ASEAN Submissions.

8/11/2019 ASEAN Submissions.

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Executive SummaryThe ASEAN Alliance is pleased to be contributing to the strategic direction of the South

Australian South East Asia Strategy. There is ample time and opportunity to explore this

growing region, each at different stages and each with their unique and distinct

characteristics. We have tried to provide specific local knowledge of our own region or

provinces, which we believe have the potential to develop fruitful and meaningful

engagement with South Australia. We now provide a summary of our recommendations:

Recommendation 1: Activate a holistic approach to pursue meaningful opportunitiesaligned with common core values

Recommendation 2: Develop small-scale projects, using the Japanese type model

Recommendation 3: Initiate State to Province dialogue model where South Australia

liaises directly with ASEAN countries where comparative advantages can be leveraged

Recommendation 4: Launch a scoping study into relevant provinces in which to engage

Recommendation 5: Build on social capital existing within South Australian ASEAN

communities to develop information partnerships

Country specific recommendations:

Recommendation 6 - Cambodia

6.1 Target growth tourism destinations to promote South Australian wine and

produce.

6.2 Create small to medium sized projects using South Australian contractors to

work with Agricultural industries, in partnership with NGO to improve human

capabilities in knowledge based farming.

6.3 Expansion of Health and Education training partnerships with local

government.


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6.4 Engage with local government to develop transport infrastructure projects

connecting to tourist destinations

Recommendation 7 - Indonesia

7.1 Gauge interest of small-scale projects that can be applied in specific provinces

in Indonesia from community, NGO and student groups located in South

Australia to develop common themes for engagement

7.2 Encourage greater participation of Indonesian students in South Australian

workforce aligned to their study interests

7.3 Promote South Australia as a destination for Health, Education and Training in

provinces were relationships exist

Recommendation 8 - Vietnam

8.1 Investigate feasibility to expand VietFest activities in South Australia and to

co-ordinate with activities promoting South Australia in Vietnam provinces in

Vietnam.

8.2 Explore opportunities in Khanh Hoa province to export South Australian wine

and to produce high traffic tourist areas

8.3 Explore niche areas where South Australian SMEs can establish a foreign base

to distribute to local Khanh Hoa province

8.4 Investigate the feasibility of Private-Public Partnerships (using a State to

province approach) to develop health and education training contracts.

8.5 Investigate the feasibility of Private-Public Partnerships (using a State to

province approach) into the implementation of knowledge transfer to design

and consult on the construction of Private Hospitals in Khanh Hoa province


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Recommendation 9 - Lao Peoples Democratic Republic

9.1 Initiate dialogue and engage with the Vientiane Capital,

Luang Prabang City and Champassack Province

Acknowledgements

We would like to acknowledge the South Australian Government for affording us the

opportunity to consult with our group and to lead the discussion as to how South

Australia may engage with the ASEAN community. We would also like to acknowledge

the commitment and time of each of the key contributors from the countries outlined in

this submission and applying their local knowledge to these submissions.

Christina Lien

Convenor

ASEAN Alliance of South Australia

[email protected]

+61 420 880 689


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IntroductionThe first Association of South East Asian Nations (ASEAN) Leaders Summit in 1976 was a

watershed moment. It introduced a significant economic agenda that helped drive

progressive trade and investment liberalization. By the early 1990s, the economies of

ASEANs five original members (Indonesia, Malaysia, the Philippines, Singapore, and

Thailand) and were an integral part of the East Asian Miracle. Remarkably, the group

introduced several cooperative initiatives at a time when its membership considerably

expanded with the admission of Cambodia, the Lao Peoples Democratic Republic (Lao

PDR), Myanmar, and Viet Nam (together known as the CLMV countries)1.

Indonesia, Vietnam, Cambodia and Lao Peoples Democratic Republic are represented

within these submissions. We believe these countries have potential to be unlocked and

should be given priority by the South Australian Government by the Office of

International Engagement. The developments within each country show that there is

genuine change processes at the local and national levels and there is ample opportunity

to expand South Australias reach to generate deeper impactful engagement in the long-

term future.

