Strategy and Action Plan for the Greater Mekong Subregion ...

STRATEGY and ACTION PLANfor the GREATER MEKONG SUBREGION

SOUTHERN ECONOMIC CORRIDOR

Sharing Growth and Prosperity

Sharing Growth and Prosperity

STRATEGY and ACTION PLAN for the GREATER MEKONG SUBREGION

SOUTHERN ECONOMIC CORRIDOR

© 2010 Asian Development Bank

All rights reserved. Published in 2010.Printed in the Philippines.

ISBN 978-92-9092-054-0Publication Stock Number RPT101729 Cataloging-In-Publication Data

Asian Development Bank. Sharing growth and prosperity: Strategy and action plan for the Greater Mekong Subregion Southern Economic Corridor. Mandaluyong City, Philippines: Asian Development Bank, 2010.

1. Development. 2. Greater Mekong Subregion. 3. Southern Economic Corridor.I. Asian Development Bank.

The views expressed in this report are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

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Contents

Abbreviations vi

Introduction 1Background 1Role and Objectives of the Economic Corridor Approach 1Need for Strategy and Action Plan 3Scope 3

The Southern Economic Corridor 5Composition 5Configuration 7Possible Extensions 8

Overview of Southern Economic Corridor Areas 9Population and Land Area 9Natural Resources 12Labor Force and Employment 15Income Level and Economic Structure 17Cross-Border Trade 18Foreign Direct Investment 20Tourism 23Infrastructure 25

Development Potential and Opportunities 31Overview 31Comparative Advantages and Complementarities 32Investment Opportunities 34Opportunities for Cooperation 36

Challenges and Constraints 40Impediments and Constraints 40Key Challenges 42

Strategy for Southern Economic Corridor Development 45Development Vision, Goals, and Objectives 45Guiding Principles and Approaches 45Measures to Achieve Objectives 47Geographic Focus of Strategy 51

iv Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor

Implementing the Strategy 53Action Plan 53Institutional Mechanisms and Arrangements 54Financing 55Monitoring, Evaluating, and Updating the Strategy and Action Plan 58Southern Economic Corridor Action Plan Matrix 60

Appendix A: Basic Information on the Southern Economic Corridor National Components 87

Cambodia 87Lao People’s Democratic Republic 110Thailand 118Viet Nam 124

Appendix B: Key Goals of National Development Plans and the Role of Southern Economic Corridor Development 140

Appendix C: Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development 141

Greater Mekong Subregion Institutions 141Terms of Reference of the Economic Corridors Forum 144Terms of Reference of the Governors Forum 147

Appendix D: Cost Estimates of Programs and Projects in the Southern Economic Corridor Action Plan 149

Bibliography 158

Tables and Figures

Tables

Table 1: Distances between Major Points in the Southern Economic Corridor 6Table 2: Population in the Southern Economic Corridor 9Table 3: Incidence of Poverty in Southern Economic Corridor Areas 10Table 4: Unemployment Rates in Southern Economic Corridor Areas 16Table 5: Per Capita Gross Provincial Product in Southern Economic

Corridor Areas 17Table 6: Summary of Southern Economic Corridor Action Plan 53Table 7: Financing the Southern Economic Corridor Strategy and Action Plan 56Table 8: Proposed Initial Set of Indicators 59

Figures

Figure 1: Greater Mekong Subregion Economic Corridors 2Figure 2: Southern Economic Corridor 5Figure 3: Population and Land Area of Southern Economic Corridor

National Components as Percentage of Total Southern Economic Corridor 10

Contents v

Figure 4: Population and Land Area of Southern Economic Corridor National Components as Percentage of Country 11

Figure 5: Southern Economic Corridor Cross-Border Trade, 2007 19Figure 6: Status of Southern Economic Corridor Roads 26Figure 7: Southern Economic Corridor Strategy and Action Plan at a Glance 46Figure 8: Border Nodes in the Southern Economic Corridor 52Figure 9: Greater Mekong Subregion Organizational Framework 54Figure 10: Funding Requirements of the Southern Economic Corridor

