Sharing Growth and Prosperity
STRATEGY and ACTION PLAN
for the GREATER MEKONG SUBREGION
SOUTHERN ECONOMIC CORRIDOR
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 978-92-9092-054-0
Publication 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.
I. Asian Development Bank.
3. Southern Economic Corridor.
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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Notes:
In this paper, “$” refers to US dollars.
Figures and tables without sources are the results of the work on the Strategy
and Action Plan.
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Contents
Abbreviations
vi
Introduction
Background
Role and Objectives of the Economic Corridor Approach
Need for Strategy and Action Plan
Scope
1
1
1
3
3
The Southern Economic Corridor
Composition
Configuration
Possible Extensions
5
5
7
8
Overview of Southern Economic Corridor Areas
Population and Land Area
Natural Resources
Labor Force and Employment
Income Level and Economic Structure
Cross-Border Trade
Foreign Direct Investment
Tourism
Infrastructure
9
9
12
15
17
18
20
23
25
Development Potential and Opportunities
Overview
Comparative Advantages and Complementarities
Investment Opportunities
Opportunities for Cooperation
31
31
32
34
36
Challenges and Constraints
Impediments and Constraints
Key Challenges
40
40
42
Strategy for Southern Economic Corridor Development
Development Vision, Goals, and Objectives
Guiding Principles and Approaches
Measures to Achieve Objectives
Geographic Focus of Strategy
45
45
45
47
51
iv
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Implementing the Strategy
Action Plan
Institutional Mechanisms and Arrangements
Financing
Monitoring, Evaluating, and Updating the Strategy and Action Plan
Southern Economic Corridor Action Plan Matrix
53
53
54
55
58
60
Appendix A: Basic Information on the Southern Economic
Corridor National Components
Cambodia
Lao People’s Democratic Republic
Thailand
Viet Nam
87
87
110
118
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
Greater Mekong Subregion Institutions
Terms of Reference of the Economic Corridors Forum
Terms of Reference of the Governors Forum
141
141
144
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
Table 2: Population in the Southern Economic Corridor
Table 3: Incidence of Poverty in Southern Economic Corridor Areas
Table 4: Unemployment Rates in Southern Economic Corridor Areas
Table 5: Per Capita Gross Provincial Product in Southern Economic
Corridor Areas
Table 6: Summary of Southern Economic Corridor Action Plan
Table 7: Financing the Southern Economic Corridor Strategy and Action Plan
Table 8: Proposed Initial Set of Indicators
6
9
10
16
17
53
56
59
Figures
Figure 1: Greater Mekong Subregion Economic Corridors
Figure 2: Southern Economic Corridor
Figure 3: Population and Land Area of Southern Economic Corridor
National Components as Percentage of Total Southern
Economic Corridor
2
5
10
Contents
Figure 4: Population and Land Area of Southern Economic Corridor
National Components as Percentage of Country
Figure 5: Southern Economic Corridor Cross-Border Trade, 2007
Figure 6: Status of Southern Economic Corridor Roads
Figure 7: Southern Economic Corridor Strategy and Action Plan at a Glance
Figure 8: Border Nodes in the Southern Economic Corridor
Figure 9: Greater Mekong Subregion Organizational Framework
Figure 10: Funding Requirements of the Southern Economic Corridor
Strategy and Action Plan
11
19
26
46
52
54
56
v
Abbreviations
ADB
ASEAN
CBTA
ECF
EDC
EWEC
FDI
GDP
GMS
GMS–BF
GPP
km
km2
Lao PDR
LFPR
NSEC
PPTA
PRC
SAP
SEC
SEZ
SFAP
SPS
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Asian Development Bank
Association of Southeast Asian Nations
cross-border transport agreement
Economic Corridors Forum
Electricité du Cambodge
East–West Economic Corridor
foreign direct investment
gross domestic product
Greater Mekong Subregion
GMS Business Forum
gross provincial product
kilometer
square kilometer
Lao People’s Democratic Republic
labor force participation rate
North–South Economic Corridor
project preparatory technical assistance
People’s Republic of China
strategy and action plan
Southern Economic Corridor
special economic zone
Strategic Framework and Action Plan
sanitary–phytosanitary
Introduction
Background
T
he 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
o
o
108 00'E
98 00'E
GREATER MEKONG SUBREGION
N
0
50 100
ECONOMIC CORRIDORS
200 300
Kilometers
National Capital
City/Town
North–South
Economic Corridor
Road
River
Provincial Boundary
International Boundary
Kunming
Boundaries not necessarily authoritative.
Ruili
o
24 00'N
Muse
YUNNAN PROVINCE
PEOPLE'S REPUBLIC
OF CHINA
GUANGXI ZHUANG
AUTONOMOUS REGION
PEOPLE'S REPUBLIC OF CHINA
Hekou
o
24 00'N
Nanning
Lao Cai
Pingxiang
Lang Son
Mohan
HA NOI
Boten
Hai Phong
Tachileik
Mae Sai
MYANMAR
LAO
PEOPLE'S
DEMOCRATIC
REPUBLIC
Houayxay
Chiang Khong
NAYPYIDAW
VIET NAM
Nam Phao
VIENTIANE
Cau Treo
Nong Khai
Yangon
Mae Sot
Myawaddy
THAILAND
Dansavanh
Mukdahan
Lao Bao
Kaysone Phomvihane
Gulf of
Martaban
Chongmek
Wang Tau
East– West
Economic Corridor
BANGKOK Aranyaprathet
Poipet
Dong Kralor
Tonle Sap
Hat Lei
Veun Kham
CAMBODIA
Chan Yeam
Southern
Economic Corridor
PHNOM PENH
ANDAMAN
SEA
Gulf of Thailand
Bavet
Moc Bai
Ho Chi Minh City
o
o
10 00'N
10 00'N
o
98 00'E
Source: ADB.
o
108 00'E
Introduction
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
3
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
Central Subcorridor
Northern Subcorridor
Southern Coastal
Subcorridor
Intercorridor Link
Origin–Destination
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
Distance
944
313
502
129
520
255
156
314
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
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
1,149
230
315
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
RN5 = Route No. 5.
Source: Transport ministries of Southern Economic Corridor countries.
313
1,049
247
355
416
301
283
197
407
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
T
he 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 Nam
Central
9,227,000
–
7,374,000
10,601,000
Northern
1,882,000
–
7,374,000
2,745,000
960,000
–
9,362,000
2,946,000
6,110,000
2,386,000
–
–
All SEC provinces
11,978,000
2,386,000
9,894,000
16,292,000
Total, country
Coastal
Intercorridor
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).
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Figure 3: Population and Land Area of Southern Economic
Corridor National Components as Percentage of
Total Southern Economic Corridor (%)
90
80
70
60
(%)
10
50
40
30
20
10
0
Cambodia
Lao PDR
Viet Nam
Thailand
Land ea
Polation
Lao PDR = Lao People’s Democratic Republic.
Source: Country sources.
Table 3: Incidence of Poverty in Southern Economic Corridor
Areas (%)
Subcorridor
Lao
People’s
Democratic
Cambodia 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).
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
Overview of Southern Economic Corridor Areas 11
Figure 4: Population and Land Area of Southern
Economic Corridor National Components
as Percentage of Country (%)
90
80
70
(%)
60
50
40
30
20
10
0
Cambodia
Lao PDR
Polation
Viet Nam
Thailand
Land ea
Lao PDR = Lao People’s Democratic Republic.
Source: Country sources.
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
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 exportoriented 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 secondlargest 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 welldeveloped 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 protectedarea 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
Table 4: Unemployment Rates in Southern Economic Corridor
Areas (%)
Subcorridor
Central
Northern
Lao People’s
Democratic
Cambodia
Republic
Thailand
Viet Nam
Subcorridor
average
6.5
–
1.2
4.8
4.2
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).
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.
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 $3,400. Although SEC provinces in the four countries broadly reflect
national characteristics, there are several differences among them and between the
provinces within each national component. In terms of per capita gross provincial
product (GPP), Thailand’s provinces are easily the wealthiest part of the SEC, with a
per capita GPP of five to seven times the prevailing levels in SEC areas of Cambodia,
the Lao PDR, and Viet Nam (Table 5). Per capita income levels also vary considerably
among different provinces within the same national area. Despite these differences
in income levels, the basic economic structures in most of the three SEC areas are
broadly similar, with agriculture and agriculture-processing activities accounting for
the major part of economic output. Exceptions are the highly industrialized areas in
Thailand, such as those in Chonburi and Rayong, and in Viet Nam, such as those in
Ho Chi Minh City and Ba Ria–Vung Tau Province.
Table 5: Per Capita Gross Provincial Product in Southern
Economic Corridor Areas ($)
Subcorridor
Lao People’s
Democratic
Subcorridor
Cambodiaa Republic Thailand Viet Nam average
Central
–
–
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
–
625
522
3,400
812
–
Per capita gross
domestic product
Note: Gross domestic product and gross provincial product figures are for 2007. Statistics provided by
the respective countries (see Appendix A for details).
a
b
c
4
Gross provincial product figures are not available for Cambodia.
Excludes Khammouane and Sekong.
Uses per capita gross domestic product as a proxy for per capita gross provincial product in the
Intercorridor Link in Cambodia.
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.
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 $46.5 million in 2007, representing an annual average growth rate of 1.5%.
The Aranyaprathet border checkpoint accounted for two-thirds of the total crossborder imports to Thailand from Cambodia, and the Klong Yai border checkpoint
accounted for one-fifth. The major products imported by Thailand through the
border include corn feeds for livestock, metal wastes, ready-made clothing, soybean
grain, tapioca, and used clothing. The balance of trade has consistently been in favor
5
There are no reliable estimates of informal trade. The Ministry of Industry and Commerce of the
Lao PDR estimates informal trade to be two-thirds of total trade with Thailand and one-quarter of
total trade with Viet Nam. Other estimates place informal trade between Thailand and the Lao PDR at
between one-third and half of formal trade, and trade between Cambodia and Viet Nam at 20%–30%
of formal trade.
6
Cross-border trade covers only formal trade and is defined as trade conducted through land borders, as
contrasted to trade conducted through seaborne and airborne transport. See: C. Krainara. 2008. CrossBorder Trade and Commerce in Thailand: Policy Implications for Establishing Special Border Economic
Zones. PhD dissertation, Asian Institute of Technology, Bangkok, Thailand.
Overview of Southern Economic Corridor Areas 19
Figure 5: Southern Economic Corridor Cross-Border Trade, 2007
($ million)
THAILAND
LAO
PEOPLE’S
DEMOCRATIC
REPUBLIC
CAMBODIA
VIET NAM
Note: Data on cross-border trade between Veun Kham and Dong Kralor (Tra Pang Kriel) is not available.
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).
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 hightech 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 logisticsrelated 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
Figure 6: Status of Southern Economic Corridor Roads
104o00'E
107 o00'E
THAILAND
Ayutthaya
Upgrading completed by 2009–
ADB/Japan
Feasibility study
(realignment) completed
Siem Reap
Sisophon
Mekong River
Phanom
Sarakham
Poipet
Aranyaprathet
LAO
PEOPLE’S
DEMOCRATIC
REPUBLIC
Seeking
funding
Chonburi
Completed in
Tonle
Sap 2005
12o30'N
CAMBODIA
Upgrading of 70km section
completed by 2010–Viet Nam
Stung Treng
Completed in
2007
Sattahip
12o30'N
Gulf
of
Thailand
Patheay
Completed by
2009
Kompong Cham
Loc Ninh
Bien Long
N
In good
condition
VIET NAM
0
20
40
60
80 100
Neak Loeung
Sre Ambet
Kilometers
Moc Bai
Svay Rieng
Sihanoukville
Completed in 2008–
Thailand, WB, ROK
9o00'N
Bridge over
Mekong to be
financed by Japan
(2010-2014)
Can Tho
Vung Tau
Upgrading completed
in 2004
Upgrading completed
by 2010–ADB
Boundaries are not necessarily authoritative.
104o00'E
Bien Hoa
Ho Chi Minh City
(Saigon)
Ha Tien
National capital
City/Town
Airport
Southern economic corridor
Main road
Secondary road
Railway
River
International boundary
Bavet
Kampot
9o 00'N
Mouth of
Mekong
Ca Mau
Nam Can
107o00'E
ADB = Asian Development Bank, ROK = Republic of Korea, WB = World Bank.
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.
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
T
he 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 worldclass 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
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.
33
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
materials;
facilities.
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
training, and business services.
!
"
#
&
'"
* &
storage, and warehousing).
#
and services such as hotels, resorts, restaurants, tour operations, transport
services, rest areas, and recreational facilities.
< >
sugarcane, beans, and processed food products.
?
electrical appliances, garments, household wares, plastics, and wooden
furniture, in addition to sugar, biochemicals, and other light manufacturing
industries.
<
and cassava.
Development Potential and Opportunities
Northern Subcorridor
\
^"
&_`
'"
\
"
hotels, resorts, restaurants, tour operations, transport services, rest areas,
and recreational facilities.
< >
products such as acacia, eucalyptus, and rubber, and commercial crops such
as coffee, sugarcane, and tea.
?
"
{
"
|
"
Southern Coastal Subcorridor
\
^"
resorts, restaurants, tour operations, transport services, rest areas, and
recreational facilities.
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processed food products.
?
}
~
industries.
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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.
35
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 valueadding 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
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 crossborder 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.
37
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, valueadding 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
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.
39
40
Challenges and Constraints
Impediments and Constraints
T
he 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., capacityand 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 tradefacilitation 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
17
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
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
T
he 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
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
A dynamic and prosperous economic corridor that improes the welleing of the people in the
Southern Economic Corridor and ensures that deelopment is inclusie and sustainale
ision
Goals
Create os increase incomes reduce poerty and improe liing conditions in the corridor
ecties
Action plan
Strengthen
infrastructure and
connectiity
Promote and facilitate
trade and inestment
Address social and
enironment concerns
easures to
easures to
address missing
lins
connect rural areas
to primary
Southern Economic
Corridor roads
strengthenepand
utilities power
telecommunications
and water
improe order
facilities
facilitate and
support cross
order transport
agreement
implementation
promote inestment
in agriculture and
agroindustry
manufacturing
tourism and
logistics
promote
deelopment of
crossorder
economic ones and
industrial clusters
Social: measures to
upgrade laor sills
deal with negatie
effects and address
migration issue
Enironment:
measures to
maintain longterm
sustainaility and
address negatie
effects and climate
change
measures
illion
Guiding
principles
measures
million
measures
million
Enhance priate sector
participation
easures to
promote dialogue
increase
inolement of
chamers of
commerce
improe access to
funding
promote pulic
priate partnership
proects
measures
million
ed y priate sector
Pulic sector as catalyst and facilitator
Pragmatic and results oriented
Effectie integration of less deeloped areas
Close coordination with related framewors and initiaties
>
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.
