
d sy
stem
pre
pare
d
Plan
s fo
r se
ttin
g up
w
hole
sale
mar
kets
or
dis
trib
utio
n ce
nter
s pr
epar
ed a
nd
impl
emen
ted
Agr
eem
ent
amon
g SE
C c
ount
ries
to
cons
ider
mod
alit
ies
of
finan
cial
set
tlem
ent
to
faci
litat
e cr
oss-
bord
er
trad
e; n
egot
iati
on,
conc
lusi
on, a
nd
impl
emen
tati
on o
f bi
late
ral p
aym
ent
agre
emen
ts
Bord
er a
genc
ies
in
SEC
cou
ntri
es le
d by
cu
stom
s au
thor
itie
s
Insp
ecti
on a
nd
quar
anti
ne m
inis
trie
s an
d ag
enci
es; l
ocal
au
thor
itie
s
Loca
l aut
hori
ties
in
SEC
are
as; p
riva
te
sect
or
Mon
etar
y au
thor
itie
s,
min
istr
ies
of t
rade
an
d fin
ance
of
NSE
C
coun
trie
s
2009
–201
3
2009
(pr
ojec
t pr
epar
ator
y
tech
nica
l ass
ista
nce
[PPT
A])
; 201
1 (lo
an)
2009
–201
3
2010
–201
3
Init
ial f
ocus
on
the
Cen
tral
Sub
corr
idor
, to
be
clos
ely
coor
dina
ted
wit
h re
late
d A
ssoc
iati
on
of S
outh
east
Asi
an
Nat
ions
init
iati
ves
To b
e im
plem
ente
d un
der
the
prop
osed
; im
prov
ed S
PS
Han
dlin
g in
GM
S C
ross
-Bor
der
Trad
e pr
ojec
t, w
hich
is in
th
e A
DB
loan
pip
elin
e fo
r 20
11
Prop
osed
Prop
osed
; cou
ld b
e pu
rsue
d on
a p
ilot
basi
s us
ing
as a
m
odel
the
bila
tera
l pa
ymen
t ag
reem
ent
betw
een
Thai
land
and
M
alay
sia
ente
red
into
in
200
2
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
70 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Es
tabl
ishm
ent
of a
sy
stem
for
the
reg
ular
m
onit
orin
g an
d re
port
ing
of c
ross
-bo
rder
tra
de in
the
SEC
Syst
em f
or t
rack
ing
cros
s-bo
rder
tr
ade
esta
blis
hed
and
oper
atio
nal,
wit
h re
gula
r re
port
s pr
epar
ed/
diss
emin
ated
List
of
requ
ired
dat
a pr
epar
ed; s
yste
m
for
colle
ctio
n an
d co
mpi
lati
on d
esig
ned
and
put
in p
lace
; in
itia
l or
base
line
data
es
tabl
ishe
d
Trad
e m
inis
trie
s an
d st
atis
tica
l age
ncie
s of
SE
C c
ount
ries
2009
–201
3Pr
opos
ed. I
niti
ally
to
cove
r m
ajor
bor
der
chec
kpoi
nts
only
, es
peci
ally
alo
ng t
he
Cen
tral
Sub
corr
idor
2.2
Inve
stm
ent
pro
mo
tio
n
2.2.
1 SE
C-w
ide
inve
stm
ent
pro
mo
tio
n a
nd
fac
ilita
tio
n
��C
ondu
ct o
f SE
C
inve
stm
ent
foru
ms
wit
hin
SEC
cou
ntri
es
and
road
sho
ws
in m
ajor
fo
reig
n bu
sine
ss c
ente
rs
��O
rgan
izat
ion
of S
EC
inve
stm
ent
and
trad
e fa
irs
��St
ream
linin
g of
in
vest
men
t ap
prov
al
proc
edur
es in
SEC
are
as
Incr
ease
in d
omes
tic
and
fore
ign
inve
stm
ent
in S
EC
area
s
Incr
ease
in d
omes
tic
and
fore
ign
inve
stm
ent
in S
EC
area
s
Proc
edur
es a
nd
requ
irem
ents
for
ap
prov
al o
f pr
opos
ed
inve
stm
ents
in S
EC
area
s si
mpl
ified
and
st
ream
lined
At
leas
t on
e in
vest
men
t fo
rum
or
for
eign
mis
sion
co
nduc
ted
annu
ally
One
inve
stm
ent
and
trad
e fa
ir o
rgan
ized
on
ce e
very
2 y
ears
Dia
gnos
tic
anal
ysis
of
exis
ting
pro
cedu
res
and
requ
irem
ents
co
mpl
eted
; act
ion
plan
for
str
eam
linin
g fo
rmul
ated
, agr
eed
to, a
nd im
plem
ente
d
Gre
ater
Mek
ong
Subr
egio
n Bu
sine
ss
Foru
m (
GM
S–BF
);
indu
stry
and
tra
de
min
istr
ies,
inve
stm
ent
min
istr
ies/
agen
cies
, an
d ch
ambe
rs o
f co
mm
erce
and
in
dust
ry (
CC
Is)
of
SEC
cou
ntri
es; l
ocal
au
thor
itie
s
GM
S–BF
; ind
ustr
y an
d tr
ade
min
istr
ies
and
CC
Is o
f SE
C c
ount
ries
; lo
cal a
utho
riti
es
Indu
stry
min
istr
ies
and
inve
stm
ent
agen
cies
of
SEC
co
untr
ies;
loca
l au
thor
itie
s; G
MS–
BF
2009
–201
3
2009
–201
3
2009
–201
3
Con
tinu
ing.
May
be
unde
rtak
en s
epar
atel
y or
tog
ethe
r w
ith
GM
S-w
ide
inve
stm
ent
foru
ms
or m
issi
ons
Con
tinu
ing.
May
be
unde
rtak
en s
epar
atel
y or
tog
ethe
r w
ith
GM
S in
vest
men
t fo
rum
s
Prop
osed
. Ide
ntifi
ed
by t
he S
EC s
trat
egy
and
acti
on p
lan
(SA
P)
stud
y te
am b
ased
on
the
con
sult
atio
n m
eeti
ngs
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 71
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
2.2.
2 B
usi
nes
s in
form
atio
n
��C
ompi
lati
on o
f ap
plic
able
inve
stm
ent
polic
ies
and
regu
lati
ons,
in
clud
ing
proc
edur
es f
or
inve
stm
ent
appr
oval
in
SEC
are
as
��Pr
epar
atio
n of
a
pros
pect
us o
f bu
sine
ss
oppo
rtun
itie
s in
SEC
ar
eas
��Pr
epar
atio
n of
an
SEC
bu
sine
ss d
irec
tory
pr
ovid
ing
nam
es
and
addr
esse
s of
m
anuf
actu
rers
, tra
ders
, to
uris
t op
erat
ors,
and
se
rvic
e pr
ovid
ers
in S
EC
area
s to
geth
er w
ith
the
prod
ucts
and
ser
vice
s th
ey o
ffer
��D
evel
opm
ent
of a
n SE
C
web
site
pro
vidi
ng b
asic
in
form
atio
n on
SEC
wit
h hy
perl
inks
to
the
GM
S an
d G
MS–
BF w
ebsi
tes
Info
rmat
ion
on
inve
stm
ent
polic
ies,
re
gula
tion
s, a
nd
proc
edur
es in
SEC
ar
eas
read
ily a
nd
wid
ely
avai
labl
e
Busi
ness
op
port
unit
ies
in S
EC
area
s id
enti
fied,
co
mpi
led,
and
di
ssem
inat
ed
Busi
ness
dir
ecto
ry
mad
e w
idel
y av
aila
ble
to p
rosp
ecti
ve
inve
stor
s
Ava
ilabi
lity
of a
nd
acce
ss t
o in
form
atio
n on
SEC
thr
ough
el
ectr
onic
med
ia
impr
oved
Com
pend
ium
of
inve
stm
ent
polic
ies
and
regu
lati
ons
in
SEC
are
as p
repa
red,
pu
blis
hed,
and
di
ssem
inat
ed
Pros
pect
us p
repa
red,
pu
blis
hed,
and
di
ssem
inat
ed
Busi
ness
dir
ecto
ry
com
pile
d, p
ublis
hed
and
diss
emin
ated
SEC
web
site
des
ign
com
plet
ed; S
EC
web
site
est
ablis
hed
and
mai
ntai
ned
Indu
stry
min
istr
ies
and
inve
stm
ent
agen
cies
in S
EC
coun
trie
s; lo
cal
auth
orit
ies;
GM
S–BF
Indu
stry
, tra
de, a
nd
tour
ism
min
istr
ies
and
agen
cies
in
SEC
cou
ntri
es; C
CIs
in
SEC
are
as; l
ocal
au
thor
itie
s; G
MS–
BF
GM
S–BF
, CC
Is o
f SE
C
coun
trie
s
GM
S–BF
2009
–201
3
2009
–201
3
2009
–201
3
2010
–201
3
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Prop
osed
. Thi
s ca
n be
a s
ubse
t of
a
GM
S-w
ide
busi
ness
di
rect
ory.
Iden
tifie
d by
SEC
SA
P st
udy
team
This
can
be
part
of
the
GM
S–BF
web
site
. Id
enti
fied
by S
EC S
AP
stud
y te
am
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
72 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
2.2.
3 Pr
om
oti
on
of
inve
stm
ent
in p
rio
rity
sec
tors
/su
bse
cto
rs
Ag
ricu
ltu
re
��Pr
omot
ion
of a
nd
supp
ort
for
cros
s-bo
rder
co
ntra
ct f
arm
ing
��Re
gion
al P
roje
ct o
n Ru
ral
Rene
wab
le E
nerg
y fo
r C
ambo
dia,
the
Lao
PD
R,
and
Vie
t N
am
Prac
tice
of
cros
s-bo
rder
con
trac
t fa
rmin
g ex
pand
ed in
SE
C a
reas
; sus
tain
able
te
chno
logi
es
prom
oted
; far
mer
s’
orga
niza
tion
s st
reng
then
ed; s
ocia
l re
spon
sibi
lity
amon
g fir
ms
prom
oted
Incr
ease
d in
vest
men
t re
sult
ing
in
(i) e
xpan
sion
of
area
s fo
r in
terc
ropp
ing
of b
iofu
el a
nd f
ood
crop
s; (
ii) p
roce
ssin
g fa
cilit
ies
esta
blis
hed
at c
omm
unit
y an
d re
gion
al le
vels
; (ii
i) ag
ricu
ltur
e w
aste
re
cycl
ing
faci
litie
s an
d bi
ogas
uni
ts
esta
blis
hed;
(iv
) ne
w
alte
rnat
ive
ener
gy
sour
ce u
sed
inst
ead
of
fuel
woo
d; (
v) b
iofu
el
polic
ies
and
stan
dard
s es
tabl
ishe
d; a
nd
(v)
carb
on c
redi
t sc
hem
es im
plem
ente
d fo
r ru
ral h
ouse
hold
s/co
mm
unit
ies
Stro
nger
pol
icy
supp
ort
for
cros
s-bo
rder
con
trac
t fa
rmin
g pr
ovid
ed;
num
ber
and
size
of
cont
ract
far
min
g ar
rang
emen
ts
incr
ease
d
Mar
gina
l lan
d ar
eas
utili
zed
for
biof
uel p
rodu
ctio
n;
agri
cult
ure
was
te
utili
zed
to g
ener
ate
both
ene
rgy
and
soil
prod
ucti
vity
; nu
mbe
r of
pro
cess
ing
faci
litie
s an
d bi
ogas
un
its
esta
blis
hed
in
rura
l com
mun
itie
s;
and
effe
ctiv
enes
s of
ca
rbon
cre
dit
sche
mes
im
plem
ente
d
Agr
icul
ture
and
tr
ade
min
istr
ies
of
SEC
cou
ntri
es; G
MS
Wor
king
Gro
up o
n A
gric
ultu
re
Agr
icul
ture
min
istr
ies
of S
EC c
ount
ries
2009
–201
3
2010
(pr
ojec
t pr
epar
ator
y te
chni
cal
assi
stan
ce [
PPTA
]);
2011
(lo
an)
Find
ings
of
rela
ted
stud
y of
the
GM
S W
orki
ng G
roup
on
Agr
icul
ture
will
be
use
d to
gui
de
acti
viti
es p
rom
otin
g co
ntra
ct f
arm
ing
in
SEC
are
as
PPTA
will
eva
luat
e th
e fe
asib
ility
of
cros
s-bo
rder
con
trac
t fa
rmin
g of
ene
rgy
crop
s, a
nd o
ther
sm
all
and
med
ium
-siz
ed
proc
essi
ng f
acili
ties
. Pr
ojec
t is
incl
uded
in
AD
B’s
loan
pro
gram
fo
r 20
11 w
ith
a $2
0 m
illio
n lo
an e
ach
for
Cam
bodi
a an
d V
iet
Nam
and
a g
rant
of
$10
mill
ion
to t
he
Lao
PDR
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 73
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Pr
oduc
tivi
ty a
nd q
ualit
y im
prov
emen
t of
cas
h cr
ops
(cas
tor
bean
, m
aize
, pot
ato,
ses
ame,
so
ybea
n) in
sel
ecte
d SE
C
prov
ince
s (B
atta
mba
ng,
Kam
pot,
Koh
Kon
g,
Purs
at)
Supp
ly o
f ca
sh
crop
s fo
r do
mes
tic
cons
umpt
ion
incr
ease
d; q
ualit
y of
ca
sh c
rops
upg
rade
d,
thus
impr
ovin
g pr
ospe
cts
of e
xpor
ts
to T
haila
nd
Qua
lifie
d se
eds
mor
e w
idel
y us
ed; i
ncre
ase
in y
ield
s
Agr
icul
ture
min
istr
ies
of C
ambo
dia
and
Thai
land
2010
–201
3Pr
opos
ed a
s a
bila
tera
l pro
ject
be
twee
n C
ambo
dia
and
Thai
land
und
er
the
Aye
yaw
addy
–C
hao
Phra
ya–
Mek
ong
Econ
omic
C
oope
rati
on S
trat
egy
(AC
MEC
S)
Log
isti
cs
��Es
tabl
ishm
ent
of a
GM
S lo
gist
ic in
form
atio
n pl
atfo
rm
��C
ondu
ct o
f se
min
ars
and
foru
ms
on t
he lo
gist
ics
indu
stry
in t
he S
EC
Incr
ease
d aw
aren
ess;
in
tere
st a
nd
inve
stm
ent
in lo
gist
ics
indu
stry
in S
EC
coun
trie
s
Info
rmat
ion
rega
rdin
g in
vest
men
t op
port
unit
ies
in t
he
logi
stic
s in
dust
ry
in S
EC c
ount
ries
di
ssem
inat
ed t
o pr
ospe
ctiv
e in
vest
ors
Pros
pect
us
indi
cati
ng b
usin
ess
oppo
rtun
itie
s in
the
lo
gist
ics
indu
stry
in
SEC
cou
ntri
es,
incl
udin
g re
late
d po
licie
s an
d pr
ogra
ms
for
its
deve
lopm
ent,
pr
epar
ed a
nd
diss
emin
ated
At
leas
t on
e an
nual
se
min
ar o
r fo
rum
on
logi
stic
s in
dust
ry
deve
lopm
ent
in S
EC
coun
trie
s
GM
S–BF
in
coor
dina
tion
wit
h co
ncer
ned
min
istr
ies
and
agen
cies
in S
EC
coun
trie
s
GM
S–BF
in
coor
dina
tion
wit
h co
ncer
ned
min
istr
ies
and
agen
cies
in S
EC
coun
trie
s
2009
–201
3
2010
–201
3
Can
be
part
of
GM
S–BF
web
site
. Id
enti
fied
by S
EC S
AP
stud
y te
am
Con
tinu
ing.