Strategy and Action Plan 56

Abbreviations

ADB – Asian Development BankASEAN – Association of Southeast Asian NationsCBTA – cross-border transport agreementECF – Economic Corridors Forum EDC – Electricité du CambodgeEWEC – East–West Economic CorridorFDI – foreign direct investmentGDP – gross domestic productGMS – Greater Mekong SubregionGMS–BF – GMS Business ForumGPP – gross provincial productkm – kilometerkm2 – square kilometerLao PDR – Lao People’s Democratic RepublicLFPR – labor force participation rateNSEC – North–South Economic CorridorPPTA – project preparatory technical assistancePRC – People’s Republic of ChinaSAP – strategy and action planSEC – Southern Economic CorridorSEZ – special economic zoneSFAP – Strategic Framework and Action PlanSPS – sanitary–phytosanitary

Introduction

Background

The economic corridor approach to subregional development was adopted by the Greater Mekong Subregion (GMS) countries during the eighth GMS ministerial meeting, held in Manila in 1998, to help accelerate the pace of subregional

economic cooperation. Three priority GMS economic corridors were identified during that meeting: the East–West Economic Corridor (EWEC), the North–South Economic Corridor (NSEC), and the Southern Economic Corridor (SEC) (Figure 1). The development of these corridors was subsequently designated as a flagship initiative under the Ten-Year GMS Strategic Framework endorsed by the leaders of GMS countries during the first GMS summit, held in Phnom Penh, Cambodia, in 2002. At the third GMS summit, held in Vientiane, Lao People’s Democratic Republic (Lao PDR), in March 2008, GMS leaders stressed the need to redouble efforts to transform transport corridors into economic corridors and maximize benefits from improved physical connectivity in the subregion.

Role and Objectives of the Economic Corridor Approach

The role of economic corridors in GMS development is reflected in the joint statement of the eighth ministerial meeting, which declared that “GMS member countries will create economic corridors linking the subregion to major markets; nodal points within these economic corridors will serve as centers for enterprise development; economic corridors will be an expansion of key transport corridors so as to enhance economic activities and benefits, and over the longer term to build on the potential of the subregion as a land bridge serving the People’s Republic of China [PRC], Southeast Asia, South Asia, and East Asia.”

The development of economic corridors1 is expected to help achieve the vision of GMS as a prosperous, harmonious, and integrated subregion by providing increased connectivity, enhanced competitiveness, and a greater sense of community. It supports the strategic thrusts of the Ten-Year GMS Strategic Framework, namely: (i) strengthening infrastructure links; (ii) facilitating cross-border trade, investment, and tourism; (iii) enhancing private sector participation and competitiveness; (iv) protecting the environment and promoting the sustainable use of shared natural resources; (v) and developing human resources and skills competencies. From a broader perspective, the development of GMS economic corridors offers a means for

1 An economic corridor is not simply a connection between points A and B. The movement of people and goods can originate from and end at any intermediate point between points A and B. The effect of an economic corridor also goes beyond the main route or “line.” It extends to the areas that can be accessed, or areas whose access to major economic centers could be improved, through the connection between points A and B.

2 Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor

Figure 1: Greater Mekong Subregion Economic Corridors

Source: ADB.

East– West

Economic Corridor

Southern

Economic Corridor

North– South

Economic Corridor

Tonle Sap

Gulf of Thailand

A NDA MA N SE A

Gulf of

Martaban

Kunming

Hekou

Mohan

Ruili

Muse

Tachileik

Yangon

NAYPYIDAW

Chiang Khong

Mae Sai

Nong Khai

Nam Phao

Cau Treo

Mukdahan

Chongmek

Hat Lei

Chan Yeam

Aranyaprathet

Poipet

Mae Sot

Myawaddy

Moc Bai

Bavet

Ho Chi Minh City

Kaysone Phomvihane

Lao Bao

Dansavanh

Wang Tau

Dong Kralor

Veun Kham

Lao Cai

Lang Son

Hai Phong

Boten

Houayxay

HA NOI

BANGKOK

PHNOM PENH

VIENTIANE

Nanning

Pingxiang

GUANGXI ZHUANG

AUTONOMOUS REGION

PEOPLE'S REPUBLIC OF CHINA

MYANMAR

VIET NAM

YUNNAN PROVINCE

PEOPLE'S REPUBLIC

OF CHINA

LAO

PEOPLE'S

DEMOCRATIC

REPUBLIC

THAILAND

CAMBODIA

Boundaries not necessarily authoritative.