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
20
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.
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.
{€‚ƒ<€†
"
|
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
To nan
Lao People’s
Democratic Republic
aan
aanna
To a Nan
To on an
Thailand
n am
on ao
anaa
ao
Tan
ano
To Non
o
Cambodia
on a
nom n
a
o on
o a o C n C
ano
a Tn
o
Viet Nam
To n Ta o no
a o To Nam Can
o
53
Implementing the Strategy
Action Plan
T
he 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 activity
Cost
Number of estimate
measures ($ million)
1. Strengthen
infrastructure and
connectivity
1.1 Transport
1.1.1 Roads
1.1.2 Rail
1.1.3 Water transport
1.1.4 Air transport
1.2 Power
1.3 Telecommunications
1.4 Border Facilities
15
8
2
3
2
5
1
3
1,615.4
1,461.4
148.0
TBD
6.0
902.4
10.0
35.0
2. Promote and
facilitate trade and
investment
2.1 Trade and transport facilitation
2.2 Investment promotion
2.2.1 Southern Economic Corridor–
wide investment promotion
2.2.2 Business information
2.2.3 Promotion of investment
in priority sectors/subsectors
Agriculture
Tourism
Logistics
Special economic zones
and industrial clusters
7
28
11.4
339.7
3
4
0.3
0.2
3
9
5
50.1
195.6
1.1
4
91.5
3. Address social
and environmental
concerns
3.1 Environmental concerns
3.2 Social concerns
6
12
287.9
114.3
4. Enhance private
sector participation
and public–private
sector collaboration
4.1 Private sector participation
4.2 Public–private partnership
5
1
0.9
0.1
TBD = To be determined.
54
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Figure 9: Greater Mekong Subregion Organizational Framework
NATIONAL
Public Sector
SUBREGIONAL
Private Sector
ead of
Government
Central
Level
Minister
esponsible
for GMSa
hamber of
ommerce
and ndustry
Ministerial
level
onference
Senior
fficials
Meeting
oncerned
Ministries
gencies
Provincial
Governments
Private Sector
eaders Summit
Senior
fficial
ational
oordinator
Local
Level
Public Sector
conomic
orridors
Forum
GMS
usiness
Forum F
Governors
Forum
Forums
o rking
Groupb
Provincial
s
GMSF
haptersc
GMS = Greater Mekong Subregion.
a
Deputy Prime Minister in certain cases.
b
Forums and working groups could adopt respective work programs focusing on GMS priority
corridors.
c
Prooposed.
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;
Implementing the Strategy
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 $250 million. More than half of SEC transport
projects (53.3%) have commitments or indicative commitments. There still are no
funding commitments for measures to promote private sector participation. To
effectively implement the action plan, it will be necessary to ensure that the indicative
22
Cost estimates for some projects in the action plan are not available.
55
56
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table 7: Financing the Southern Economic Corridor Strategy
and Action Plan ($ million)a
Cost estimates
Program/
project component
Infrastructure
2,562.8
498.8
460.0
1,604.0
1,615.4
436.4
425.0
754.0
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
1.0
0.0
0.0
1.0
3,316.1
1,039.3
498.9
1,777.9
Of which transport
Transport and trade
facilitation
Promotion of private
sector participation
Total
a
Total
With
Funding
indicative
being/to be
Committed commitment
sought
See Appendix D for details.
Figure 10: Funding Requirements of the Southern Economic Corridor
Strategy and Action Plan
Implementing the Strategy
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.
57
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
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
Table 8: Proposed Initial Set of Indicators
Aspects to be
monitored
Impact
Proposed quantitative indicators
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)
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.
59
Rehabilitation of the
Siem Reap–Preah
Vihear–Stung Treng
section (Road No. 66)
Northern Subcorridor
Section of Northern
Subcorridor that
requires substantial
rehabilitation
improved, facilitating
travel along the
subcorridor
Percent completion of
rehabilitation works
Percent completion of
Travel between the
two nodes in Viet Nam expressway
improved in terms of
time and convenience
Bien Hoa–Vung Tau
expressway
Percent completion of
road upgrading and
bridge construction
Progress/
Performance
Indicators
Travel time from
Phnom Penh to the
Cambodia–Viet Nam
border substantially
reduced
Expected
Outcomes/Results
Improvement of Phnom
Penh–Neak Loueng road
and construction of
Mekong bridge at Neak
Loueng
Central Subcorridor
1.1.1 Roads
1.1 Transport
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity
Southern Economic Corridor Action Plan Matrix
2006–2010 (road);
2010–2013 (bridge)
Time Frame/
Target Date
Ministry of Public
Works and Transport,
Cambodia
2009–2011
Ministry of Transport, To be determined
Viet Nam; private
sector through a
build–operate–transfer
scheme
Ministry of Public
Works and Transport,
Cambodia
Implementing
Agencies/
Bodies
continued on next page
Funding being sought
Government of
Viet Nam is seeking
potential investors
Road upgrading 92.6%
completed. Detailed
design of the bridge
under review. Funding
from Government of
Japan being discussed
Status/
Remarks
60
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Rehabilitation of 15
km of Road 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)
Travel from Cambodia
to Viet Nam along
the Southern Coastal
Subcorridor facilitated
Percent completion
of rehabilitation
works and bridge
construction
To be determined
2008–2010
Time Frame/
Target Date
2009–2012
Ministry of Public
Works and Transport, (Cambodia); 2009–
Cambodia; Ministry of 2014 (Viet Nam)
Transport, Viet Nam
Ministry of Transport,
Viet Nam
Percent completion of
upgrading
Travel from the
Cambodia–Viet Nam
border to Quy Nhon
facilitated
Upgrading of 250
kilometers (km) of class
4 to class 3 road from
Cambodia–Viet Nam
border to Quy Nhon
Southern Coastal Subcorridor
Ministry of Public
Works and Transport,
Cambodia
Implementing
Agencies/
Bodies
Percent completion of
road improvement
Progress/
Performance
Indicators
Travel time from
Stung Treng to the
Cambodia–Viet Nam
border reduced
Expected
Outcomes/Results
Improvement of the
Stung Treng–Rattanakiri
Section (Road No. 66)
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity continued
continued on next page
Ongoing, with financial
assistance from
Asian Development
Bank (ADB) ($82
million), Australia
($33.5 million), and
the Republic of Korea
($50 million)
Proposed
Ongoing with funding
from the Cambodia
and Viet Nam
governments
Status/
Remarks
Implementing the Strategy
61
Ministry of Transport,
Viet Nam
Ministry of Transport,
Thailand
Percent completion of
upgrading
Travel along the
Thailand section of
the Southern Coastal
Subcorridor improved
in terms of time and
convenience
Upgrading of Thailand
section of the
Subcorridor from twolane to four-lane divided
highway standard
Implementing
Agencies/
Bodies
Percent completion of
rehabilitation works
Progress/
Performance
Indicators
Travel from Ca Mau
City to Ca Mau Cape
facilitated
Expected
Outcomes/Results
Extension of the Viet
Nam section under
Phase I to Ca Mau City,
Nam Can, and Ca Mau
Cape (Phase II)
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity continued
To be determined
To be determined
Time Frame/
Target Date
continued on next page
With financial
assistance from ADB;
loan of $110 million
included in 2009
pipeline, covering
sections of the
Southern Economic
Corridor (SEC) and the
East–West Economic
Corridor (EWEC). Listed
as Greater Mekong
Subregion (GMS)
Highway Expansion
Project in the Vientiane
Plan of Action
Included in ADB
indicative pipeline
for 2009–2011
($100 million);
cofinancing
($30 million) being
sought. Listed in the
Vientiane Plan of Action
as Southern Coastal
Corridor, Phase II
Status/
Remarks
62
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Channel, navigation,
and port improvements
on the Mekong River
and for access to the
port in Siem Reap;
development of
intermodal terminal at
Khone Falls
1.1.3 Water transport
Use of the Mekong
River for transport
maximized; travel from
Khone Falls in the Lao
People’s Democratic
Republic (Lao PDR) to
Cambodia made
possible through
use of intermodal
facilities
Delineation of project Ministry of Public
Works and Transport,
scope; conduct of
Cambodia
prefeasibility/
feasibility study;
finalization of financing
arrangements;
commencement of civil
works
2009–2011
To be determined
Ministry of Public
Completion of
Works and Transport,
feasibility studies for
Cambodia; Ministry of
the two sections of
Transport, Viet Nam
the line; negotiation/
finalization of financing
arrangements;
commencement of
construction
Railway link between
Cambodia and
Thailand completed,
thus making
operational the route
from Kunming to
Singapore
2008–2010
Time Frame/
Target Date
Construction of railway
line from Phnom Penh
to Viet Nam border at
Loc Ninh (254 km) and
from Loc Ninh to Ho
Chi Minh City (129 km)
Ministry of Public
Works and Transport,
Cambodia
Implementing
Agencies/
Bodies
Percent completion
of rehabilitation/
reconstruction of
line; achievement of
mainline speed of at
least 50 km per hour
Progress/
Performance
Indicators
Railway system in
Cambodia fully
operational; safety and
efficiency increased;
competitiveness of
railway increased; road
damage and accidents
due to movement of
heavy cargo reduced
Expected
Outcomes/Results
Rehabilitation
of the railway in
Cambodia (600 km for
rehabilitation; 48 km for
reconstruction)
1.1.2 Rail
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity continued
continued on next page
Proposed
The People’s Republic
of China (PRC) is
financing a feasibility
study for Cambodia
section; prefeasibility
study for Viet Nam
section completed
with estimated cost of
$75 million
Ongoing, with financial
assistance from ADB
($42 million), OPEC
(Organization of the
Petroleum Exporting
Countries) Fund
for International
Development
($13 million), and
the Government of
Malaysia ($2.76 million)
Status/
Remarks
Implementing the Strategy
63
Additional capacity
installed at Laem
Chabang port,
improving its ability
to handle increased
freight volumes
Laem Chabang, Phase 2
construction of C and
D container terminals
Ministry of Public
Works and Transport,
Cambodia
Ministry of Public
Works and Transport,
Cambodia
Promotion of
Completion of
subregional tourism
airport upgrading
loop comprising
the United Nations
Educational,
Scientific and Cultural
Organization’s
(UNESCO) World
Heritage Sites promoted
and supported
Upgrading of
Rattanakiri and Stung
Treng airports in
Cambodia
2009
Target completion
date is 2009
2006–2011
Ministry of Transport,
Thailand
Completion of
construction of
C and D terminals
Jets the size of Boeing Completion of
737s accommodated, upgrading and
extension
facilitating travel to
Sihanoukville from
Japan, the Republic
of Korea, Singapore,
Thailand, and Viet Nam
2009
Time Frame/
Target Date
Ministry of Transport,
Viet Nam
Implementing
Agencies/
Bodies
Completion of
rehabilitation works
Progress/
Performance
Indicators
Upgrading and
extension of
Sihanoukville Airport
1.1.4 Air Transport
Capacity and
efficiency of port
increased
Expected
Outcomes/Results
Vung Tau port
rehabilitation
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity continued
continued on next page
Part of ADB-assisted
Mekong Tourism
Development Project
Proposed
Proposed. Funding
from the Government
of Thailand
Ongoing, with Japan
Bank for International
Cooperation (JBIC)
financing
Status/
Remarks
64
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
EDC, Cambodia;
Electricité du Lao, Lao
PDR
Electricity of Viet Nam 2013–2015
Installation of
transmission line
Completion of
feasibility study;
finalization of
financial package;
commencement of
construction
Electricity imported
from the Lao PDR;
availability and
reliability of power
supply in areas along
the route improved
Electricity supply to
Ho Chi Minh City and
surrounding areas,
including industrial
zones, increased
Transmission line:
115 kV line from Ban
Hat in the Lao PDR
to Stung Treng in
Cambodia
Feasibility study and
construction of Nhon
Trach 4 Combined
Cycle Power Project
(720-megawatt [MW])
To be determined
EDC, Cambodia;
To be determined
Electricity of Viet Nam
Installation of
transmission line and
construction of the
power stations
Electricity imported
from Viet Nam;
Cambodian villages
electrified along the
route
Transmission line:
115 kV line from Tay
Ninh in Viet Nam to
Kompongcham and
Kratie in Cambodia,
including two 115 kV
power stations
2010
Time Frame/
Target Date
Electricité du
Cambodge (EDC),
Cambodia
Implementing
Agencies/
Bodies
Installation of
transmission line
Progress/
Performance
Indicators
Availability and
reliability of power
supply improved
in Kampot and
Sihanoukville
Expected
Outcomes/Results
Transmission line:
220-kilovolt (kV) link
between Kampot and
Sihanoukville
1.2 Power
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity continued
continued on next page
Proposed. Financing
being sought
Possible World Bank
(IDA) financing with
EDC and Electricité du
Lao
Possible World
Bank (International
Development
Association [IDA])
financing, together
with EDC
Ongoing, with
financing from ADB
($20 million) and JBIC
($22.3 million)
Status/
Remarks
Implementing the Strategy
65
GMS Information
Superhighway
Network Phase 2,
Thailand–Cambodia
component: expansion
of fiberoptic network
at Aranyaprathet–
Poipet border checkpoint
from 12- to 24-core
Completion of
feasibility study;
finalization of
financial package;
commencement of
construction
Progress/
Performance
Indicators
Completion of
Information and
upgrading of fiber
communications
network
technology facilities
and services in the SEC
areas in Thailand and
Cambodia improved
Power supply
situation in
Stung Treng and
surrounding areas
improved;
Cambodian system at
the area connected to
the Viet Nam grid
Sre Pok II hydropower
project (200 MW),
including 220 kV
transmission line to
Stung Treng and Viet
Nam border where it
interconnects with
Viet Nam grid
1.3 Telecommunications
Expected
Outcomes/Results
Measures/Programs/
Projects
Strengthen Infrastructure and Connectivity continued
Time Frame/
Target Date
Communications
ministries in Thailand
and Cambodia
2009–2010
Ministry of Industry,
Target date for
Energy, and Mines and commissioning of
EDC, Cambodia
hydropower plant is
2017
Implementing
Agencies/
Bodies
continued on next page
Project is ongoing.