A
sym
posi
um o
n lo
gist
ics
deve
lopm
ent
in G
MS
was
hel
d in
Ku
nmin
g, Y
unna
n Pr
ovin
ce, o
n 6
June
20
09, i
n co
njun
ctio
n w
ith
the
Kunm
ing
Trad
e Fa
ir
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
74 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Re
view
of
polic
ies
affe
ctin
g in
vest
men
t in
th
e lo
gist
ics
indu
stry
in
SEC
cou
ntri
es
��Es
tabl
ishm
ent
of F
reig
ht
Tran
spor
t A
ssoc
iati
on
Redu
ced
or
elim
inat
ed b
arri
ers
to
entr
y of
inve
stm
ent
in
the
logi
stic
s in
dust
ry
in S
EC c
ount
ries
Frei
ght
Tran
spor
t A
ssoc
iati
on
esta
blis
hed
and
acti
vely
pro
mot
ing
polic
ies
and
mea
sure
s fo
r th
e de
velo
pmen
t of
the
logi
stic
indu
stry
in
SEC
cou
ntri
es
Revi
ew o
f po
licie
s af
fect
ing
inve
stm
ent
in t
he lo
gist
ics
indu
stry
com
plet
ed;
reco
mm
enda
tion
ad
opte
d an
d im
plem
ente
d
Term
s of
ref
eren
ce o
f as
soci
atio
n dr
afte
d;
orga
niza
tion
al
mee
ting
hel
d;
asso
ciat
ion
acti
viti
es
init
iate
d
Tran
spor
t an
d in
dust
ry m
inis
trie
s an
d in
vest
men
t m
inis
trie
s/ag
enci
es
of S
EC c
ount
ries
; G
MS–
BF
GM
S–BF
2009
–201
3
2010
–201
3
Prop
osed
. May
be
unde
rtak
en b
y th
e pr
opos
ed G
MS
Frei
ght
Tran
spor
t A
ssoc
iati
on
Prop
osed
by
the
Busi
ness
and
In
vest
men
t D
ialo
gue
at t
he t
hird
GM
S su
mm
it. F
inan
cing
be
ing
soug
ht t
o re
fine
earl
ier
stud
y an
d he
lp e
stab
lish
the
asso
ciat
ion
Tou
rism
��Jo
int
tour
ism
pro
mot
ion
and
mar
keti
ng p
rogr
am
focu
sing
on
SEC
tou
rist
de
stin
atio
ns
Incr
ease
in t
he
num
ber
of v
isit
ors
to S
EC t
ouri
st
dest
inat
ions
Join
t pr
omot
ion
and
mar
keti
ng
prog
ram
for
mul
ated
an
d im
plem
ente
d;
atte
ndan
ce in
key
in
tern
atio
nal t
rade
/to
uris
m f
airs
; inc
reas
e in
the
num
ber
of
visi
tors
to
SEC
de
stin
atio
ns
Mek
ong
Tour
ism
C
oord
inat
ion
Off
ice
(MTC
O);
tou
rism
m
inis
trie
s an
d m
arke
ting
age
ncie
s of
SEC
cou
ntri
es;
priv
ate
sect
or t
ouri
st
asso
ciat
ions
and
op
erat
ors
2009
–201
0M
TCO
has
pre
pare
d a
tour
ism
mar
keti
ng
and
prom
otio
n pl
an t
he in
clud
es
deve
lopm
ent
of t
he
Expl
ore
Mek
ong
web
site
, pre
para
tion
of
pro
mot
iona
l m
ater
ials
, att
enda
nce
at in
tern
atio
nal t
rade
/ to
uris
m f
airs
, and
re
viva
l of
the
Mek
ong
Tour
ism
For
um,
star
ting
in C
ambo
dia
in 2
010
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 75
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Pr
omot
ion
of in
vest
men
t to
impr
ove
exis
ting
an
d de
velo
p ne
w
tour
ist
dest
inat
ions
and
fa
cilit
ies
in S
EC a
reas
, in
clud
ing
hote
ls, r
est
area
s, a
nd t
ouri
sm
info
rmat
ion
cent
ers
��C
onst
ruct
ion
and/
or
impr
ovem
ent
of a
cces
s ro
ads
to m
ajor
tou
rist
de
stin
atio
ns in
SEC
are
as
��Im
plem
enta
tion
of
pilo
t pr
ojec
t on
sin
gle
GM
S vi
sa s
chem
e be
twee
n C
ambo
dia
and
Thai
land
Incr
ease
d in
vest
men
t to
upg
rade
exi
stin
g or
de
velo
p ne
w t
ouri
st
dest
inat
ions
and
fa
cilit
ies
Impr
oved
acc
ess
to m
ajor
tou
rist
de
stin
atio
ns in
SEC
ar
eas
Trav
el t
o an
d w
ithi
n G
MS
faci
litat
ed
Tour
ism
fac
iliti
es a
nd
serv
ices
upg
rade
d an
d/or
dev
elop
ed
Acc
ess
road
s re
quir
ing
impr
ovem
ent
or
cons
truc
tion
id
enti
fied;
pro
gram
fo
r ac
cess
-roa
d up
grad
ing
and/
or
cons
truc
tion
pre
pare
d an
d im
plem
ente
d
Com
plet
ion
of
ince
ptio
n ph
ase;
im
plem
enta
tion
of
exp
erim
enta
l ap
proa
ch a
nd s
yste
m;
com
plet
ion
of
eval
uati
on p
hase
MTC
O; G
MS–
BF;
tour
ism
min
istr
ies
and
mar
keti
ng a
genc
ies
of S
EC c
ount
ries
; pr
ivat
e se
ctor
tou
rist
as
soci
atio
ns a
nd
oper
ator
s
Tran
spor
t an
d to
uris
m
min
istr
ies
of S
EC
coun
trie
s
Con
cern
ed m
inis
trie
s an
d ag
enci
es o
f C
ambo
dia
and
Thai
land
2009
–201
3
2009
–201
3
2009
–201
3
Prop
osed
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
This
is b
eing
pur
sued
as
an
AC
MEC
S in
itia
tive
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
76 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��M
ekon
g To
uris
m
Dev
elop
men
t Pr
ojec
t co
veri
ng C
ambo
dia,
the
La
o PD
R, a
nd V
iet
Nam
��Su
stai
nabl
e To
uris
m
Dev
elop
men
t Pr
ojec
t (t
he L
ao P
DR
and
Vie
t N
am)
��D
evel
opm
ent
of t
he
“Em
eral
d Tr
iang
le”
tour
ism
zon
e (C
ambo
dia,
the
Lao
PD
R,
and
Thai
land
)
Hig
h-pr
iori
ty t
ouri
sm-
rela
ted
infr
astr
uctu
re
impr
oved
; sus
tain
able
to
uris
m d
evel
opm
ent
prom
oted
Tour
ism
infr
astr
uctu
re
and
acce
ss t
o m
ajor
to
uris
t at
trac
tion
s up
grad
ed; s
kills
for
m
arke
ting
sus
tain
able
an
d co
mm
unit
y-ba
sed
tour
ism
pro
ject
s im
prov
ed; s
mal
l-sca
le
tour
ism
fac
iliti
es,
such
as
villa
ge r
oads
an
d m
arke
t si
tes,
de
velo
ped
Tour
ism
dev
elop
men
t in
the
zon
e pr
omot
ed
and
faci
litat
ed
Com
plet
ion
of h
igh-
prio
rity
tou
rism
-re
late
d in
fras
truc
ture
(s
econ
dary
air
port
s an
d ac
cess
roa
ds
to t
ouri
st s
ites
) an
d en
viro
nmen
tal
impr
ovem
ent
proj
ects
Con
stru
ctio
n of
acc
ess
road
s an
d ot
her
supp
ort
faci
litie
s (e
.g.,
park
ing
lots
, tic
ket
boot
hs, w
alki
ng t
rails
) co
mpl
eted
; man
ager
s tr
aine
d an
d si
tes
prom
oted
Trav
el a
mon
g pa
rtic
ipat
ing
prov
ince
s fa
cilit
ated
, to
uris
t de
stin
atio
ns
in t
he p
rovi
nces
de
velo
ped
and
mar
kete
d, a
nd t
ouri
st
pers
onne
l tra
ined
in
com
mun
ity-
base
d ec
otou
rism
Tour
ism
, tra
nspo
rt,
and
envi
ronm
ent
min
istr
ies
of
Cam
bodi
a, t
he
Lao
PDR,
and
V
iet
Nam
Tour
ism
aut
hori
ties
of
the
Lao
PD
R an
d V
iet
Nam
Tour
ism
aut
hori
ties
of
Cam
bodi
a, t
he L
ao
PDR,
and
Tha
iland
; M
TCO
To b
e co
mpl
eted
in
200
9
2009
–201
3
2009
–201
3
AD
B fu
nded
; on
goin
g; c
ompl
eted
in
the
Lao
PD
R in
20
08; i
mpr
ovem
ent
of R
atta
naki
ri a
nd
Stun
g Tr
eng
airp
orts
, an
d en
viro
nmen
tal
impr
ovem
ent
in S
iem
Re
ap, a
re in
clud
ed in
th
is p
roje
ct
Ong
oing
. AD
B fu
nded
Wor
king
gro
up f
rom
th
e th
ree
coun
trie
s ha
s be
en e
stab
lishe
d;
fund
ing
requ
est
to
the
Uni
ted
Nat
ions
D
evel
opm
ent
Prog
ram
me/
Wor
ld
Trad
e O
rgan
izat
ion
pend
ing
sinc
e 20
06
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 77
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��D
evel
opm
ent
of t
ouri
sm
and
infr
astr
uctu
re a
long
th
e So
uthe
rn C
oast
al
Subc
orri
dor
��To
uris
m d
evel
opm
ent
in t
he “
Gre
en T
rian
gle”
(C
ambo
dia–
Lao
PDR–
Vie
t N
am d
evel
opm
ent
tria
ngle
)
Tour
ism
pot
enti
al o
f co
asta
l are
as a
long
th
e su
bcor
rido
r de
velo
ped
“Gre
en T
rian
gle”
pr
omot
ed a
nd
deve
lope
d as
a m
ajor
to
uris
t de
stin
atio
n
Tour
ism
pro
duct
s fo
r th
e ar
ea d
evel
oped
an
d m
arke
ted,
in
clud
ing
med
ium
-en
d ho
tels
and
re
sort
s, w
ater
tr
ansp
ort
serv
ices
, an
d ca
rava
n to
urs
Mas
ter
plan
pre
pare
d;
tour
ism
pro
duct
s fo
r th
e ar
ea d
evel
oped
an
d m
arke
ted
Tour
ism
aut
hori
ties
an
d to
uris
t op
erat
ors
in C
ambo
dia,
Tha
iland
an
d V
iet
Nam
; MTC
O
Tour
ism
aut
hori
ties
an
d to
uris
m o
pera
tors
in
Cam
bodi
a, t
he
Lao
PDR,
and
V
iet
Nam
2010
–201
3
2010
–201
3
Prop
osed
. The
roa
ds
on t
he m
ain
rout
e of
the
sub
corr
idor
ar
e be
ing
upgr
aded
or
reh
abili
tate
d (s
ee 1
.1.1
)
Ong
oing
; ina
ugur
al
mee
ting
hel
d in
O
ctob
er 2
007;
wit
h pa
rtia
l sup
port
fro
m
AD
B-su
ppor
ted
Mek
ong
Tour
ism
D
evel
opm
ent
Proj
ect;
fin
anci
ng f
rom
oth
er
sour
ces
bein
g so
ught
Spec
ial e
con
om
ic z
on
es a
nd
ind
ust
rial
clu
ster
s
��Es
tabl
ishm
ent
of s
peci
al
econ
omic
zon
es (
SEZs
) in
bor
der
area
s an
d jo
int
deve
lopm
ent
of b
orde
r ec
onom
ic z
ones
Inve
stm
ents
in b
orde
r ar
eas
prom
oted
and
fa
cilit
ated
thr
ough
th
e pr
ovis
ion
of t
he
nece
ssar
y fa
cilit
ies,
ut
iliti
es, a
nd s
ervi
ces
Faci
litie
s, u
tilit
ies,
an
d se
rvic
es in
pr
iori
ty S
EZs
prov
ided
an
d/or
upg
rade
d;
man
agem
ent
and
oper
atio
nal
proc
edur
es
esta
blis
hed
Indu
stry
, fin
ance
, tr
ade,
and
inve
stm
ent
min
istr
ies
and
agen
cies
of
SEC
co
untr
ies;
loca
l au
thor
itie
s; p
riva
te
sect
or
2010
–201
3Sp
ecifi
c pr
ojec
ts
incl
ude
the
Poip
et
and
Koh
Kong
in
dust
rial
est
ates
in
Cam
bodi
a, w
hich
ha
ve b
een
init
iate
d as
AC
MEC
S pr
ojec
ts
and
the
Siha
nouk
ville
ex
port
pro
cess
ing
proj
ect.
Fin
anci
ng is
be
ing
soug
ht
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
cont
inue
d on
nex
t pa
ge
78 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/Pr
oje
cts
Exp
ecte
d
Ou
tco
mes
/Res
ult
s
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Im
prov
ing
the
plan
ning
, m
anag
emen
t, a
nd
mar
keti
ng o
f ex
isti
ng
and
plan
ned
indu
stri
al
esta
tes
and
SEZs
in
the
SEC
��Pr
omot
ion
of in
dust
rial
cl
uste
rs a
long
SEC
(e
.g.,
agro
-indu
stry
or
res
ourc
e-ba
sed
prod
ucti
on z
ones
in
sele
cted
are
as in
the
SE
C in
volv
ing
links
in
prod
ucti
on, p
roce
ssin
g,
and
mar
keti
ng)
��St
udy
of p
ossi
ble
pilo
t pr
ojec
ts f
or c
ross
-bor
der
supp
ly c
hain
s in
volv
ing
agri
cult
ural
and
sm
all
and
med
ium
-siz
ed
ente
rpri
ses
in S
EC a
reas
Indu
stri
al e
stat
es
and
SEZs
ope
rati
ng
at h
ighe
r le
vel
of e
ffic
ienc
y an
d ca
paci
ty
Feas
ible
indu
stri
al
clus
ters
iden
tifie
d an
d pr
omot
ed
Poss
ible
pilo
t pr
ojec
ts f
or c
ross
-bo
rder
sup
ply
chai
n de
velo
pmen
t id
enti
fied
and
prom
oted
Sem
inar
s an
d m
eeti
ngs
held
; lin
ks a
mon
g SE
Zs
esta
blis
hed;
co
oper
atio
n pr
ogra
ms
init
iate
d
Stud
y of
fea
sibi
lity
of e
stab
lishi
ng
clus
ters
in s
peci
fic
indu
stri
es c
ondu
cted
; pr
omot
iona
l mea
sure
s in
itia
ted
Stud
y of
pos
sibl
e pi
lot
proj
ects
com
plet
ed
and
disc
usse
d by
co
ncer
ned
auth
orit
ies
and
stak
ehol
ders
Indu
stry
, fin
ance
, tr
ade,
and
inve
stm
ent
min
istr
ies
and
agen
cies
of
SEC
co
untr
ies;
loca
l au
thor
itie
s; S
EZ
adm
inis
trat
ors
in
SEC
are
as; G
MS–
BF;
CC
Is o
f SE
C c
ount
ries
Indu
stry
, tra
de, a
nd
inve
stm
ent
min
istr
ies
and
agen
cies
of
NSE
C c
ount
ries
; loc
al
auth
orit
ies;
GM
S–BF
; C
CIs
of
SEC
cou
ntri
es
Indu
stry
, tra
de a
nd
inve
stm
ent
min
istr
ies
and
agen
cies
of
NSE
C
coun
trie
s; lo
cal
auth
orit
ies;
GM
S–BF
; C
CIs
of
NSE
C c
ount
ries
2010
–201
3
2010
–201
3
2010
–201
1
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Prom
ote
and
Faci
litat
e Tr
ade
and
Inve
stm
ent
cont
inue
d
Implementing the Strategy 79A
dd
ress
En
viro
nm
enta
l an
d S
oci
al C
on
cern
s
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/r
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
3.1
Envi
ron
men
tal c
on
cern
s
��St
rate
gic
envi
ronm
enta
l as
sess
men
t (S
EA)
of
the
SEC
��In
tegr
ated
app
roac
h to
SEA
, Bio
dive
rsit
y C
onse
rvat
ion
Init
iati
ve,
and
Envi
ronm
enta
l Pe
rfor
man
ce A
sses
smen
t
��G
MS
Biod
iver
sity
C
onse
rvat
ion
Cor
rido
rs
for
pove
rty
redu
ctio
n an
d w
ater
shed
pr
otec
tion
(C
ambo
dia,
th
e La
o PD
R, a
nd
Vie
t N
am)
��Sc
opin
g an
d m
appi
ng o
f cl
imat
e ch
ange
rel
ated
ri
sks
(the
Lao
PD
R an
d V
iet
Nam
)
Envi
ronm
enta
l pr
otec
tion
and
m
anag
emen
t pr
acti
ces
and
appr
oach
es
stre
ngth
ened
to
ensu
re s
usta
inab
le
deve
lopm
ent
of
the
SEC
Envi
ronm
enta
l pr
otec
tion
and
m
anag
emen
t pr
acti
ces
and
appr
oach
es
stre
ngth
ened
to
ensu
re s
usta
inab
le
deve
lopm
ent
of
the
SEC
Envi
ronm
enta
l pr
otec
tion
and
m
anag
emen
t pr
acti
ces
and
appr
oach
es
stre
ngth
ened
to
ensu
re s
usta
inab
le
deve
lopm
ent
of
the
SEC
Risk
of
spec
ific
geog
raph
ic a
reas
id
enti
fied
and
poss
ible
res
pons
es
form
ulat
ed
SEA
cov
erin
g SE
C
area
s co
mpl
eted
and
co
nsid
ered
in u
pdat
e of
SEC
str
ateg
y an
d ac
tion
pla
n
Wor
ksho
ps a
nd
trai
ning
pro
gram
s he
ld o
n th
e su
bjec
t at
nat
iona
l and
su
breg
iona
l lev
els;
te
chni
cal r
epor
ts
prep
ared
Biod
iver
sity
C
onse
rvat
ion
Init
iati
ve
acti
viti
es in
sel
ecte
d cr
itic
al la
ndsc
apes
of
the
thre
e co
untr
ies
scal
ed u
p, u
sing
re
sult
s of
pilo
t pr
ojec
ts
Stud
y co
mpl
eted
; re
com
men
dati
ons
disc
usse
d in
w
orks
hops
and
se
min
ars;
act
ion
plan
to
addr
ess
risk
s fo
rmul
ated
GM
S W
orki
ng G
roup
on
Env
iron
men
t (W
GE)
; Env
iron
men
t O
pera
tion
s C
ente
r (E
OC
)
WG
E; E
OC
WG
E; E
OC
; ag
ricu
ltur
e, n
atur
al
reso
urce
s, a
nd
envi
ronm
ent
min
istr
ies
of t
he t
hree
co
untr
ies
EOC
To b
e de
term
ined
2009
–201
3
2009
(PP
TA);
21
10 (
loan
)
2009
–201
3
Prop
osed
Ong
oing
. Clu
ster
4
unde
r EO
C’s
St
rate
gic
Envi
ronm
ent
Ass
essm
ent
of S
ecto
r St
rate
gies
pro
ject
Prop
osed
. Inc
lude
d in
AD
B’s
pipe
line
for
lend
ing
and
gran
t pr
oduc
ts f
or 2
010;
PP
TA f
or t
his
proj
ect
is
in A
DB’
s pi
pelin
e fo
r no
nlen
ding
pro
duct
s an
d se
rvic
es in
200
9
Ong
oing
cont
inue
d on
nex
t pa
ge
80 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/r
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��G
MS
flood
and
dro
ught
ri
sk m
anag
emen
t an
d m
itig
atio
n (C
ambo
dia,
th
e La
o PD
R, a
nd
Vie
t N
am)
Vul
nera
bilit
y of
af
fect
ed c
omm
unit
ies
to a
dver
se e
ffec
ts o
f flo
ods
and
drou
ght
redu
ced
Com
preh
ensi
ve
man
agem
ent
plan
pre
pare
d;
inte
grat
ed s
truc
tura
l an
d no
nstr
uctu
ral
mea
sure
s im
plem
ente
d
Agr
icul
ture
, na
tura
l res
ourc
es,
and
envi
ronm
ent
min
istr
ies
of t
he
four
cou
ntri
es; l
ocal
au
thor
itie
s of
SEC
ar
eas
2008
(PP
TA);
20
11 (
loan
)In
clud
ed in
AD
B’s
lend
ing
pipe
line
for
2011
3.2
Soci
al c
on
cern
s
��C
omm
unic
able
Dis
ease
s C
ontr
ol P
roje
ct (
Phas
e I)
(Cam
bodi
a, t
he L
ao P
DR,
an
d V
iet
Nam
)
��C
omm
unic
able
Dis
ease
s C
ontr
ol P
roje
ct (
Phas
e II)
(C
ambo
dia,
the
Lao
PD
R,
and
Vie
t N
am)
Vul
nera
bilit
y to
th
e sp
read
of
com
mun
icab
le
dise
ases
red
uced
Vul
nera
bilit
y to
th
e sp
read
of
com
mun
icab
le
dise
ases
red
uced
Abi
lity
to r
espo
nd
to e
pide
mic
s an
d
outb
reak
s st
reng
then
ed;
cove
rage
of
prev
enti
on a
nd
care
of
sele
cted
co
mm
unic
able
di
seas
es in
vul
nera
ble
popu
lati
ons
impr
oved
; kno
w-h
ow,
polic
ies,
sta
ndar
ds,
and
coor
dina
tion
am
ong
the
thre
e co
untr
ies
impr
oved
Abi
lity
to r
espo
nd
to e
pide
mic
s an
d
outb
reak
s st
reng
then
ed;
cove
rage
of
prev
entio
n an
d ca
re o
f se
lect
ed
com
mun
icab
le
dise
ases
in v
ulne
rabl
e po
pula
tions
impr
oved
; kn
ow-h
ow, p
olic
ies,
st
anda
rds,
and
co
ordi
natio
n am
ong
the
thre
e co
untr
ies
impr
oved
Hea
lth
min
istr
ies
of
the
thre
e co
untr
ies
Hea
lth
min
istr
ies
of
the
thre
e co
untr
ies
Targ
eted
to
be
com
plet
ed in
200
9
2009
(PP
TA);
20
10 (
loan
)
Ong
oing
, wit
h fin
anci
al a
ssis
tanc
e fr
om A
DB
Prop
osed
. Inc
lude
d in
A
DB’
s lo
an p
ipel
ine
for
2010
Add
ress
Env
iron
men
tal a
nd S
ocia
l Con
cern
s co
ntin
ued
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 81
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/r
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��H
IV/A
IDS
Prev
enti
on a
nd
the
Infr
astr
uctu
re S
ecto
r (C
ambo
dia,
the
Lao
PD
R,
and
Vie
t N
am)
Impr
oved
kno
wle
dge
base
, pra
ctic
es, a
nd
inst
itut
iona
l m
echa
nism
s fo
r th
e
effe
ctiv
e im
plem
enta
tion
of
H
IV/A
IDS
inte
rven
tion
s in
as
soci
atio
n w
ith
infr
astr
uctu
re p
roje
cts
Pack
age
of
inte
rven
tion
s pr
epar
ed, i
nclu
ding
m
onit
orin
g an
d
eval
uati
on
fram
ewor
k,
harm
oniz
ed
impl
emen
tati
on
arra
ngem
ent
opti
ons,
an
d co
re p
rinc
iple
s an
d ap
proa
ches
; gu
idel
ines
cov
erin
g th
e in
terv
enti
ons
prep
ared
and
di
ssem
inat
ed
Hea
lth
and
infr
astr
uctu
re
auth
orit
ies
of
part
icip
atin
g co
untr
ies
Targ
eted
to
be
com
plet
ed in
200
9O
ngoi
ng; p
roje
ct
also
cov
ers
the
PRC
; su
ppor
ted
by t
he
Coo
pera
tion
Fun
d fo
r Fi
ghti
ng H
IV/A
IDS
in
Asi
a an
d th
e Pa
cific
, es
tabl
ishe
d at
AD
B w
ith
supp
ort
from
th
e G
over
nmen
t of
Sw
eden
��M
itig
atin
g H
IV/A
IDS
risk
s in
infr
astr
uctu
re p
roje
cts
in G
MS
econ
omic
co
rrid
ors
(Cam
bodi
a, t
he
Lao
PDR,
and
Vie
t N
am)
Risk
s of
spr
ead
of
HIV
/AID
S al
ong
GM
S ec
onom
ic
corr
idor
s, a
risi
ng
from
infr
astr
uctu
re
proj
ects
, red
uced
and
m
anag
ed e
ffec
tive
ly
Spec
ific
HIV
/AID
S in
terv
enti
ons
befo
re, d
urin
g, a
nd
afte
r co
nstr
ucti
on
in A
DB-
finan
ced
proj
ects
in G
MS
econ
omic
cor
rido
rs
impl
emen
ted;
as
sess
men
t of
HIV
/A
IDS
risk
s as
soci
ated
w
ith
enha
nced
bor
der
cros
sing
und
er t
he
CBT
A c
ondu
cted
Tran
spor
t an
d he
alth
m
inis
trie
s of
the
thr
ee
coun
trie
s
2008
–201
1O
ngoi
ng. P
roje
ct
is b
eing
fun
ded
by
the
Gov
ernm
ent
of
Aus