National Capital

City/Town

Road

River

Provincial Boundary

International Boundary

GREATER MEKONG SUBREGION

ECONOMIC CORRIDORS

N

300

0 50 100 200

Kilometers

108 00'E

o

108 00'E

o

98 00'E

o

98 00'E

o

10 00'N

o

10 00'N

o

24 00'N

o

24 00'N

o

Introduction 3

the less-developed member countries of the Association of Southeast Asian Nations (ASEAN) to catch up with the more economically advanced member countries and to reinforce the market integration process that is increasing in East Asia.

Operationally, the economic corridor approach is aimed at (i) extending the benefits of improved transport links to remote and landlocked locations in GMS, which have been disadvantaged by their lack of integration with more prosperous and better located neighboring areas; (ii) providing a spatial focus for GMS activities, with the backbone, growth centers, and nodal points serving as catalysts to the development of surrounding areas; (iii) opening up many opportunities for various types of investment from within and outside GMS; (iv) enhancing the effect of subregional activities through the clustering of projects; (v) serving as a mechanism for prioritizing and coordinating investment among neighboring countries; and (vi) generating tangible demonstration effects.

Need for Strategy and Action Plan

Under the economic corridor approach, programs and projects in priority sectors of the GMS Economic Cooperation Program, such as those in transport, energy, tourism, and human resource development, are focused on the same geographic space—the GMS economic corridors—to maximize development effect while minimizing development costs. Several projects designed to improve transport links along the SEC have been completed in the past few years, thus enhancing physical connectivity among the national components of the corridor. Although these investments have helped establish an operational transport corridor, much more efforts are needed to transform the SEC into a full-fledged economic corridor.

The development of an economic corridor is a complex and long-term process, and the building of transport links is only the initial stage. Economic corridor development requires careful planning and close coordination of infrastructure investments and related measures to promote and support business opportunities along the corridors. The formulation and implementation of a strategy and action plan—a road map—for the development of the SEC addresses this need by (i) operationalizing a multidimensional approach to economic corridor development; (ii) sharpening the focus, improving coordination, and ensuring effective and sustained implementation of SEC initiatives; (iii) mobilizing financial and technical resources from public and private sources; and (iv) broadening the support for SEC development among various stakeholders, especially at the local level.

Scope

This report presents the key elements of a proposed strategy and action plan for the development of the SEC. It is organized into seven chapters. The introductory chapter provides a brief background on the role and objectives of the economic corridor approach in GMS development and explains why a road map is needed to promote the development of these corridors. Chapter 2 presents the spatial configuration and composition of the SEC. Chapter 3 summarizes the basic demographic, physical, and


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.


The SEC covers (i) six provinces in the eastern region of Thailand, including Bangkok, Chantaburi, Chonburi, Rayong, Sakaew, and Trat; (ii) four zones across 21 provinces and municipalities in Cambodia, including the Phnom Penh zone (Phnom Penh), the Tonle Sap zone (Bantey Meanchey and Siem Reap), the Mountain zone (Stung Treng and Rattanakiri), and the Coastal zone (Koh Kong and Kampot); (iii) four regions in Viet Nam, including the Southeast region (Ho Chi Minh City and Ba Ria–Vung Tau Province), the Central Highland region (Gia Lai Province), the South Central Coast region (Binh Dinh Province), and the Mekong River Delta region (Kien Gian and Ca Mau provinces); and (iv) six provinces in the southern Lao PDR, including Attapeu, Champasack, Khammouane, Saravane, Savannakhet, and Sekong. Table 1 shows the distances between major points along the routes in the SEC.