While it can be intimidating to think about the multiple cultures, linguistic breadth and

vast geography that encompass South East Asia, fortunately all South East Asia is open

to external opportunities.

Recent activity of the ASEAN

Recent activity of the ASEAN has committed to launching the ASEAN EconomicCommunity (AEC) in 2015, which is styled on the European Union, but without a common

currency and some restrictions on movement of citizens. The establishment of the AEC

demonstrates the regions willingness for greater regional integration and policies to

improve institutions that support inclusive and fair development. Beyond the AEC there

&ADB (2014)ASEAN 2030: Borderless economic communityp xii


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are plans for a borderless community by 2030 as researched by the Asia DevelopmentBank Institute. These aspirations are set out in its report, discussed below.

Aspirations for a RICH ASEAN

The Asian Development Bank institute has consulted widely with ASEAN member

countries and their respective cultural, academic, community and government groups to

produce theASEAN 2030: Borderless economic community Report. Within the report,

ADB identifies that, despite ASEAN economies remaining extremely diverse, in response

to the changing international environment, they face common risks and must shapecommon strategies to promote development within the region2. The comprehensive in-

depth study illustrates the common values the ASEAN region seeks to build their

foundations on, which is to become a resilient, inclusive, competitive and harmonious a

RICH ASEAN by 2030. The ASEAN recognise this is an ambitious target to reach by

2030, as they face the challenges ahead. Each country has its own specific strategy to

meet four key development challenges identified by the ADB study:

Enhancing macroeconomic and financial stability

Supporting equitable growth Promoting competitiveness and innovation

Protecting the environment3

2ADB (2014)ASEAN 2030: Borderless economic community p xxiii3These challenges are more broadly outlined and discussed in the ASEAN 2030: Borderless economic community


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Quality of growth is at the forefront of ASEAN development, as illustrated in the following table:

Role of the AEC

The ASEAN Economic Community Benefit Blueprint4outlines the vision and framework

for ASEAN to transform into a region with free movement of goods, services, investment,

skilled labour and freer flow of capital.

More specifically and importantly ASEAN seeks to converge its common interests of

member countries and to deepen and broaden economic integration through existing

and new initiatives5:

$Source: ASEAN on-line http://www.asean.org/archive/5187-10.pdf


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Outlook for South East Asia8projects that the CLMV countries will grow at a robust paceover the medium term led by Laos at 7.7% per annum9.

Integration and strategically aligning South Australias interests with the above core and

common values of the ASEAN region as well as facilitating trade relations at the

beginning of the AEC can be incorporated into the South Australian South East Asian

strategy.

Efforts should therefore be focused on partnership with local governments in targeted

provinces using government to government dialogue in mind, as well as involvingreputable Non- Governmental Organisations where possible to support and build the

bridges to closer engagement.

It is our opinion that using a holistic model to build bridges is necessary, a model that

can transcend a transactional binary relationship. By using a combination of initiatives

such as developing human capability in the health, food technology in the agribusiness

sector and opening further avenues for educational scholarship can be used as tools for

sustainable and forward looking development. South Australia has niche specialistexpertise in a variety of sectors and the Premiers 10 Point Plan highlights these

strengths. It is for these reasons that we believe it is also the right time for South

Australia to leverage its own human capital for engaging with Laos, Cambodia, Vietnam

and Indonesia, as set out within these submissions.

)+,-. /"0 ,3454673 +89:44; 489? ,@A9 BA7@2 -?75@ @5C D5C7@ "0&$E FGH45C 9?G I7CC:GJ D5346G K=@L *DF7C L "$


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Example of holistic model Japan narrows the development gap Engages on various sub-regional development endeavours

Japan is continuing to support strengthen the capacity of CLMV countries through

the Initiative for ASEAN Integration Work Plan II.