tral
ia
Add
ress
Env
iron
men
tal a
nd S
ocia
l Con
cern
s co
ntin
ued
cont
inue
d on
nex
t pa
ge
82 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/r
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��In
tegr
atin
g hu
man
tr
affic
king
and
saf
e m
igra
tion
con
cern
s fo
r w
omen
and
ch
ildre
n in
to r
egio
nal
coop
erat
ion
��So
cial
impa
ct
asse
ssm
ents
in s
peci
fic
loca
tion
s al
ong
the
econ
omic
cor
rido
rs
��D
evel
opin
g an
d pi
loti
ng
a fr
amew
ork
for
the
mut
ual r
ecog
niti
on o
f te
chni
cal a
nd v
ocat
iona
l sk
ills
in G
MS
Stra
tegi
es a
nd
mea
sure
s fo
r pr
even
ting
hum
an
traf
ficki
ng a
nd
prom
otin
g sa
fe
mig
rati
on in
GM
S de
velo
ped
and
impl
emen
ted
Find
ings
use
d to
im
prov
e cu
rren
t an
d fu
ture
pro
ject
s al
ong
the
corr
idor
s
GM
S te
chni
cal
and
voca
tion
al
skill
s re
cogn
itio
n fr
amew
ork
for
thre
e ke
y sk
ills
deve
lope
d an
d pi
lote
d
Trai
ning
for
loca
l an
d su
breg
iona
l of
ficia
ls o
n hu
man
tr
affic
king
and
saf
e m
igra
tion
con
duct
ed;
com
mun
ity-
base
d vu
lner
abili
ty
mon
itor
ing
and
refe
rral
sys
tem
s im
plem
ente
d in
as
soci
atio
n w
ith
AD
B-as
sist
ed G
MS
proj
ects
th
at a
re e
xpec
ted
to
acce
lera
te c
ross
-bo
rder
mob
ility
of
peop
le
Soci
al im
pact
as
sess
men
ts in
se
lect
ed lo
cati
ons
alon
g th
e ec
onom
ic
corr
idor
s co
mpl
eted
, in
clud
ing
effe
ct o
f
finan
cial
cri
sis
on
poor
and
m
argi
naliz
ed g
roup
s
Fram
ewor
k en
dors
ed
by g
over
nmen
ts
Labo
r, in
teri
or, a
nd
tour
ism
min
istr
ies
of
GM
S co
untr
ies
GM
S W
orki
ng G
roup
on
Hum
an R
esou
rce
Dev
elop
men
t (W
GH
RD)
GM
S W
GH
RD;
min
istr
ies
of
educ
atio
n
2009
–201
3
2009
–201
0
2009
–201
1
Ther
e is
an
ongo
ing
AD
B re
gion
al
tech
nica
l ass
ista
nce
(RET
A)
6448
cov
erin
g G
MS
and
Sout
h A
sian
cou
ntri
es
that
sup
port
s th
e C
oord
inat
ed M
ekon
g M
inis
teri
al In
itia
tive
ag
ains
t Tr
affic
king
in
par
tner
ship
wit
h th
e U
N In
ter-
Age
ncy
Proj
ect
on H
uman
Tr
affic
king
in G
MS
To b
e fu
nded
und
er
AD
B RE
TA 7
275:
Im
plem
enti
ng t
he
GM
S H
uman
Res
ourc
e D
evel
opm
ent
(HRD
) St
rate
gic
Fram
ewor
k an
d A
ctio
n Pl
an
(SFA
P)
To b
e fu
nded
un
der
RETA
727
5:
Impl
emen
ting
the
G
MS
HRD
SFA
P
Add
ress
Env
iron
men
tal a
nd S
ocia
l Con
cern
s co
ntin
ued
cont
inue
d on
nex
t pa
ge
Implementing the Strategy 83
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/r
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Im
prov
ing
labo
r m
igra
tion
man
agem
ent
in G
MS
��St
anda
rd r
egio
nal
empl
oym
ent
cont
ract
fo
r te
chni
cally
ski
lled
mig
rant
wor
kers
in G
MS
��Tr
aini
ng p
rogr
ams
in b
asic
ski
lls
com
pete
ncie
s; b
asic
to
uris
m s
kills
; agr
o-in
dust
ry m
anag
emen
t,
incl
udin
g m
arke
ting
; and
sm
all a
nd m
ediu
m-s
ized
en
terp
rise
man
agem
ent
and
finan
cing
��C
oope
rati
on p
rogr
am
amon
g vo
cati
onal
tr
aini
ng in
stit
utes
in S
EC
area
s, in
clud
ing
cond
uct
of e
xcha
nge
prog
ram
s
Labo
r m
anag
emen
t im
prov
ed
Stan
dard
reg
iona
l em
ploy
men
t co
ntra
ct
adop
ted
Skill
leve
ls a
nd
empl
oyab
ility
, es
peci
ally
of
labo
r in
le
ss-d
evel
oped
are
as
of t
he S
EC, e
nhan
ced
Col
labo
rati
on a
mon
g vo
cati
onal
tra
inin
g in
stit
utes
in S
EC
area
s in
cur
ricu
lum
de
velo
pmen
t,
trai
ning
of
trai
ners
, an
d m
anag
emen
t de
velo
ped
and
enha
nced
Wor
ksho
ps, t
rain
ing
cour
ses
cond
ucte
d
Stud
ies,
con
sult
atio
ns
cond
ucte
d
Basi
c ne
eds
asse
ssm
ent
and
revi
ew o
f ex
isti
ng
trai
ning
pro
gram
s in
SE
C a
reas
com
plet
ed;
trai
ning
pro
gram
s fo
rmul
ated
and
im
plem
ente
d (n
umbe
r of
tra
inin
g pr
ogra
ms
cond
ucte
d an
d tr
aine
es)
Net
wor
k of
tra
inin
g in
stit
utes
and
ce
nter
s in
SEC
ar
eas
iden
tifie
d an
d es
tabl
ishe
d; p
rogr
am
of c
oope
rati
on
form
ulat
ed a
nd
impl
emen
ted
GM
S W
GH
RD;
labo
r m
inis
trie
s;
Inte
rnat
iona
l Lab
our
Org
aniz
atio
n;
Inte
rnat
iona
l O
rgan
izat
ion
for
Mig
rati
on (
IOM
)
GM
S W
GH
RD;
labo
r m
inis
trie
s;
Inte
rnat
iona
l Lab
our
Org
aniz
atio
n; IO
M
GM
S la
bor
and
educ
atio
n m
inis
trie
s an
d tr
aini
ng in
stit
utes
of
SEC
cou
ntri
es; C
CIs
of
SEC
cou
ntri
es
Trai
ning
inst
itut
es
in S
EC a
reas
; HRD
ag
enci
es in
NSE
C
coun
trie
s
2009
–201
1
2010
2010
–201
3
2010
–201
3
To b
e fu
nded
un
der
RETA
727
5:
Impl
emen
ting
the
G
MS
HRD
SFA
P
To b
e fu
nded
un
der
RETA
727
5:
Impl
emen
ting
the
G
MS
HRD
SFA
P
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
Add
ress
Env
iron
men
tal a
nd S
ocia
l Con
cern
s co
ntin
ued
cont
inue
d on
nex
t pa
ge
84 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/r
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��W
ater
sup
ply
and
sani
tati
on (
Cam
bodi
a,
the
Lao
PDR,
and
Vie
t N
am)
Ava
ilabi
lity
of a
nd
acce
ss t
o w
ater
su
pply
in m
ajor
bo
rder
tow
ns
expa
nded
; san
itat
ion
situ
atio
n im
prov
ed
Wat
er a
nd s
anit
atio
n fa
cilit
ies
in m
ajor
bo
rder
tow
ns
cons
truc
ted
or
reha
bilit
ated
; wat
er
and
sani
tati
on
serv
ices
impr
oved
Wat
er s
uppl
y ag
enci
es
of C
ambo
dia
and
the
Lao
PDR;
con
cern
ed
prov
inci
al a
utho
riti
es
of V
iet
Nam
2010
(PP
TA);
20
11 (
loan
)To
be
impl
emen
ted
as
part
of
the
Cor
rido
r To
wns
Dev
elop
men
t Pr
ojec
t in
the
AD
B lo
an p
ipel
ine
for
2011
(s
ee S
ecti
on 1
.4)
Add
ress
Env
iron
men
tal a
nd S
ocia
l Con
cern
s co
ntin
ued
Implementing the Strategy 85
Enh
ance
Pri
vate
Sec
tor
Part
icip
atio
n a
nd
Pu
blic
–Pri
vate
Sec
tor
Co
llab
ora
tio
n
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/R
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
4.1
Priv
ate
sect
or
par
tici
pat
ion
��C
oope
rati
on a
mon
g pr
ovin
cial
CC
Is in
the
SE
C, i
niti
ally
am
ong
thos
e in
the
bor
der
prov
ince
s
��Es
tabl
ishm
ent
of
mec
hani
sms
for
inte
ract
ion,
exc
hang
e of
info
rmat
ion,
and
co
ordi
nati
on b
etw
een
the
publ
ic a
nd p
riva
te
sect
ors
on S
EC is
sues
an
d co
ncer
ns
��Im
plem
enta
tion
of
prom
otio
nal m
easu
res
and
polic
y su
ppor
t fo
r sm
all a
nd m
ediu
m-s
ized
en
terp
rise
s in
SEC
are
as
Coo
rdin
atio
n an
d co
llabo
rati
on a
mon
g th
e pr
ivat
e se
ctor
in
SEC
pro
vinc
es
esta
blis
hed
and
impr
oved
Impr
oved
pub
lic–
priv
ate
sect
or
colla
bora
tion
on
SEC
mat
ters
; mor
e ac
tive
invo
lvem
ent
of t
he p
riva
te s
ecto
r in
the
pla
nnin
g an
d im
plem
enta
tion
of
SEC
init
iati
ves
Incr
ease
in t
he
num
ber
and
oper
atio
ns o
f sm
all
and
med
ium
-siz
ed
ente
rpri
ses
in S
EC
area
s
Mee
ting
am
ong
prov
inci
al C
CIs
in
SEC
bor
der
prov
ince
s he
ld; c
oope
rati
on
and
colla
bora
tion
on
spec
ific
area
s in
itia
ted
Peri
odic
mee
ting
s he
ld a
mon
g pu
blic
an
d pr
ivat
e se
ctor
re
pres
enta
tive
s of
SE
C c
ount
ries
to
disc
uss
SEC
issu
es a
nd
conc
erns
Prom
otio
nal m
easu
res
and
polic
y su
ppor
t pr
ogra
ms
iden
tifie
d,
form
ulat
ed, a
nd
impl
emen
ted
(e.g
., in
tec
hnol
ogy,
m
anag
emen
t,
finan
cing
, mar
keti
ng,
linki
ng u
p w
ith
prod
ucti
on a
nd
supp
ly c
hain
s)
GM
S–BF
; nat
iona
l and
pr
ovin
cial
CC
Is o
f SE
C
coun
trie
s
GM
S–BF
; con
cern
ed
min
istr
ies
of S
EC
coun
trie
s; p
rovi
ncia
l C
CIs
of
SEC
cou
ntri
es
GM
S–BF
2010
–201
3
2010
–201
3
2010
–201
3
Prop
osed
. Ide
ntifi
ed
by S
EC S
AP
stud
y te
am
May
be
cond
ucte
d un
der
the
ausp
ices
of
the
Eco
nom
ic
Cor
rido
rs F
orum
in
the
for
m o
f an
an
nual
or
sem
iann
ual
dial
ogue
A p
ropo
sed
busi
ness
de
velo
pmen
t su
ppor
t fa
cilit
y in
Sav
anna
khet
m
ay b
e a
usef
ul
mod
el t
o co
nsid
er
for
othe
r lo
cati
ons
in
the
SEC
cont
inue
d on
nex
t pa
ge
86 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Mea
sure
s/Pr
og
ram
s/
Pro
ject
sEx
pec
ted
O
utc
om
es/R
esu
lts
Pro
gre
ss/
Perf
orm
ance
In
dic
ato
rsIm
ple
men
tin
g
Ag
enci
es/B
od
ies
Tim
e Fr
ame/
Ta
rget
Dat
eSt
atu
s/
Rem
arks
��Es
tabl
ishm
ent
of a
GM
S sm
all a
nd m
ediu
m-s
ized
en
terp
rise
dev
elop
men
t fu
nd
��Pr
ovis
ion
of in
form
atio
n to
the
pri
vate
sec
tor
on p
ossi
ble
sour
ces
of
finan
cing
for
com
mer
cial
an
d in
fras
truc
ture
pr
ojec
ts
Ava
ilabi
lity
of a
nd
acce
ss t
o fin
anci
ng
impr
oved
, inc
ludi
ng
wor
king
cap
ital
, pre
- an
d po
stsh
ipm
ent
expo
rt f
inan
cing
, an
d ex
port
cre
dit
insu
ranc
e
Acc
ess
of t
he p
riva
te
sect
or t
o va
riou
s so
urce
s of
fin
anci
ng
expa
nded
and
im
prov
ed
Stud
y fo
r es
tabl
ishm
ent
of
the
fund
com
plet
ed;
agre
emen
t re
ache
d an
d in
itia
l ste
ps t
aken
to
est
ablis
h th
e fu
nd
Mee
ting
s an
d se
min
ars
cond
ucte
d to
pre
sent
and
dis
cuss
in
form
atio
n ab
out
poss
ible
fin
anci
ng
sour
ces,
incl
udin
g th
e te
rms
and
cond
itio
ns,
proc
edur
es, a
nd
requ
irem
ents
for
ac
cess
ing
finan
cing
fr
om s
uch
sour
ces
GM
S–BF
GM
S–BF
; GM
S se
cret
aria
t an
d na
tion
al c
oord
inat
ors
2009
–201
3
2010
–201
3
Fund
ing
bein
g so
ught
. Pro
pose
d by
the
Bus
ines
s an
d In
vest
men
t D
ialo
gue
part
icip
ants
dur
ing
the
thir
d G
MS
sum
mit
Con
tinu
ing.
Iden
tifie
d by
SEC
SA
P st
udy
team
4.2
Pub
lic–p
riva
te p
artn
ersh
ip
��Pr
omot
ion
of p
ublic
–pr
ivat
e pa
rtne
rshi
ps
in t
he d
evel
opm
ent
of
tran
spor
t an
d ot
her
infr
astr
uctu
re, l
ogis
tics
, an
d su
ppor
t se
rvic
es in
SE
C a
reas
Incr
ease
d pu
blic
–pr
ivat
e pa
rtne
rshi
ps
in t
he d
evel
opm
ent
of
tran
spor
t an
d ot
her
infr
astr
uctu
re in
SEC
ar
eas
Wor
ksho
ps a
nd r
oad
show
s co
nduc
ted
to p
rese
nt k
ey G
MS
tran
spor
t an
d ot
her
infr
astr
uctu
re p
roje
cts
and
invi
te p
riva
te
sect
or p
arti
cipa
tion
in
sam
e
Infr
astr
uctu
re
min
istr
ies
of S
EC
coun
trie
s; G
MS–
BF
2010
–201
3Pr
opos
ed. I
dent
ified
by
SEC
SA
P st
udy
team
Enha
nce
Priv
ate
Sect
or P
arti
cipa
tion
and
Pub
lic–P
riva
te S
ecto
r C
olla
bora
tion
con
tinu
ed
Appendix A Basic Information on the Southern Economic Corridor National Components
Cambodia
Table A1: Population and Land Area
Provinces/CitiesTotal
population Land area
(km2)
Population density
(persons/km2)
Rural population
(%)Literacy rate (%)
Poverty incidence
(%)
Subcorridor 1 9,277,468 82,101 113 – – –
Banteay Meanchey 577,770 6,679 87 – 74.4 42.8
Battambang 998,896 11,622 86 89.7 87.5 42.8
Pursat 360,440 12,692 28 – 70.5 42.8
Kompongchnang 475,014 5,521 86 – 66.4 42.8
Kandal 1,235,385 3,537 349 – 77.7 32.1
Phnom Penh 1,043,000 290 3,597 – 88.8 4.6
Siem Reap 755,000 10,299 73 – 64.5 42.8
Kompongthom 569,060 13,814 41 – 70.8 42.8
Kompongcham 1,802,546 9,799 184 – 90.6 32.1
Svayrieng 513,000 2,966 173 95.6 79.5 32.1
Prey Veng 947,357 4,883 194 – 61.7 –
Subcorridor 2 1,882,390 61,173 31 – – –
Siem Reap 755,000 10,299 73 – 64.5 –
Stung Treng 111,734 12,016 9 78.3 92.7 42.8
Mondulkiri 706,000 14,288 49 – 61.2 52.0
Rattanakiri 138,804 10,782 13 84.7 55.9 52.0
Preah Vihear 170,852 13,788 12 – 61.2 –
Subcorridor 3 960,312 16,369 59 – – –
Koh Kong 305,000 11,160 27 77.8 76 26.8
Kampot 619,559 4,873 127 91.7 73.6 26.8
Kep 35,753 336 106 – 63.3 –
Subcorridor 4 6,110,893 58,909 104 – – –
Sihanoukville 305,000 868 351 – 76 26.8
Kompong Speu 598,880 7,017 85 – 70.8 52.0
continued on next page
88 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Provinces/CitiesTotal
population Land area
(km2)
Population density
(persons/km2)
Rural population
(%)Literacy rate (%)
Poverty incidence
(%)Phnom Penh 1,043,000 290 3,597 – 88.8 4.6
Kandal 1,235,385 3,537 349 – 77.7 32.1
Kompongcham 1,802,546 9,799 184 – 90.6 32.1
Kratie 308,348 11,094 28 74.5 83.8 52.0
Mondulkiri 706,000 14,288 49 – 61.2 52.0
Stung Treng 111,734 12,016 9 78.3 92.7 52.0
Total of the 21 provinces 11,978,518 168,323 71 – – –
Whole country 14,000,000 181,035 77 – 74.4 34.7
Note: Cambodia’s provinces have their respective provincial towns or capital. The areas outside of the provincial towns are rural in character. Only a few of the provinces (Battambang, Kampot, Kratie, Rattanakiri, and Stung Treng) provided data on rural population. The proportion of people living in the provincial towns ranges from 10% to 30% of the population in the provinces, so the rural population in the provinces can be surmised to be anywhere from 70% to 90% of the population of the provinces. The exception is Phnom Penh which has a large urban population.
Source: Cambodian Investment Board; Council for the Development of Cambodia provincial offices; Ministry of Planning; National Institute of Statistics of Cambodia; Poverty incidence is from Kingdom of Cambodia Ministry of Planning and United Nations Development Programme, Cambodia Human Development Report 2007: Expanding Choices for Rural People (Phnom Pehn: Ministry of Planning and UNDP Cambodia, 2007).
Table A1: continued
Appendix A: Basic Information on the Southern Economic Corridor National Components 89
Table A2: Income Level and Economic Structure
Provinces/ Cities
Per capita gross
provincial product ($)
Structure of production (%)
Unemployment rate (%)
Agriculture Industry Services
Subcorridor 1
Banteay Meanchey – – – – 8.0
Battambang – – – – 6.3
Pursat – – – – 3.5
Kompongchnang – – – – 3.1
Kandal – – – – 11.9
Phnom Penh – – – – 12.6
Siem Reap – – – – 4.6
Kompongthom – – – – 8.2
Kompongcham – – – – 4.3
Svayrieng – – – – 2.1
Prey Veng – – – – –
Subcorridor 2
Siem Reap – – – – 4.6
Stung Treng 638 – – – 18.6
Mondulkiri – – – – 69.9
Rattanakiri 549 55.1 7.2 37.7 6.5
Preah Vihear – – – – –
Subcorridor 3
Koh Kong – – – – 9.3
Kampot – – – – 7.3
Kep – – – – –
Subcorridor 4
Sihanoukville – – – – 9.3
Kompong Speu – – – – 2.8
Phnom Penh – – – – 12.6
Kandal – – – – 11.9
Kompongcham – – – – 4.3
Kratie 513 – – – 4.0
Mondulkiri – – – – 69.9
Stung Treng 638 – – – 18.6
Whole country 625 30.0 26.0 44.0 5.3
Source: Cambodia Ministry of Planning provincial offices; National Institute of Statistics of Cambodia.
90 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A3: Labor Force Participation Rate (%)
Male/FemaleWhole
country Phnom PenhOther urban
areas Rural areasBoth sexes 74.6 60.8 69.5 77.0
Male 78.9 65.1 73.1 81.4
Female 70.7 56.7 66.0 73.0
Sources: National Institute of Statistics of Cambodia; Cambodia Ministry of Planning 2006 yearbook.
Table A4: Production of Main Agriculture Crops by Subcorridor, 2005–2006
SubcorridorsCultivated area (ha)
Harvested area (ha)
Yield (tons/ha)
Production (tons)
Rice
Subcorridor 1 1,782,628 1,759,758 27 4,291,162
Subcorridor 2 282,305 278,784 10 511,394
Subcorridor 3 133,652 108,871 8 376,236
Subcorridor 4 497,043 488,420 22 1,408,426
Maize
Subcorridor 1 67,471 47,265 29 165,179
Subcorridor 2 2,848 2,807 17 9,820
Subcorridor 3 1,647 1,642 6 2,777
Subcorridor 4 23,379 19,234 22 46,700
Cassava
Subcorridor 1 26,800 26,743 131 514,299
Subcorridor 2 1,861 1,798 48 18,935
Subcorridor 3 744 744 28 4,843
Subcorridor 4 21,954 21,946 84 416,902
Sugar Cane
Subcorridor 1 4,028 4,027 189 76,228
Subcorridor 2 1,160 1,160 96 19,376
Subcorridor 3 931 931 54 19,673
Subcorridor 4 2,006 2,006 147 43,074
ha = hectare.
Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.
Appendix A: Basic Information on the Southern Economic Corridor National Components 91
Table A5: Production of Rice by Province, 2005–2006
Provinces/ Cities
Cultivated area (ha)
Harvested area (ha)
Yield (tons/ha)
Production (tons)
Subcorridor 1 1,782,628 1,759,758 27.7 4,291,162
Banteay Meanchey 205,432 203,165 2.1 420,843
Battambang 238,760 236,320 2.6 603,221
Pursat 91,770 91,717 2.2 197,797
Kompongchnang 119,818 119,721 2.1 257,188
Kandal 97,375 96,955 3.6 348,234
Phnom Penh 6,059 6,059 3.6 22,088
Siem Reap 189,032 189,032 1.7 324,470
Kompongthom 156,074 153,185 2.1 321,534
Kompongcham 219,512 215,548 2.9 633,720
Svayrieng 148,819 148,719 1.8 264,213
Prey Veng 309,977 299,337 3.0 897,854
Subcorridor 2 282,305 278,784 10.0 511,394
Siem Reap 189,032 189,032 1.7 324,470
Stung Treng 23,014 21,430 2.6 56,331
Mondulkiri 15,949 14,914 1.8 26,796
Rattanakiri 23,147 22,750 1.8 40,197
Preah Vihear 31,163 30,658 2.1 63,600
Subcorridor 3 133,652 108,871 8.3 376,236
Koh Kong 9,110 8,995 2.3 21,044
Kampot 121,621 96,955 3.6 348,234
Kep 2,921 2,921 2.4 6,958
Subcorridor 4 497,043 488,420 22.3 1,408,426
Sihanoukville 12,040 12,000 2.8 33,600
Kompong Speu 85,106 85,013 2.2 188,770
Phnom Penh 6,059 6,059 3.6 22,088
Kandal 97,375 96,955 3.6 348,234
Kompongcham 219,512 215,548 2.9 633,720
Kratie 37,988 36,501 2.7 98,887
Mondulkiri 15,949 14,914 1.8 26,796
Stung Treng 23,014 21,430 2.6 56,331
ha = hectare.
Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.