Table 1: Distances between Major Points in the Southern Economic Corridor (km)

Subcorridor Origin–Destination DistanceCentral Subcorridor �� Bangkok–Vung Tau (RN5)

�� Bangkok–Aranyaprathet/Poipet (Thailand–Cambodia border)

�� Poipet–Bavet/Moc Bai (Cambodia–Viet Nam border)

�� Moc Bai–Vung Tau�� Bangkok–Phnom Penh (RN5)�� Phnom Penh–Ho Chi Minh City�� Poipet–Siem Reap�� Siem Reap–Phnom Penh

944

313

502129520255156314

Northern Subcorridor �� Bangkok–Quy Nhon�� Bangkok–Aranyaprathet/Poipet (Thailand–

Cambodia border)�� Poipet–O Yadov/Le Than (Cambodia–Viet Nam

border)�� Le Than–Quy Nhon�� Bangkok–Siem Reap

1,609

313

1,049247355

Southern Coastal Subcorridor

�� Bangkok–Nam Can�� Bangkok–Klong Yai/Ko Khong (Thailand–

Cambodia border)�� Ko Khong–Lork/Ha Tien (Cambodia–Viet Nam

border)�� Ha Tien–Nam Can

1,000

416

301283

Intercorridor Link �� Sihanoukville–Savannakhet�� Sihanoukville–Phnom Penh�� Phnom Penh–Kratie�� Kratie–Dong Kralor (Tra Pang Kriel)/Veun Kham

(Cambodia–Lao People’s Democratic Republic border)

�� Veun Kham–Savannakhet

1,149230315

197407

RN5 = Route No. 5.

Source: Transport ministries of Southern Economic Corridor countries.

The Southern Economic Corridor 7

Configuration

Central Subcorridor

From Bangkok, the Central Subcorridor traverses Sakaew Province in Thailand and crosses into Cambodia through the Aranyaprathet–Poipet border gate. In Cambodia, it passes through Sisophon and goes to Phnom Penh via two routes. The first is via Route No. 5, which crosses the provinces of Banteay Meanchey, Battambang, Pursat, Kampongchnang, and Kandal before reaching Phnom Penh. The second is via Route No. 6, which passes through Siem Reap, Kompong Thom, Kompong Cham, and Kandal provinces before reaching Phnom Penh. From Phnom Penh, this subcorridor follows Route No. 1 and goes through Svayrieng Province down to the Bavet–Moc Bai border gate between Cambodia and Viet Nam. From Moc Bai, this subcorridor goes to Ho Chi Minh City via National Road No. 22, after which it connects with National Road No. 51, passing through four provinces in Viet Nam: Tay Ninh, Ho Chi Minh City, Dong Nai, and Ba Ria–Vung Tau.

Northern Subcorridor

The alignment of the Northern Subcorridor is similar to that of the Central Subcorridor from Bangkok to Siem Reap in Cambodia, where it then branches off eastward and passes through Stung Treng, Mondulkiri, and Rattanakiri provinces before reaching the O Yadov–Le Thanh border gate between Cambodia and Viet Nam. From the Le Thanh border gate, this subcorridor runs eastward via National Road No. 19 to Pleiku in Gia Lai Province and ends in Quy Nhon in Binh Dinh Province in the central region of Viet Nam.


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.


Possible Extensions

The SEC can be extended from Bangkok to the deep seaport in Dawei (Tavoy) on the western coast of Myanmar. The distance from the Thailand–Myanmar border is only around 100 kilometers (km), and there already are ongoing projects for the development of the Tavoy port and the Kantchanaburi–Tavoy access road, with financial assistance from the Thailand government and the private sector. This will substantially reduce the shipping distance from Bangkok to South Asia and Europe through the Indian Ocean, which at present involves navigating around the Gulf of Thailand and the Strait of Malacca. There is potential to mobilize investment along the Bangkok–Dawei extension from such sources as India, Japan, the Republic of Korea, and the PRC, as well as cofinancing with Thailand. The other extension, involving the Intercorridor Link, is the route from Savannakhet to Vientiane, Luang Prabang, and Luang Namtha, where it links up with the NSEC. This will complete the main loops between the northern and southern parts of GMS and will eventually create an integrated network of economic corridors. Finally, a more direct route can be opened from the Lao PDR to Ho Chi Minh City through Cambodia, which is shorter than the current route through Phnom Penh.