There is existing
interconnection
between Telecoms
Cambodia and
Telecoms of Thailand.
Upgrading to be
undertaken upon
completion of technical
survey at Poipet station
Proposed. Financing
being sought
Status/
Remarks
66
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Construction of border
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
Intercorridor Link
Expansion and
improvement of
border facilities at
Aranyaprathet–Poipet
between Cambodia
and Thailand and
Bavet–Moc Bai
between Cambodia
and Viet Nam
Central Subcorridor
1.4 Border Facilities
Measures/Programs/
Projects
Ability of border offices
to handle clearance
procedures and
requirements improved
Access of people and
business enterprises
to basic urban
infrastructure and
services increased;
economic development
of border areas
enhanced; congestion
relieved and services
improved, resulting in
faster crossing times,
especially for freight
traffic
Expected
Outcomes/Results
Strengthen Infrastructure and Connectivity continued
Construction of
office buildings
and installation of
necessary equipment
completed
Construction and/or
improvement of local
roads and bridges,
drainage, flood control,
water and sanitation
facilities, public
markets, bus terminals,
and other logistical
support facilities
completed
Progress/
Performance
Indicators
2011 (project
approval);
implementation
period to be
determined
Time Frame/
Target Date
2009–2011
Concerned ministries
and agencies in
Cambodia and the Lao
PDR
Concerned ministries/
agencies and provincial
authorities in
Cambodia, Thailand,
and Viet Nam
Implementing
Agencies/
Bodies
The road sections in
Cambodia and the
Lao PDR leading to
the respective borders
were completed in
2007 with a loan from
the PRC. The Lao PDR
has reclassified the
border crossing as an
international
border gate
To be implemented
under the proposed
GMS Corridor Town
Development project,
which is in the ADB
loan pipeline for 2011
Status/
Remarks
Implementing the Strategy
67
Expected
Outcomes/Results
Initial focus on the
Central Subcorridor;
to cover officials at
the central and local
levels, including those
in border areas
2009–2013
Ministries of
transport;
finance; trade;
health; customs,
immigration,
quarantine; and other
concerned border
control authorities of
SEC countries
Number of
training programs
and workshops
implemented; number
of personnel trained
Increased skills
and capacity
among personnel
implementing CBTA
and trade facilitation
measures
Training/capacity
building for
implementing CBTA
and trade facilitation
initiatives
continued on next page
Continuing. ADB
is supporting the
implementation of
the CBTA in pilot
border checkpoints.
Priority is on the
following border
checkpoints:
Poipet, Cambodia–
Aranyaprathet,
Thailand; Bavet,
Cambodia–Moc Bai,
Viet Nam
2009–2013
(Central Subcorridor);
2010–2013
(Southern Coastal
Subcorridor);
2011–2013
(Northern
Subcorridor)
Status/
Remarks
Ministries of
transport, finance;
trade; health;
customs, immigration,
quarantine; and other
concerned border
control authorities of
SEC countries
Time Frame/
Target Date
Volume of crossborder traffic;
processing and
waiting times at
borders, number of
trucks examined, and
extended reduction
of transshipment
requirements
Implementing
Agencies/Bodies
Freer and faster crossborder movement of
people, goods, and
vehicles; increased
cross-border trade,
including transit trade
Progress/
Performance
Indicators
Implementation of
key provisions of the
cross-border transport
agreement (CBTA),
especially facilitation of
exchange of traffic rights
and modernization of
border management
(includes information
dissemination;
simplification,
harmonization, and
rationalization of forms
and procedures; and
border-crossing facility
improvements)
2.1 Trade and transport facilitation
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment
68
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
To be implemented
under the proposed;
improved SPS
Handling in GMS
Cross-Border Trade
project, which is in
the ADB loan pipeline
for 2011
Proposed
Proposed; could be
pursued on a pilot
basis using as a
model the bilateral
payment agreement
between Thailand and
Malaysia entered into
in 2002
2009 (project
preparatory
technical assistance
[PPTA]); 2011 (loan)
2009–2013
2010–2013
Inspection and
quarantine ministries
and agencies; local
authorities
Local authorities
in SEC areas; private
sector
Monetary authorities,
ministries of trade
and finance of NSEC
countries
Sector analysis of SPS
capacities completed;
proposal for capacity
development
prepared; project
aimed at developing
capacities and
initiating risk-based
system prepared
Plans for setting up
wholesale markets
or distribution
centers prepared and
implemented
Agreement among
SEC countries to
consider modalities of
financial settlement to
facilitate cross-border
trade; negotiation,
conclusion, and
implementation of
bilateral payment
agreements
Risk-based system
of SPS inspection
designed and applied;
diagnostic and
testing capacities
strengthened;
academic training
for managing SPS
promoted (Cambodia
and the Lao PDR)
Common wholesale
markets or
distribution centers
established in major
border areas
Suitable
arrangements for
financial settlement
of cross-border
transactions in the
NSEC implemented
Improvement of
handling of sanitary–
phytosanitary (SPS)
requirements in GMS
cross-border trade
(Cambodia, the Lao PDR,
and Viet Nam)
Setting up of common
wholesale markets or
distribution centers in
major border areas to
facilitate and support
trading activities
Adoption of amicable
and efficient
arrangements for
financial settlement
covering cross-border
trade in the North–South
Economic Corridor
(NSEC)
continued on next page
Initial focus on the
Central Subcorridor,
to be closely
coordinated with
related Association
of Southeast Asian
Nations initiatives
2009–2013
Border agencies in
SEC countries led by
customs authorities
Status/
Remarks
Single-window
inspection
implemented;
risk management
and information
technology
techniques applied;
customs transit
system established
Time Frame/
Target Date
Streamlined system
and processes for
customs inspection at
border checkpoints,
including those for
transit trade
Implementing
Agencies/Bodies
Customs facilitation,
including singlewindow inspection, risk
management, use of
information technology,
and handling of transit
trade
Progress/
Performance
Indicators
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
Implementing the Strategy
69
System for tracking
cross-border
trade established
and operational,
with regular
reports prepared/
disseminated
Establishment of a
system for the regular
monitoring and
reporting of crossborder trade in the SEC
Progress/
Performance
Indicators
Implementing
Agencies/Bodies
Trade ministries and
List of required data
statistical agencies of
prepared; system
SEC countries
for collection and
compilation designed
and put in place;
initial or baseline data
established
Continuing. May be
undertaken separately
or together with GMS
investment forums
Proposed. Identified
by the SEC strategy
and action plan (SAP)
study team based
on the consultation
meetings
2009–2013
2009–2013
GMS–BF; industry and
trade ministries and
CCIs of SEC countries;
local authorities
Industry ministries
and investment
agencies of SEC
countries; local
authorities; GMS–BF
One investment and
trade fair organized
once every 2 years
Diagnostic analysis of
existing procedures
and requirements
completed; action
plan for streamlining
formulated, agreed
to, and implemented
Increase in domestic
and foreign
investment in SEC
areas
Procedures and
requirements for
approval of proposed
investments in SEC
areas simplified and
streamlined
Organization of SEC
investment and trade
fairs
Streamlining of
investment approval
procedures in SEC areas
continued on next page
Continuing. May be
undertaken separately
or together with
GMS-wide investment
forums or missions
2009–2013
Greater Mekong
Subregion Business
Forum (GMS–BF);
industry and trade
ministries, investment
ministries/agencies,
and chambers of
commerce and
industry (CCIs) of
SEC countries; local
authorities
At least one
investment forum
or foreign mission
conducted annually
Proposed. Initially to
cover major border
checkpoints only,
especially along the
Central Subcorridor
Status/
Remarks
Increase in domestic
and foreign
investment in SEC
areas
2009–2013
Time Frame/
Target Date
Conduct of SEC
investment forums
within SEC countries
and road shows in major
foreign business centers
2.2.1 SEC-wide investment promotion and facilitation
2.2 Investment promotion
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
70
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Proposed. Identified
by SEC SAP study
team
2009–2013
2009–2013
2010–2013
Industry, trade, and
tourism ministries
and agencies in
SEC countries; CCIs
in SEC areas; local
authorities; GMS–BF
GMS–BF, CCIs of SEC
countries
GMS–BF
Prospectus prepared,
published, and
disseminated
Business directory
compiled, published
and disseminated
SEC website design
completed; SEC
website established
and maintained
Business
opportunities in SEC
areas identified,
compiled, and
disseminated
Business directory
made widely available
to prospective
investors
Availability of and
access to information
on SEC through
electronic media
improved
Preparation of a
prospectus of business
opportunities in SEC
areas
Preparation of an SEC
business directory
providing names
and addresses of
manufacturers, traders,
tourist operators, and
service providers in SEC
areas together with the
products and services
they offer
Development of an SEC
website providing basic
information on SEC with
hyperlinks to the GMS
and GMS–BF websites
continued on next page
This can be part of
the GMS–BF website.
Identified by SEC SAP
study team
Proposed. This can
be a subset of a
GMS-wide business
directory. Identified
by SEC SAP study
team
Proposed. Identified
by SEC SAP study
team
Status/
Remarks
2009–2013
Time Frame/
Target Date
Industry ministries
and investment
agencies in SEC
countries; local
authorities; GMS–BF
Implementing
Agencies/Bodies
Compendium of
investment policies
and regulations in
SEC areas prepared,
published, and
disseminated
Progress/
Performance
Indicators
Information on
investment policies,
regulations, and
procedures in SEC
areas readily and
widely available
Expected
Outcomes/Results
Compilation of
applicable investment
policies and regulations,
including procedures for
investment approval in
SEC areas
2.2.2 Business information
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
Implementing the Strategy
71
Expected
Outcomes/Results
Progress/
Performance
Indicators
Stronger policy
support for crossborder contract
farming provided;
number and size of
contract farming
arrangements
increased
Agriculture ministries
Marginal land
of SEC countries
areas utilized for
biofuel production;
agriculture waste
utilized to generate
both energy and
soil productivity;
number of processing
facilities and biogas
units established in
rural communities;
and effectiveness of
carbon credit schemes
implemented
Practice of crossborder contract
farming expanded in
SEC areas; sustainable
technologies
promoted; farmers’
organizations
strengthened; social
responsibility among
firms promoted
Increased investment
resulting in
(i) expansion of areas
for intercropping
of biofuel and food
crops; (ii) processing
facilities established
at community and
regional levels;
(iii) agriculture waste
recycling facilities
and biogas units
established; (iv) new
alternative energy
source used instead of
fuel wood; (v) biofuel
policies and standards
established; and
(v) carbon credit
schemes implemented
for rural households/
communities
Regional Project on Rural
Renewable Energy for
Cambodia, the Lao PDR,
and Viet Nam
Agriculture and
trade ministries of
SEC countries; GMS
Working Group on
Agriculture
Implementing
Agencies/Bodies
Promotion of and
support for cross-border
contract farming
Agriculture
2.2.3 Promotion of investment in priority sectors/subsectors
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
PPTA will evaluate
the feasibility of
cross-border contract
farming of energy
crops, and other small
and medium-sized
processing facilities.
Project is included in
ADB’s loan program
for 2011 with a
$20 million loan each
for Cambodia and
Viet Nam and a grant
of $10 million to the
Lao PDR
2010 (project
preparatory technical
assistance [PPTA]);
2011 (loan)
continued on next page
Findings of related
study of the GMS
Working Group
on Agriculture will
be used to guide
activities promoting
contract farming in
SEC areas
Status/
Remarks
2009–2013
Time Frame/
Target Date
72
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Conduct of seminars and Information
regarding investment
forums on the logistics
opportunities in the
industry in the SEC
logistics industry
in SEC countries
disseminated to
prospective investors
Establishment of a GMS
logistic information
platform
Increased awareness;
interest and
investment in logistics
industry in SEC
countries
Supply of cash
crops for domestic
consumption
increased; quality of
cash crops upgraded,
thus improving
prospects of exports
to Thailand
Productivity and quality
improvement of cash
crops (castor bean,
maize, potato, sesame,
soybean) in selected SEC
provinces (Battambang,
Kampot, Koh Kong,
Pursat)
Logistics
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
Continuing. A
symposium on
logistics development
in GMS was held in
Kunming, Yunnan
Province, on 6 June
2009, in conjunction
with the Kunming
Trade Fair
2010–2013
GMS–BF in
coordination with
concerned ministries
and agencies in SEC
countries
At least one annual
seminar or forum
on logistics industry
development in SEC
countries
continued on next page
Can be part of
GMS–BF website.