92 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A6: Production of Maize by Province, 2005–2006
Provinces/ Cities
Cultivated area (ha)
Harvested area (ha)
Yield (tons/ha)
Production (tons)
Subcorridor 1 67,471 47,265 28.1 165,179
Banteay Meanchey 3,167 3,167 3.0 9,554
Battambang 39,233 23,135 4.7 108,018
Pursat 404 404 3.2 1,298
Kompongchnang 1,992 1,992 1.5 2,913
Kandal 12,758 8,693 1.9 16,584
Phnom Penh 232 232 1.5 349
Siem Reap 876 876 2.3 1,984
Kompongthom 548 545 2.2 1,174
Kompongcham 6,961 6,921 2.9 19,994
Svayrieng 160 160 2.5 400
Prey Veng 1,140 1,140 2.6 2,911
Subcorridor 2 2,848 2,807 17.4 9,820
Siem Reap 876 876 2.3 1,984
Stung Treng 388 388 0.8 311
Mondulkiri 590 550 9.1 5,029
Rattanakiri 463 463 3.5 1,621
Preah Vihear 531 530 1.7 875
Subcorridor 3 1,647 1,642 6.2 2,777
Koh Kong 76 75 3.3 251
Kampot 1,421 1,417 1.7 2,352
Kep 150 150 1.2 174
Subcorridor 4 23,379 19,234 21.8 46,700
Sihanoukville 2 2 2.0 4
Kompong Speu 862 862 1.7 1,422
Phnom Penh 232 232 1.5 349
Kandal 12,758 8,693 1.9 16,584
Kompongcham 6,961 6,921 2.9 19,994
Kratie 1,586 1,586 1.9 3,007
Mondulkiri 590 550 9.1 5,029
Stung Treng 388 388 0.8 311
ha = hectare.
Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.
Appendix A: Basic Information on the Southern Economic Corridor National Components 93
Table A7: Production of Cassava by Province, 2005–2006
Provinces/ Cities
Cultivated area (ha)
Harvested area (ha)
Yield (tons/ha)
Production (tons)
Subcorridor 1 26,800 26,743 131.2 514,299
Banteay Meanchey 1,120 1,120 9.8 11,018
Battambang 1,704 1,655 40.1 66,439
Pursat 413 413 14.6 6,043
Kompongchnang 521 521 3.1 1,610
Kandal 122 114 10.1 1,152
Phnom Penh 24 24 3.3 78
Siem Reap 1,141 1,141 12.0 13,691
Kompongthom 591 591 7.1 4,217
Kompongcham 20,430 20,430 19.9 406,408
Svayrieng 613 613 4.6 2,842
Prey Veng 121 121 6.6 801
Subcorridor 2 1,861 1,798 48.4 18,935
Siem Reap 1,141 1,141 12.0 13,691
Stung Treng 294 294 4.0 1,176
Mondulkiri 108 108 15.0 1,620
Rattanakiri 255 255 7.1 1,798
Preah Vihear 63 63 10.3 650
Subcorridor 3 744 744 28.0 4,843
Koh Kong 127 127 19.3 2,451
Kampot 546 546 3.7 2,037
Kep 71 71 5.0 355
Subcorridor 4 21,954 21,946 84.3 416,902
Sihanoukville 18 18 11.5 207
Kompong Speu 92 92 14.8 1,358
Phnom Penh 24 24 3.3 78
Kandal 122 114 10.1 1,152
Kompongcham 20,430 20,430 19.9 406,408
Kratie 866 866 5.7 4,903
Mondulkiri 108 108 15.0 1,620
Stung Treng 294 294 4.0 1,176
ha = hectare.
Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.
94 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A8: Production of Sugarcane by Province, 2005–2006
Provinces/ Cities
Cultivated area (ha)
Harvested area (ha)
Yield (tons/ha)
Production (tons)
Subcorridor 1 4,028 4,027 189.3 76,228
Banteay Meanchey 316 316 15.4 4,863
Battambang 327 326 26.9 8,863
Pursat 437 437 19.4 8,494
Kompongchnang 225 225 8.7 1,967
Kandal 270 270 25.5 6,885
Phnom Penh 0 0 0.0 0
Siem Reap 664 664 14.1 9,348
Kompongthom 109 109 14.3 1,564
Kompongcham 1,239 1,239 19.3 23,918
Svayrieng 287 287 24.9 7,148
Prey Veng 154 154 20.6 3,178
Subcorridor 2 1,160 1,160 95.7 19,376
Siem Reap 664 664 14.1 9,348
Stung Treng 247 247 21.0 5,187
Mondulkiri 76 76 36.0 2,736
Rattanakiri 135 135 12.1 1,630
Preah Vihear 38 38 12.5 475
Subcorridor 3 931 931 53.7 19,673
Koh Kong 50 50 17.0 850
Kampot 842 842 21.7 18,238
Kep 39 39 15.0 585
Subcorridor 4 2,006 2,006 146.5 43,074
Sihanoukville 0 0 0.0 0
Kompong Speu 65 65 12.0 780
Phnom Penh 0 0 0.0 0
Kandal 270 270 25.5 6,885
Kompongcham 1,239 1,239 19.3 23,918
Kratie 109 109 32.7 3,568
Mondulkiri 76 76 36.0 2,736
Stung Treng 247 247 21.0 5,187
ha = hectare.
Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.
Appendix A: Basic Information on the Southern Economic Corridor National Components 95
Tab
le A
9: A
pp
rove
d In
vest
men
t b
y Se
cto
r, 19
94 t
hro
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h F
irst
Hal
f o
f 20
08
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or
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om
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ts (
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577,
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580
100,
162,
000
5,23
5,89
6,39
54,
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815
Ani
mal
fee
ds3
0.08
0.21
3,80
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–6,
629,
218
6,62
9,21
8
Build
ing
mat
eria
l25
0.88
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000
39,3
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ent
100.
510.
4534
0,20
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014
8,00
0,00
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722,
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347,
640
Che
mic
als
60.
150.
437,
100,
000
–20
0,00
04,
655,
000
4,45
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0
Dis
cs2
0.05
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2,00
0,00
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878,
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2,87
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8
Elec
tron
ics
70.
100.
587,
000,
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,811
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6
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gy18
0.65
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513,
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Food
pro
cess
ing
491.
413.
2915
8,07
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,355
,000
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2
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men
t56
98.
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617,
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her
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essi
ng1
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bly
100.
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ical
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17,1
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69
cont
inue
d on
nex
t pa
ge
96 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Sect
or
Nu
mb
er
of
pro
ject
s
Loca
l sh
are
(%)
Fore
ign
sh
are
(%)
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iste
red
ca
pit
al (
$)O
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eas
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s ($
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om
esti
c lo
ans
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d
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ts (
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uit
ies
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Med
ical
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rum
ents
10.
000.
1010
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,000
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00
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ical
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plie
s3
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135,
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8
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al6
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ing
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331.
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er in
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tic
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iles
90.
100.
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stru
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n22
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atio
n3
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neer
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lth
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51.
172.
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,670
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000
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astr
uctu
re10
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ia3
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000,
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772,
604
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4
cont
inue
d on
nex
t pa
ge
Tabl
e A
9: c
onti
nued
Appendix A: Basic Information on the Southern Economic Corridor National Components 97
Sect
or
Nu
mb
er
of
pro
ject
s
Loca
l sh
are
(%)
Fore
ign
sh
are
(%)
Reg
iste
red
ca
pit
al (
$)O
vers
eas
loan
s ($
)D
om
esti
c lo
ans
($)
Fixe
d
asse
ts (
$)Eq
uit
ies
($)
Serv
ice
ener
gy3
2.46
–5,
800,
000
250,
000
50,0
006,
814,
540
6,51
4,54
0
Serv
ices
3513
.91
15.0
250
,870
,000
52,5
00,0
0012
,400
,000
437,
705,
257
342,
805,
257
Tele
com
mun
icat
ions
223.
1914
.99
164,
258,
000
53,7
52,0
00–
694,
888,
562
541,
136,
582
Tran
spor
t11
3.36
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y3
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556,
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rism
113
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840,
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el68
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998
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0,60
560
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7
Tour
ism
3316
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985
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5,71
0,62
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700,
824,
641
Tour
ism
cen
ters
124.
735.
881,
459,
390,
000
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020
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1,53
3,77
3,53
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532,
733,
637
Tota
l1,
404
28.6
571
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4,25
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280,
344,
178
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592,
400
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2717
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Sour
ce: C
ounc
il fo
r th
e D
evel
opm
ent
of C
ambo
dia;
Cam
bodi
a In
vest
men
t Bo
ard.
Tabl
e A
9: c
onti
nued
98 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A10: Approved Investment by Country, 1994 through First Half of 2008
Regions CountriesRegister capital
($) Fixed assets ($) (%)
Americas 117,355,900 588,711,016.36 3.05
United States 58,881,000 509,117,417.60 2.64
Canada 58,174,900 79,348,213.76 0.41
Argentina 300,000 245,385.00 0.00
ASEAN 2,085,537,723 3,341,781,630.47 17.34
Malaysia 1,576,407,473 2,199,447,878,.85 11.41
Thailand 192,177,350 521,256,417.89 2.70
Singapore 193,397,100 325,883,228.44 1.69
Viet Nam 67,770,300 228,856,098.54 1.19
Indonesia 54,485,500 64,998,431.75 0.34
Philippines 1,300,000 1,339,575.00 0.01
Cambodia 1,440,874,394 5,842,251,382.45 30.31
Europe 241,249,350 898,547,056.58 4.66
Russian Federation 12,450,350 289,006,053.00 1.50
France 37,140,450 243,464,475.02 1.26
United Kingdom 128,110,100 138,532,233.66 0.72
Belgium 5,000,000 33,319,100.00 0.17
Norway 3,370,000 16,645,630.00 0.09
Sweden 4,000,000 15,003,780.00 0.08
Netherlands 13,100,000 14,578,000.00 0.08
Switzerland 8,000,000 11,781,595.00 0.06
Portugal 5,550,000 4,264,722.40 0.02
Bulgaria 250,000 520,777.50 0.00
Germany 118,800 230,690.00 0.00
Others and other Asia 1,307,239,080 8,600,693,171.70 44.63
PRC 551,469,678 5,623,658,496.72 29.18
Korea, Rep. of 159,946,000 1,769,132,467.98 3.18
Taipei,China 396,249,970 628,138,302.42 3.26
Hong Kong, China 116,773,252 273,646,734.39 1.42
Japan 22,584,200 136,312,435.89 0.71
Kazakhstan 1,750,000 64,170,347.25 0.33
Australia 53,376,500 59,292,291.60 0.31
Nepal 250,000 20,713,495.75 0.11
Kyrgyz Republic 970,000 18,928,031.95 0.10
Israel 800,000 2,124,999.30 0.01
Macau, China 1,829,680 1,909,080.00 0.01continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 99
Regions CountriesRegister capital
($) Fixed assets ($) (%)New Zealand 559,800 1,461,085.40 0.01
Uzbekistan 30,000 585,403.05 0.00
India 400,000 340,000.00 0.00
Saudi Arabia 24,160,000 131,200,000.00 0.68
Sri Lanka 250,000 280,000.00 0.00
Total 5,192,256,446 19,271,984,257.56 100.00
ASEAN = Association of Southeast Asian Nations, PRC = People’s Republic of China.Source: Council for the Development of Cambodia; Cambodia Investment Board.
Table A11: Visitor Arrivals in Cambodia in 20081. Visitor arrivals in 2008: 2,125,465
2. Mode of arrival (Number of visitors)
Air�� Phnom Penh International Airport�� Siem Reap International Airport
1,239,407570,903668,504
Land and waterways�� Land�� Waterways
762,027690,13871,889
Same-day visitors 124,031
3. Visitor arrivals in 2007–2008
Visitors 2007 2008
Share (%) Change (%)
2007 2008 2008/2007Air 1,296,513 1,239,407 64.34 58.31 (4.40)
�� Phnom Penh International Airport 535,562 570,903 26.58 26.86 6.66
�� Siem Reap International Airport 761,251 668,507 37.78 31.45 (12.18)
Land and waterways 576,054 762,027 28.59 35.58 32.28
�� Land 531,064 690,138 26.35 32.47 29.95
�� Waterways 44,990 71,889 2.23 3.38 59.79
Subtotal 1,872,567 2,001,434 92.93 94.16 (12.99)
Same-day visitors 142,561 124,031 7.07 5.84 (13.00)
Total 2,015,128 2,125,465 100.00 100.00 5.48
( ) = negative value.
Source: Cambodia Ministry of Tourism.
Table A10: continued
100 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A12: Number of Hotels and Guesthouses in the Southern Economic Corridor Subcorridors
Provinces/Cities Number of hotels Number of guesthousesSubcorridor 1 300 635
Banteay Meanchey 13 28
Battambang 19 15
Pursat 4 10
Kompongchnang 5 7
Kandal 0 47
Phnom Penh 148 278
Siem Reap 101 201
Kompongthom 4 10
Kompongcham 5 30
Svayrieng 1 9
Prey Veng 8 2
Subcorridor 2 117 237
Siem Reap 101 201
Stung Treng 5 10
Mondulkiri 2 18
Rattanakiri 9 8
Preah Vihear 10
Subcorridor 3 8 35
Koh Kong 6 13
Kampot 2 22
Kep 6 14
Subcorridor 4 209 524
Sihanoukville 42 108
Kompong Speu 0 10
Phnom Penh 148 278
Kandal 0 47
Kompongcham 5 30
Kratie 7 23
Mondulkiri 2 18
Stung Treng 5 10
Source: Cambodia Ministry of Tourism.
Appendix A: Basic Information on the Southern Economic Corridor National Components 101
Table A13: Electricity Supply in the Southern Economic Corridor Subcorridors
Subcorridors
Electricity
Potential capacity Produced capacitySubcorridor 1
Banteay Meanchey 2,290 kVA 1,570 kVA
Battambang 1,950 kVA 1,475 kVA
Pursat 2,350 kVA 2,010 kVA
Kompongchhnang 3,840,970 kWh 3,148,590 kWh
Kandal Connected with Phnom Penh City
Phnom Penh 117 MW 105 MW
Siem Reap 10.5 MW 1,475 kVA
Kompongthom 3,500kVA 2,000 kVA
Kompogncham 3.6 kW 12.5 kW
Svayrieng 1,250 kVA 850 kVA
Prey Veng 1,250 kVA 850 kVA
Subcorridor 2
Siem Reap 10.5 MW 1,475 kVA
Stung Treng 1.5 MW 2,339,563 kWh
Mondulkiri 150 kVA 125 kVA
Rattanakiri 1,800 kVA 1,500 kVA
Preah Vihear 1,190 kVA 645 kVA
Subcorridor 3
Koh Kong 2,000 kVA 1,800 kVA
Kampot 193.2 MW –
Kep 3.08 MW 3 MW
Subcorridor 4
Sihanoukville – 0.5–0.8 MW
Kompong Speu Connected with Phnom Penh
Kratie 2,300 kVA 1,600 kVA
kVA = kilovolt-amps, kWh = kilowatt-hour, MW = megawatt.
Note: For the other provinces, see the electricity supply situation in Subcorridors 1 and 2. The power station in Siem Reap Province was first built in 1960. This station has been retired and is now functioning as a substation. A new station, which is located away from the old site, was commissioned in 2003.
Source: Electricité du Cambodge.
102 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A14: Key Resources in Southern Economic Corridor Provinces in Cambodia
Mining resources Other resourcesSubcorridor 1
Banteay Menachey limestonephosphate
Daunsam flooded forest
Battambang limestonegold oreiron orealuminumprecious stones
Tonle Sap RiverSamkok MountainDaunsam flooded forest
Pursat clayphosphateantimonychromium
Oral MountainSamkok MountainTonle Sap River
Kompongchhang claygranite
Oral MountainTonle Sap River
Kandal molybdenum
Phnom Penh rivers
Siem Reap claygranite
Kulen MountainTonle Sap River
Komponghthom claygold
Tonle Sap River
Kompongcham claygold
Subcorridor 2
Siem Reap claygranite
Kulen MountainTonle Sap River
Stung Treng clayiron oremarbleprecious stonescoaldolomite
Mondulkiri lead, copper, zincgranitegoldaluminumbauxite
Phnom PreckPhom Namlear
Rattanakiri lead, copper, zincgoldprecious stones
Preah Vihear lead, copper, zincgoldprecious stones
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 103
Mining resources Other resourcesSubcorridor 3
Koh Kong limestonegraphitegoldiron orephosphates
Bokor Mountain
Kampot white sand Bokor MountainKirirom PlateauPhnom Samkok
Subcorridor 4
Sihanoukville white sandoil and gas
Bokor Mountainbeautiful beaches
Kompong Speu lead, copper, zincsilvertintungstenlimestone
Bokor MountainKirirom Plateau
Phnom Penh rivers
Kandal molybdenum
Kompongcham claygold
Kratie lead, copper, zincgranitegoldprecious stones
Mondulkiri lead, copper, zincgranitegoldaluminum
Phnom PreckPhom Namlear
Stung Treng clayiron oremarbleprecious stonescoaldolomite
Table A14: continued
Source: Prime Investment Information in Cambodia, Council for the Development of Cambodia.
104 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A15: Potential Hydropower Sites in Southern Economic Corridor Provinces in Cambodia
Potential Sites Value
Battambang
Battambang I
�� Distance from provincial town (km) 40�� Capacity (MW) 24�� Project cost estimate ($ million) 49
Battambang II�� Distance from provincial town (km) 120�� Capacity (MW) 36�� Project cost estimate ($ million) 60
Siem Reap
Stung Siem Reap Krom�� Distance from provincial town (km) 55 �� Capacity (MW) 1.2
Stung Tanat�� Distance from provincial town (km) 100�� Capacity (MW) 4
Stung Treng
Sre Pork Krom II�� Distance from provincial town (km) 30�� Capacity (MW) 222�� Project cost estimate ($ million) 339
Se San Krom II�� Distance from provincial town (km) 28�� Capacity (MW) 207�� Project cost estimate ($ million) 374
Pursat Province
Stung Atai�� Distance from provincial town (km) 140�� Capacity (MW) 110�� Project cost estimate ($ million) 156
Stung Resey Chrom Leu
�� Distance from provincial town (km) 130�� Capacity (MW) 32�� Project cost estimate ($ million) 65
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 105
Potential Sites Value
Pursat Province
Pursat I�� Distance from provincial town (km) 90�� Capacity (MW) 75
Pursat II�� Distance from provincial town (km) 70�� Capacity (MW) 17
Pursat III�� Distance from provincial town (km) 30�� Capacity (MW) 1.5
Pursat IV�� Distance from provincial town (km) 25�� Capacity (MW) 1.5
Kompongthom Province
Steung Chinith�� Distance from provincial town (km) 75�� Capacity (MW) 5
Steung Sen�� Distance from provincial town (km) 95�� Capacity (MW) 40
Steung Stuoang�� Distance from provincial town (km) 50�� Capacity (MW) 4
Steung Chikreng�� Distance from provincial town (km) 100�� Capacity (MW) 1
Rattanakiri Province
Prek Leang I�� Distance from provincial town (km) 70�� Capacity (MW) 55
Prek Leang IA�� Distance from provincial town (km) 60�� Capacity (MW) 12
Prek Leang II�� Distance from provincial town (km) 80�� Capacity (MW) 44
Sesan Krom III�� Distance from provincial town (km) 30�� Capacity (MW) 375
Table A15: continued
continued on next page
106 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Potential Sites ValueRattanakiri Province
Srepok Krom III�� Distance from provincial town (km) 32�� Capacity (MW) 330
Mondulkiri
Preck Pock Krom 4
�� Distance from provincial town (km) 100�� Capacity (MW) 235
Preck Roveang 1
�� Distance from provincial town (km) 70�� Capacity (MW) 7
Preck Roveang 2
�� Distance from provincial town (km) 80�� Capacity (MW) 5
Preck Chbar�� Distance from provincial town (km) 95�� Capacity (MW) 5
Preck Otalay 1�� Distance from provincial town (km) 20�� Capacity (MW) 5
Preck Otalay 2
�� Distance from provincial town (km) 23�� Capacity (MW) 4
Preck Otalay 3
�� Distance from provincial town (km) 25�� Capacity (MW) 5
Preck Otalay 4�� Distance from provincial town (km) 30�� Capacity (MW) 7
Preck Phear 1
�� Distance from provincial town (km) 35�� Capacity (MW) 17
Preck Phear 2�� Distance from provincial town (km) 40�� Capacity (MW) 8
continued on next page
Table A15: continued
Appendix A: Basic Information on the Southern Economic Corridor National Components 107
Potential Sites Value
Preck Phear 3�� Distance from provincial town (km) 45�� Capacity (MW) 9
Kampot Province
Kam Chai�� Distance from provincial town (km) 15�� Capacity (MW) 180�� Project cost estimate ($ million) 250
Kpong Reap Bok Ko�� Distance from provincial town (km) 40�� Capacity (MW) 24
Au Trav�� Distance from provincial town (km) 14�� Capacity (MW) 1
Koh Kong Province
Kirirom III�� Distance from provincial town (km) 150�� Capacity (MW) 13�� Project cost estimate ($ million) 29
Steung Rusey Chom Kandal�� Distance from provincial town (km) 50 �� Capacity (MW) 125
�� Project cost estimate ($ million) 275
Steung Rusey Chom Krom�� Distance from provincial town (km) 25�� Capacity (MW) 125�� Project cost estimate ($ million) 130
Steung Cheay Areng�� Distance from provincial town (km) 55�� Capacity (MW) 260�� Project cost estimate ($ million) 502
Steung Tatay�� Distance from provincial town (km) 50�� Capacity (MW) 80�� Project cost estimate ($ million) 215
Steung Metek 1�� Distance from provincial town (km) 55�� Capacity (MW) 175
Steung Metek II�� Distance from provincial town (km) 40�� Capacity (MW) 210
continued on next page
Table A15: continued
108 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Potential Sites ValueKoh Kong Province
Steung Metek III�� Distance from provincial town (km) 20�� Capacity (MW) 50
Steung Keb 1�� Distance from provincial town (km) 12�� Capacity (MW) 4
Steung Keb II�� Distance from provincial town (km) 25�� Capacity (MW) 26
Steung Oslar�� Distance from provincial town (km) 130�� Capacity (MW) 2
Kirirom 2
�� Distance from provincial town (km) 150�� Capacity (MW) 1
Kratie Province
Sambo�� Distance from provincial town (km) 40–50�� Capacity (MW) 467–3,300�� Project cost estimate ($ million) 700–3,940
Prek Chhlong 1�� Distance from provincial town (km) 120�� Capacity (MW) 7
Prek Chhlong 2�� Distance from provincial town (km) 60�� Capacity (MW) 24
Prek Te 1�� Distance from provincial town (km) 75�� Capacity (MW) 7
Prek Te 2�� Distance from provincial town (km) 50�� Capacity (MW) 10
Prek Te 3�� Distance from provincial town (km) 25�� Capacity (MW) 13
Prek KamPhy 1�� Distance from provincial town (km) 60�� Capacity (MW) 2
continued on next page
Table A15: continued
Appendix A: Basic Information on the Southern Economic Corridor National Components 109
Potential Sites ValueKratie Province
Prek KamPhy 2�� Distance from provincial town (km) 40�� Capacity (MW) 6
Prek Krearng 1�� Distance from provincial town (km) 75�� Capacity (MW) 8
Prek Krearng 2�� Distance from provincial town (km) 50�� Capacity (MW) 6
km = kilometer, MW = megawatt.