Japan also supports other sub-regional development areas within ASEAN such as

the Greater Mekong Sub-region and Brunei Darussalam-Indonesia-Malaysia-

Philippines-East ASEAN Growth Area (BIMP-EAGA) to promote economic and

social development of the sub-regions.

Increased maritime security cooperation with Cambodia and created a framework

for holistic engagement with Laos on a range of development, defense andsecurity issues.

Recommendations:

Recommendation 1: A holistic approach needed to pursue meaningful opportunities with

Laos, Cambodia, Vietnam and Indonesia.

Recommendation 2: Develop small-scale projects, using the Japanese type model

Recommendation 3: Initiate State to Province dialogue model where South Australia liaises

directly with ASEAN countries where comparative advantages can be leveraged

Recommendation 4: Launch a scoping study into relevant provinces in which to engage

Recommendation 5: Build on social capital existing within South Australian ASEAN

communities to develop information partnerships


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Country overviewWith a population of 15 million people and an average GDP growth rate of

approximately 7% (between 2010 and 2013), Cambodias major domestic industry

sectors are the textile/garments industry, construction, agriculture and tourism. Main

exports include clothing, timber, rubber, rice, fish, tobacco, and footwear. Major imports

include petroleum products, tobacco products, rare earth minerals, construction

materials, machinery, motor vehicles, and pharmaceutical products10.

Generally, the people of Cambodia have witnessed political stability, especially after therecent elections and there is a steady rise in demand to reform for more governance and

accountability. Optimism for reform is driven by a growing middle class who are driving

private consumption growth, as economic development has been fast paced 11. It is

hoped that the changes will contribute to Cambodias new chapter for economic

development.

Cambodias strategic focus

Cambodias Trade Integration Strategy 2014-2018 12 Report sets its targets on

strengthening the competitiveness of its established sectors and nurturing new ones 13. It

recognizes that trade sector competitiveness is critical to growth in the provision of

better employment outcomes and generating incomes to alleviate poverty. Cambodia

recognises that the challenge to connect trade expansion with poverty reduction, gender

equality and greater inclusiveness remains.

Cambodias rapid growth in export-orientated agricultural sectors in rural areas and

emerging diversification in the number of tourism destinations holds great promise14.

OECD reports that further promotion of agricultural and rice production should be a

10The Economist, Country profile, http://country.eiu.com/cambodia11OECD (2013), Economic Outlook for South East Asia, China and India 2014: beyond the Middle- Income Trap, p 11212Cambodia CTIS 2014-2018 Full Report13Ibid, p 1314Ibid p14


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priority and secondly, financial sector reform in the areas of implementing a prudentialand supervisory framework to ensure financial stability15.

Emerging markets for key engagement opportunities

Tourism

The trend of tourism industries has been growing gradually. There is optimism in

Cambodias tourism trade that Cambodia it may become one of the leading tourist

destinations in the world within 10 years. Development of beach-oriented tourism is

beginning to spread away from Sihanoukville into the surrounding coastal provinces.

Eco-tourism is getting a foothold in the countrys Northwest and Cardamom Mountains.

These and other developments are pulling growth of the hospitality sector into new

provinces and regions.

Cambodia may therefore demand more hospitality-related products and services. This

could be a consideration for South Australia to promote its products, wine in particular.

Despite the growth in tourism, there is a need to improve infrastructure to ensure

sustainable growth in the sector. OECD cites that this is problematic, as the transport

infrastructure is not yet fit for the tourism purposes.