Identified by SEC SAP
study team
Proposed as a
bilateral project
between Cambodia
and Thailand under
the Ayeyawaddy–
Chao Phraya–
Mekong Economic
Cooperation Strategy
(ACMECS)
2009–2013
2010–2013
Status/
Remarks
GMS–BF in
coordination with
concerned ministries
and agencies in SEC
countries
Agriculture ministries
of Cambodia and
Thailand
Qualified seeds more
widely used; increase
in yields
Time Frame/
Target Date
Prospectus
indicating business
opportunities in the
logistics industry
in SEC countries,
including related
policies and programs
for its development,
prepared and
disseminated
Implementing
Agencies/Bodies
Progress/
Performance
Indicators
Implementing the Strategy
73
Joint tourism promotion
and marketing program
focusing on SEC tourist
destinations
Increase in the
number of visitors
to SEC tourist
destinations
Joint promotion
and marketing
program formulated
and implemented;
attendance in key
international trade/
tourism fairs; increase
in the number of
visitors to SEC
destinations
Mekong Tourism
Coordination Office
(MTCO); tourism
ministries and
marketing agencies
of SEC countries;
private sector tourist
associations and
operators
2009–2010
2010–2013
GMS–BF
Terms of reference of
association drafted;
organizational
meeting held;
association activities
initiated
Freight Transport
Association
established and
actively promoting
policies and measures
for the development
of the logistic industry
in SEC countries
Establishment of Freight
Transport Association
Tourism
2009–2013
Transport and
industry ministries
and investment
ministries/agencies
of SEC countries;
GMS–BF
Review of policies
affecting investment
in the logistics
industry completed;
recommendation
adopted and
implemented
Time Frame/
Target Date
Reduced or
eliminated barriers to
entry of investment in
the logistics industry
in SEC countries
Implementing
Agencies/Bodies
Review of policies
affecting investment in
the logistics industry in
SEC countries
Progress/
Performance
Indicators
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
continued on next page
MTCO has prepared
a tourism marketing
and promotion
plan the includes
development of the
Explore Mekong
website, preparation
of promotional
materials, attendance
at international trade/
tourism fairs, and
revival of the Mekong
Tourism Forum,
starting in Cambodia
in 2010
Proposed by the
Business and
Investment Dialogue
at the third GMS
summit. Financing
being sought to
refine earlier study
and help establish the
association
Proposed. May be
undertaken by the
proposed GMS
Freight Transport
Association
Status/
Remarks
74
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Time Frame/
Target Date
continued on next page
This is being pursued
as an ACMECS
initiative
2009–2013
Concerned ministries
and agencies of
Cambodia and
Thailand
Travel to and within
GMS facilitated
Implementation of pilot
project on single GMS
visa scheme between
Cambodia and Thailand
Completion of
inception phase;
implementation
of experimental
approach and system;
completion of
evaluation phase
Proposed. Identified
by SEC SAP study
team
Access roads requiring Transport and tourism 2009–2013
ministries of SEC
improvement or
countries
construction
identified; program
for access-road
upgrading and/or
construction prepared
and implemented
Proposed
Status/
Remarks
Improved access
to major tourist
destinations in SEC
areas
2009–2013
MTCO; GMS–BF;
tourism ministries and
marketing agencies
of SEC countries;
private sector tourist
associations and
operators
Implementing
Agencies/Bodies
Construction and/or
improvement of access
roads to major tourist
destinations in SEC areas
Increased investment Tourism facilities and
to upgrade existing or services upgraded
and/or developed
develop new tourist
destinations and
facilities
Promotion of investment
to improve existing
and develop new
tourist destinations and
facilities in SEC areas,
including hotels, rest
areas, and tourism
information centers
Progress/
Performance
Indicators
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
Implementing the Strategy
75
Tourism development
Development of the
in the zone promoted
“Emerald Triangle”
and facilitated
tourism zone
(Cambodia, the Lao PDR,
and Thailand)
Travel among
participating
provinces facilitated,
tourist destinations
in the provinces
developed and
marketed, and tourist
personnel trained in
community-based
ecotourism
Construction of access Tourism authorities
of the Lao PDR and
roads and other
support facilities (e.g., Viet Nam
parking lots, ticket
booths, walking trails)
completed; managers
trained and sites
promoted
Tourism infrastructure
and access to major
tourist attractions
upgraded; skills for
marketing sustainable
and community-based
tourism projects
improved; small-scale
tourism facilities,
such as village roads
and market sites,
developed
Sustainable Tourism
Development Project
(the Lao PDR and
Viet Nam)
Tourism authorities
of Cambodia, the Lao
PDR, and Thailand;
MTCO
Tourism, transport,
and environment
ministries of
Cambodia, the
Lao PDR, and
Viet Nam
Completion of highpriority tourismrelated infrastructure
(secondary airports
and access roads
to tourist sites)
and environmental
improvement projects
High-priority tourismrelated infrastructure
improved; sustainable
tourism development
promoted
Implementing
Agencies/Bodies
Mekong Tourism
Development Project
covering Cambodia, the
Lao PDR, and Viet Nam
Progress/
Performance
Indicators
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
Ongoing. ADB funded
Working group from
the three countries
has been established;
funding request to
the United Nations
Development
Programme/World
Trade Organization
pending since 2006
2009–2013
2009–2013
continued on next page
ADB funded;
ongoing; completed
in the Lao PDR in
2008; improvement
of Rattanakiri and
Stung Treng airports,
and environmental
improvement in Siem
Reap, are included in
this project
Status/
Remarks
To be completed
in 2009
Time Frame/
Target Date
76
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Establishment of special
economic zones (SEZs)
in border areas and joint
development of border
economic zones
Investments in border
areas promoted and
facilitated through
the provision of the
necessary facilities,
utilities, and services
Facilities, utilities,
and services in
priority SEZs provided
and/or upgraded;
management
and operational
procedures
established
Industry, finance,
trade, and investment
ministries and
agencies of SEC
countries; local
authorities; private
sector
2010–2013
continued on next page
Specific projects
include the Poipet
and Koh Kong
industrial estates in
Cambodia, which
have been initiated
as ACMECS projects
and the Sihanoukville
export processing
project. Financing is
being sought
Ongoing; inaugural
meeting held in
October 2007; with
partial support from
ADB-supported
Mekong Tourism
Development Project;
financing from other
sources being sought
2010–2013
Tourism authorities
and tourism operators
in Cambodia, the
Lao PDR, and
Viet Nam
Master plan prepared;
tourism products for
the area developed
and marketed
“Green Triangle”
promoted and
developed as a major
tourist destination
Tourism development
in the “Green Triangle”
(Cambodia–Lao PDR–
Viet Nam development
triangle)
Special economic zones and industrial clusters
Proposed. The roads
on the main route
of the subcorridor
are being upgraded
or rehabilitated
(see 1.1.1)
2010–2013
Tourism authorities
and tourist operators
in Cambodia, Thailand
and Viet Nam; MTCO
Status/
Remarks
Tourism products for
the area developed
and marketed,
including mediumend hotels and
resorts, water
transport services,
and caravan tours
Time Frame/
Target Date
Tourism potential of
coastal areas along
the subcorridor
developed
Implementing
Agencies/Bodies
Development of tourism
and infrastructure along
the Southern Coastal
Subcorridor
Progress/
Performance
Indicators
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
Implementing the Strategy
77
Proposed. Identified
by SEC SAP study
team
Proposed. Identified
by SEC SAP study
team
Proposed. Identified
by SEC SAP study
team
2010–2013
2010–2013
Industry, finance,
trade, and investment
ministries and
agencies of SEC
countries; local
authorities; SEZ
administrators in
SEC areas; GMS–BF;
CCIs of SEC countries
Industry, trade, and
investment ministries
and agencies of
NSEC countries; local
authorities; GMS–BF;
CCIs of SEC countries
2010–2011
Industry, trade and
investment ministries
and agencies of NSEC
countries; local
authorities; GMS–BF;
CCIs of NSEC countries
Study of feasibility
of establishing
clusters in specific
industries conducted;
promotional measures
initiated
Study of possible pilot
projects completed
and discussed by
concerned authorities
and stakeholders
Feasible industrial
clusters identified and
promoted
Possible pilot
projects for crossborder supply
chain development
identified and
promoted
Promotion of industrial
clusters along SEC
(e.g., agro-industry
or resource-based
production zones in
selected areas in the
SEC involving links in
production, processing,
and marketing)
Study of possible pilot
projects for cross-border
supply chains involving
agricultural and small
and medium-sized
enterprises in SEC areas
Status/
Remarks
Seminars and
meetings held;
links among SEZs
established;
cooperation programs
initiated
Time Frame/
Target Date
Industrial estates
and SEZs operating
at higher level
of efficiency and
capacity
Implementing
Agencies/Bodies
Improving the planning,
management, and
marketing of existing
and planned industrial
estates and SEZs in
the SEC
Progress/
Performance
Indicators
Expected
Outcomes/Results
Measures/Programs/
Projects
Promote and Facilitate Trade and Investment continued
78
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Ongoing. Cluster
4 under EOC’s
Strategic Environment
Assessment of Sector
Strategies project
Proposed. Included
in ADB’s pipeline for
lending and grant
products for 2010;
PPTA for this project is
in ADB’s pipeline for
nonlending products
and services in 2009
2009–2013
2009 (PPTA);
2110 (loan)
2009–2013
WGE; EOC
WGE; EOC;
agriculture, natural
resources, and
environment
ministries of the three
countries
EOC
Workshops and
training programs
held on the subject
at national and
subregional levels;
technical reports
prepared
Biodiversity
Conservation Initiative
activities in selected
critical landscapes of
the three countries
scaled up, using
results of pilot
projects
Study completed;
recommendations
discussed in
workshops and
seminars; action
plan to address risks
formulated
Environmental
protection and
management
practices and
approaches
strengthened to
ensure sustainable
development of
the SEC
Environmental
protection and
management
practices and
approaches
strengthened to
ensure sustainable
development of
the SEC
Risk of specific
geographic areas
identified and
possible responses
formulated
Integrated approach
to SEA, Biodiversity
Conservation Initiative,
and Environmental
Performance Assessment
GMS Biodiversity
Conservation Corridors
for poverty reduction
and watershed
protection (Cambodia,
the Lao PDR, and
Viet Nam)
Scoping and mapping of
climate change related
risks (the Lao PDR and
Viet Nam)
continued on next page
Ongoing
Proposed
Status/
Remarks
To be determined
Time Frame/
Target Date
GMS Working Group
on Environment
(WGE); Environment
Operations Center
(EOC)
Implementing
Agencies/Bodies
SEA covering SEC
areas completed and
considered in update
of SEC strategy and
action plan
Progress/
Performance
Indicators
Environmental
protection and
management
practices and
approaches
strengthened to
ensure sustainable
development of
the SEC
Expected
Outcomes/results
Strategic environmental
assessment (SEA) of
the SEC
3.1 Environmental concerns
Measures/Programs/
Projects
Address Environmental and Social Concerns
Implementing the Strategy
79
Vulnerability of
affected communities
to adverse effects of
floods and drought
reduced
GMS flood and drought
risk management and
mitigation (Cambodia,
the Lao PDR, and
Viet Nam)
Ability to respond
to epidemics and
outbreaks
strengthened;
coverage of
prevention and
care of selected
communicable
diseases in vulnerable
populations
improved; know-how,
policies, standards,
and coordination
among the three
countries improved
Health ministries of
Ability to respond
the three countries
to epidemics and
outbreaks
strengthened;
coverage of prevention
and care of selected
communicable
diseases in vulnerable
populations improved;
know-how, policies,
standards, and
coordination among
the three countries
improved
Vulnerability to
the spread of
communicable
diseases reduced
Communicable Diseases
Control Project (Phase II)
(Cambodia, the Lao PDR,
and Viet Nam)
Health ministries of
the three countries
Agriculture,
natural resources,
and environment
ministries of the
four countries; local
authorities of SEC
areas
Implementing
Agencies/Bodies
Vulnerability to
the spread of
communicable
diseases reduced
Comprehensive
management
plan prepared;
integrated structural
and nonstructural
measures
implemented
Progress/
Performance
Indicators
Communicable Diseases
Control Project (Phase I)
(Cambodia, the Lao PDR,
and Viet Nam)
3.2 Social concerns
Expected
Outcomes/results
Measures/Programs/
Projects
Address Environmental and Social Concerns continued
2009 (PPTA);
2010 (loan)
Targeted to be
completed in 2009
2008 (PPTA);
2011 (loan)
Time Frame/
Target Date
continued on next page
Proposed. Included in
ADB’s loan pipeline
for 2010
Ongoing, with
financial assistance
from ADB
Included in ADB’s
lending pipeline for
2011
Status/
Remarks
80
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Transport and health
Specific HIV/AIDS
ministries of the three
interventions
countries
before, during, and
after construction
in ADB-financed
projects in GMS
economic corridors
implemented;
assessment of HIV/
AIDS risks associated
with enhanced border
crossing under the
CBTA conducted
Risks of spread of
HIV/AIDS along
GMS economic
corridors, arising
from infrastructure
projects, reduced and
managed effectively
Mitigating HIV/AIDS risks
in infrastructure projects
in GMS economic
corridors (Cambodia, the
Lao PDR, and Viet Nam)
Health and
infrastructure
authorities of
participating
countries
Package of
interventions
prepared, including
monitoring and
evaluation
framework,
harmonized
implementation
arrangement options,
and core principles
and approaches;
guidelines covering
the interventions
prepared and
disseminated
Improved knowledge
base, practices, and
institutional
mechanisms for the
effective
implementation of
HIV/AIDS
interventions in
association with
infrastructure projects
Implementing
Agencies/Bodies
HIV/AIDS Prevention and
the Infrastructure Sector
(Cambodia, the Lao PDR,
and Viet Nam)
Progress/
Performance
Indicators
Expected
Outcomes/results
Measures/Programs/
Projects
Address Environmental and Social Concerns continued
2008–2011
Targeted to be
completed in 2009
Time Frame/
Target Date
continued on next page
Ongoing. Project
is being funded by
the Government of
Australia
Ongoing; project
also covers the PRC;
supported by the
Cooperation Fund for
Fighting HIV/AIDS in
Asia and the Pacific,
established at ADB
with support from
the Government of
Sweden
Status/
Remarks
Implementing the Strategy
81
2009–2013
2009–2010
2009–2011
Labor, interior, and
tourism ministries of
GMS countries
GMS Working Group
on Human Resource
Development
(WGHRD)
GMS WGHRD;
ministries of
education
Training for local
and subregional
officials on human
trafficking and safe
migration conducted;
community-based
vulnerability
monitoring and
referral systems
implemented in
association with ADBassisted GMS projects
that are expected to
accelerate crossborder mobility of
people
Social impact
assessments in
selected locations
along the economic
corridors completed,
including effect of
financial crisis on
poor and
marginalized groups
Framework endorsed
by governments
Findings used to
improve current and
future projects along
the corridors
GMS technical
and vocational
skills recognition
framework for three
key skills developed
and piloted
Social impact
assessments in specific
locations along the
economic corridors
Developing and piloting
a framework for the
mutual recognition of
technical and vocational
skills in GMS
Time Frame/
Target Date
Strategies and
measures for
preventing human
trafficking and
promoting safe
migration in GMS
developed and
implemented