Source: Council for the Development of Cambodia provincial offices; Electricite du Cambodge.
Table A15: continued
110 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Lao People’s Democratic Republic
Table A16: Population, Poverty, and Income Distribution
Country/ Province Population
Land area (km2)
Density per km2
Population aged
15 to 64 (%)
Rural population
(%)
Literacy rate (%)
Poverty incidence
(%)Gini
coefficientLao People’s DemocraticRepublic 5,873,600 236,800 24.8 56.67 72.8 72.7 33.5 0.34
Khammouane 352,600 16,315 21.6 54.73 78.7 69.9 33.7 0.29
Savannakhet 858,500 21,774 39.4 56.41 77.5 68.5 43.1 0.31
Saravane 341,100 10,691 31.9 52.29 91.3 61.6 54.3 0.27
Champasack 625,700 15,415 40.6 55.75 79.5 81.8 18.4 0.30
Sekong 90,100 7,665 11.7 51.02 78.4 61.7 41.8 0.31
Attapeu 118,100 10,320 11.4 52.85 83.0 63.9 44.0 0.29
Note: Population density is the ratio of total population to total land area. Literacy rate for population aged 15 to 64 from Government of the Lao People’s Democratic Republic, Results from the Population and Housing Census 2005. Poverty incidence and Gini coefficient were taken from M. Andersson, A. Engvall, and A. Kokko, Determinants of Poverty in Lao PDR (Stockholm: Stockholm School of Economics, March 2006), which is based on results of the Government of the Lao People’s Democratic Republic, Lao Expenditure and Consumption Survey 2002/2003. The Asian Development Bank, Midterm Review of the Greater Mekong Subgregion Strategic Framework (2002–2012) (Manila, 2007) cited the poverty incidence in the Lao PDR as 32.7% and the Gini coefficient as 0.37%. A Gini coefficient of zero means an equal income distribution, whereas a coefficient equal to 1 means absolute inequality (i.e., one person receives all the income).
Source: Lao People’s Democratic Republic. 2008. Lao PDR Statistical Yearbook 2007. Vientiane: Lao Department of Statistics.
Table A17: Population and its Economic Activities
Country/ProvinceTotal active population
Farmer (%)
Mixed farmer (%)
Nonfarm activity (%)
Lao People’s Democratic Republic 2,738,300 64.6 14.0 21.4
Female 1,375,800 66.5 14.8 18.7
Khammouane 166,900 81.4 2.2 16.4
Female 85,800 84.1 2.2 13.7
Savannakhet 431,000 85.9 1.1 13.0
Female 218,200 87.7 1.1 11.2
Saravane 167,100 79.8 12.9 7.3
Female 88,100 81.5 12.7 5.8
Champasack 305,400 62.9 17.5 19.6
Female 156,400 65.2 17.8 17.0
Sekong 40,100 66.8 18.7 14.5
Female 20,500 69.4 19.5 11.1
Attapeu 54,400 83.7 1.9 14.4
Female 28,400 87.3 2.1 10.6
Source: Lao People’s Democratic Republic. 2008. Lao PDR Statistical Yearbook 2007. Vientiane: Lao Department of Statistics.
Appendix A: Basic Information on the Southern Economic Corridor National Components 111
Table A18: Villages with Access to Basic Infrastructure
Country/Province
Number of
villages
Road accessa
(%)Electricity
(%)
Primary school
(%)Telephone Densityb
Lao People’s Democratic Republic 9,113 59.7 41.7 80.9 201
Khammouane 658 48.6 59.4 82.5 –
Savannakhet 1,012 70.5 54.2 89.8 180
Saravane 682 56.3 43.5 82.4 –
Champasack 645 59.2 55.0 93.2 139
Sekong 252 36.9 24.2 72.2 –
Attapeu 174 48.3 25.3 79.3 –
a Percentage share of villages located less than 200 meters from all-season roads accessible by cars and trucks.b Telephone density is defined as the number of telephone subscribers per 1,000 inhabitants.
Source: Lao People’s Democratic Republic. 2008. Village Census 2007. Vientiane: Lao Department of Statistics.
Table A19: Population, Labor Force, and Income
Education level (%)a
Participation rate (%)
Unemployment rate (%)
Nonfarm activity
(%)bAverage wage ($)c
Average labor
cost ($)d
Lao People’s DemocraticRepublic 11.2 66.6 1.4 21.4 51 3,132
Female – 66.3 0.9 18.7 – –
Khammouane 9.2 69.1 0.9 16.4 36 –
Female – 69.3 0.7 13.7 – –
Savannakhet 10.0 71.1 1.0 13.0 47 2,349
Female – 70.6 0.6 11.2 – –
Saravane 5.4 73.2 0.1 7.3 49 –
Female – 75.0 0.1 5.8 – –
Champasack 12.2 68.6 1.1 19.6 40 2,867
Female – 69.1 0.7 17.0 – –
Sekong 4.2 70.3 0.6 14.5 50 –
Female – 70.5 0.4 11.1 – –
Attapeu – 69.5 0.4 14.4 31 –
Female – 69.9 0.2 10.6 – –a Percent of total population that completed secondary school of the school year 2004–2005. Participation rate was
calculated using a population group from 15 to 64 years of age.b Percent of total population having occupation outside the agriculture sector.c Based on Lao People’s Democratic Republic, The Household of Lao PDR: Social and Economic Indicators, Lao Expenditure
and Consumption Survey 2002/03 (Vientiane: Lao Department of Statistics, 2004). Wage rates were converted to US dollars using the 2003 annual average exchange rate of 10,571 kips (KN) = $1.
d Calculated using the 2005 average annual exchange rate of KN10,654 = $1 and data from the Investment Climate Survey (2005) collaboration among ADB, the Government of the Lao PDR, and the World Bank in seven provinces (Champasack, Luangnamtha, Luang Prabang, Oudomxay, Savannakhet, Vientiane Capital, and Xayaboury). The survey included 303 firms operating in manufacturing and tourism service sectors.
Source: Lao People’s Democratic Republic. 2008. Lao PDR Statistical Yearbook 2007. Vientiane: Lao Department of Statistics.
112 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A20: Income Levels and Economic Structure (Five-Year Average, 2003–2007)
Country/ Province
GDP/GPP ($ million)
GDP/GPP per capita
($ million)
Structure of production (%)
Agriculturea Industryb ServiceLao People’s DemocraticRepublic 2,889.7 522 42.7 29.2 28.1Khammouane – – – – –Savannakhet 382.2 460 51.6 23.5 24.9Saravane 87.6 256 50.4 20.1 29.5Champasack 381.6 625 53.4 22.5 24.1Sekong – – – – –Attapeu 39.9 337 – – –
Note: Gross domestic product (GDP), gross provincial product (GPP), and sectoral production figures represent the average values of 5 years (2003–2007) using the current exchange rate. Unemployment rates are based on Lao People’s Democratic Republic, Population and Housing Census 2005 (Vientiane: Lao Department of Statistics, 2006).aIncludes agriculture, livestock, and forestry products.bIncludes manufacturing, energy, mining and quarrying, and construction.
Source: Asian Development Bank. 2007. Key Indicators for Asia and Pacific 2007. Manila; Lao People’s Democratic Republic. 2006. Population and Housing Census 2005. Vientiane: Lao Department of Statistics. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province; Champasack Province: Summary of the implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.
Table A21: Share of Intraregional Trade to Total Trade (%)
2000 2001 2002 2003 2004 2005 2006 2007Trade/gross domestic product 31.7 31.4 28.4 40.3 37.3 40.9 55.4 46.6Lao People’s DemocraticRepublic 59.8 60.3 70.4 77.2 65.3 70.4 77.3 68.5Savannakhet – – 24.2 29.9 29.5 42.6 62.2 64.0
at Savannakhet–Mukdahan border checkpoint – – 59.5 70.2 62.4 66.2 39.3 45.0
at Dansavan–Lao Bao border checkpoint – – 40.4 29.7 37.5 33.8 60.6 54.9
Champasack – – – – – 10.5 6.5 8.1at Vang Tao – – – – – – – –
Note: Ratio of total trade (import plus export) with Greater Mekong Subregion countries to total trade with the rest of the world. The data for Savannakhet and Champasack indicate the percentages of cross-border trade to total provincial trade.
Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Commerce. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province. For Champasack Province: Summary of the Implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.
Appendix A: Basic Information on the Southern Economic Corridor National Components 113
Table A22: Share of Lao People’s Democratic Republic Trade with Greater Mekong Subregion Countries to Total Greater Mekong
Subregion Intraregional Trade (%)
2000 2001 2002 2003 2004 2005 2006 2007Cambodia 0.03 0.07 0.03 0.03 0.07 0.01 0.01 0.02China, People’s Republic of 7.88 14.85 8.08 15.15 14.29 11.13 9.00 9.58Myanmar 0.08 0.00 0.01 0.04 0.00 0.00 0.00 0.36Thailand 77.61 69.04 81.54 73.69 73.45 74.55 73.69 70.44Viet Nam 14.40 16.04 10.34 11.09 12.19 14.31 17.31 19.60
Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Import–Export, 2008.
Table A23: Share of Informal Cross-Border Trade (as % of Total Trade)
2000 2001 2002 2003 2004 2005 2006Total trade 8.2 13.9 15.4 2.5 2.1 0.4 0.2Greater Mekong Subregion countries 23.2 42.4 41.4 11.0 10.8 2.2 0.6Thailand 49.2 92.8 56.5 6.5 6.5 1.1 0.6Viet Nam 26.2 41.0 9.1 25.4 25.2 19.9 23.5
Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Statistics and Planning, 2008.
Table A24: Average Share of Commodities Traded to Total Trade, 2005–2007 (%)
CommodityLao People’s
Democratic Republic Savannakhet ChampasackExport Mining 46.6 93.0 –
Wood and wood products 12.0 3.6 32.4Agriculture and forest products 7.5 0.3 64.3Industry and handicrafts 20.1 0.3 3.3Electricity 13.7 – –Other 0.2 5.6 –
Import Capital goods 36.2 18.9 47.1Fuel and gas 24.3 62.8 30.0Raw materials 20.8 3.1 11.3Electronic appliances 4.6 0.4 5.3Foodstuffs 3.4 11.1 3.2Vehicles and spare parts 5.9 – –Electricity 1.7 – –Other 3.2 3.8 3.2
Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Commerce. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province. For Champasack Province: Summary of the implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.
114 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A25: Sources of Foreign Direct Investment in the Lao People’s Democratic Republic
(Five-Year Average, 2003–2007, Share to Total) (%)
Investor
Lao People’s Democratic
Republic Savannakhet ChampasackAssociation of Southeast Asian Nations 40.1 61.6 –
Cambodia 0.0 – –
Indonesia 0.1 7.3 –
Malaysia 4.6 1.6 –
Myanmar 0.0 – –
Philippines 0.0 – –
Singapore 2.5 1.1 –
Thailand 23.6 24.7 –
Viet Nam 9.2 26.8 –
Northeast Asia and the People’s Republic of China 26.5 24.7 –
China, People’s Republic of 21.8 10.9 –
Korea, Republic of 4.5 13.6 –
Taipei,China 0.2 – –
Organisation for Economic Co-operation and Development 30.3 14.0 –
Australia 12.3 10.8 –
Canada 2.1 – –
France 8.9 0.5 –
Germany 0.1 – –
Italy 0.0 – –
Japan 4.0 0.3 –
Netherlands 0.0 – –
Sweden 0.0 – –
Switzerland 1.2 – –
United Kingdom 0.3 2.4 –
United States 0.3 – –
Other 4.1 – –
Totala ($ million) 1,216.207 476.267 277.026a Average investment volume over 5 years (2003–2007).
Source: Lao People’s Democratic Republic Ministry of Investment and Planning, Department of Foreign and Domestic Investment, Statistics and Planning Division. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province. For Champasack Province: Summary of the implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.
Appendix A: Basic Information on the Southern Economic Corridor National Components 115
Table A26: Foreign Direct Investment in the Lao People’s Democratic Republic by Sector (Five-Year Average, 2003–2007, Share to Total) (%)
Sector
Lao People’s Democratic
Republic Savannakhet ChampasackElectricity generation 53.16 – –
Agriculture 12.37 54.4 52.3
Mining 10.12 – –
Industry and handicrafts 6.28 39.7 28.5
Services 4.80 5.9 19.3
Trading 4.38 – –
Construction 2.79 – –
Hotel and restaurant 2.61 – –
Wood industry 1.19 – –
Banking 0.82 – –
Telecommunications 1.11 – –
Garment 0.26 – –
Consulting 0.11 – –
Note: Total foreign direct investment excludes domestic investment.
Source: Lao People’s Democratic Republic Ministry of Investment and Planning, Department of Foreign and Domestic Investment, Statistics and Planning Division, 2008.
Table A27: Tourist Arrivals in the Lao People’s Democratic Republic, 2000–2007 (%)
Country of origin 2000 2001 2002 2003 2004 2005 2006 2007Association of Southeast Asian Nations
71.7 70.1 69.2 68.0 71.4 72.5 73.4 78.4
Cambodia 0.2 0.3 0.4 0.4 0.4 0.5 0.3 0.3
Thailand 60.0 55.9 57.5 59.4 54.7 55.1 55.6 58.5
Viet Nam 0.0 12.2 9.7 6.5 14.6 15.1 15.7 17.9
Other Asia and the Pacific nations
10.3 12.0 9.5 10.3 10.2 9.6 9.6 8.2
Europe 11.7 12.0 13.9 14.8 12.5 12.0 11.4 9.1
Canada, the United States, others in the Americas
5.7 5.1 6.3 6.2 5.3 5.5 5.0 3.8
Africa and the Middle East 0.6 0.8 1.1 0.7 0.6 0.4 0.5 0.5
Source: Lao National Tourism Administration. 2008. 2007 Statistical Report on Tourism in Laos. Vientiane: Lao National Tourism Administration, Planning and Cooperation Department.
116 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A28: Tourist Arrivals and Revenues from Tourisma
Share Growth rate
Country/province Visitors (%) Revenue (%) Visitors (%) Revenue (%)Lao People’s Democratic Republic 1,093,106b $151,914,400c 13.3 11.3
Khammouane 5.2 1.3 19.6 21.3
Savannakhet 18.3 4.6 19.2 17.0
Saravane 0.8 0.2 21.1 14.2
Sekong 0.5 0.2 40.0 42.0
Champasack 9.5 2.5 23.0 21.5
Attapeu 1.2 0.3 16.3 15.2
a Five-year average of shares and growth rates of tourist arrivals and revenues, as percent of total, 2003–2007.
b Total number of visitors.c Total revenue.
Source: Lao National Tourism Administration. 2008. 2007 Statistical Report on Tourism in Laos. Vientiane: Lao National Tourism Administration, Planning and Cooperation Department.
Table A29: National Biodiversity Conservation Areas, 2008
Province
Name of conservation
area
Country/ province
area (km2)
Size of conservation
area (km2) % Activity Access
Lao People’s Democratic Republic 236,800 35,720 15.1
Total area 11 conservation
areas
74,515 19,035 25.5
Champasack 15,415 4,700 30.5
Xe Pian 2,400 Trekking, bird-watching, elephant
riding
South of Pakse; Road
No. 6
Dong Houa Sao
1,100 None yet Easily accessible from Road
No. 13
Phou Xieng Thong
1,200 Trekking and orchid
photography
Easily accessible from Road
No. 13
Attapeu 10,320 1,975 19.1
Dong Amphanh
1,975 19.1 None yet Remote and mountainous; mainly limited to dry season
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 117
Province
Name of conservation
area
Country/ province
area (km2)
Size of conservation
area (km2) % Activity Access
Saravane 10,691 2,595 24.3
Xe Xap 1,335 None yet No paved road to Ta Oy
Xe Bang Nouan
1,260 None yet Not easily accessible
Savannakhet 21,774 3,470 15.9
Dong Phou Vieng
400 Trekking Road No. 9
Phou Xang Hae
1,100 Trekking Road No.9
Dong Si Thuan 1,970
Khammouane 16,315 6,295 38.6
Hin Namno 895 None yet Highway 12 to Muang Boualapha
Nakai-Nam Theun
3,710 None yet Route 8B; from Thakek via Route12
then Route 8B
Phou Hin Boun
1,690 Trekking, rafting,
kayaking, caves
Route 8
Source: Lao National Tourism Administration. 2008. 2007 Statistical Report on Tourism in Laos. Vientiane: Lao National Tourism Administration, Planning and Cooperation Department; Lao Ecotourism.
Table A29: continued
118 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Thailand
Table A30: Population and Land Area
Location/area
Total population
Land area (km2)
Population density (people
per km2)
Literacy rate (%)
Poverty incidence
(%)Thailand 63,830,000 513,100 124.40 93 11.25
Bangkok 6,842,000 1,568 4,363.50 98.0 1.64
Chonburi 1,169,000 4,363 267.93 97.6 1.30
Rayong 584,000 3,552 83.15 97.2 5.60
Chantaburi 527,000 6,338 164.41 94.9 4.14
Trat 240,000 2,885 83.18 92.1 12.45
Sakaew 532,000 7,195 73.94 93.7 13.75
Source: National Statistical Office of Thailand; United Nations Development Programme (UNDP). 2007. Thailand Human Development Report 2007: Sufficiency Economy and Human Development. Bangkok: UNDP.
Table A31: Labor Force Indicators, 2007
Location/area
Participation rate (%)
Under-employ- ment rate (%)
Under- employment rate (%)
Women (%)
Average wage ratea
Thailand 72.3 1.4 98.1 98.0 104.5
Bangkok 56.5 0.7 55.8 – 131.3
Chonburi 60.3 0.4 59.9 53.4 116.4
Rayong 74.9 0.3 97.7 42.8 105.4
Chantaburi 61.2 0.4 60.8 54.9 111.8
Trat 61.9 0.2 61.7 53.7 100.8
Sakaew 56.4 1.7 54.7 47.8 103.4a Minimum wage rate per day over 22 workdays in 2007, using exchange rate of Baht 34 = $1.
Source: Thailand Ministry of Labor, 2007; National Statistical Office of Thailand.
Appendix A: Basic Information on the Southern Economic Corridor National Components 119
Table A32: Income Levels and Economic Structure
Location/area
Gross provincial product per capita
($)
Structure of production (%)
Agriculture Industry ServicesThailand 3,400 11 44 45
Bangkok 9,422 0.1 25.6 74.2
Chonburi 11,275 4.05 61.20 34.75
Rayong 24,310 2.92 89.08 8.00
Chantaburi 2,129 29.59 12.73 57.68
Trat 2,635 45.37 8.68 45.95
Sakaew 1,581 28.20 16.02 55.78
Note: Gross provincial product data from 2007; economic structure data from 2006.
Source: Thailand National Economic and Social Development Board.
Table A33: Trade between Thailand and Viet Nam
Year
Total bilateral trade
Exports from Thailand
Imports to Thailand
Tradebalance
Value ($ million)
Change (%)
Value ($ million)
Change (%)
Value ($ million)
Change (%)
1998 823.3 13.3 591.7 7.8 231.5 30.4 360.1
1999 800.6 (2.8) 572.8 (3.2) 227.8 (1.6) 345.1
2000 1,179.4 47.3 847.4 47.9 332.1 45.8 515.3
2001 1,127.0 (4.5) 801.2 (5.4) 325.8 (1.9) 475.5
2002 1,186.0 5.3 948.0 18.3 238.6 (26.8) 709.4
2003 1,595.0 34.42 1,263.3 33.3 331.7 39.02 931.6
2004 2,313.7 45.17 1,877.0 48.7 436.7 31.66 1,440.3
2004 (January– November)
2,158.5 – 1,746.7 – 411.8 – 1,334.9
2005 (January– November)
2,920.1 35.28 2,101.7 20.32 818.4 98.74 1,283.3
( ) = negative value.
Source: Thailand Ministry of Commerce, 2006.
