GMS- EAST WEST CORRIDOR “CHALLENGE AND OBSTRACLE”

Arranged by Mrs. Tui Pakarat-RuttenVice President of TBCC & Managing Director of Intra Co

Ltd.On 08 Oct 2015

H/P: +66 81 839 2452 /+855 16 912 832E-mail: manager@intra-mekong.com

Contents 1. GMS

2. GMS Corridors

3. GMS CBTA

4. East West Corridor

5. Myanmar Profile

6. Myanmar SEZ

7. Cambodia Profile

8. Cambodia SEZ

9. Thailand SEZ Policies at the border

10. Economic Corridors and Thailand -

Plus - One

1.GMS-GREATER MEKONG SUB-REGION

Overview of the Greater Mekong Sub-region

In 1992, with assistance from ADB, the six countries entered into a program of sub-regional economic cooperation, designed to enhance economic relations among the countries.

The Greater Mekong Sub-region (GMS) is a natural economic area bound together by the Mekong River, covering 2.6 million square kilometers and  a combined population of around 326 million.

2. GMS CORRIDORS

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GMS Corridors

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All GMS Corridors

3. GMS CBTA

GMS - CBTA

• What is GMS – CBTA

History : Start from 26th November, 1999Thailand - Lao PDR - Vietnam (Tripatite Agreement)Under Grater Mekong Subregion Economic Cooperation(GMS-EC) to facilitate cross border of Goods transportand people

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GMS - CBTA

6th Transport Working Group Meeting of GMSAgreed to have additional GMS’s members to

join in this Tripartite AgreementYear 2001 – CambodiaYear 2002 – China Year 2003 – Myanmar This became Greater Mekong Subregion Cross-

border Transport Agreement ( GMS.CBTA )

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Objective of CBTA

• - Facilitate Transport of Goods and People among members.

• - Simplified and Harmonized Laws , rules regulation related to transport of goods and people

• - To promote Multimodal Transport

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Starting up GMS CBTA

Customs Transit and Temporary Admissionsystem or CTS has been implemented on 11th June 2009 Objective: to transport without transloading

from origin to destinationFirst Thai Truck to Vietnam and First Vietnam to

Thailand

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5 Elements of GMS CBTA - EWEC

• 1. Traffic Rights Exchange • 2. Customs In-transit Guarantee and temporary import• 3. Guarantee Organization • 4. SSI and SWI• 5. CBTA Fast Track

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GMS Connectivity

Road Transport Network

1992

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GMS Connectivity

Road Transport Network

2006

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GMS Connectivity

Road Transport Network

2015

4. EAST WEST CORRIDOR

GMS-EWEC GMS-EWEC objectives:(1) to enhance connectivity of the corridor areas by reducing cross-border transactions and transportation costs

(2) to increase competitiveness through economies of scale offered by cross-border investments that based on value-adding processes and take advantage of the comparative advantages of different areas within the corridor

(3) to empower the private sector by promoting joint financial, technological, marketing, production, and other collaborations in the EWEC areas

(4) to reduce poverty, support development of rural and border areas, and increase the earnings and provide employment to the low-income groups.

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LAO: East-West Corridor (Phin-Dene Savanh)

VIE: East-West Corridor (Lao Bao-Dong Ha)

JBIC-assisted 2nd Mekong International Bridge

JBIC-assisted Hai Van Tunnel Construction and Da Nang Port Improvement

With assistance from the Royal Thai Government

EWEC Complementary Corridors and Routes

Challenges 

The differences in procedures, regulations and laws between the countries in the corridorSlow changes in administrative reform and protection of domestic marketsLack of effective institutional coordination 

DA NANG PORT

5. Myanmar Profile

Myanmar Profile

• 51.25 Million(2014)

Population

• 676578 km2

• 936 km (East – West)

• 2051 km ( North – South)

Area

• 1423956 km (2011)

Road Length

• 2476672 ( June 2012)Number of registered vehicles

• Bangladesh, India, China, Laos, Thailand

Neighboring Countries

6. Myanmar SEZ

DAWEI SEZ

KYAUk PHYU SEZ

THI LA WAR SEZ

18Existing IZYangon(4)MandalayMeikthilarMyingyan

YenangyaingPakokkuMonywa

PyayPathein

MyangmyaHinthada

MawlamyaingMyeik

TaunggyiKalay

7 NEW IZYadanarbon(MDY)

Tart Kon (NPD)Nan oonPa han

MyawadiThree pagodaPon nar island

DAWEI

KYAUKPYU

There are potential areas to develop Deep Sea

Ports at the following areas -

Kyaukpyu Deep Sea Port at Rakhine State

in the West Coast.

Kalagauk Deep Sea Port between

Mawlamyine and Ye Region at in the South

Coast.

Dawei Special Economic Zone together

with Deep Sea Port at Tanintharyi

Region in the South Coast.