Implementing
Agencies/Bodies
Integrating human
trafficking and safe
migration concerns
for women and
children into regional
cooperation
Progress/
Performance
Indicators
Expected
Outcomes/results
Measures/Programs/
Projects
Address Environmental and Social Concerns continued
continued on next page
To be funded
under RETA 7275:
Implementing the
GMS HRD SFAP
To be funded under
ADB RETA 7275:
Implementing the
GMS Human Resource
Development (HRD)
Strategic Framework
and Action Plan
(SFAP)
There is an ongoing
ADB regional
technical assistance
(RETA) 6448 covering
GMS and South
Asian countries
that supports the
Coordinated Mekong
Ministerial Initiative
against Trafficking
in partnership with
the UN Inter-Agency
Project on Human
Trafficking in GMS
Status/
Remarks
82
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Cooperation program
among vocational
training institutes in SEC
areas, including conduct
of exchange programs
Collaboration among
vocational training
institutes in SEC
areas in curriculum
development,
training of trainers,
and management
developed and
enhanced
Skill levels and
employability,
especially of labor in
less-developed areas
of the SEC, enhanced
Network of training
institutes and
centers in SEC
areas identified and
established; program
of cooperation
formulated and
implemented
Basic needs
assessment and
review of existing
training programs in
SEC areas completed;
training programs
formulated and
implemented
(number of training
programs conducted
and trainees)
Training institutes
in SEC areas; HRD
agencies in NSEC
countries
GMS labor and
education ministries
and training institutes
of SEC countries; CCIs
of SEC countries
2010–2013
2010–2013
continued on next page
Proposed. Identified
by SEC SAP study
team
Proposed. Identified
by SEC SAP study
team
To be funded
under RETA 7275:
Implementing the
GMS HRD SFAP
2010
GMS WGHRD;
labor ministries;
International Labour
Organization; IOM
Studies, consultations
conducted
Standard regional
employment contract
adopted
Standard regional
employment contract
for technically skilled
migrant workers in GMS
Training programs
in basic skills
competencies; basic
tourism skills; agroindustry management,
including marketing; and
small and medium-sized
enterprise management
and financing
To be funded
under RETA 7275:
Implementing the
GMS HRD SFAP
2009–2011
GMS WGHRD;
labor ministries;
International Labour
Organization;
International
Organization for
Migration (IOM)
Status/
Remarks
Workshops, training
courses conducted
Time Frame/
Target Date
Labor management
improved
Implementing
Agencies/Bodies
Improving labor
migration management
in GMS
Progress/
Performance
Indicators
Expected
Outcomes/results
Measures/Programs/
Projects
Address Environmental and Social Concerns continued
Implementing the Strategy
83
Expected
Outcomes/results
Availability of and
access to water
supply in major
border towns
expanded; sanitation
situation improved
Measures/Programs/
Projects
Water supply and
sanitation (Cambodia,
the Lao PDR, and Viet
Nam)
Address Environmental and Social Concerns continued
Water and sanitation
facilities in major
border towns
constructed or
rehabilitated; water
and sanitation
services improved
Progress/
Performance
Indicators
Time Frame/
Target Date
Water supply agencies 2010 (PPTA);
of Cambodia and the 2011 (loan)
Lao PDR; concerned
provincial authorities
of Viet Nam
Implementing
Agencies/Bodies
To be implemented as
part of the Corridor
Towns Development
Project in the ADB
loan pipeline for 2011
(see Section 1.4)
Status/
Remarks
84
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Expected
Outcomes/Results
2010–2013
GMS–BF; concerned
ministries of SEC
countries; provincial
CCIs of SEC countries
Periodic meetings
held among public
and private sector
representatives of
SEC countries to
discuss SEC issues and
concerns
Promotional measures GMS–BF
and policy support
programs identified,
formulated, and
implemented (e.g.,
in technology,
management,
financing, marketing,
linking up with
production and
supply chains)
Improved public–
private sector
collaboration on
SEC matters; more
active involvement
of the private sector
in the planning and
implementation of
SEC initiatives
Increase in the
number and
operations of small
and medium-sized
enterprises in SEC
areas
Establishment of
mechanisms for
interaction, exchange
of information, and
coordination between
the public and private
sectors on SEC issues
and concerns
Implementation of
promotional measures
and policy support for
small and medium-sized
enterprises in SEC areas
2010–2013
2010–2013
Time Frame/
Target Date
GMS–BF; national and
Meeting among
provincial CCIs of SEC
provincial CCIs in
SEC border provinces countries
held; cooperation
and collaboration on
specific areas initiated
Implementing
Agencies/Bodies
Coordination and
collaboration among
the private sector
in SEC provinces
established and
improved
Progress/
Performance
Indicators
Cooperation among
provincial CCIs in the
SEC, initially among
those in the border
provinces
4.1 Private sector participation
Measures/Programs/
Projects
Enhance Private Sector Participation and Public–Private Sector Collaboration
continued on next page
A proposed business
development support
facility in Savannakhet
may be a useful
model to consider
for other locations in
the SEC
May be conducted
under the auspices
of the Economic
Corridors Forum
in the form of an
annual or semiannual
dialogue
Proposed. Identified
by SEC SAP study
team
Status/
Remarks
Implementing the Strategy
85
Promotion of public–
private partnerships
in the development of
transport and other
infrastructure, logistics,
and support services in
SEC areas
Increased public–
private partnerships
in the development of
transport and other
infrastructure in SEC
areas
4.2 Public–private partnership
GMS–BF; GMS
Meetings and
secretariat and
seminars conducted
to present and discuss national coordinators
information about
possible financing
sources, including the
terms and conditions,
procedures, and
requirements for
accessing financing
from such sources
Access of the private
sector to various
sources of financing
expanded and
improved
Provision of information
to the private sector
on possible sources of
financing for commercial
and infrastructure
projects
Infrastructure
Workshops and road
ministries of SEC
shows conducted
countries; GMS–BF
to present key GMS
transport and other
infrastructure projects
and invite private
sector participation
in same
GMS–BF
Study for
establishment of
the fund completed;
agreement reached
and initial steps taken
to establish the fund
Availability of and
access to financing
improved, including
working capital, preand postshipment
export financing,
and export credit
insurance
Establishment of a GMS
small and medium-sized
enterprise development
fund
Implementing
Agencies/Bodies
Expected
Outcomes/Results
Measures/Programs/
Projects
Progress/
Performance
Indicators
Enhance Private Sector Participation and Public–Private Sector Collaboration continued
2010–2013
2010–2013
2009–2013
Time Frame/
Target Date
Proposed. Identified
by SEC SAP study
team
Continuing. Identified
by SEC SAP study
team
Funding being
sought. Proposed
by the Business and
Investment Dialogue
participants during
the third GMS summit
Status/
Remarks
86
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Appendix A
Basic Information on the Southern Economic
Corridor National Components
Cambodia
Table A1: Population and Land Area
Provinces/Cities
Subcorridor 1
Total
population
Land area
(km2)
9,277,468
82,101
Population
Rural
density
population
(persons/km2)
(%)
113
–
Literacy
rate (%)
–
Poverty
incidence
(%)
–
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
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
–
Siem Reap
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
–
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
35,753
336
106
–
63.3
–
Subcorridor 3
Kep
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
Table A1: continued
Provinces/Cities
Total
population
Land area
(km2)
Population
Rural
density
population
(persons/km2)
(%)
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).
Appendix A: Basic Information on the Southern Economic Corridor National Components 89
Table A2: Income Level and Economic Structure
Provinces/
Cities
Per capita
Structure of production (%)
gross
provincial Agriculture Industry Services
product ($)
Unemployment
rate (%)
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
–
–
–
–
–
–
–
–
–
4.6
638
–
–
–
18.6
Mondulkiri
–
–
–
–
69.9
Rattanakiri
549
55.1
7.2
37.7
6.5
–
–
–
–
–
Koh Kong
–
–
–
–
9.3
Kampot
–
–
–
–
7.3
Kep
–
–
–
–
–
Subcorridor 2
Siem Reap
Stung Treng
Preah Vihear
Subcorridor 3
Subcorridor 4
Sihanoukville
–
–
–
–
9.3
Kompong Speu
–
–
–
–
2.8
Phnom Penh
–
–
–
–
12.6
Kandal
–
–
–
–
11.9
Kompongcham
–
–
–
–
4.3
513
–
–
–
4.0
–
–
–
–
69.9
Kratie
Mondulkiri
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/Female
Whole
country
Phnom Penh
Other urban
areas
Rural areas
Both 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
Cultivated
area (ha)
Harvested
area (ha)
Yield
(tons/ha)
Production
(tons)
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
Subcorridor 1
67,471
47,265
29
165,179
Subcorridor 2
2,848
2,807
17
9,820
Subcorridors
Rice
Maize
Subcorridor 3
1,647
1,642
6
2,777
Subcorridor 4
23,379
19,234
22
46,700
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
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
Cassava
Sugar Cane
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)
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
91,770
91,717
2.2
197,797
119,818
119,721
2.1
257,188
97,375
96,955
3.6
348,234
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
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
133,652
108,871
8.3
376,236
Subcorridor 1
Pursat
Kompongchnang
Kandal
Phnom Penh
Siem Reap
Subcorridor 3
Koh Kong
9,110
8,995
2.3
21,044
121,621
96,955
3.6
348,234
2,921
2,921
2.4
6,958
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
6,059
6,059
3.6
22,088
Kampot
Kep
Subcorridor 4
Phnom Penh
Kandal
97,375
96,955
3.6
348,234
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
Kompongcham
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
Subcorridor 1
Banteay Meanchey
Battambang
Pursat
Kompongchnang
Kandal
Cultivated
area (ha)
Harvested
area (ha)
Yield
(tons/ha)
Production
(tons)
67,471
47,265
28.1
165,179
3,167
3,167
3.0
9,554
39,233
23,135
4.7
108,018
404
404
3.2
1,298
1,992
1,992
1.5
2,913
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
1,647
1,642
6.2
2,777
Subcorridor 3
Koh Kong
Kampot
Kep
Subcorridor 4
Sihanoukville
76
75
3.3
251
1,421
1,417
1.7
2,352
150
150
1.2
174
23,379
19,234
21.8
46,700
2
2
2.0
4
Kompong Speu
862
862
1.7
1,422
Phnom Penh
232
232
1.5
349
12,758
8,693
1.9
16,584
Kompongcham
Kandal
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)
26,800
26,743
131.2
514,299
Banteay Meanchey
1,120
1,120
9.8
11,018
Battambang
Subcorridor 1
Yield
(tons/ha)
Production
(tons)
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
24
24
3.3
78
1,141
1,141
12.0
13,691
Kompongthom
591
591
7.1
4,217
Kompongcham
Phnom Penh
Siem Reap
20,430
20,430
19.9
406,408
Svayrieng
613
613
4.6
2,842
Prey Veng
121
121
6.6
801
1,861
1,798
48.4
18,935
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
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
71
71
5.0
355
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
Subcorridor 2
Siem Reap
Preah Vihear
Kep
Subcorridor 4
Kandal
122
114
10.1
1,152
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
Kompongcham
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)
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
0
0
0.0
0
Siem Reap
664
664
14.1
9,348
Kompongthom
109
109
14.3
1,564
Kompongcham
Subcorridor 1
Phnom Penh
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
38
38
12.5
475
931
931
53.7
19,673
Preah Vihear
Subcorridor 3
Koh Kong
Kampot
Kep
Subcorridor 4
Sihanoukville
Kompong Speu
Phnom Penh
Kandal
50
50
17.0
850
842
842
21.7
18,238
39
39
15.0
585
2,006
2,006
146.5
43,074
0
0
0.0
0
65
65
12.0
780
0
0
0.0
0
270
270
25.5
6,885
1,239
1,239
19.3
23,918
109
109
32.7
3,568
Mondulkiri
76
76
36.0
2,736
Stung Treng
247
247
21.0
5,187
Kompongcham
Kratie
ha = hectare.
Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.
Medical chemicals
10
1
10
Mechanic assembly
Mechanics
1
Leather processing
0.44
0.10
0.29
0.10
0.28
0.01
1
9
Hat
Household goods
8.00
1.41
0.65
0.10
0.05
0.15
0.51
0.88
0.08
22.74
10.98
1.55
22.11
13.65
48.29
Local
share
(%)
569
49
Garment
18
7
Electronics
Food processing
2
Discs
Energy
6
10
Cement
Chemicals
25
3
1,041
30
Building material
Animal feeds
Industries
Plantation
2
65
Cattle
32
Agro-industry
129
Agriculture
Agriculture
Sector
Number
of
projects
0.52
–
0.67
–
0.59
0.08
46.66
3.29
1.08
0.58
0.14
0.43
0.45
1.52
0.21
77.27
12.28
–
28.27
11.16
51.71
Foreign
share
(%)
9,782,600
300,000
10,400,000
1,000,000
4,090,000
980,000
617,614,467
158,072,800
88,429,000
7,000,000
2,000,000
7,100,000
340,200,000
28,035,000
3,800,000
2,418,954,967
94,717,131
30,395,975
141,895,000
33,060,000
300,068,106
Registered
capital ($)
2,250,000
–
2,750,000
–
890,000
–
49,495,360
28,355,000
151,452,000
9,500,000
–
–
148,000,000
5,084,220
–
577,056,580
30,300,000
–
34,401,000
15,000,000
79,701,000
Overseas
loans ($)
600,000
200,000
750,000
500,000
–
–
6,370,000
5,012,000
–
920,000
–
200,000
–
400,000
–
100,162,000
4,750,000
–
3,560,000
700,000
9,010,000
Domestic
loans ($)
17,190,569
767,000
6,787,289
615,500
4,998,507
883,800
1,030,410,383
328,783,802
361,588,038
4,391,846
2,878,868
4,455,000
574,347,640
33,872,962
6,629,218
4,560,677,815
179,454,211
2,921,815
680,346,259
206,114,883
1,068,837,168
Equities ($)
continued on next page
20,040,569
967,000
10,287,289
1,115,500
5,888,507
883,800
1,086,275,743
362,150,802
513,040,038
14,811,846
2,878,868
4,655,000
722,347,640
39,357,182
6,629,218
5,235,896,395
214,504,211
2,921,815
718,307,259
221,814,883
1,157,548,168
Fixed
assets ($)
Table A9: Approved Investment by Sector, 1994 through First Half of 2008
Appendix A: Basic Information on the Southern Economic Corridor National Components 95
0.45
93
24
15
Other industries
Paper
4
9
21
42
Socks
Textiles
Tobacco
Wood processing
5
10
Health services
Infrastructure
3
4
Media
3
Engineering
22
Education
Construction
121
33
Shoes
Services
28
Plastic
Petroleum distribution
2
39
Mining
Petroleum
0.53
6
Metal
1.25
5.39
1.17
0.62
0.91
8.52
41.61
1.40
0.67
0.10
0.00
0.50
0.63
0.10
2.52
2.33
0.34
0.12
3
Medical supplies
0.00
Local
share
(%)
1
Number
of
projects
Medical instruments
Sector
Table A9: continued
1.23
2.88
2.97
2.68
1.51
9.66
58.23
2.64
1.35
0.76
0.38
2.67
2.06
0.10
1.00
1.77
6.41
1.41
0.23
0.17
0.10
Foreign
share
(%)
2,080,000
76,650,500
13,670,428
5,860,000
4,800,000
166,292,472
556,831,400
256,960,000
108,900,000
17,010,000
3,700,000
48,950,000
24,604,000
1,220,000
264,370,000
29,209,600
165,707,500
212,000,000
5,400,000
2,020,000
100,000
Registered
capital ($)
–
–
3,000,000
25,500,000
200,000
–
40,000,000
273,500,000
449,274,000
154,480,000
–
–
–
800,000
7,550,000
–
13,000,000
200,000
2,350,000
–
900,000
Overseas
loans ($)
–
–
–
–
–
–
–
12,000,000
24,550,000
75,000,000
–
–
–
1,600,000
3,900,000
–
1,100,000
–
2,010,000
–
1,600,000
Domestic
loans ($)
2,772,604
229,921,162
24,243,000
31,001,910
60,191,500
2,909,038,443
4,192,499,491
218,107,186
89,193,100
63,862,049
5,516,688
82,804,583
33,854,666
1,277,800
273,459,246
34,646,919
1,127,412,435
242,145,208
5,576,765
4,135,748
85,000
Equities ($)
continued on next page
5,772,604
256,421,162
24,443,900
31,001,910
100,191,500
3,194,538,443
4,797,324,381
447,587,186
89,193,100
63,862,049
5,516,688
85,204,583
43,304,666
1,277,800
287,559,246
34,846,919
1,131,772,435
242,145,208
8,076,765
4,135,748
85,000
Fixed
assets ($)
96
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
11
Transport
33
12
Tourism
Tourism centers
28.65
4.73
16.02
26.06
46.81
0.83
3.36
3.19
13.91
2.46
Local
share
(%)
71.35
5.88
13.19
34.12
53.19
1.55
5.74
14.99
15.02
–
Foreign
share
(%)
1,019,600
9,800,000
163,492,998
174,312,598
–
572,000
53,752,000
52,500,000
250,000
Overseas
loans ($)
5,194,256,946 1,280,344,178
1,459,390,000
85,400,000
373,612,473
1,918,402,473
3,000,000
63,550,000
164,258,000
50,870,000
5,800,000
Registered
capital ($)
Source: Council for the Development of Cambodia; Cambodia Investment Board.