120 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A34: Border Trade between Thailand and Cambodia, 2004–2007 ($ million)
Year
Border
TotalAranyaprathet–
PoipetKlong Yai–Kho
Kong2004 Export 336.47 175.19 511.66
Import 18.05 0.99 19.04
Balance 318.42 174.2 492.61
2005 Export 349.20 273.86 623.06
Import 18.37 1.10 19.48
Balance 330.83 272.76 603.58
2006 Export 382.12 331.2 713.32
Import 24.29 75.54 99.84
Balance 357.82 328.97 686.79
2007 Export 442.04 346.41 788.45
Import 32.46 3.57 28.89
Balance 409.57 342.83 752.41
Note: Exchange rate used is $1 = Baht 34.
Source: Thailand Ministry of Commerce, Foreign Trade Department.
Table A35: Approval of Applications for Foreign Direct Investment in Thailand, 2005–2007
2005 2006 2007Number of projects 1,253 1,222 1,342
Total investment (billion baht) 571.1 373.2 744.5
Employment 314,614 177,571 215,427
Number of projects
Major foreign shareholders
Japan 368 360 352
Europe 155 135 174
Taipei,China 63 69 52
United States 57 52 63
Hong Kong, China 28 26 25
Singapore 81 65 89
Ownership
100% Thai 429 437 452
100% foreign 414 405 479
Joint venture 410 380 411
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 121
2005 2006 2007Number of projects
Sector
Agricultural products 204 171 200
Minerals and ceramics 36 32 35
Light industry 104 106 96
Metal processing 261 270 248
Electronics and electrical 230 228 258
Chemicals, plastic, and paper 170 131 155
Service and infrastructure 246 284 350
Location distribution
Zone 1a 348 373 440
Bangkok 168 173 243
Metropolitan areas 180 200 197
Zone 2b 565 487 534
Rayong 125 117 146
Phuket 11 10 10
Other 429 360 378
Zone 3c 340 362 368
36 provinces 287 306 314
22 provinces 53 56 54
North 59 62 68
Central 21 11 20
Northeast 110 123 98
East 52 66 62
West 14 17 16
South 55 62 66
Otherd 29 21 38
a Bangkok, Nokhon Pathom, Nontabur, Patumthani, Samut Prakarn, and Samut Sakhon.b Phuket, Rayong, and others (Angthong, Ayuttaya, Chachoengsao, Chonburi, Kanchanaburi, Nakhon
Nayok, Ratchaburi, Samut Songkhram, Saraburi, and Suphanburt).c The 58 remaining provinces are divided into a group of 22 provinces and a group of 36 provinces.d International maritime transport activity.
Source: Thailand Board of Investment.
Table A35: continued
122 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A36: Tourist Arrivals, 2007
Country of origin Chonburi Bangkok Rayong Chantaburi Trat SakaewThailand 1,798,728 3,468,287 1,519,472 527,271 676,917 310,745
Malaysia 87,220 300,194 10,812 1,910 375 540
Singapore 37,876 424,475 12,259 2,223 965 135
China, People’s Republic of 470,184 963,103 12,901 2,012 1,795 393
Hong Kong, China 191,340 299,769 11,017 2,020 1,528 110
Japan 97,460 1,448,006 21,410 2,341 3,178 2,129
Korea, Republic of 573,741 309,089 15,056 1,842 3,499 13,476
Taipei,China 258,966 226,011 10,539 1,924 3,010 82
Austria 20,648 81,329 11,697 1,451 5,305 188
Belgium 16,264 62,526 10,053 1,350 7,402 124
Denmark 30,450 90,215 14,351 1,490 14,979 100
France 47,241 281,139 21,245 1,655 18,783 3,246
Germany 218,557 448,635 44,399 2,102 34,878 922
Italy 28,590 122,331 9,984 1,324 11,761 154
Netherlands 39,799 152,970 14,367 1,709 14,338 450
Sweden 38,998 127,089 24,760 1,654 36,534 331
Switzerland 26,668 132,031 19,688 1,769 11,449 279
United Kingdom 222,119 533,499 22,345 2,922 29,571 1,061
United States 82,646 535,634 12,849 2,324 12,919 1,760
Canada 14,757 113,903 7,623 1,030 5,409 179
Middle East 157,139 397,646 4,572 827 6,490 26
Australia 70,597 464,823 9,747 1,348 6,186 363
New Zealand 13,156 73,552 7,149 1,003 4,009 200
India 279,006 457,516 6,589 5,611 3,797 256
Russian Federation 889,752 163,341 8,374 816 20,686 13
Eastern Europe 70,295 99,370 6,698 1,273 2,749 39
Indonesia 37,347 137,074 2,735 477 2,483 54
Philippines 11,334 112,721 3,102 395 2,555 205
Finland 64,999 41,300 19,393 448 3,120 84
Norway 29,302 52,637 5,903 542 3,313 142
Spain 2,791 61,353 2,564 585 2,855 164
Africa 4,396 55,706 2,195 3,112 1,898 70
Myanmar 2,374 31,001 833 206 1,854 18
Israel 14,624 94,555 1,355 281 2,295 32
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 123
Country of origin Chonburi Bangkok Rayong Chantaburi Trat SakaewLao People’s Democratic Republic 7,768 20,568 594 190 1,200 141
Viet Nam 53,006 133,784 692 245 1,120 93
Brunei Darussalam 3,316 8,845 577 177 1,056 121
Cambodia 8,521 21,087 422 233 2,012 2,477
Other South Asia 22,041 – 635 69 856 8
Other Americas 7,969 – 1,344 113 1,290 427
Others 99,342 772,635 17,669 3,861 16,329 444
Totals 6,151,327 13,319,749 1,929,969 584,135 982,748 341,781
Source: Tourism Authority of Thailand.
Table A36: continued
Table A37: Major Tourist Attractions in the Thailand Component of the Southern Economic Corridor
Area Ecotourism Historical CulturalBangkok – Grand Palace, Arun
Temple, the Chakri Maha Prasat Throne Hall
Rattanakosin Island
Chanthaburi Namtok Plew National Park, Khao Kichakut National Park, Khao Soi Dao Wildlife Sanctuary, Kung Wiman Beach, Chao Lao Beach
Chanthaburi National Museum, Maritime Museum, Tuk Daeng, Kook Khi Kai
Khung Kraben Research Development Center, Oasis Seaworld
Chonburi Pataya Beach, Sichang Island, Sam Muk Island
– Buffalo running festival
Rayong Samet Island, Khao Laem Ya – –
Sakaew Pangsida National Park Prasat Khaonoi, Prasat Sadok Kok Thom
–
Trat Ko Chang National Park, Ko Mak, Ko Kut, Mai Rood Beach, Ban Chuen Beach
Wat Bupharam, Residence Kampot, Khao Lan Memorial
–
Source: Tourism Authority of Thailand.
124 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Viet Nam
Table A38: Population and Land Area by Subcorridor and by Province
AreaTotal
populationLand area
(km2)
Population density (people per km2)
Rural population
(%)
Illiteracy rate(%)
Incidence of poverty
(%)
Subcorridor 1 10,601,400 14,028.1 756 36.4 2.00 1.7
Tay Ninh 1,053,800 4,035.9 261 82.8 4.9 6.7
Ho Chi Minh City 6,347,000 2,098.7 3,024 14.5 0.9 0.5
Dong Nai 2,253,300 5,904.0 382 68.4 3.9 0.5
Ba Ria–Vung Tau 947,300 1,989.6 476 55.7 3.3 6.7
Subcorridor 2 2,744,700 21,576.5 127 72.7 10.2 19.7
Gia Lai 1,165,800 15,536.9 75 71.3 22.4 25.6
Binh Dinh 1,578,900 6,039.6 261 73.7 1.3 15.4
Subcorridor 3 2,946,200 11,680.0 252 76.5 3.2 11.6
Kien Giang 1,705,200 6,348.3 266 74.0 4.1 10.3
Ca Mau 1,241,000 5,331.7 233 80.0 2.1 13.3
Subcorridors Total 16,292,300 47,284.6 345 49.7 3.6 6.4
Whole country 85,154,900 331,211.6 257 72.6 4.0 14.8
Subcorridors Total/ Whole country (%) 19.1 14.3 1.3 – – –
km2 = square kilometer.
Source: Data on population, land area, population density, and rural population from Statistical Yearbook of Viet Nam 2007; data on illiteracy rate and poverty incidence from Statistical Data of Labor Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).
Appendix A: Basic Information on the Southern Economic Corridor National Components 125
Table A39: Population as of January 2007
2000 2003 2004 2005 2006 2007Subcorridor 1 9,063,800 9,599,500 9,830,900 10,058,300 10,314,700 10,601,400
Tay Ninh 976,300 1,017,100 1,029,800 1,038,400 1,046,800 1,053,800
Ho Chi Minh City 5,226,100 5,554,800 5,730,800 5,911,600 6,107,800 6,347,000
Dong Nai 2,039,400 2,142,700 2,172,100 2,194,500 2,225,100 2,253,300
Ba Ria–Vung Tau 822,000 884,900 898,200 913,800 935,000 947,300
Subcorridor 2 2,498,000 2,605,500 2,640,700 2,673,300 2,711,600 2,744,700
Gia Lai 1,017,000 1,075,200 1,095,500 1,116,200 1,144,600 1,165,800
Binh Dinh 1,481,000 1,530,300 1,545,200 1,557,100 1,567,000 1,578,900
Subcorridor 3 2,663,300 2,787,800 2,831,000 2,875,300 2,914,000 2,946,200
Kien Giang 1,524,000 1,606,600 1,630,400 1,657,000 1,683,100 1,705,200
Ca Mau 1,139,300 1,181,200 1,200,600 1,218,300 1,230,900 1,241,000
Total 14,225,100 14,992,800 15,302,600 15,606,900 15,940,300 16,292,300
Source: Statistical Yearbook 2007 of relevant provinces.
Table A40: Illiteracy Rate and Poverty Incidence
AreaEmployed population
Illiteracy Incidence of poverty
Per 1,000 people %
Per 1,000 people %
Subcorridor 1 5,489,800 118.3 2.2 177.1 1.7
Tay Ninh 613,600 30.2 4.9 70.6 6.7
Ho Chi Minh City 3,288,000 29.3 0.9 31.7 0.5
Dong Nai 1,150,800 45.2 3.9 11.3 0.5
Ba Ria–Vung Tau 437.400 13.6 3.3 63.5 6.7
Subcorridor 2 1,372,700 133.4 9.7 541.6 19.7
Gia Lai 550,600 123.1 22.4 298.4 25.6
Binh Dinh 822,100 10.3 1.3 243.2 15.4
Subcorridor 3 1,523,900 49.1 3.2 340.7 11.6
Kien Giang 882,000 36.3 4.1 175.6 10.3
Ca Mau 641,900 12.8 2.1 165.1 13.3
Total: Subcorridors Total: Whole country
8,386,40044,171,900
300.81,766.9
3.64.0
1,059.412,602.9
6.514.8
Source: Statistical Data of Labor Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).
126 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A41: Land Use by Subcorridor (hectare)
Area
Agriculture production
landForestry
landSpecialty
landHomestead
land Total landWhole country 9,436,200 14,514,200 1,433,500 611,900 33,121,200
Subcorridor 1 755,900 318,800 117,200 48,000 1,402,900
Tay Ninh 278,500 69,700 18,700 8,700 403,600
Ho Chi Minh City 77,900 33,400 28,900 20,700 209,900
Dong Nai 289,700 179,700 43,400 13,800 590,400
Ba Ria–Vung Tau 109,800 35,700 26,200 4,800 199,000
Subcorridor 2 635,900 1,049,100 60,200 20,700 2,157,700
Gia Lai 449,500 799,800 37,000 13,200 1,553,700
Binh Dinh 136,400 249,300 23,200 7,500 604,000
Subcorridor 3 583,400 207,300 42,000 18,000 1,188,000
Kien Giang 441,300 102,900 21,600 11,300 634,800
Ca Mau 142,100 104,400 20,400 6,700 553,200
Subcorridors Total 1,975,200 1,575,200 219,400 116,700 4,748,600
Source: Statistical Yearbook 2007 of relevant provinces.
Table A42: Structure of Land Use by Subcorridor (%)
Area
Agriculture production
landForestry
landSpecialty
landHomestead
landWhole country 28.5 43.8 4.3 1.8
Subcorridor 1 53.9 22.7 8.3 3.4
Tay Ninh 69.0 17.3 4.6 2.2
Ho Chi Minh City 37.1 15.9 13.7 9.9
Dong Nai 49.1 30.7 7.4 2.3
Ba Ria–Vung Tau 55.2 18.0 13.2 2.4
Subcorridor 2 29.5 48.6 2.8 1.0
Gia Lai 32.2 51.5 2.4 0.9
Binh Dinh 22.6 41.3 3.8 1.2
Subcorridor 3 49.1 17.4 3.5 1.5
Kien Giang 69.5 16.2 3.4 1.8
Ca Mau 26.2 19.6 3.8 1.3
Subcorridors Total 41.6 33.2 4.6 2.5
Source: Statistical Yearbook 2007 of relevant provinces.
Appendix A: Basic Information on the Southern Economic Corridor National Components 127
Table A43: Income and Structure of Production
Area
Per capita gross domestic product/
gross provincial product ($)
Structure of production (%)Unemploy-ment rate
(%)Agriculture Industry Services
Whole country 812 20.30 41.58 38.12 5.13
Subcorridor 1 2,321 4.00 59.50 36.50
Tay Ninh 865 36.78 29.11 34.11 4.58
Ho Chi Minh City 2,085 1.30 46.40 52.30 6.03
Dong Nai 1,139 12.10 57.70 30.20 4.26
Ba Ria–Vung Tau 7,424 2.26 89.12 8.63 4.54
Subcorridor 2 538 39.00 29.60 31.40
Gia Lai 471 47.16 25.96 26.88 4.10
Binh Dinh 580 34.20 31.80 34.00 5.21
Subcorridor 3 793 44.70 27.30 28.00
Kien Giang 818 43.67 26.26 30.06 4.96
Ca Mau 764 34.40 28.50 37.10 5.26
Subcorridors Total 1,744 – – – –
Note: Unemployment rate in urban areas based on Statistical Data of Labor Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).
Table A44: Population and Gross Domestic Product, 2007
Area Population
Gross domestic product (D billion)a
Agriculture Industry Service TotalWhole country 85,154,900 232,188.0 475,681.0 436,146.0 1,144,015.0
Subcorridor 1 10,601,400 16,445.4 241,316.1 148,012.2 405,773.7
Tay Ninh 1,053,800 5,504.0 4,354.5 5,104.3 14,962.8
Ho Chi Minh City 6,347,000 3,057.0 106,052.0 119,686.0 228,795.0
Dong Nai 2,253,300 5,175.0 24,714.0 12,943.0 42,832.0
Ba Ria–Vung Tau 947,300 2,691.4 106,195.6 10,278.9 119,165.9
Subcorridor 2 2,744,700 9,512.2 7,207.4 7,615.2 24,334.8
Gia Lai 1,165,800 4,350.6 2,395.1 2,479.2 9,224.9
Binh Dinh 1,578,900 5,161.6 4,812.3 5,136.0 15,109.9
Subcorridor 3 2,946,200 17,240.9 10,520.1 10,817.5 38,578.5
Kien Giang 1,705,200 10,028.9 6,030.3 6,903.6 22,962.8
Ca Mau 1,241,000 7,212.0 4,489.8 3,913.9 15,615.7
Subcorridors Total 16,292,300 43,198.5 259,043.6 166,444.9 468,687.0
Subcorridors (% of whole country)
19.1 18.6 54.5 38.2 41.0
a 2007 figures in current prices, in billion dong.
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
128 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A45: Gross Rice Output (tons)
Area 2000 2004 2005 2006 2007Subcorridor 1 1,126,500 1,172,800 1,114,800 1,078,800 1,159,500
Tay Ninh 82,700 74,800 70,400 74,400 77,900
Ho Chi Minh City 235,300 159,400 133,600 104,200 117,000
Dong Nai 270,300 296,500 325,200 305,800 324,600
Ba Ria–Vung Tau 538,200 642,100 585,600 594,400 640,600
Subcorridor 2 698,100 792,400 761,100 889,000 858,400
Gia Lai 175,100 222,000 233,700 281,200 279,200
Binh Dinh 523,000 570,400 527,400 607,800 579,200
Subcorridor 3 3,134,800 3,143,400 3,331,300 3,147,700 3,396,600
Kien Giang 2,284,300 2,739,800 2,944,300 2,744,300 2,977,400
Ca Mau 850,500 404,100 387,000 403,400 419,200
Total 4,959,400 5,108,600 5,207,200 5,115,500 5,414,500
Per capita rice production (kilograms per person)
Total 349 340 333 320 332
Subcorridor 1 124 119 111 105 109
Subcorridor 2 279 304 285 328 313
Subcorridor 3 1,177 1,128 1,158 1,080 1,153
Source: Statistical Yearbook 2007 of relevant provinces.
Appendix A: Basic Information on the Southern Economic Corridor National Components 129
Table A46: Fisheries Production (tons)
Area 2000 2004 2005 2006 2007Subcorridor 1 207,100 307,300 303,400 316,100 324,000
Tay Ninh 3,900 6,700 6,700 6,700 6,900
Ho Chi Minh City 47,800 56,200 53,300 56,700 55,000
Dong Nai 15,500 29,800 28,500 30,500 32,200
Ba Ria–Vung Tau 139,900 199,000 214,600 222,200 229,900
Subcorridor 2 78,000 101,300 110,800 110,600 118,400
Gia Lai 200 300 443 551 63,300
Binh Dinh 77,800 101,000 110,400 110,000 117,800
Subcorridor 3 447,000 557,600 608,100 652,800 706,200
Kien Giang 249,200 321,400 353,800 377,800 410,800
Ca Mau 197,800 236,200 254,300 275,000 295,400
Subcorridors Total 732,100 966,200 1,022,300 1,079,500 1,148,600
Whole country 2,250,500 3,142,500 3,465,900 3,720,500 4,149,000
Total subcorridors/ Whole country (%)
32.5 30.7 29.5 29.0 27.7
Subcorridor 1/Total subcorridors (%)
28.3 31.8 29.7 29.3 28.2
Subcorridor 2/Total subcorridors (%)
10.7 10.5 11.1 10.2 10.3
Subcorridor 3/Total subcorridors (%)
61.0 57.7 59.4 60.5 61.5
Source: Statistical Yearbook 2007 of relevant provinces.
130 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A47: Gross Forestry Output at Constant 1994 Prices (D billion)
Area 2000 2004 2005 2006 2007Subcorridor 1 212.1 239.6 224.1 270.3 259.4
Tay Ninh 86.5 116.2 116.9 120.6 123.5Ho Chi Minh City 37.0 33.6 34.9 42.4 31.3
Dong Nai 61.7 56.5 57.9 69.2 64.7Ba Ria–Vung Tau 26.9 33.3 34.4 38.0 39.9
Subcorridor 2 182.4 236.4 251.3 255.9 265.8Gia Lai 81.6 106.3 117.5 119.5 124.0Binh Dinh 100.8 130.1 133.8 136.4 141.8
Subcorridor 3 178.4 203.3 207.5 201.6 197.1Kien Giang 41.2 83.7 85.6 88.4 89.6Ca Mau 137.2 119.6 121.9 113.2 107.5
Total 572.9 679.3 682.9 727.8 722.3Subcorridor 1/Total (%) 37.0 35.3 32.8 37.1 35.9Subcorridor 2/Total (%) 31.8 34.8 36.8 35.2 36.8Subcorridor 3/Total (%) 31.2 29.6 30.4 27.7 27.3
D = dong.
Source: Statistical Yearbook 2007 of relevant provinces.
Table A48: Educational Level of Economically Active Population Aged 15 Years and Older (%)
Area Illiterate
Did not finish primary school
Finished primary school
Finished secondary
school
Finished high
schoolCountry total 5.06 14.25 29.23 31.84 19.62Subcorridor 1
Tay Ninh 5.63 23.64 41.28 15.01 14.44Ho Chi Minh City 0.95 8.35 27.62 22.86 40.21Dong Nai 4.21 15.04 33.84 24.93 21.95Ba Ria–Vung tau 3.24 17.20 36.01 21.70 21.82
Subcorridor 2Gia Lai 28.8 18.14 20.79 19.34 12.94Binh Dinh 1.98 20.48 39.38 25.01 14.37
Subcorridor 3Kien Giang 3.70 28.62 42.07 16.10 8.51Ca Mau 2.53 28.49 47.67 15.33 5.98
Source: Statistical Data of Labor-Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).
Appendix A: Basic Information on the Southern Economic Corridor National Components 131
Table A49: Average Per Capita Monthly Income (D thousanda)
Area
Salary and
wages
Agriculture, forestry,
and fisheries
Non-agriculture, forestry,
and fishing Others TotalWhole country 218 158 145 115 636
Subcorridor 1
Tay Ninh 259 205 148 85 697
Ho Chi Minh City 650 26 452 352 1,480
Dong Nai 369 173 221 104 867
Ba Ria–Vung Tau 356 98 213 110 778
Subcorridor 2
Gia Lai 151 177 109 61 498
Binh Dinh 188 134 169 61 553
Subcorridor 3
Kien Giang 178 263 138 96 675
Ca Mau 113 318 176 59 666a 2006 figures in current prices in dong (D).
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
Table A50: Average Per Capita Monthly Income by Income Quintiles (D thousanda)
Area
Quintile
Average1 2 3 4 5Whole country 184 319 459 679 1,542 636
Subcorridor 1
Tay Ninh 267 396 517 699 1,606 697
Ho Chi Minh City 554 824 1,076 1,493 3,453 1,480
Dong Nai 297 502 711 933 1,892 867
Ba Ria–Vung Tau 240 381 551 769 1,939 776
Subcorridor 2
Gia Lai 146 231 369 585 1,157 498
Binh Dinh 197 320 440 599 1,210 553
Subcorridor 3
Kien Giang 210 359 485 675 1,649 675
Ca Mau 209 361 506 734 1,517 666a 2006 figures in current prices in dong (D).