Agriculture

In agriculture-oriented sectors, the growing focus on export of semi-processed

agricultural commodities or processed food is bringing new, modern processing

activities into newer areas16. Agriculture is a priority for Cambodias strategy for poverty

reduction. Establishing trade links with South Australias Small to Medium business to

access this market would align with South Australias 10-point plan. There is opportunity

for consultancy firms specialising in agriculture and business to make their mark in any

one of the areas in this sector, given South Australias specialist knowledge in food

&%+,-. /"0 ,3454673 +89:44; 489? ,@A9 BA7@2 -?75@ @5C D5C7@ "0&$E FGH45C 9?G I7CC:GJ D5346G K=@L2 L &&" &'Cambodia CTIS 2014-2018 Full Report2 L&)


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Province in focus: Kampong ThomKampong Thom (Grand Port in English) 18 is a province located in the centre of

Cambodia. It is Cambodias second largest province by area with a total land area of

15,061km2 divided into 8 districts, 81 communes and 477 Villages and the total

population of 576,805 people. The province is divided into two parts: the Eastern part

which consist of forests and plateau, rich in natural resources which are good for

agriculture, forestry and animal husbandry and the Western part which consist of the

plain area and is good for rice growing and fishing supporting the needs for the whole

province and exporting to others. In 2005, Kampong Thom was a significant harvester of

wild fish (18,800 tons) and the fourth largest producer of fish through aquaculture in

Cambodia (1,800 tons). Most fish-raising is home production, with a growing segment

devoted to rice field aquaculture (Save Cambodia's Wildlife, 2006). Kampong Thom is

also one of the largest producers of cashew nuts in Cambodia (Ministry of Agriculture,

2004).

Recommendations

1. Target growth tourism destinations to promote South Australian wine and produce

2. Create small to medium sized projects using South Australian contractors to work with

Agricultural industries, in partnership with NGO to improve human capabilities in

knowledge based farming.

&)Angkor Tuk Tuk Travel: Discover Angkor Tour by local Khmer people, http://www.angkortuktuktravel.com/, accessed date: 24th

September 2014; Ministry of Agriculture, Forestry & Fisheries, The Fruit Crops: Agricultural Statistics, 200304, Phnom Penh, 2004;

Save Cambodia's Wildlife. The Atlas of Cambodia: National Poverty & Environment Maps, SWC, Phnom Penh, Cambodia, 2006,

pp. 7881.


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3. Expansion of Health and Education training partnerships with local government.

4. Engage with local government to develop transport infrastructure projects connecting

to tourist destinations.


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Indonesia

Key contributors:

Gilang Rahmadan

Completing a Master of Public Administration, Flinders University

Internal Auditor, Ministry of Finance

Jackson Yumame

Completing a Master of Public Administration, Flinders University

Lecturer, Cenderawasih University, Papua province

Consultation attendees:

(L-R) Devi Octavia, Nur Asni, Dyah Laksita, Jackson Yumame, Gilang Rahmadan, Anggun

Wibowo, Andi Wahyudi, Irmasari Nenobais


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&)

Country overviewAs a relatively young democracy, Indonesia shows signs of resilience and an enduring

commitment to unity in diversity. Geographically, Indonesia is an archipelago containing

approximately 17,000 islands and almost 250 million people. The Australian Department

of Foreign Affairs and Trade (DFAT) describes the relationship between Australia and

Indonesia as:

A highly productive and broad-based partnership that encompasses business,

education, defence, security and people-to-people links. The strength of therelationship can be seen in the depth and breadth of high-level exchanges between

leaders, ministers and prominent people of both countries.

Australia and Indonesia cooperate in practical ways on a wide range of international

and regional issues particularly in multilateral forums such as the East Asia Summit,

the G20 and APEC. Australia is also committed to a long-term development

partnership with Indonesia.19

Strategic focus of Indonesia

Presidentelect Joko Jokowi Widodo is known as the reform-minded leader20who will

encourage business sector growth. As former Jakarta Governor, he was a middle class

furniture entrepreneur who served as Mayor of the mid-sized city of Surakarta in Central

Java, where he built a consensus for a series good government reforms that attracted

nationwide attention.