1,404
68
Hotel
Total
113
Tourism
3
22
Telecommunications
Water supply
35
3
Number
of
projects
Services
Service energy
Sector
Table A9: continued
140,592,400
20,400
–
6,850,000
6,870,400
–
100,000
–
12,400,000
50,000
Domestic
loans ($)
1,532,733,637
5,700,824,641
606,977,667
7,840,535,945
3,556,056
41,318,437
541,136,582
342,805,257
6,514,540
Equities ($)
19,272,487,727 17,662,550,419
1,533,773,537
5,710,624,641
837,320,605
8,081,718,783
3,556,066
41,990,437
694,888,562
437,705,257
6,814,540
Fixed
assets ($)
Appendix A: Basic Information on the Southern Economic Corridor National Components 97
98
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A10: Approved Investment by Country,
1994 through First Half of 2008
Regions
Countries
Americas
Register capital
($)
Fixed assets ($)
(%)
117,355,900
588,711,016.36
3.05
United States
58,881,000
509,117,417.60
2.64
Canada
58,174,900
79,348,213.76
0.41
300,000
245,385.00
0.00
Argentina
ASEAN
2,085,537,723
3,341,781,630.47
17.34
Malaysia
1,576,407,473
2,199,447,878,.85
11.41
Thailand
192,177,350
521,256,417.89
2.70
Singapore
193,397,100
325,883,228.44
1.69
Viet Nam
67,770,300
228,856,098.54
1.19
Indonesia
54,485,500
64,998,431.75
0.34
Philippines
1,300,000
1,339,575.00
0.01
Cambodia
1,440,874,394
5,842,251,382.45
30.31
241,249,350
898,547,056.58
4.66
12,450,350
289,006,053.00
1.50
Europe
Russian Federation
France
37,140,450
243,464,475.02
1.26
128,110,100
138,532,233.66
0.72
Belgium
5,000,000
33,319,100.00
0.17
Norway
3,370,000
16,645,630.00
0.09
United Kingdom
Sweden
4,000,000
15,003,780.00
0.08
Netherlands
13,100,000
14,578,000.00
0.08
Switzerland
8,000,000
11,781,595.00
0.06
Portugal
5,550,000
4,264,722.40
0.02
Bulgaria
250,000
520,777.50
0.00
Germany
118,800
230,690.00
0.00
1,307,239,080
8,600,693,171.70
44.63
PRC
551,469,678
5,623,658,496.72
29.18
Korea, Rep. of
159,946,000
1,769,132,467.98
3.18
Taipei,China
396,249,970
628,138,302.42
3.26
Hong Kong, China
116,773,252
273,646,734.39
1.42
22,584,200
136,312,435.89
0.71
1,750,000
64,170,347.25
0.33
Others and other Asia
Japan
Kazakhstan
Australia
53,376,500
59,292,291.60
0.31
Nepal
250,000
20,713,495.75
0.11
Kyrgyz Republic
970,000
18,928,031.95
0.10
Israel
800,000
2,124,999.30
0.01
1,829,680
1,909,080.00
0.01
Macau, China
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 99
Table A10: continued
Regions
Register capital
($)
Countries
New Zealand
Uzbekistan
India
Saudi Arabia
Sri Lanka
Total
Fixed assets ($)
(%)
559,800
1,461,085.40
0.01
30,000
585,403.05
0.00
400,000
340,000.00
0.00
24,160,000
131,200,000.00
0.68
250,000
280,000.00
0.00
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 2008
1. Visitor arrivals in 2008: 2,125,465
2. Mode of arrival (Number of visitors)
Air
Phnom Penh International Airport
Siem Reap International Airport
1,239,407
570,903
668,504
Land and waterways
Land
Waterways
762,027
690,138
71,889
Same-day visitors
124,031
3. Visitor arrivals in 2007–2008
Share (%)
Visitors
Air
Phnom Penh
International
Airport
Change (%)
2007
2008
2007
2008
1,296,513
1,239,407
64.34
58.31
(4.40)
535,562
570,903
26.58
26.86
6.66
2008/2007
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
Subtotal
Same-day visitors
Total
44,990
71,889
2.23
3.38
59.79
1,872,567
2,001,434
92.93
94.16
(12.99)
142,561
124,031
7.07
5.84
(13.00)
2,015,128
2,125,465
100.00
100.00
( ) = negative value.
Source: Cambodia Ministry of Tourism.
5.48
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
Subcorridor 1
Number of hotels
Number of guesthouses
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
117
237
101
201
Stung Treng
5
10
Mondulkiri
2
18
Rattanakiri
9
8
Subcorridor 2
Siem Reap
Preah Vihear
10
Subcorridor 3
8
35
Koh Kong
6
13
Kampot
2
22
Kep
Subcorridor 4
Sihanoukville
Kompong Speu
Phnom Penh
6
14
209
524
42
108
0
10
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
Electricity
Subcorridors
Potential capacity
Produced capacity
Banteay Meanchey
2,290 kVA
1,570 kVA
Battambang
1,950 kVA
1,475 kVA
Subcorridor 1
Pursat
Kompongchhnang
Kandal
Phnom Penh
2,350 kVA
2,010 kVA
3,840,970 kWh
3,148,590 kWh
Connected with Phnom Penh City
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
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
Koh Kong
2,000 kVA
1,800 kVA
Kampot
193.2 MW
–
Kep
3.08 MW
3 MW
–
0.5–0.8 MW
Subcorridor 2
Siem Reap
Subcorridor 3
Subcorridor 4
Sihanoukville
Kompong Speu
Kratie
Connected with Phnom Penh
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 resources
Subcorridor 1
Banteay Menachey
limestone
phosphate
Daunsam flooded forest
Battambang
limestone
gold ore
iron ore
aluminum
precious stones
Tonle Sap River
Samkok Mountain
Daunsam flooded forest
Pursat
clay
phosphate
antimony
chromium
Oral Mountain
Samkok Mountain
Tonle Sap River
Kompongchhang
clay
granite
Oral Mountain
Tonle Sap River
Kandal
molybdenum
Phnom Penh
rivers
Siem Reap
clay
granite
Kulen Mountain
Tonle Sap River
Komponghthom
clay
gold
Tonle Sap River
Kompongcham
clay
gold
Subcorridor 2
Siem Reap
clay
granite
Stung Treng
clay
iron ore
marble
precious stones
coal
dolomite
Mondulkiri
lead, copper, zinc
granite
gold
aluminum
bauxite
Rattanakiri
lead, copper, zinc
gold
precious stones
Preah Vihear
lead, copper, zinc
gold
precious stones
Kulen Mountain
Tonle Sap River
Phnom Preck
Phom Namlear
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 103
Table A14: continued
Mining resources
Other resources
Subcorridor 3
Koh Kong
limestone
graphite
gold
iron ore
phosphates
Bokor Mountain
Kampot
white sand
Bokor Mountain
Kirirom Plateau
Phnom Samkok
Sihanoukville
white sand
oil and gas
Bokor Mountain
beautiful beaches
Kompong Speu
lead, copper, zinc
silver
tin
tungsten
limestone
Bokor Mountain
Kirirom Plateau
Phnom Penh
rivers
Kandal
molybdenum
Kompongcham
clay
gold
Kratie
lead, copper, zinc
granite
gold
precious stones
Mondulkiri
lead, copper, zinc
granite
gold
aluminum
Stung Treng
clay
iron ore
marble
precious stones
coal
dolomite
Subcorridor 4
Phnom Preck
Phom Namlear
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)
Capacity (MW)
Project cost estimate ($ million)
40
24
49
Battambang II
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
120
36
60
Siem Reap
Stung Siem Reap Krom
Distance from provincial town (km)
Capacity (MW)
55
1.2
Stung Tanat
Distance from provincial town (km)
Capacity (MW)
100
4
Stung Treng
Sre Pork Krom II
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
30
222
339
Se San Krom II
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
28
207
374
Pursat Province
Stung Atai
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
140
110
156
Stung Resey Chrom Leu
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
130
32
65
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 105
Table A15: continued
Potential Sites
Value
Pursat Province
Pursat I
Distance from provincial town (km)
Capacity (MW)
90
75
Pursat II
Distance from provincial town (km)
Capacity (MW)
70
17
Pursat III
Distance from provincial town (km)
Capacity (MW)
30
1.5
Pursat IV
Distance from provincial town (km)
Capacity (MW)
25
1.5
Kompongthom Province
Steung Chinith
Distance from provincial town (km)
Capacity (MW)
75
5
Steung Sen
Distance from provincial town (km)
Capacity (MW)
95
40
Steung Stuoang
Distance from provincial town (km)
Capacity (MW)
50
4
Steung Chikreng
Distance from provincial town (km)
Capacity (MW)
100
1
Rattanakiri Province
Prek Leang I
Distance from provincial town (km)
Capacity (MW)
70
55
Prek Leang IA
Distance from provincial town (km)
Capacity (MW)
60
12
Prek Leang II
Distance from provincial town (km)
Capacity (MW)
80
44
Sesan Krom III
Distance from provincial town (km)
Capacity (MW)
30
375
continued on next page
106
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A15: continued
Potential Sites
Value
Rattanakiri Province
Srepok Krom III
Distance from provincial town (km)
Capacity (MW)
32
330
Mondulkiri
Preck Pock Krom 4
Distance from provincial town (km)
Capacity (MW)
100
235
Preck Roveang 1
Distance from provincial town (km)
Capacity (MW)
70
7
Preck Roveang 2
Distance from provincial town (km)
Capacity (MW)
80
5
Preck Chbar
Distance from provincial town (km)
Capacity (MW)
95
5
Preck Otalay 1
Distance from provincial town (km)
Capacity (MW)
20
5
Preck Otalay 2
Distance from provincial town (km)
Capacity (MW)
23
4
Preck Otalay 3
Distance from provincial town (km)
Capacity (MW)
25
5
Preck Otalay 4
Distance from provincial town (km)
Capacity (MW)
30
7
Preck Phear 1
Distance from provincial town (km)
Capacity (MW)
35
17
Preck Phear 2
Distance from provincial town (km)
Capacity (MW)
40
8
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 107
Table A15: continued
Potential Sites
Value
Preck Phear 3
Distance from provincial town (km)
Capacity (MW)
45
9
Kampot Province
Kam Chai
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
15
180
250
Kpong Reap Bok Ko
Distance from provincial town (km)
Capacity (MW)
40
24
Au Trav
Distance from provincial town (km)
Capacity (MW)
14
1
Koh Kong Province
Kirirom III
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
150
13
29
Steung Rusey Chom Kandal
Distance from provincial town (km)
Capacity (MW)
50
125
Project cost estimate ($ million)
275
Steung Rusey Chom Krom
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
25
125
130
Steung Cheay Areng
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
55
260
502
Steung Tatay
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
50
80
215
Steung Metek 1
Distance from provincial town (km)
Capacity (MW)
55
175
Steung Metek II
Distance from provincial town (km)
Capacity (MW)
40
210
continued on next page
108
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Table A15: continued
Potential Sites
Value
Koh Kong Province
Steung Metek III
Distance from provincial town (km)
Capacity (MW)
20
50
Steung Keb 1
Distance from provincial town (km)
Capacity (MW)
12
4
Steung Keb II
Distance from provincial town (km)
Capacity (MW)
25
26
Steung Oslar
Distance from provincial town (km)
Capacity (MW)
130
2
Kirirom 2
Distance from provincial town (km)
Capacity (MW)
150
1
Kratie Province
Sambo
Distance from provincial town (km)
Capacity (MW)
Project cost estimate ($ million)
40–50
467–3,300
700–3,940
Prek Chhlong 1
Distance from provincial town (km)
Capacity (MW)
120
7
Prek Chhlong 2
Distance from provincial town (km)
Capacity (MW)
60
24
Prek Te 1
Distance from provincial town (km)
Capacity (MW)
75
7
Prek Te 2
Distance from provincial town (km)
Capacity (MW)
50
10
Prek Te 3
Distance from provincial town (km)
Capacity (MW)
25
13
Prek KamPhy 1
Distance from provincial town (km)
Capacity (MW)
60
2
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 109
Table A15: continued
Potential Sites
Value
Kratie Province
Prek KamPhy 2
Distance from provincial town (km)
Capacity (MW)
40
6
Prek Krearng 1
Distance from provincial town (km)
Capacity (MW)
75
8
Prek Krearng 2
Distance from provincial town (km)
Capacity (MW)
50
6
km = kilometer, MW = megawatt.
Source: Council for the Development of Cambodia provincial offices; Electricite du Cambodge.