9

Overview of Southern Economic Corridor Areas

Population and Land Area

The combined population of SEC provinces in the four countries is 40.5 million, of which 40.2% is in Viet Nam, 29.5% is in Cambodia, 24.4% is in Thailand, and 5.9% is in the Lao PDR (Table 2). The population in the Central Subcorridor is

slightly more than 27 million, which is more than twice the population in the Northern and Southern Coastal Subcorridors and more than three times the population in the Intercorridor Link (Figure 3). SEC provinces in the four countries have a total land area of 304,681 square kilometers (km2), of which 49% is in Cambodia, 27% is in the Lao PDR, 15.5% is in Viet Nam, and 8.5% is in Thailand. The Intercorridor Link has the largest land area (141,089 km2) and the Southern Coastal Subcorridor has the smallest (46,419 km2).

The incidence of poverty in SEC areas is highest in the Lao PDR (39%) and Cambodia (37.3%), both of which have poverty rates more than three times higher than that of Viet Nam (11%) and five times higher than that of Thailand (6.8%). Among SEC subcorridors, the incidence of poverty is highest in the Intercorridor Link (38.4%) and the Northern Subcorridor (25.4%). Poverty incidence in the Central and Southern Coastal Subcorridors is around 15% (Table 3).

Table 2: Population in the Southern Economic Corridor

Subcorridor Cambodia

Lao People’s Democratic

Republic Thailand Viet NamCentral 9,227,000 – 7,374,000 10,601,000

Northern 1,882,000 – 7,374,000 2,745,000

Coastal 960,000 – 9,362,000 2,946,000

Intercorridor 6,110,000 2,386,000 – –

All SEC provinces 11,978,000 2,386,000 9,894,000 16,292,000

Total, country 14,000,000 5,874,000 – –

SEC provinces as % of total SEC 29.5 5.9 24.4 40.2

SEC provinces as % of total country 85.5 40.6 15.5 19.1

SEC = Southern Economic Corridor.

Note: Data are for Cambodia, 2005; the Lao People’s Democratic Republic and Thailand, 2006; Viet Nam, 2007. Statistics provided by the respective countries (see Appendix A for details).


Thailand

SEC areas in Thailand have a population of 9.8 million, which represents 15.5% of the country’s total population (Figure 4). The population in the other provinces is comparatively smaller, ranging from 240,000 people in Trat to 1,169,000 people in

90

80

70

60

50

40

30

20

10

(%)

0Cambodia Lao PDR Viet Nam Thailand

Po��lation Land ��ea

Figure 3: Population and Land Area of Southern Economic Corridor National Components as Percentage of

Total Southern Economic Corridor (%)

Lao PDR = Lao People’s Democratic Republic.

Source: Country sources.

Table 3: Incidence of Poverty in Southern Economic Corridor Areas (%)


Lao People’s

Democratic Republic Thailand Viet Nam

Subcorridor average

Central 35.8 – 7.7 1.7 15.1

Northern 48.9 – 7.7 19.7 25.4

Coastal 26.8 – 5.0 11.8 14.5

Intercorridor 37.9 39.0 – – 38.4

Average, all Southern Economic Corridor provinces 37.3 39.0 6.5 11.0 –

Whole country 34.7 33.5 11.2 14.8 –

Note: Data are for Cambodia, 2003–2004; the Lao People’s Democratic Republic, 2002–2003; Viet Nam, 2005; Thailand, 2006. Statistics provided by the respective countries (see Appendix A for details).

Overview of Southern Economic Corridor Areas 11

Chonburi. With a population of 6.8 million, Bangkok is the most densely populated area, with a population density of 4,360 people per km2. This contrasts with the population density in other areas along the SEC in Thailand, which ranges from 74 people per km2 in Sakaew to 268 people per km2 in Chonburi. The incidence of poverty in SEC provinces is relatively low, averaging 6.8% compared to the national average of 9.5%. The incidence of poverty in Bangkok and Chonburi is the lowest, averaging just 1.5%, whereas that in Trat and Sakaew is the highest, averaging 13.1%. The literacy rate is 95.6% in these provinces, reaching 98% in Chonburi and Bangkok.