DEEP SEA PORT PROJECTS IN MYANMAR

KALAGAUK

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SEZ WILLPLAY IMPORTANT ROLE IN NEAR FUTURE

SEZ PROGRAM

To attract large number of FDI

Oil & Gas pipeline

heavy industries & agro forestry processing

Kyaukphyu SEZ

Labor intensive export oriented industries

Domestics market oriented industries

Thiliwa SEZ

Gate way to Mekong region

Dawei SEZ

THILIWA SEZ ZONE CURRENT STATUS (2014)

Dawei Deep Sea Port, Industrial Estate and Myanmar-Thai Road and Railways

Kyaukphyu SEZs Project

Myanmar –China Pipeline (Ongoing)

Crude Pipeline (32”) in Myanmar side - 747 km

Gas Pipeline (40”) in Myanmar side - 769 km

7.CAMBODIA PROFILE

CAMBODIA PROFILE

Land area : 181,035 sq.km.

Population: 16.9 Million

Labor force (young) : 7,053,398 (Female: 3,608,345)

Population growth rate : 1.54%

GDP (2015) : 7.3%

GDP per capita in 2014 : $1,108

Inflation (2015) : 1.6%

Exchange rate: USD1= 4053 Riel

8. Cambodia SEZ

Cambodia SEZ

• Special economic zones were formally introduced in Cambodia in 2005. There are currently 30 approved SEZs. The authority responsible for Cambodia’s SEZs is the Cambodia Special Economic Zone Board (CSEZB), which operates under the umbrella of the Council for the Development of Cambodia (CDC)

• Sub-decree on the Establishment and Management of SEZs

was adopted in December 2005.

• 22 SEZs have been authorized and are being developed by

private investors/operators. Five SEZs are currently in operation,

the remainders are in various stages of development.

• Reasons for operation within a SEZ:

• Better infrastructure

• One Stop Services/SEZ Zone Administration

• Recent data suggest that the pace of investment in the zones is

accelerating.

• Draft of SEZ Law under completion

SEZ : Diversification Policy

www.intra-mekong.com

Cambodia’s Special Economic Zones

No Activities

Under Construction

Operational Kampot SEZSihanoukville Port SEZ

REGIONAL 123 ROAD (Special Economic Zone-SEZ)

Cham YeamCam-Thai Border

Lork Prek Chak Cam-VN Border

Koh Kong

KampotVeal Renh

Lork

Sre Ambel

RN48=151 km Sre Ambel-Koh Kong section:Thai Loan For Road and Grant for four long bridge completed 2008

RN3=65 km Kampot-Veal Renh section : World Bank and Korea Loan completed 2004 and 2007

RN33=53 km Kampot-Lork section : ADB and Korea Loan expected completed in 2014 and section 16 km ADB section completed 2013

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Zone Area (ha) Category of Business

Industrial Park 140 Export processing manufacturers : about 40~50 factories

Commercial Zone 1.2 Supermarket, shop, bank., business development center, etc.

Residential Zone 1.2 Serviced Apartments

Public Zone 0.6 School, clinic, hospital, etc.

Total 143

Ratio of Zoning in Industrial Park

Basic Zoning Concept

Phnom Penh Port: Special Economic Zone

9. THAILAND SEZ POLICY AT THE BORDER

Thailand SEZ Policy at the border

Kingdom of Cambodia

Kingdom of Thailand Cross Border Location

MapKhlong Loeuk Poipet

Existing Border Control Facility New Border

Crossing Point

Stung Bot

Nong Ian

Phrom Hot Canal

Boundary representation is not necessarily authoritative.

การค้�าชายแดนและการใช�ประโยชน�จากเขตเศรษฐก�จพิ�เศษ

10. Economic Corridors and Thailand -Plus - One

EWEC Complementary Corridors and Routes

Challenges 

The differences in procedures, regulations and laws between the countries in the corridorSlow changes in administrative reform and protection of domestic marketsLack of effective institutional coordination 

Useful link www.investincambodia.comwww.ccb.com.khwww.tbcccambodia.org www.asean.orgwww.affalog.netwww.adb.org/GMS/Cross-Border/about.aspwww.adb.org/GMS/Economic-Corridorswww.eastasiawatch.in.thwww.unescap.org/ttdw/FFmeeting/FFForum_2010/7.pdfwww.worldbank.org/etools/tradesurvey/mode1b.asp#moreinfowww.nesdb.go.thhttp://www.tbcccambodia.org http://www.tbcccambodia.org/index.php/events http://www.tbcccambodia.org/index.php/useful-links http://www.tbcccambodia.org/index.php/commercial-affairs

THANK YOU SO MUCHFOR YOUR ATTENTION

Arranged by Mrs. Tui Pakarat-RuttenThe Vice President of TBCC

H/P: +66 81 839 2452E-mail: manager@intra-mekong.com