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
132 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A51: Difference between the Highest Income Quintile and the Lowest Income Quintile, 2006
(Average Monthly Per Capita Income, D thousand)
Area
Lowest income quintile
Highest income quintile
Highest income quintile compared with the
lowest quintileWhole country 184 1,542 8.4
Subcorridor 1
Tay Ninh 267 1,606 6.0
Ho Chi Minh City 554 3,453 8.1
Dong Nai 297 1,892 6.4
Ba Ria–Vung Tau 240 1,939 8.1
Subcorridor 2
Gia Lai 146 1,157 7.9
Binh Dinh 197 1,210 6.1
Subcorridor 3
Kien Giang 210 1,649 7.8
Ca Mau 209 1,517 7.3
D = dong.
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
Table A52: Export Turnover ($ million)
Area 2005 2006 2007Subcorridor 1 24,453.4 29,004.4 33,515.8
Tay Ninh 260.9 404.0 493.3
Ho Chi Minh City 13,307.6 15,526.7 18,303.0
Dong Nai 3,186.0 4,275.0 5,474.0
Ba Ria–Vung Tau 7,698.9 8,798.7 9,245.5
Subcorridor 2 254.3 292.1 454.4
Gia Lai 39.4 48.3 127.1
Binh Dinh 214.9 243.8 327.3
Subcorridor 3 736.5 813.2 866.8
Kien Giang 215.6 230.3 266.0
Ca Mau 520.9 582.9 600.8
Total 25,444.2 30,109.7 34,837.0
Subcorridor 1/Total (%) 96.1 96.3 96.2
Subcorridor 2/Total (%) 1.0 1.0 1.3
Subcorridor 3/Total (%) 2.9 2.7 2.5
Source: Statistical Yearbook 2007 of relevant provinces.
Appendix A: Basic Information on the Southern Economic Corridor National Components 133
Table A54: Exports and Imports through the Moc Bai Border Gate ($ thousand)
2005 2006 2007First 6 months
of 2008Total trade 52,385 94,305 112,753 92,984
Formal 48,303 94,302 112,750 91,238
Informal 4,082 3 3 1,748
Total export 31,778 36,770 46,693 34,538
Formal 27,697 36,767 46,691 32,106
Informal 4,081 3 2 1,746
Total import 20,606 57,535 66,059 59,392
Formal 20,606 57,535 66,060 59,131
Informal – – – 260
Source: Moc Bai Border Gate Economic Zone management board.
Table A53: Import Turnover ($ million)
Area 2005 2006 2007Subcorridor 1 15,818.6 17,684.6 22,616.4
Tay Ninh 182.9 269.3 298.3
Ho Chi Minh City 10,945.3 11,637.1 14,924.0
Dong Nai 4,183.0 4,999.0 6,329.0
Ba Ria–Vung Tau 605.4 779.2 1,065.1
Subcorridor 2 128.2 121.4 158.8
Gia Lai 16.1 13.1 17.2
Binh Dinh 112.1 108.3 141.6
Subcorridor 3 33.2 31.5 18.5
Kien Giang 29.2 24.2 18.5
Ca Mau 4.0 7.3 –
Total 15,979.7 17,837.5 22,793.7
Subcorridor 1/Total (%) 99.0 99.0 99.0
Subcorridor 2/Total (%) 0.8 0.7 0.7
Subcorridor 3/Total (%) 0.1 0.3 0.3
Source: Statistical Yearbook 2007 of relevant provinces.
134 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A55: Export and Import through Le Thanh Border Gate (Gia Lai Province) ($ thousand)
2006 20072008
(first 11 months )Total trade 15,612 17,176 24,400
Formal 10,928 12,367 17,568
Informal 4,684 4,809 6,832
Total export 12,712 13,176 16,200
Formal 8,100 9,355 12,150
Informal 4,612 3,821 4,500
Total import 2,900 4,000 8,200
Formal 2,828 3,012 6,642
Informal 72 988 1,558
Le Thanh export/Gia Lai Province export (%) 26.3 10.4 –
Source: Customs office of the Le Thanh Zone.
Table A56: Export and Import through the Ha Tien Border Gate
YearTotal
($ thousand)Export
($ thousand)Import
($ thousand)
% of Total Kien Giang Province
2000 11,410 10,510 900 15.0
2001 9,919 7,262 2,656 8.4
2002 7,652 6,469 1,183 6.2
2003 7,797 6,988 809 5.1
2004 9,774 8,541 1,233 5.3
2005 11,237 7,769 3,468 4.5
2006 18,599 15,254 3,345 6.9
2007 26,110 22,290 3,820 9.4
Source: Ha Tien Border Gate Economic Zone management board.
Appendix A: Basic Information on the Southern Economic Corridor National Components 135
Table A57: Foreign Direct Investment Projects Licensed in 1988–2007
Year
Number of
projects
Total registered
capital ($ million)
Total charter capital
($ million)
Foreign- side charter
capital ($ million)
Viet Nam-side charter
capital ($ million)
Implementation capital
($ million)
1988 37 341.7 258.7 219.0 39.7 –
1989 67 525.5 300.9 245.0 55.9 –
1990 107 735.0 720.1 623.3 96.8 –
1991 152 1,291.5 1,072.4 883.4 189.0 328.8
1992 196 2,208.5 1,599.3 1,343.7 255.6 574.9
1993 274 3,037.4 1,842.5 1,491.1 351.4 1,017.5
1994 372 4,188.4 2,539.7 2,030.3 509.4 2,040.6
1995 415 6,937.2 3,705.1 2,857.0 848.1 2,556.0
1996 372 10,164.1 3,511.4 2,906.3 605.1 2,714.0
1997 349 5,590.7 2,649.1 2,046.0 603.1 3,115.0
1998 285 5,099.9 2,474.2 1,939.9 534.3 2,367.4
1999 327 2,565.4 975.1 870.5 104.6 2,334.9
2000 391 2,838.9 1,312.0 951.8 360.2 2,413.5
2001 555 3,142.8 1,708.6 1,643.0 65.6 2,450.5
2002 808 2,998.8 1,272.0 1,191.4 80.6 2,591.0
2003 791 3,191.2 1,138.9 1,055.6 83.3 2,650.0
2004 811 4,547.6 1,217.2 1,112.6 104.6 2,852.5
2005 970 6,839.8 1,973.4 1,875.5 97.9 3,308.8
2006 987 12,004.0 4,674.8 4,328.3 346.5 4,100.1
2007 1,544 21,347.8 8,183.6 6,800.0 1,383.6 8,030.0
Total 9,810 99,596.2 43,129.0 36,413.7 6,715.1 45,445.5
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
136 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A58: Foreign Direct Investment Projects Licensed in 1988–2007 by Economic Activity
Sector
Number of
projects
Total registered
capital ($ million)
Total charter capital
($ million)
Foreign–side
charter capital
($ million)
Viet Nam–side
charter capital
($ million)Total 9,810 99,596.2 43,129.0 36,413.7 6,715.3
Agriculture and forestry 518 3,397.5 1,512.2 1,322.4 189.8
Fishing 156 515.1 249.3 188.4 60.9
Mining and quarrying 119 3,742.8 2,892.3 2,525.9 366.4
Manufacturing 6,323 52,345.4 21,328.6 18,598.4 2,730.2
Electricity, gas, and water supply 30 1,937.7 612.3 594.6 17.7
Construction 254 6,808.0 2,171.3 1,600.9 570.4
Wholesale and retail trade 108 641.9 292.2 192.9 99.3
Hotels and restaurants 291 7,620.6 3,144.9 2,474.0 670.9
Transport; storage, and communications 272 5,072.3 3,788.4 2,918.7 869.7
Financial intermediation 65 862.7 791.1 730.6 60.5
Real estate renting business activities 1,341 14,191.8 5,252.3 4,391.9 860.4
Education and training 101 146.8 72.7 60.3 12.4
Health and social work 54 591.4 224.8 188.5 36.3
Recreational, cultural, and sports activities 112 1,683.5 769.4 603.1 166.3
Community and personal service activities 66 38.7 27.2 23.1 4.1
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
Appendix A: Basic Information on the Southern Economic Corridor National Components 137
Table A59: Foreign Direct Investment Projects Licensed in 1988–2007 by Province and Subcorridor
Area
Number of
projects
Total registered
capital ($ million)
Total charter capital
($ million)
Foreign- side
charter capital
($ million)
Viet Nam- side
charter capital
($ million)Whole country 9,810 99,596.2 43,129.0 36,413.7 6,715.3
Tay Ninh 157 665.6 401.1 392.8 8.3
Ho Chi Minh City 2,816 20,174.2 8,601.4 679.0 1,811.4
Dong Nai 986 12,824.2 4,968.8 4,741.3 228.5
Ba Ria–Vung Tau 222 7,520.1 3,059.7 2,604.9 454.8
Subcorridor 1 4,181 41,184.1 17,031.0 14,526.0 2,503.0
% of Whole country 42.6 41.4 39.5 39.9 37.3
Gia Lai 7 24.0 22.9 13.0 9.9
Binh Dinh 38 253.1 136.5 125.6 10.9
Subcorridor 2 45 277.1 159.4 138.6 20.8
% of Whole country 4.6 2.8 3.7 3.8 3.0
Kien Giang 21 501.0 225.1 150.3 74.8
Ca Mau 10 20.9 18.7 13.8 4.9
Subcorridor 3 31 521.9 243.8 164.1 79.7
% of Whole country 0.3 0.5 0.6 0.5 1.2
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical publishing house, 2008).
Table A60: Visitors Serviced by Accommodation
Area 2005 2006 2007Subcorridor 1 4,856,100 6,333,600 6,704,900
Tay Ninh 369,800 355,800 364,900
Ho Chi Minh City 2,840,000 3,301,000 3,350,000
Dong Nai 552,600 860,200 1,100,700
Ba Ria–Vung Tau 1,093,700 1,816,600 1,889,300
Subcorridor 2 553,000 702,800 828,100
Gia Lai 309,700 355,200 441,600
Binh Dinh 243,300 347,600 386,500
Subcorridor 3 2,335,700 2,426,300 3,048,900
Kien Giang 1,820,100 1,897,000 2,516,900
Ca Mau 515,600 529,300 532,000
Total 7,744,800 9,462,700 10,581,900
Subcorridor 1/Total (%) 62.7 66.9 63.4
Subcorridor 2/Total (%) 7.1 7.4 7.8
Subcorridor 3/Total (%) 30.2 25.7 28.8
Source: Statistical Yearbook 2007 of relevant provinces.
138 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A61: Number of Visitor Arrivals in Southern Economic Corridor Areas
Province 2005 2006 2007Tay Ninh Province 369,865 355,780 364,887
From Viet Nam 366,117 352,593 361,641
From other countries 3,748 3,187 3,246
Ho Chi Minh City 2,840,000 3,301,000 3,350,000
From Viet Nam 1,468,000 1,684,000 1,709,000
From other countries 1,372,000 1,617,000 1,641,000
Dong Nai Province 296,427 346,811 546,295
From Viet Nam 280,877 329,706 529,217
From other countries 15,550 17,105 17,078
Ba Ria–Vung Tau Province 1,093,700 1,816,600 1,889,300
From Viet Nam 1,017,100 1,724,700 1,794,600
From other countries 76,600 91,900 94,700
Gia Lai Province 291,700 335,400 420,900
From Viet Nam 287,600 331,200 416,400
From other countries 4,100 4,200 4,500
Binh Dinh Province 347,600 386,500 432,800
From Viet Nam 323,600 352,000 394,200
From other countries 24,000 34,500 38,600
Kien Giang Province 420,000 505,900 601,100
From Viet Nam 381,200 441,300 527,800
From other countries 38,800 64,600 73,300
Ca Mau Province 451,400 529,300 532,000
From Viet Nam 446,200 519,700 521,000
From other countries 5,100 9,600 11,000
Source: Statistical Yearbook 2007 of relevant provinces.
Appendix A: Basic Information on the Southern Economic Corridor National Components 139
Table A62: Number of Telephone Subscribers (as of 31 December)
Area 2000 2003 2004 2005 2006 2007Subcorridor 1 901,100 1,661,800 1,891,700 2,362,500 2,655,000 3,205,600
Tay Ninh 33,300 71,500 88,900 226,900 124,700 158,700
Ho Chi Minh City 699,800 1,228,000 1,333,100 1,606,000 1,992,800 2,385,600
Dong Nai 108,200 243,400 283,000 379,300 337,200 418,100
Ba Ria–Vung Tau 59,800 118,900 186,700 150,300 200,300 243,200
Subcorridor 2 59,000 117,300 141,900 178,900 241,700 329,500
Gia Lai 22,600 47,400 60,600 77,700 101,100 163,900
Binh Dinh 36,400 69,900 81,300 101,200 140,600 165,600
Subcorridor 3 73,400 173,900 226,900 314,700 285,200 527,500
Kien Giang 43,900 93,700 113,100 177,000 175,600 385,300
Ca Mau 29,500 80,200 113,800 137,700 109,600 142,200
Total 1,033,500 1,953,000 2,260,500 2,856,100 3,181,900 4,062,600
Subscribers per 100 people
Total 7.2 13.0 14.8 18.3 19.9 24.9
Subcorridor 1 9.9 17.3 19.2 23.5 25.7 30.2
Subcorridor 2 2.4 4.5 5.4 6.7 8.9 12.0
Subcorridor 3 2.7 6.2 8.0 10.9 9.8 17.9
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2006).
Appendix B
Key Goals of National Development Plans and the Role of Southern Economic Corridor Development
Cambodia
Lao People’s Democratic
Republic Thailand Viet NamNational Strategic Development Plan 2006–2010
Sixth National Socioeconomic Development Plan
Tenth National Economic and Social Development Plan
Socioeconomic Development Plan 2006–2010
�� Good governance�� Integration of
country into the region and the world
�� Enhancement of agriculture
�� Infrastructure development
�� Job creation and private sector development
�� Capacity building and human resource development
�� Enhancement of export competitiveness
�� Trade facilitation�� Improvement
of business environment
�� Capacity building�� Increased trade
opportunities for the poor
�� Human and social development
�� Increased competitiveness
�� Infrastructure development
�� Environmental sustainability
�� Good governance
�� Acceleration of country’s regional and international integration
�� Poverty reduction
�� Balanced regional growth
�� Environmental sustainability
Contribution of Southern Economic Corridor Development�� Strengthening physical infrastructure and connectivity to enhance competitiveness,
facilitate regional and international integration, spread economic benefits, and reduce poverty
�� Promoting and facilitating trade and investment in agriculture, agro-industry, manufacturing, tourism, and logistics to help in job creation, poverty reduction, and private sector development
�� Addressing social and environmental concerns, including capacity building and human resource development, environmental sustainability, and mitigation of potential negative social and environmental effects
�� Enhancing private sector participation to increase investment and employment opportunities and to promote improvement of business environment
Appendix C
Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development
Greater Mekong Subregion Institutions
The proposed institutional arrangements and mechanisms for implementing the strategy and action plan (SAP) for Southern Economic Corridor (SEC) development proposes to utilize to the fullest extent possible the existing Greater Mekong
Subregion (GMS) institutional framework, which includes the leaders summit, the ministerial conference, the senior officials’ meeting, and GMS forums and working groups. In June 2009, GMS countries established the Economic Corridors Forum (ECF) to help accelerate the transformation of transport into economic corridors. Besides focal GMS bodies, several GMS mechanisms also have been established to support the implementation of priority GMS programs and projects. The key tasks of these institutions in promoting SEC development are summarized below.
All GMS organizational bodies are responsible to GMS leaders. GMS summits are held once every 3 years. The ministerial conferences are held yearly, except during years when there is a GMS summit. The senior officials’ meetings are held twice yearly. The sectoral forums and working groups, which meet at least once a year, include the Subregional Investment Working Group, the Subregional Telecommunications Forum, the Subregional Trade Facilitation Working Group, the Subregional Transport Forum, the Tourism Working Group, the Working Group on Agriculture, the Working Group on Environment, and the Working Group on Human Resource Development.
Leaders Summit
Sets vision and major directions for the GMS Program and its components, including SEC development.
Ministerial Conference
�� <�������������<|���������������� ��"
�� ������������������������������������������������������ ��� �������of the SAP for SEC development.
�� �������������������<|>������������������ ��� ����������������^������high-level resolution and other related matters brought to its attention.
142 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Senior Officials’ Meeting
�� ������������������������� ����������������������������������������implementation of the SAP for SEC development.
�� <��� �� �<|>�������� ������ ��� � ��� ������� ������� �� ����� ��� ����authority to decide.
�� ���������������������������� ���������������������<|>��������������or implementation issues requiring action from higher authorities.
�� ������������������ �����?����������\��� �&�?���\'� ������ ����������private sector participation in SEC development.
Greater Mekong Subregion Forums and Working Groups
�� \������������������������������������������� ���������������������������specific focus on the SEC in their respective sectors and areas of concern.
�� ��������������� ��� �������������������������&����������������������plan for SEC development) in their respective sectors and areas of concern.
�� |������������������������������ � ��� ������������������������� ��������respective sectors and areas of concern.
�� \����������������������������������������������������� ��� ����������SEC initiatives in their respective sectors and areas of concern.
�� ����������������������?���\������� ������������������������������������in SEC development.
Greater Mekong Subregion Secretariat
�� *������������������ ������������������������������������ ����������other concerned GMS institutions on matters involving SEC development.
�� |�������� �������� ����������� �������� ��� �?�� ������� ��� �����������performing functions related to SEC development.
�� �� ������ �������� ��� ��������� �������� �� �<|� � ��� ������� ����submission to the senior officials’ meeting, the ministers’ meeting, and the ECF (proposed below).
�� *��������������������������~������������������������������������matters involving SEC development.
National Coordinators
�� \����������������������>����������������������������������� ��"
�� ?�����������������������<|�� ��� ��������������������� ��� �������issues in coordination with GMS secretariat in their respective areas.
Appendix C: Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development 143
�� \����������>������������������ ������������������� ����������and institutions involved in SEC development.
�� ����������>�������������������~������������������������������������matters involving SEC development, including national and local chambers of commerce and industry.
Greater Mekong Subregion Business Forum
�� \������������������������������������ ����������������������}������in SEC countries and represents them in GMS deliberations involving SEC matters.
�� |�� ������� �������������������������� ������̀ �������������� ��Corridor (NSEC) development areas.
�� <�������� ��������� ������������ ����� ��� ��� ���������� ������� ���private sector investment in SEC areas.
�� ��������� ���� ������������ ��� �������� ������������� �� ���� ������ ���dissemination of same.
�� �� �������������� �������������� ���� ����������������������������organizations and entities.
Economic Corridors Forum (see Section II)
�� �������������� ����������������� ����������� ����������������� ���in GMS.
�� ������� ������������ � ��� ������ ����� �?�� ��� �� ��������� ���among GMS forums and working groups.
Governors Forum (see Section III)
�� !�������� ������ ���� ��\� ��� ������ ���������� ������� ������������� ���secure commitment of the governors or their equivalent in the provinces along the SEC and other GMS economic corridors.
�� |�� ����� �������� ������ ������������ �� ����>������� ���������� ����� ����economic corridors.
Supporting Mechanisms
�� ��������� ����������������������The development partners meeting brings together about 60 participating development partners covering bilateral and multilateral organizations and the private sector to provide a venue for dialogue with GMS countries and the Asian Development Bank (ADB) on the GMS program. The objective is to identify complementarities and potential areas of convergence and greater collaboration among the development partners in the subregion, including areas and initiatives under the GMS program, in which the private sector can actively participate.
144 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
�� �������� ���������� ������������ �� ������� This committee is charged with liaising with officials at border checkpoints to (i) implement the cross-border transport agreement (CBTA), (ii) monitor and evaluate CBTA implementation, (iii) involve the private sector in integrating provisions of the CBTA into logistics operations, and (iv) incorporate the CBTA into the national legal and regulatory framework of each country.
�� ������� ������ � ������������� �!!����� This office, located in Bangkok, Thailand, was established to coordinate sustainable, community-based tourism development projects in GMS, in line with the United Nations Millennium Development Goals, and promote GMS as a single travel and tourism destination.
�� "����� �����������������������This center was established in early 2006 to serve as the information and knowledge clearing house for environmental management in GMS and is responsible for the timely and effective implementation of the GMS Core Environment Program. The Environment Operations Center also serves as the secretariat of the GMS Working Group on Environment. Its tasks in this capacity include organizing working group meetings, coordinating working group activities, and reporting to the working group on the progress of various Core Environment Program activities.
�� ���� �����#�� ���������� &������������ This association was proposed to mainstream the participation of the private sector in the implementation of the CBTA. As an independent, private sector organization, the association is expected to facilitate the implementation of CBTA initiatives by providing practical services such as accrediting and certifying transport and logistics companies, operating express lanes for its members at border checkpoints, matching foreign investments with local enterprises, assisting firms in load balancing, and disseminating information.
Terms of Reference of the Economic Corridors Forum
Introduction
Pursuant to Article 4 of the Memorandum Toward Sustainable and Balanced Development of the Greater Mekong Subregion North–South Economic Corridor and Enhanced Organizational Effectiveness for Developing Economic Corridors signed by the GMS ministers on 31 March 2008 in Vientiane, Lao People’s Democratic Republic, an Economic Corridors Forum (ECF) is hereby established within the GMS organizational framework. The detailed terms of reference of the ECF are set forth below.