Recent reports have indicated that Jokowi may focus on the resource rich region of West

Papua, an impoverished Melanesian- Christian ethnic majority.21

&*.MBK -4859=H L=4


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In terms of Indonesias strategy, its National Medium- Term Development Plan 2010-2014 (Rencana Pembangunan Jangka Menengah Nasional 2010- 2014) is the second

phase of the National Long-Term Development Plan 2005- 2025, which aims to make

Indonesia a more advanced, peaceful and democratic nation. The plan informs

government agencies in their development of their respective strategic plans to achieve

the goals pronounced within. Regional governments also must take this medium term

plan into account when formulating or adjusting their respective regional development

plans. Important part of the Indonesian government's intention to become one of the ten

major world economies by 2025 is the Masterplan for Acceleration and Expansion ofIndonesia's Economic Development (MP3EI). This recently unfolded long-term program

envisages a high degree of cooperation between the central government, local

governments, state owned enterprises and the private sector. The private sector in fact

has a vital role to play in this masterplan (in the form of PPP schemes) as it is expected to

contribute the bulk of financing

Key engagement opportunitiesPotential is in the provinces

Strategically, South Australia should engage with Indonesia through focusing on key

provinces, where social capital generated from the networks that already exist here in

South Australia.

Cultural and community groups, students and businesses within South Australia provide

the flow of information for deeper engagement. A willingness on the South Australian

Government to develop small scale projects that align with region specific initiatives andSouth Australias 10 point plan, especially after a student has returned to their home

region (in the case for Australian Award students) can strengthen already existing ties

and develop South Australias long term relationships at the people to people level. See

for example, province in focus, Papua, below.


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Location

Papua Province lies between 20 25 North Longitude 90 South Longitude and 1300

1410 East Longitude. In the Northern part there is Pacific Ocean. The Southern part there

is Arafuru Sea and Western part is Seram Sea, Banda Sea, and Maluku Province. The

Eastern part is Papua New Guinea. Papua Province with area 317.062 Ha is the greatest

province in Indonesia. Jayapura is the capital of the province. Merauke Regency with

43.979 Ha or 13,87 % of Papua Province is the greatest regency. While, Yalimo Regency

with 775 Ha or 0,24 % of Papua Province is the smallest regency in Papua Province

Government (administration division)

As of 2011, the residual Papua Province consisted of 28 regencies and one autonomous

city these regencies are subdivided into 117 districts, and then it is divided into 66 sub-

districts and 830 villages.

Key opportunities for engagement

Education

Literacy levels in Indonesias Papua region is lower compared to its other regional

neighbours. Even though Indonesia is on track to achieve universal primary education by

2015 as part of the Millennium Development Goals. Progress has been uneven. The

People-Centred Development Programme (PCDP) is run by the Institute of Community

Development and Empowerment (IPPM) has shown that improvement can be realised. In

2011, the school received a Millennium Development Goal runner-up award, a national

recognition organized by the Government of Indonesia. PCDP, with funding from thegovernments of the Netherlands and New Zealand, is working with civil society

organizations (CDOs) like IPPM to increase access to basic education and health services,

particularly to communities in rural and remote areas. Many local governments are now

replicating this initiative with funds sourced from the local government budget (APBD).


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Indonesian suggestions for South Australias meaningful relationship

Collaborative efforts in cultural tourism

Example: working with private sector firms, universities and targeting regions within

Indonesia to expand both South Australian tourism and spur Indonesian interest.

South Australia is relatively unknown in many parts of Indonesia, should South Australiachoose to approach targeted regions for deeper engagement, it may want to establish a

South Australian desk in that region specifically to promote South Australias brand, or

work collaboratively with South Australian universities to lift the profile of South

Australias strengths. This could be embedded in various collaboration activities film

festivals, youth leadership programs, annual South Australian tourism/ health/ education/

agricultural summits in targeted provinces.

Generate internship/exchange opportunities beyond the undergraduate level:

Example: Develop human capabilities of Indonesian public sector workers with the South

Australian public sector.

South Australia has a high quality education and large public sector. A partnership in the

form of a short-term internship or exchange between two parties would be beneficial for

post-graduate Indonesian students looking to extend and understand the principles and

practicalities in the provision of public sector services outside a university setting.