Cambodia

Cambodia’s SEC provinces have a population of nearly 12 million, or 85.5% of its total population. With the exception of Phnom Penh, these provinces are sparsely populated, having as few as 9 people per km2 in Stung Treng. Phnom Penh has the highest population density in the country, with 3,597 people per km2. The majority of the population in SEC provinces (70%–90%) lives in rural areas. The incidence of poverty is lowest in the Southern Coastal Subcorridor (26.8%) and highest in the Northern Subcorridor, especially in Stung Treng, Mondulkiri, and Rattanakiri, where more than half of the population (52%) lives below the poverty line. This is far above the incidence of poverty for the whole country (34.7%). Phnom Penh has the lowest incidence of poverty in the country (5%). The literacy rate is highest in

Figure 4: Population and Land Area of Southern Economic Corridor National Components

as Percentage of Country (%)

Lao PDR = Lao People’s Democratic Republic.

Source: Country sources.

90

80

70

60

50

40

30

20

10

(%)

0Cambodia Lao PDR Viet Nam Thailand

Po��lation Land ��ea


Kompongcham, Phnom Penh, Stung Treng, and Battambang (averaging 90%) and lowest in Ratanakiri, Mondulkiri, Siem Reap, and Kompongchnang (56%–65%).

Viet Nam

The combined population of SEC provinces in Viet Nam is 16.3 million, representing 19.1% of the country’s total population. The population density in these provinces is 1.3 times greater than the national population density. The literacy rate in these provinces is relatively high, exceeding 90%. The incidence of poverty in these provinces (11%) is lower than the average for the whole country (14.8%). The Central Subcorridor, which has the largest population among the three subcorridors (10.6 million), traverses highly urbanized areas, including Ho Chi Minh City, and has an urban population comprising 63.6% of the total population in the subcorridor. Incidence of poverty in the Central Subcorridor (1.7%) is much lower than the incidence in the Northern Subcorridor (19.7%) and the Southern Coastal Subcorridor (11.6%). Around three-quarters of the people in the Northern Subcorridor and the Southern Coastal Subcorridor live in rural areas.

Lao People’s Democratic Republic

The six southern Lao PDR provinces in the SEC have a combined population of 2.4 million, which is slightly over 40% of the country’s population. Champasack and Savannakhet have the highest population density, at 40 people per km2, whereas Sekong and Attapeu have the lowest, at 11 people per km2. More than three-quarters of the population of SEC provinces in the Lao PDR lives in rural areas and is engaged mainly in subsistence agriculture. The incidence of poverty in the six provinces (almost 40%) is higher than for the whole country (33.5%), with the lowest incidence being in Champasack (18.4%). The educational level among the population aged 6 years and above is extremely low; only 15% completed basic primary schooling in 2005. Among the six provinces, the literacy rate in Champasack (82%) is higher than for the whole country (73%) and is the highest among the six provinces. The literacy rate in the other provinces is far below the national average, particularly in Saravane and Sekong (61%).

Natural Resources

Thailand

SEC provinces in Thailand (Chantanaburi, Chonburi, Rayong, Sakaew, and Trat) are located in eastern Thailand, which is characterized by short mountain ranges interspersed by river basins that drain into the Gulf of Thailand. There is ample agricultural land, particularly suitable for fruit cultivation and production, fisheries, and marine resources, as well as natural tourism assets such as forests, waterfalls, and long, white sandy beaches, making tourism a strong part of the region’s economy. Furthermore, the region’s coastal location has been a major factor in the industrial development of the eastern seaboard that, as an industrial hub and center for export-oriented industries, has played a key role in Thailand’s economy.


Chonburi and Rayong provinces, in addition to Chachoengsao and Samut Prakan, make up the eastern seaboard. The location and characteristics of the harbor in south Chonburi Province has made the port in Laem Chabang the largest in Thailand and reportedly the 20th busiest in the world as of 2008. Rayong Province comprises mostly low coastal plains and several of its islands are popular tourist destinations. Chantaburi Province, together with neighboring Trat Province, is the center of gemstone mining, especially for rubies and sapphires. Tropical fruits are one of the main agricultural products of the province. For instance, the province accounted for around 45% of Thailand’s durian production and 27% of world durian production in 2000. Besides being well known for gemstone mining and trading, Trat Province has the second-largest island in Thailand (Ko Chang), which together with more than 40 smaller islands forms part of the Mu Ko Chang Marine National Park. Its white-sand beaches, clear waters, and fresh marine resources are important assets.