Role and Tasks
The ECF shall serve as the main advocate and promoter of economic corridors in GMS. It shall raise the profile and increase awareness of the needs and priorities of GMS economic corridor development, and enhance collaboration among areas
Appendix C: Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development 145
along GMS economic corridors and among GMS forums and working groups. It shall promote coordination, networking, and facilitation of initiatives to develop economic corridors. More specifically, the ECF shall
�� �������� �� ������� � ���� ����������� ���������� � ��� ������ ��the East–West Economic Corridor (EWEC), the North–South Economic Corridor (NSEC), and the SEC, and among GMS forums and working groups;
�� ������ ��� �� ����� ���� ��������� ��� ������� ��� ���� ����� ��� ������among central and local officials, businesspeople, and international agencies on strategies, approaches, programs, and projects to accelerate economic corridor development;
�� ���������� ������ ����������� ������������ ��� ����������� �� ������� ���transport corridors into economic corridors;
�� ������� ���� � ��� ������� ��� ����������� ��� ����� ����� ���� ��� ��corridor development, identify gaps in implementing such strategies and action plans, and propose actions to resolve implementation issues;
�� ����� ������� ���� ������ ��� ��� ����� ������������ ��� � ��������encourage and support the Governors Forum, and expand the participation of the private sector in economic corridor development;
�� ���������������������������������������������������������������������������central level; and
�� ��������� �����}������������������������������������ ����������development.
Status
The ECF shall be a standing body dealing with economic corridor development within the GMS organizational framework. It shall recommend measures to the GMS ministerial conference to promote economic corridor development. The GMS ministerial conference shall remain as the highest decision-making and coordinating body under the GMS Economic Cooperation Program, next to the leaders summit. Initiatives and measures discussed during ECF meetings shall be considered by the GMS ministerial meeting, senior officials’ meeting, and forums and working groups, with appropriate actions being taken by the concerned ministry or agency in the GMS countries in accordance with agreements reached among them.
Participation, Organization, and Chair
Participants in ECF meetings shall consist of (i) representatives of central government agencies; (ii) representatives of local governments and communities, particularly from the border provinces; (iii) representatives of the private sector, including those from the GMS–BF; and (iv) representatives of ADB and other international organizations. A task force meeting shall be convened prior to an ECF meeting to prepare the meeting’s theme, agenda, and program in line with the SAPs for the economic corridors.
146 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
A Governors Forum, which shall be a mechanism for coordination among governors of the provinces along GMS economic corridors, shall be constituted within the ECF.
The chair of the ECF shall come from the country hosting the ECF meeting; a cochair and vice-chair shall be designated, with the cochair being a nominee of ADB and the vice-chair coming from the host of the next ECF meeting. Meetings of the ECF shall be held at the ministerial level. The minister participating in ECF meetings may be the GMS minister and/or some other minister, depending on the agenda of the meeting, with the specific arrangements being made through GMS national coordinators.
Frequency of Meetings
The ECF shall meet every year or as and when required by the circumstances.
Venue of Meetings
The first meeting of the ECF shall be held in Kunming, Yunnan Province, People’s Republic of China. Venue of subsequent meetings shall be rotated among GMS countries or as agreed to by GMS countries.
Work Program and Secretariat Support
The ECF shall prepare its own work program and schedule to achieve its objectives.
ADB shall provide the necessary secretariat support to the ECF and work closely with the national coordinators of GMS countries for this purpose. Such support shall include assistance in coordinating and arranging meetings of the ECF.
Financing
Financing of ECF meetings shall be borne by the host country and/or province, to the extent possible. The host country may request that ADB and other international organizations provide necessary technical, administrative, and logistical support to ECF meetings in cases where local expertise and resources are limited.
Reporting
The ECF shall report its proceedings to the ministerial conference through the senior officials’ meeting. As secretariat of the ECF, ADB will post a summary of ECF meetings and activities on its GMS web page.
Review
The ECF terms of reference shall be reviewed periodically. If deemed necessary, amendments may be made in the terms of reference to make the ECF more effective in achieving its objectives.
Appendix C: Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development 147
Terms of Reference of the Governors Forum
Introduction
A Governors Forum shall be established within the ECF. The detailed terms of reference of the Governors Forum are set forth below.
Purpose and Tasks
The Governors Forum shall complement the ECF in the promotion of economic corridor development in GMS. Its main purpose is to raise awareness, increase participation, and secure the commitment of the governors (or their equivalent) of the provinces along GMS economic corridors to the development of economic corridors in GMS. The Governors Forum shall be a mechanism for facilitating cooperation among said officials in the pursuit of economic corridor development. More specifically, the Governors Forum shall
�� ����������������� ��������������� ����������������&����������^�������'�of the provinces along the EWEC, the NSEC, and the SEC;
�� ������ ��� �� ����� ���� �~����� ��� ���� ����� ��� ������� ��� �~�������on strategies, approaches, and measures to promote economic corridor development;
�� �������������������������������������� ��������� ��������������discuss possible ways and means of addressing such issues and concerns;
�� ���������������������������������������������������������� ��� �������of strategies and action plans for economic corridor development;
�� �����������������������������\����������������������������������������level;
�� ��������������������������������������� ��� ������������������>�������initiatives in respective areas;
�� ��� ������������������������������������>�������������� ������
�� ����������������������������������� �����������������?����� ��corridors to promote economic corridor development.
Status
The Governors Forum shall be a mechanism for networking and exchange of information and experience on GMS economic corridor development among governors (or their equivalent) of provinces along GMS economic corridors. It shall be constituted as a subgroup within the ECF.
Participants and Chair
The main participants in the Governors Forum shall be the governors (or their equivalent) and other concerned senior executives of provinces along the EWEC, the NSEC, and the SEC. The Governors Forum may invite to its meetings other participants,
148 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
such as those from the private sector, depending on the program and agenda of such meetings.
The chair of the Governors Forum shall come from the host province. A vice-chair, who shall come from the host country of the next meeting of the Governors Forum (if this is known at the time of the meeting), may be designated.
Frequency of Meetings
Being a subgroup of the ECF, the frequency of meetings of the Governors Forum shall be the same as of the ECF. The Governors Forum could be convened a day before the meeting of the ECF meeting, with the proceedings of the Governors Forum being presented at the ECF meeting.
Venue of Meetings
The venue of the Governors Forum shall be the same as that of the ECF meetings.
Work Program and Secretariat Support
The Governors Forum, in coordination with the ECF, shall prepare its work program to achieve its objectives.
ADB shall initially provide the necessary secretariat support to the Governors Forum, together with GMS national coordinators.
Financing
Being a subgroup of the ECF, financing of meetings of the Governors Forum shall be borne by the host country and/or province, to the extent possible. The host country may request that ADB and other international organizations provide necessary assistance to the Governors Forum.
Reporting
Results of deliberations of the Governors Forum shall be transmitted to the ECF.
Review
The Governors Forum terms of reference shall be reviewed periodically. If deemed necessary, amendments may be made in the terms of reference to make the forum more effective in achieving its objectives.
Appendix D
Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan
Program/Project
Cost estimate ($ million) Status/Remarks
1.1 Transport
1.1.1 Roads
Central Subcorridor
�� � ����� ������|�� �|���`���� Loueng Road and construction of Mekong bridge at Neak Loueng
165.0 Funding from Government of Japan under discussion
�� ����{�������#����~�������� 679.0 Potential investors being sought
Northern Subcorridor
�� ������������������������ ������ Preah Vihear–Stung Treng Section (Road No. 66)
Not available Funding being sought
�� � ����� ���������������#���� Rattanakiri Section (Road No. 66)
Not available Funding from the Cambodia and Viet Nam governments
�� �������������������� ������&� '���� class 4 to class 3 road from Cambodia –Viet Nam border at Pleiku to Quy Nhon
120.0 Funding from Government of Viet Nam
Southern Coastal Subcorridor
�� ��������������������� ��������� No. 33 in Cambodia to border with Viet Nam, and 93.6 km of national highways 80 and 63, including construction of two bridges across Cai Be and Cai Lon rivers (Phase I)
227.4 Funding from the Asian Development Bank (ADB), governments of Australia and the Republic of Korea, and host governments
�� �~������������������`� ������� under Phase I to Ca Mau City, Nam Can, and Ca Mau Cape (Phase II)
140.0 In ADB pipeline for 2009–2011; cofinancing being sought
�� ���������|��� �������� � Sa Kaeo section from two-lane to four-lane divided highway
130.0 To be funded by ADB and Government of Thailand on 50–50 basis, subject to loan approval. Included in ADB pipeline for 2009
continued on next page
150 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Program/Project
Cost estimate ($ million) Status/Remarks
1.1.2 Rail
�� ������������������������������� Cambodia (600 km for rehabilitation; 48 km for reconstruction)
73.0 Funding from ADB, OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development, governments of Cambodia and Malaysia
�� ���������������������������� � Phnom Penh to Viet Nam border at Loc Ninh (254 km) and from Loc Ninh to Ho Chi Minh City (129 km)
75.0 (Viet Nam)
Not available (Cambodia)
Financing sources to be identified
1.1.3 Water transport
�� ������������������������� improvements on the Mekong River and for access to the port in Siem Reap; development of intermodal terminal at Khone Falls
To be determined
Funding from Japan Bank for International Cooperation
�� ����#��������������������� Not available Funding from Government of Thailand
�� *�� ���������|���������������� of C and D container terminals
Not available
1.1.4 Air transport
�� �������������~��������� Sihanoukville Airport
To be determined
�� ������������������������������� Treng airports in Cambodia
6.0 Part of ADB-funded Mekong Tourism Development Project (loan of $15.6 million to Cambodia covering four components)
1.2 Power
�� #��� ��������������>���������&��' link between Kampot and Sihanoukville
52.4 Funding from ADB and Japan Bank for International Cooperation
�� #��� ������������������������� � Tay Ninh in Viet Nam to Kompongcham and Kratie in Cambodia, including two 115 kV power stations
Not available Possible funding from the World Bank and Electricité du Cambodge
�� #��� ������������������������� � Ban Hat in the Lao People’s Democratic Republic (PDR) to Stung Treng in Cambodia
Not available Possible financing from the World Bank, Electricité du Cambodge, and Electricité du Lao
�� \�������������������������������� Nhon Trach 4 Combined Cycle Power Project (720 megawatts [MW])
450.0 Financing being sought
Appendix D: continued
continued on next page
Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 151
Program/Project
Cost estimate ($ million) Status/Remarks
�� ����|������{����������|������ (200 MW), including 220 kV transmission line to Stung Treng and Viet Nam border where it interconnects with Viet Nam grid
400.0 Financing being sought
1.3 Telecommunications
�� ��������?�������������� (GMS) Information Superhighway Network Phase 2, Thailand– Cambodia component: expansion of fiber-optic network at Aranyaprathet–Poipet border checkpoint from 12- to 24-core
10.0 Funding from Government of Thailand; estimate for the Cambodia–Thailand component
1.4 Border facilities
Central Subcorridor
�� �~���������� ����� ������ border facilities at the Aranyaprathet–Poipet crossing between Cambodia and Thailand and in the Bavet–Moc Bai crossing between Cambodia and Thailand
35.0 To be funded partly from proposed Corridor Town Development projects I and II, in ADB pipeline for 2011 and 2012, respectively. Cost indicated is net of assumed cost of water and sanitation
Intercorridor link
�� �������������������>������� facilities at Na Nuk Kien (Lao PDR)– Tra Piy Kan (Cambodia), linking National Road No. 7 in Cambodia to National Road No. 13 in the Lao PDR
Not available Ongoing
2.1 Trade and transport facilitation
�� � ��� ������������������������ of the cross-border transport agreement, especially facilitation of exchange of traffic rights and modernization of border management (includes information dissemination; simplification, harmonization, and rationalization of forms and procedures; border- crossing facility improvements)
5.0 For all economic corridors
�� #������������������������� implementing cross-border transport agreement and trade facilitation initiatives
2.5 For all economic corridors
�� ����� ��������������������������> window inspection, risk management, use of information technology, and handling of transit trade
3.0 For all economic corridors
Appendix D: continued
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152 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Program/Project
Cost estimate ($ million) Status/Remarks
�� � ����� ������������������������ phytosanitary requirements in GMS cross-border trade (Cambodia, the Lao PDR, and Viet Nam)
0.8 Project preparation for all economic corridors; ADB pipeline includes the Improved Sanitary–Phytosanitary Handling in GMS Cross-Border Trade project, in 2011 (loan/grant of $15 million each for Cambodia and the Lao PDR, and $30 million for Viet Nam)
�� �������������� ������������ markets or distribution centers in major border areas to facilitate and support trading activities
To be determined
�� <����������� ����������������� arrangements for financial settlement covering cross border trade in the North–South Economic Corridor
To be determined
�� ��������� ������������� ��������� regular monitoring and reporting of cross-border trade in the Southern Economic Corridor (SEC)
0.05 Source to be determined
2.2 Investment promotion
2.2.1 SEC-wide investment promotion and facilitation
�� ������������������ ������� �� within SEC countries and road shows in major foreign business centers
0.10 Source to be determined
�� !����}����������������� ������ trade fairs
0.10 Source to be determined
�� ����� ������������� ������������ procedures in SEC areas
0.10 Source to be determined
2.2.2 Business information
�� �� �������������������������� ��� policies and regulations, including procedures for investment approval in SEC areas
0.05 Source to be determined
�� |���������������������������� business opportunities in SEC areas
0.05 Source to be determined
�� |��������������������������� directory, providing names and addresses of manufacturers, traders, tourist operators, and service providers in SEC areas together with the products and services they offer
0.05 Source to be determined
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Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 153
Program/Project
Cost estimate ($ million) Status/Remarks
�� ������� �������������������� providing basic information on the SEC with hyperlinks to GMS and GMS Business Forum websites
0.025 Source to be determined
2.2.3 Promotion of investment in priority sectors/subsectors
Agriculture
�� ��������|����������������������� Energy for Cambodia, the Lao PDR, and Viet Nam
50.0 Included in ADB’s pipeline for 2010; project preparatory technical assistance (PPTA) approved in 2008
�� |�� ���������������������������> border contract farming
0.1 Source to be determined
�� |��������������^�������� ����� ��� of cash crops (castor bean, maize, potato, sesame, soybean) in selected SEC provinces (Battambang, Kampot, Koh Kong, Pursat)
Not available Ayeyawaddy–Chao Phraya–Mekong Economic Cooperation Strategy project
Logistics
�� #���������������������������� development project
0.8 Project preparation for all economic corridors; project included in ADB’s indicative pipeline for 2011 ($63 million)
�� ��������� ���������?����������� information platform
0.05 Source to be determined
�� ����������� ������������ ���� the logistics industry in the SEC
0.05 Source to be determined
�� �������������������������� investment in the logistics industry in SEC countries
0.05 Source to be determined
�� ��������� ���������?��\������� Transport Association
0.1 Source to be determined
Tourism
�� ����������� ���� �������� marketing program focusing on SEC tourist destinations
5.0 Mekong Tourism Coordination Office and other sources
�� |�� ������������� ������� improve existing and develop new tourist destinations and facilities in SEC areas, including hotels, rest areas, and tourism information centers
47.1 Funded under ongoing ADB loan
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154 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Program/Project
Cost estimate ($ million) Status/Remarks
�� ����������������� ����� ��� of access roads to major tourist destinations in SEC areas
10.0 Proposed under ADB loan/grant pipeline in 2009
�� � ��� ����������������������� on single GMS visa scheme between Cambodia and Thailand
5.0 Ayeyawaddy–Chao Phraya–Mekong Economic Cooperation Strategy project
�� ?�����#����� �������� ��� Project covering Cambodia, the Lao PDR, and Viet Nam
14.9 Funded under ongoing ADB project
�� �����������#����� �������� ��� Project (Cambodia, the Lao PDR, and Viet Nam)
23.0 Funded under ongoing ADB project
�� ������� ������������ ������ Triangle” Tourism Zone (Cambodia, the Lao PDR, and Thailand)
10.6 Funding requested from United Nations Development Programme/World Trade Organization
�� ������� ������������ ���� infrastructure along the Southern Coastal Subcorridor and Sihanoukville
80.0 Koh Kong, $62.8 million; Sihanoukville, $17.2 million; financing being sought
�� #����� �������� ��������������� Triangle” (Cambodia–Lao PDR– Viet Nam Development Triangle)
Not available Partially supported by ongoing ADB-funded Mekong Tourism Development Project
Special economic zones and industrial clusters
�� ��������� ���������������� �� zones in border areas, and joint development of border economic zones
91.2 For Poipet ($91.2m); financing being sought
�� � ������������������ management, and marketing of existing and planned industrial estates and special economic zones in the SEC
0.1 Source to be determined
�� |�� �������������������������� along the SEC (e.g., agro-industry or resource-based production zones in selected areas in the SEC involving linkages in production, processing, and marketing)
0.1 Source to be determined
�� ������������������������������������ cross-border supply chains involving agriculture and small and medium- sized enterprises in SEC areas
0.1 Source to be determined
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Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 155
Program/Project
Cost estimate ($ million) Status/Remarks
3.1 Environmental Concerns
�� �������������� ����������� ��� of the SEC
0.5 Source to be determined
�� ������������������������������ environmental assessment, Biodiversity Conservation Initiative, and Environmental Performance Assessment, including cumulative impact assessment and spatial planning in the SEC
0.5 Ongoing under Environment Operations Center
�� �?�������������������������� Corridor Initiative, Phase II (Cambodia, the Lao PDR, Thailand, and Viet Nam)
17.0 Included in ADB’s pipeline for nonlending services for 2011
�� �?�������������������������� Corridors for Poverty Reduction and Watershed Protection (Cambodia, the Lao PDR, and Viet Nam)
130.0 Included in ADB pipeline for 2010
�� ��������� ����������� ���� change–related risks (the Lao PDR and Viet Nam)
9.9 Ongoing under Environment Operations Center
�� �?������������������������ management and mitigation (Cambodia, the Lao PDR, and Viet Nam)
130.0 Included in ADB’s pipeline for 2010
3.2 Social Concerns
�� �� ���������������������� Project (Phase I) (Cambodia, the Lao PDR, and Viet Nam)
39.7 Ongoing under ADB-funded project
�� �� ���������������������� Project (Phase II) (Cambodia, the Lao PDR, and Viet Nam)
41.5 Included in ADB pipeline for 2010
�� {���<����|��������������� Infrastructure Sector (Cambodia, the Lao PDR, and Viet Nam)
1.15 Ongoing with support from ADB and Government of Sweden
�� ?���������{���<������������ infrastructure projects in GMS economic corridors (Cambodia, the Lao PDR, and Viet Nam)
6.0 Ongoing with funding from Government of Australia
�� ������������ ��������������� safe migration concerns for women and children into regional cooperation
0.40 Assumed share of GMS in total project cost
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156 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Program/Project
Cost estimate ($ million) Status/Remarks
�� ������� ���������� ������������� locations along GMS economic corridors
0.01 Funded under an ongoing ADB regional technical assistance (RETA 7275); assumed share of SEC countries
�� �������������������������� ������ for the mutual recognition of technical and vocational skills in GMS
0.2 Funded under an ongoing ADB RETA (7275); assumed share of SEC countries
�� � ������������� �����������?� 0.2 Funded under an ongoing ADB RETA (7275); assumed share of SEC countries
�� ����������������� ���� ��� contract for technically skilled migrant workers in GMS
0.02 Funded under an ongoing ADB RETA (7275); assumed share of SEC countries
�� #������������ ���������������� competencies; basic tourism skills; agro-industry management, including marketing; and small and medium-sized enterprise management and financing
To be determined
�� ����������������� �� ��� vocational training institutes in SEC areas, including conduct of exchange programs
To be determined
�� ������������������������� (Cambodia, the Lao PDR, and Viet Nam)
25.0 Subsumed under the proposed GMS Corridor Towns Development projects I and II in ADB loan pipeline for 2011 and 2012, respectively
4.1 Private Sector Participation and Public–Private Sector Collaboration
�� |�� ������������������� ��� provincial chambers of commerce and industry in the SEC, initially among those in the border provinces
0.1 Source to be determined
�� ��������� ������ ����� ������ interaction, exchange of information, and coordination between the public and private sectors on SEC issues and concerns
0.1 Source to be determined
�� |�� ������� ����������������� support for small and medium-sized enterprises in SEC areas
0.3 Study and piloting. Source to be determined
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Program/Project
Cost estimate ($ million) Status/Remarks
�� ��������� ���������?��� ������� medium-sized enterprise development fund
0.3 Study only; source of small and medium-sized enterprise fund to be determined
�� |�� ���������������������� partnerships in the development of transport and other infrastructure in the SEC areas
0.1 Source to be determined
�� |��������������� ������������ private sector on possible sources of financing for commercial and infrastructure projects
0.1 Source to be determined
Appendix D: continued
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Web Resources
www.adb.orgwww.adb.org/gmswww.aseansec.orgwww.exploremekong.orgwww.gms-ain.orgwww.gmsbizforum.comwww.gms-eoc.orgwww.gmslogistics.orgwww.mekongtourism.orgwww.visit-mekong.com
Sharing Growth and Prosperity: Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
The Southern Economic Corridor (SEC), one of the priority economic corridors under the Greater Mekong Subregion (GMS) Economic Cooperation Program, was designated as a GMS flagship initiative in 2002. Efforts have been taken since then to develop SEC but these were pursued mainly on a project-by-project basis. A series of consultations in SEC countries were conducted from the third quarter of 2008 to initiate a holistic approach to the development of SEC. The strategy and action plan for SEC is the product of these and subsequent consultations with government officials, representatives of the private sector, and other stakeholders in these countries. Besides providing a vision and framework for developing SEC, this strategy and action plan is aimed at improving coordination, ensuring effective implementation, and helping the mobilization of resources and the broadening of support for SEC development. The second GMS Economic Corridors Forum which was held in Phnom Penh, Cambodia on 17 September 2009 discussed and generally agreed with the directions set forth in this strategy and action plan for SEC development.
About the Asian Development Bank
ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.
Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
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