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Recommendations

1. Gauge interest of small-scale projects that can be applied in specific provinces in

Indonesia from community, NGO and student groups located in South Australia to

develop common themes for engagement.

2. Encourage greater participation of Indonesian students in South Australian workforce

aligned to their study interests.

3. Promote South Australia as a destination for Health, Education and Training in

provinces were relationships exist.


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Vietnam

Key Contributors:

Yen Tran Thi Thu

Completing Masters of Public Administration, Flinders University

Assistant to Vice Chairman, Peoples Council & Peoples committee, Khanh Hoa Province

Tran The Phung PhanGraduate of Masters in Public Administration, Flinders University

Consultation attendees

(L-R) Nguyen Dinh Toan, Lien Nguyen Thi, Hoang Thi Lan, Yen Tran Thi Thu, Tran The

Phung Phan


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reputation for its pristine beaches and many other tourist attractions. In 2013, Nha Trangreceived over 3 million arrivals, including over 700 thousands foreigners, increase 29% in

2012. At present, 540 lodging establishments consisting of 15 000 rooms including 48

hotels from 3-5 stars with 4800 rooms.

The tourism sector is moving toward a green industry in terms of preserving its

environment for the purpose of tourist activities and attractions for example, developing

resorts, Eco tourism, cultural tourism and diving, water-skiing, tourism, Hot springs and

mountainous regions. Foreign companies have been known to develop in this province

as the economic climate and local government services are welcoming.

Khanh Hoa local government also focusses on exporting high quality products produced

by foreign firms. As part of this process Vietnamese workers are usually employed to

manufacture these goods. The economic climate makes Khanh Hoa province attractive

for foreign investment.

In terms of facilitating foreign firms, Khanh Hoa local government has in the past and will

continue to do so in the future co-ordinate a resettled zone and ensure that thenecessary infrastructure or accessibility to the site is available.

Khanh Hoa has prioritised manufacturing firms that produce the hi-tech and high quality

products for export. For example, agricultural products, building materials, building and

repairing naval ships. It also has recent approval for the development of oil refinement

projects, thermoelectricity in order to boost its economy.

Health and Education sector

Key priorities for Khanh Hoa are to develop the health and education sector. While thelocal economy is attractive to many tourists, its public health system is constantly under

pressure from overcrowding due to demand for services by patients who live outside the

locality. While this is not a province specific problem, in fact it is country- wide, Khanh

Hoa province is looking to find private hospital projects to ease the crowding and

develop its human capabilities in treating patients.


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Vietnams Socio-Economic Development Strategy for the period 2011- 2020 recognisesits limitations in human development and capital. It has been Khanh Hoas priority to

encourage participation within the education and training system by finding quality

teachers to rectify the mismatch between labour supply and demand and deliver the job

related and cognitive skills the market requires.

Recommendation:

1.

Investigate feasibility to expand VietFest activities in South Australia and to co-ordinate with activities promoting South Australia in Vietnam provinces in Vietnam.

2. Explore opportunities in Khanh Hoa province to export South Australian wine and

produce high traffic tourist areas.

3. Explore niche areas where South Australian SMEs can establish a foreign base to

distribute to local Khanh Hoa province

4. Investigate the feasibility of Private-Public Partnerships (using a State to province

approach) to develop health and education training contracts.

5. Investigate the feasibility of Private-Public Partnerships (using a State to province

approach) into the implementation of knowledge transfer to design and consult on

the construction of Private Hospitals in Khanh Hoa province.


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LAO PEOPLES DEMOCRATIC REPUBLIC

Key contributor

Viengsone Leuangkhamsing

Completing Masters of Public Administration, Flinders University

Academic, Ministry of Home Affairs

Consultation attendees:(L-R) Bounsouan Xaiasinh, Amphon Viphongxay, Viengsone Leuangkhamsing,

Danaphone Chaleunsouk and Sackalin Louangrath.


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Country overviewLaos is a beautiful mountainous country with natural unspoilt tropical forest. The country

is widely known as the friend to everyone and enemy of no one. Although it is a mid-

sized landlocked country with a population of approximately 6.48 million, its economic

growth has been impressive in recent years.