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
Lao People’s Democratic
Republic
5,873,600
Land
area Density
(km2) per km2
Population
aged
Rural
Literacy Poverty
15 to 64 population rate incidence
Gini
(%)
(%)
(%)
(%)
coefficient
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/Province
Lao People’s Democratic Republic
Female
Total active Farmer
Mixed
population
(%)
farmer (%)
Nonfarm
activity (%)
2,738,300
64.6
14.0
21.4
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
167,100
79.8
12.9
7.3
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
40,100
66.8
18.7
14.5
20,500
69.4
19.5
11.1
54,400
83.7
1.9
14.4
28,400
87.3
2.1
10.6
Saravane
Female
Sekong
Female
Attapeu
Female
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
Lao People’s Democratic
Republic
Khammouane
b
Road
accessa
(%)
Electricity
(%)
Primary
school
(%)
Telephone
Densityb
9,113
59.7
41.7
80.9
201
658
48.6
59.4
82.5
–
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
–
Savannakhet
a
Number
of
villages
Percentage share of villages located less than 200 meters from all-season roads accessible by cars and trucks.
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 Participation Unemployment
level (%)a
rate (%)
rate (%)
Lao People’s Democratic
Republic
11.2
Female
Khammouane
Female
Savannakhet
Female
Saravane
Female
Champasack
Female
Sekong
Female
Attapeu
Female
a
b
c
d
Nonfarm
Average
activity Average
labor
(%)b
wage ($)c cost ($)d
66.6
1.4
21.4
51
3,132
–
66.3
0.9
18.7
–
–
9.2
69.1
0.9
16.4
36
–
–
69.3
0.7
13.7
–
–
10.0
71.1
1.0
13.0
47
2,349
–
70.6
0.6
11.2
–
–
5.4
73.2
0.1
7.3
49
–
–
75.0
0.1
5.8
–
–
12.2
68.6
1.1
19.6
40
2,867
–
69.1
0.7
17.0
–
–
4.2
70.3
0.6
14.5
50
–
–
70.5
0.4
11.1
–
–
–
69.5
0.4
14.4
31
–
–
69.9
0.2
10.6
–
–
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.
Percent of total population having occupation outside the agriculture sector.
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.
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
Structure of production (%)
capita
($ million)
Agriculturea Industryb
Service
Lao People’s Democratic
Republic
2,889.7
Khammouane
Savannakhet
Saravane
Champasack
Sekong
Attapeu
522
–
460
256
625
–
337
–
382.2
87.6
381.6
–
39.9
42.7
–
51.6
50.4
53.4
–
–
29.2
–
23.5
20.1
22.5
–
–
28.1
–
24.9
29.5
24.1
–
–
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).
a
Includes agriculture, livestock, and forestry products.
Includes manufacturing, energy, mining and quarrying, and construction.
b
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
Trade/gross
domestic product
31.7
Lao People’s Democratic
Republic
59.8
Savannakhet
–
at Savannakhet–
Mukdahan
border
checkpoint
–
at Dansavan–
Lao Bao
border
checkpoint
–
Champasack
–
at Vang Tao
–
2001
2002
2003
2004
2005
2006
2007
31.4
28.4
40.3
37.3
40.9
55.4
46.6
60.3
–
70.4
24.2
77.2
29.9
65.3
29.5
70.4
42.6
77.3
62.2
68.5
64.0
–
59.5
70.2
62.4
66.2
39.3
45.0
–
–
–
40.4
–
–
29.7
–
–
37.5
–
–
33.8
10.5
–
60.6
6.5
–
54.9
8.1
–
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 crossborder 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
2007
Cambodia
0.03
China,
People’s
Republic of
7.88
Myanmar
0.08
Thailand
77.61
Viet Nam
14.40
0.07
0.03
0.03
0.07
0.01
0.01
0.02
14.85
0.00
69.04
16.04
8.08
0.01
81.54
10.34
15.15
0.04
73.69
11.09
14.29
0.00
73.45
12.19
11.13
0.00
74.55
14.31
9.00
0.00
73.69
17.31
9.58
0.36
70.44
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)
Total trade
Greater Mekong
Subregion countries
Thailand
Viet Nam
2000
2001
2002
2003
2004
2005
2006
8.2
13.9
15.4
2.5
2.1
0.4
0.2
23.2
49.2
26.2
42.4
92.8
41.0
41.4
56.5
9.1
11.0
6.5
25.4
10.8
6.5
25.2
2.2
1.1
19.9
0.6
0.6
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 (%)
Commodity
Export
Import
Mining
Wood and wood products
Agriculture and forest
products
Industry and handicrafts
Electricity
Other
Capital goods
Fuel and gas
Raw materials
Electronic appliances
Foodstuffs
Vehicles and spare parts
Electricity
Other
Lao People’s
Democratic Republic Savannakhet Champasack
46.6
12.0
93.0
3.6
–
32.4
7.5
20.1
13.7
0.2
36.2
24.3
20.8
4.6
3.4
5.9
1.7
3.2
0.3
0.3
–
5.6
18.9
62.8
3.1
0.4
11.1
–
–
3.8
64.3
3.3
–
–
47.1
30.0
11.3
5.3
3.2
–
–
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 Champasack
Association of Southeast
Asian Nations
40.1
–
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
–
–
a
1,216.207
476.267
277.026
Total ($ million)
a
61.6
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
Champasack
Electricity 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
Association of Southeast
Asian Nations
2000 2001 2002 2003 2004 2005 2006 2007
71.7
70.1
69.2
68.0
71.4
72.5
73.4
78.4
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
Cambodia
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
Country/province
Lao People’s
Democratic Republic
Growth rate
Visitors (%)
Revenue (%)
Visitors (%)
Revenue (%)
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
0.8
0.2
21.1
14.2
Saravane
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
Country/
Name of
Size of
conservation province conservation
area (km2)
area
area (km2)
%
Lao People’s Democratic
Republic
Total area
11
conservation
areas
Champasack
Activity
236,800
35,720
15.1
74,515
19,035
25.5
15,415
4,700
30.5
Access
Trekking, bird- South of
Pakse; Road
watching,
No. 6
elephant
riding
Xe Pian
2,400
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
None yet
Remote and
mountainous;
mainly limited
to dry season
Attapeu
10,320
Dong
Amphanh
1,975
19.1
1,975
19.1
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 117
Table A29: continued
Province
Country/
Name of
Size of
conservation province conservation
area (km2)
area
area (km2)
%
Saravane
10,691
2,595
Activity
Access
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.
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/ Participation Under-employUnderWomen Average
area
rate (%)
ment rate (%) employment rate (%) (%) wage ratea
Thailand
a
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
103.4
Minimum wage rate per day over 22 workdays in 2007, using exchange rate of Baht 34 = $1.
Source: Thailand Ministry of Labor, 2007; National Statistical Office of Thailand.
Appendix A: Basic Information on the Southern Economic Corridor National Components 119
Table A32: Income Levels and Economic Structure
Gross provincial
product per capita
($)
Location/area
Thailand
Structure of production (%)
Agriculture Industry
Services
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
Total bilateral
trade
Year
Exports from
Thailand
Imports to
Thailand
Value Change Value Change Value Change Trade
($ million)
(%)
($ million)
(%)
($ million)
(%)
balance
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)
Border
Aranyaprathet–
Poipet
Klong Yai–Kho
Kong
Total
Export
336.47
175.19
511.66
Import
18.05
0.99
19.04
Balance
318.42
174.2
492.61
Export
349.20
273.86
623.06
Import
18.37
1.10
19.48
Balance
330.83
272.76
603.58
Export
382.12
331.2
713.32
Year
2004
2005
2006
2007
Import
24.29
75.54
99.84
Balance
357.82
328.97
686.79
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
2007
Number of projects
1,253
1,222
1,342
Total investment (billion baht)
571.1
373.2
744.5
314,614
177,571
215,427
Employment
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
100% Thai
429
437
452
100% foreign
414
405
479
Joint venture
410
380
411
Ownership
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 121
Table A35: continued
2005
2006
2007
171
200
Number of projects
Sector
Agricultural products
Minerals and ceramics
204
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
565
487
534
Rayong
125
117
146
Phuket
11
10
10
Other
429
360
378
c
Zone 2
b
340
362
368
36 provinces
287
306
314
22 provinces
53
56
54
North
59
62
68
Central
21
11
20
110
123
98
52
66
62
Zone 3
Northeast
East
a
b
c
d
West
14
17
16
South
55
62
66
Otherd
29
21
38
Bangkok, Nokhon Pathom, Nontabur, Patumthani, Samut Prakarn, and Samut Sakhon.
Phuket, Rayong, and others (Angthong, Ayuttaya, Chachoengsao, Chonburi, Kanchanaburi, Nakhon
Nayok, Ratchaburi, Samut Songkhram, Saraburi, and Suphanburt).
The 58 remaining provinces are divided into a group of 22 provinces and a group of 36 provinces.
International maritime transport activity.
Source: Thailand Board of Investment.
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
Sakaew
Thailand
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
222,119
533,499
22,345
2,922
29,571
1,061
82,646
535,634
12,849
2,324
12,919
1,760
United Kingdom
United States
Canada
Middle East
Australia
New Zealand
14,757
113,903
7,623
1,030
5,409
179
157,139
397,646
4,572
827
6,490
26
70,597
464,823
9,747
1,348
6,186
363
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
2,374
31,001
833
206
1,854
18
14,624
94,555
1,355
281
2,295
32
Myanmar
Israel
continued on next page
Appendix A: Basic Information on the Southern Economic Corridor National Components 123
Table A36: continued
Country of origin Chonburi
Lao People’s
Democratic
Republic
Viet Nam
Bangkok
Rayong Chantaburi
Trat
Sakaew
7,768
20,568
594
190
1,200
141
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
22,041
–
635
69
856
8
7,969
–
1,344
113
1,290
427
99,342
772,635
17,669
3,861
16,329
444
6,151,327 13,319,749 1,929,969
584,135
982,748
341,781
Other South Asia
Other Americas
Others
Totals
Source: Tourism Authority of Thailand.
Table A37: Major Tourist Attractions in the Thailand Component
of the Southern Economic Corridor
Area
Ecotourism
Historical
Cultural
Bangkok
–
Grand Palace, Arun
Rattanakosin Island
Temple, the Chakri
Maha Prasat Throne Hall
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
Area
Population
Illiteracy Incidence
density
Rural
of poverty
rate
Total
Land area (people population
(%)
(%)
per km2)
(%)
population
(km2)
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
947,300
1,989.6
476
55.7
3.3
6.7
2,744,700
21,576.5
127
72.7
10.2
19.7
1,165,800
15,536.9
75
71.3
22.4
25.6
Ba Ria–Vung Tau
Subcorridor 2
Gia Lai
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
1,705,200
6,348.3
266
74.0
4.1
10.3
Kien Giang
1,241,000
5,331.7
233
80.0
2.1
13.3
Subcorridors Total
Ca Mau
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
1.3
–
–
–
Subcorridors Total/
Whole country
(%)
19.1
14.3
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
Subcorridor 1
2003
2004
2005
2006
2007
9,063,800
9,599,500
9,830,900 10,058,300 10,314,700 10,601,400
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
822,000
884,900
898,200
913,800
935,000
947,300
Tay Ninh
Ba Ria–Vung Tau
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
Illiteracy
Area
Subcorridor 1
Tay Ninh
Employed
population
Per 1,000
people
Incidence of poverty
%
Per 1,000
people
%
5,489,800
118.3
2.2
177.1
1.7
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
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 2
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
8,386,400
Total: Whole country 44,171,900
300.8
1,766.9
3.6
4.0
1,059.4
12,602.9
6.5
14.8
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)
Agriculture
production
land
Forestry
land
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
77,900
33,400
28,900
20,700
209,900
289,700
179,700
43,400
13,800
590,400
Area
Whole country
Ho Chi Minh City
Dong Nai
Ba Ria–Vung Tau
Specialty Homestead
land
land
Total land
109,800
35,700
26,200
4,800
199,000
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
Subcorridor 2
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
1,975,200
1,575,200
219,400
116,700
4,748,600
Subcorridors Total
Source: Statistical Yearbook 2007 of relevant provinces.
Table A42: Structure of Land Use by Subcorridor (%)
Agriculture
production
land
Forestry
land
Specialty
land
Homestead
land
Whole 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
Area
Ba Ria–Vung Tau
55.2
18.0
13.2
2.4
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
Subcorridor 2
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
41.6
33.2
4.6
2.5
Subcorridors Total
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
Per capita gross
Structure of production (%)
domestic product/
gross provincial Agriculture Industry
Services
product ($)
Area
Whole country
Subcorridor 1
Tay Ninh
812
20.30
41.58
38.12
2,321
4.00
59.50
36.50
Unemployment rate
(%)
5.13
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
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
Subcorridor 2
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
1,744
–
–
–
–
Subcorridors Total
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
Gross domestic product (D billion)a
Area
Population Agriculture
Industry
Service
Total
Whole 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
947,300
2,691.4
106,195.6
10,278.9
119,165.9
Ba Ria–Vung Tau
Subcorridor 2
a
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
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
2007
1,126,500
1,172,800
1,114,800
1,078,800
1,159,500
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 1
Tay Ninh
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
3,134,800
3,143,400
3,331,300
3,147,700
3,396,600
2,284,300
2,739,800
2,944,300
2,744,300
2,977,400
850,500
404,100
387,000
403,400
419,200
4,959,400
5,108,600
5,207,200
5,115,500
5,414,500
Subcorridor 3
Kien Giang
Ca Mau
Total
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
2007
Subcorridor 1
207,100
307,300
303,400
316,100
324,000
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
Tay Ninh
Ba Ria–Vung Tau
Subcorridor 2
Gia Lai
139,900
199,000
214,600
222,200
229,900
78,000
101,300
110,800
110,600
118,400
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
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
Whole country
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
2007
Subcorridor 1
Tay Ninh
Ho Chi Minh City
212.1
86.5
37.0
239.6
116.2
33.6
224.1
116.9
34.9
270.3
120.6
42.4
259.4
123.5
31.3
Dong Nai
Ba Ria–Vung Tau
Subcorridor 2
Gia Lai
Binh Dinh
Subcorridor 3
Kien Giang
Ca Mau
Total
Subcorridor 1/Total (%)
Subcorridor 2/Total (%)
Subcorridor 3/Total (%)
61.7
26.9
182.4
81.6
100.8
178.4
41.2
137.2
572.9
37.0
31.8
31.2
56.5
33.3
236.4
106.3
130.1
203.3
83.7
119.6
679.3
35.3
34.8
29.6
57.9
34.4
251.3
117.5
133.8
207.5
85.6
121.9
682.9
32.8
36.8
30.4
69.2
38.0
255.9
119.5
136.4
201.6
88.4
113.2
727.8
37.1
35.2
27.7
64.7
39.9
265.8
124.0
141.8
197.1
89.6
107.5
722.3
35.9
36.8
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
Country total
Subcorridor 1
Tay Ninh
Ho Chi Minh City
Dong Nai
Ba Ria–Vung tau
Subcorridor 2
Gia Lai
Binh Dinh
Subcorridor 3
Kien Giang
Ca Mau
Illiterate
Did not finish
primary
school
Finished
primary
school
Finished
secondary
school
Finished
high
school
5.06
14.25
29.23
31.84
19.62
5.63
0.95
4.21
3.24
23.64
8.35
15.04
17.20
41.28
27.62
33.84
36.01
15.01
22.86
24.93
21.70
14.44
40.21
21.95
21.82
28.8
1.98
18.14
20.48
20.79
39.38
19.34
25.01
12.94
14.37
3.70
2.53
28.62
28.49
42.07
47.67
16.10
15.33
8.51
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)
Salary
and
wages
Agriculture,
forestry,
and fisheries
218
158
145
115
636
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
Area
Whole country
Non-agriculture,
forestry,
and fishing
Others
Total
Subcorridor 1
Subcorridor 2
Gia Lai
151
177
109
61
498
Binh Dinh
188
134
169
61
553
Kien Giang
178
263
138
96
675
Ca Mau
113
318
176
59
666
Subcorridor 3
a
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)
Quintile
Area
1
2
184
319
3
4
459
679
1,542
Tay Ninh
267
396
Ho Chi Minh City
554
824
517
699
1,606
697
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
Gia Lai
146
231
369
585
1,157
498
Binh Dinh
197
320
440
599
1,210
553
Kien Giang
210
359
485
675
1,649
675
Ca Mau
209
361
506
734
1,517
666
Whole country
5
Average
636
Subcorridor 1
Subcorridor 2
Subcorridor 3
a
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)
Lowest
income
quintile
Highest
income
quintile
Highest income quintile
compared with the
lowest quintile
184
1,542
8.4
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
Gia Lai
146
1,157
7.9
Binh Dinh
197
1,210
6.1
Kien Giang
210
1,649
7.8
Ca Mau
209
1,517
7.3
Area
Whole country
Subcorridor 1
Subcorridor 2
Subcorridor 3
D = dong.
Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).
Table A52: Export Turnover
($ million)
Area
Subcorridor 1
Tay Ninh
2005
2006
2007
24,453.4
29,004.4
33,515.8
260.9
404.0
493.3
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
254.3
292.1
454.4
39.4
48.3
127.1
Ho Chi Minh City
Subcorridor 2
Gia Lai
Binh Dinh
214.9
243.8
327.3
Subcorridor 3
736.5
813.2
866.8
215.6
230.3
266.0
Kien Giang
Ca Mau
Total
520.9
582.9
600.8
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 A53: Import Turnover
($ million)
Area
Subcorridor 1
Tay Ninh
Ho Chi Minh City
Dong Nai
Ba Ria–Vung Tau
2005
2006
2007
15,818.6
17,684.6
22,616.4
182.9
269.3
298.3
10,945.3
11,637.1
14,924.0
4,183.0
4,999.0
6,329.0
605.4
779.2
1,065.1
128.2
121.4
158.8
16.1
13.1
17.2
Binh Dinh
112.1
108.3
141.6
Subcorridor 3
33.2
31.5
18.5
29.2
24.2
18.5
4.0
7.3
–
Subcorridor 2
Gia Lai
Kien Giang
Ca Mau
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.
Table A54: Exports and Imports through the Moc Bai Border Gate
($ thousand)
Total trade
Formal
Informal
Total export
Formal
Informal
Total import
Formal
Informal
2005
2006
2007
First 6 months
of 2008
52,385
94,305
112,753
92,984
48,303
94,302
112,750
91,238
4,082
3
3
1,748
31,778
36,770
46,693
34,538
27,697
36,767
46,691
32,106
4,081
3
2
1,746
20,606
57,535
66,059
59,392
20,606
57,535
66,060
59,131
–
–
–
260
Source: Moc Bai Border Gate Economic Zone management board.
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)
Total trade
Formal
2007
15,612
17,176
24,400
10,928
12,367
17,568
4,684
4,809
6,832
12,712
13,176
16,200
Informal
Total export
2008
(first 11 months )
2006
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
72
988
1,558
26.3
10.4
–
Informal
Le Thanh export/Gia Lai
Province export (%)
Source: Customs office of the Le Thanh Zone.
Table A56: Export and Import through the Ha Tien Border Gate
Year
Total
($ 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
Total
Number registered
of
capital
Year projects ($ million)
Total charter
capital
($ million)
Foreignside charter
capital
($ million)
Viet Namside charter Implementation
capital
capital
($ million)
($ 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
Total
Number
of
projects
Total
registered
capital
($ million)
Total
charter
capital
($ million)
Foreign–
side
charter
capital
($ million)
Viet
Nam–side
charter
capital
($ million)
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
6,323
52,345.4
21,328.6
18,598.4
2,730.2
Manufacturing
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
65
862.7
791.1
730.6
60.5
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
Financial
intermediation
Real estate renting
business
activities
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
Number
of
projects
Area
Whole country
Tay Ninh
9,810
Total
registered
capital
($ million)
Total
charter
capital
($ million)
Foreignside
charter
capital
($ million)
99,596.2
43,129.0
36,413.7
Viet Namside
charter
capital
($ million)
6,715.3
157
665.6
401.1
392.8
8.3
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
4,181
41,184.1
17,031.0
14,526.0
2,503.0
42.6
41.4
39.5
39.9
37.3
Ho Chi Minh City
Subcorridor 1
% of Whole country
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
21
501.0
225.1
150.3
74.8
Kien Giang
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
Subcorridor 1
Tay Ninh
2005
4,856,100
2006
6,333,600
2007
6,704,900
369,800
355,800
364,900
2,840,000
3,301,000
3,350,000
552,600
860,200
1,100,700
1,093,700
1,816,600
1,889,300
553,000
702,800
828,100
Gia Lai
309,700
355,200
441,600
Binh Dinh
243,300
347,600
386,500
2,335,700
2,426,300
3,048,900
1,820,100
1,897,000
2,516,900
Ho Chi Minh City
Dong Nai
Ba Ria–Vung Tau
Subcorridor 2
Subcorridor 3
Kien Giang
Ca Mau
Total
515,600
529,300
532,000
7,744,800
9,462,700
10,581,900
62.7
66.9
63.4
Subcorridor 1/Total (%)
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
2007
369,865
355,780
364,887
366,117
352,593
361,641
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
15,550
17,105
17,078
1,093,700
1,816,600
1,889,300
1,017,100
1,724,700
1,794,600
Tay Ninh Province
From Viet Nam
From other countries
From other countries
Ba Ria–Vung Tau Province
From Viet Nam
From other countries
Gia Lai Province
From Viet Nam
From other countries
76,600
91,900
94,700
291,700
335,400
420,900
287,600
331,200
416,400
4,100
4,200
4,500
Binh Dinh Province
347,600
386,500
432,800
From Viet Nam
323,600
352,000
394,200
24,000
34,500
38,600
Kien Giang Province
420,000
505,900
601,100
From Viet Nam
381,200
441,300
527,800
38,800
64,600
73,300
Ca Mau Province
451,400
529,300
532,000
From Viet Nam
446,200
519,700
521,000
5,100
9,600
11,000
From other countries
From other countries
From other countries
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
Subcorridor 1
901,100 1,661,800 1,891,700 2,362,500 2,655,000 3,205,600
Tay Ninh
2003
2004
2005
2006
2007
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
59,800
118,900
186,700
150,300
200,300
243,200
Ba Ria–Vung Tau
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 Nam
National 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
T
he 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.
ˆ ? 
\ &?‰\' 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.
ˆ?‰\
in SEC development.
Greater Mekong Subregion Secretariat
*
Š
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
\
>
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.
143
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
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.
145
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
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,
147
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
‹
Œ‘&'
class 4 to class 3 road from Cambodia
–Viet Nam border at Pleiku to Quy Nhon
120.0
Funding from Government of
Viet Nam
‡
’‡
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
Southern Coastal Subcorridor
continued on next page
150
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Appendix D: continued
Program/Project
Cost
estimate
($ million)
Status/Remarks
1.1.2 Rail
‡
Cambodia (600 km for rehabilitation;
48 km for reconstruction)
Phnom Penh to Viet Nam border at
Loc Ninh (254 km) and from Loc Ninh
to Ho Chi Minh City (129 km)
73.0
Funding from ADB, OPEC
(Organization of the Petroleum
Exporting Countries) Fund for
International Development,
governments of Cambodia and
Malaysia
75.0
Financing sources to be identified
(Viet Nam)
Not available
(Cambodia)
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
*
|Œ
Not available
of C and D container terminals
1.1.4 Air transport
‹
~
Sihanoukville Airport
‹
‡
Treng airports in Cambodia
To be
determined
6.0
Part of ADB-funded Mekong
Tourism Development Project
(loan of $15.6 million to
Cambodia covering four
components)
52.4
Funding from ADB and
Japan Bank for International
Cooperation
1.2 Power
#
“ŒŒ‘>&‚'
link between Kampot and Sihanoukville
#
“’’‚
Tay Ninh in Viet Nam to
Kompongcham and Kratie in
Cambodia, including two 115 kV
power stations
Not available Possible funding from the
World Bank and Electricité du
Cambodge
#
“’’‚
Ban Hat in the Lao People’s
Democratic Republic (PDR) to Stung
Treng in Cambodia
Not available Possible financing from the World
Bank, Electricité du Cambodge,
and Electricité du Lao
\
Nhon Trach 4 Combined Cycle Power
Project (720 megawatts [MW])
450.0
Financing being sought
continued on next page
Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 151
Appendix D: continued
Program/Project
|€€{|
(200 MW), including 220 kV
transmission line to Stung Treng and
Viet Nam border where it
interconnects with Viet Nam grid
Cost
estimate
($ million)
400.0
Status/Remarks
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
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
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
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; bordercrossing facility improvements)
5.0
For all economic corridors
#
ƒ
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
continued on next page
152
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Appendix D: continued
Program/Project
€
‰
phytosanitary requirements in GMS
cross-border trade (Cambodia, the
Lao PDR, and Viet Nam)
Cost
estimate
($ million)
0.8
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
Status/Remarks
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
$30 million for Viet Nam)
Source to be determined
2.2 Investment promotion
2.2.1 SEC-wide investment promotion and facilitation
within SEC countries and road shows
in major foreign business centers
0.10
Source to be determined
!
}
trade fairs
0.10
Source to be determined
procedures in SEC areas
0.10
Source to be determined
policies and regulations, including
procedures for investment approval
in SEC areas
0.05
Source to be determined
|
business opportunities in SEC areas
0.05
Source to be determined
|
directory, providing names and
addresses of manufacturers, traders,
tourist operators, and service
providers in SEC areas together with
the products and services they offer
0.05
Source to be determined
2.2.2 Business information
continued on next page
Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 153
Appendix D: continued
Program/Project
†
providing basic information on the
SEC with hyperlinks to GMS and
GMS Business Forum websites
Cost
estimate
($ million)
0.025
Status/Remarks
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
|
>
border contract farming
0.1
Included in ADB’s pipeline
for 2010; project preparatory
technical assistance (PPTA)
approved in 2008
Source to be determined
|
^
Not available Ayeyawaddy–Chao Phraya–
Mekong Economic Cooperation
of cash crops (castor bean, maize,
Strategy project
potato, sesame, soybean) in selected
SEC provinces (Battambang, Kampot,
Koh Kong, Pursat)
Logistics
#
development project
0.8
Project preparation for all
economic corridors; project
included in ADB’s indicative
pipeline for 2011 ($63 million)
?
information platform
0.05
Source to be determined
the logistics industry in the SEC
0.05
Source to be determined
‡
investment in the logistics industry in
SEC countries
0.05
Source to be determined
0.1
Source to be determined
”
marketing program focusing on SEC
tourist destinations
5.0
Mekong Tourism Coordination
Office and other sources
|
improve existing and develop new
tourist destinations and facilities in
SEC areas, including hotels, rest
areas, and tourism information centers
47.1
?\
Transport Association
Tourism
Funded under ongoing ADB loan
continued on next page
154
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Appendix D: continued
Program/Project
ƒ
of access roads to major tourist
destinations in SEC areas
€
on single GMS visa scheme between
Cambodia and Thailand
Cost
estimate
($ million)
Status/Remarks
10.0
Proposed under ADB loan/grant
pipeline in 2009
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 ($91.2m); financing
being sought
€
management, and marketing of
existing and planned industrial
estates and special economic zones
in the SEC
0.1
Source to be determined
|
along the SEC (e.g., agro-industry
or resource-based production zones
in selected areas in the SEC involving
linkages in production, processing,
and marketing)
0.1
Source to be determined
cross-border supply chains involving
agriculture and small and mediumsized enterprises in SEC areas
0.1
Source to be determined
continued on next page
Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 155
Appendix D: continued
Program/Project
Cost
estimate
($ 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
change–related risks (the Lao PDR
and Viet Nam)
?
management and mitigation
(Cambodia, the Lao PDR, and
Viet Nam)
9.9
130.0
Included in ADB pipeline for 2010
Ongoing under Environment
Operations Center
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
{€‚ƒ<€†|
Infrastructure Sector (Cambodia,
the Lao PDR, and Viet Nam)
1.15
Ongoing with support from ADB
and Government of Sweden
?
{€‚ƒ<€†
infrastructure projects in GMS
economic corridors (Cambodia, the
Lao PDR, and Viet Nam)
6.0
€
safe migration concerns for women
and children into regional
cooperation
0.40
Ongoing with funding from
Government of Australia
Assumed share of GMS in total
project cost
continued on next page
156
Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor
Appendix D: continued
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
0.02
Funded under an ongoing ADB
RETA (7275); assumed share of
SEC countries
contract for technically skilled
migrant workers in GMS
#
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
ˆ
(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
continued on next page
Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 157
Appendix D: continued
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
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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.
Asian Development Bank
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www.adb.org
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