(Worldbank)

While economic growth reached an impressive 8.3 per cent during 2011 (real GDP),

inflation remained relatively high at 8.7 per cent. Much of the growth in the economy

during the past six years (averaging 8 per cent) has been spurred by mining and

hydropower exports25.

In July 2011, the continuing economic growth of Laos lead to its reclassification by the

World Bank from a low income to a lower-middle income country. This increased

progress also lends credence to the possibility that the Lao Peoples Revolutionary Party

"%Roberts, C. B. (2012). Laos: A more mature and robust state?. Southeast Asian Affairs, 2012(1), 153-168.


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(LPRP) may be able to realise its Millennium Development Goal (MDG) to no longer be inthe United Nations list of least developed countries by 2020 (Robert 2012, 157).

Geography and History

The country is geographically confined by five bordering countries and due to its history,

still suffers from the consequences of colonialism, civil war and foreign conflict. Between

117 to 300 Lao die each year from contact with one of the 270 million UXO, unexploded

cluster bomlets dropped by the United States during the Vietnam War (Roberts 2012,

p155).

Economy

Lao economy is also benefiting from the small but rapidly growing sectors of

manufacturing (mainly textiles) and tourism both important sources of employment. In

the case of the manufacturing sector, the Development Plan has committed to 15 per

cent annual growth through to 2015. Despite the global financial crisis, the government

is already well on track with this target as garment exports to Europe increased by 30 per

cent in 2011.12 In the case of tourism, the Development Plan seeks to increase the

number of annual arrivals from an average of 1.76 million (200610) to 2.8 million people

per year.

To this end, the government opened a new runway at the Luang Prabang international

airport and re-established the Vientiane-Singapore route.

The rapidity with which the economic environment within Laos is changing was also

demonstrated by the opening of its stock exchange in January 2011. However, these

measures will not be adequate on their own. For example, the manufacturing and

tourism sectors in Laos typically involve small and medium enterprises (SMEs), which are

relatively more vulnerable to problems in the current investment climate. For example, in

2011 the World Banks Ease of Doing Business report downgraded Laos ranking by two

positions to 163.14 Further, within Transparency Internationals Corruption Perceptions

Index, Laos was ranked 154 out of 182 countries for public-sector corruption.


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The countrys current investment climate needed improvement.

Moreover, despite significant foreign investments in the natural resource sector, most of

the foreign enterprises largely employ foreign labour due to a lack of adequate

vocational skills and/or education.

Further, in 2011 the United Nations estimated that 33.9 per cent of the population

continued to live in poverty. Under these conditions, approximately 40 per cent of the

population lacks food security for three to four months of the year and there is a strong

nexus between childhood malnutrition and the stunting of growth with the latteraffecting an estimated 48 per cent of the population.

Provincial focus

The Lao Seventh Five- year National Socio- Economic Development Plan(2011 2015)

aims to develop each region by developing economic centre points in the three broad

regions of the country.

It will be important for South Australia to observe these developments and the cities

where socio- economic development in specific zones will be prioritised.

For example, Luang Prabang City and Xai District in the north, Vientiane Capital in the

centre and Champassack Province in the South. It is planned that these cities will

become the economic core of the country for industrialisation and modernisation. Should

that happen, then it is planned that these central regions will spearhead services andrespond to international integration.

Recommendation

1. Initiate dialogue and engage with the Vientiane Capital,

Luang Prabang City and Champassack Province


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http://www.thejakartapost.com/news/2014/09/24/jokowi-pledges-energy-reform-appoints-insider-team.html

http://www.smh.com.au/world/joko-widodo-promises-to-focus-on-west-papua-20140823-

107jd0.html3-107jd0.html

World Bank, Vietnam Overview

http://www.worldbank.org/en/country/vietnam/overview

World Bank, GDP growth Data

http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/countries/LA-4E?display=graph)

www.economica.vn

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