Cambodia

SEC areas in Cambodia are blessed with abundant and diverse natural resources. Its two dominant topographical features are the Mekong River and the Tonle Sap Lake. The Mekong flows about 315 km through Cambodia before continuing on, via the Mekong Delta in southern Viet Nam, to the South China Sea. The sediment deposited during the Mekong’s annual wet-season flooding renders this area’s agricultural land very fertile. The Tonle Sap Lake is linked to the Mekong at Phnom Penh by a 100 km channel, which is named after the lake. The Tonle Sap is one of the world’s richest sources of freshwater fish. The center of Cambodia, around the Tonle Sap and the upper Mekong Delta, comprises low-lying, expansive, and active floodplains of lacustrine alluvial origin. The plain around Tonle Sap Lake is a well-developed lacustrine floodplain, flat and featureless, with fine-textured sediment. The formation of colluvial–alluvial plains is important in most rice-growing areas in Cambodia, particularly in Battambang, Banteay Meanchey, Siem Reap, and parts of Kompong Cham, Kompong Thom, Pursat, and Svay Rieng.

Cambodia’s dry forests are located in Mondulkiri Province in the eastern part of the country. These forests are one of the World Wildlife Fund’s important protected areas, known as the Mondulkiri Protected Forest. Dry forest consists of long-life, large tropical hardwood trees that can grow up to 30 meters in height. Many of these trees are prized for their timber. Despite years of war and isolation, Cambodia’s dry forests are still relatively intact and provide homes for one of the largest and most diverse mammal communities in Asia. The connection of these forests to one of the important Mekong River tributaries, the Srepok River, makes the whole area one of the most outstanding habitats in the region for large waterbird populations. The Srepok River is unique in the Greater Mekong area because it boasts subpopulations of at least 140 Mekong fish species and hosts an immense diversity of aquatic life. The river also is an important source of food and water for the local people.

In 2004, exploitable oil and natural gas deposits were found beneath Cambodia’s territorial waters, the result of offshore exploration in Block A within Cambodia waters. Although commercial extraction is yet to begin, interest in oil and gas has increased recently. In addition to oil and gas, geological surveys have shown that Cambodia has significant potential mineral resources such as bauxite, coal, gold, iron, precious stones, and other resources. Mining activities during the past 3 years have involved


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.


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


been cultivated in 2007; traditional rice cultivation accounted for 31% of the total; and coffee plantations for around 10%. The pattern of agricultural production in Savannakhet is similar to that in Champasack, with a large part of the land area being devoted to traditional rice cultivation. Recently, agriculture activity in these two provinces has moved toward plantation-type production.

The Lao PDR is well endowed with several mineral resources, such as base and precious metals, and industrial and construction materials. Many mineral deposits have been found in Champasack, including barite, bauxite, copper, iron, lead, and peat. Six exploration projects, covering 139,035 ha, are ongoing under concession arrangements involving domestic investors and investors from the PRC. Likewise, Savannakhet has various kinds of minerals with good potential for industrial development, such as copper, gold, granite, gypsum, salt, silver, and minerals for the construction materials industry. There is considerable potential for the discovery of other mineral resources, with mineral deposits having been found on only around 7.5% of the total land area and only 7.2% of the latter having been used for production. The government is promoting further exploration for coal, copper, gemstones, gold, iron ore, lead, potash, tin, and zinc.

Forest resources are still abundant in the southern part of the Lao PDR. Champasack has the greatest forest cover in this region. Forest resources are one of the sources of income in the area, supplying wood and nontimber forest products such as amomum, medicinal herbs, rattan, resins, and tree barks. Three national biodiversity conservation areas, totaling 4,700 km2 (30.4% of the provincial land area), are located in this province. The Lao PDR has one of the newest and most comprehensive protected-area systems in the region. Established in 1993, the system of national biodiversity conservation areas, which was estimated to cover 12.3% of the total land area in 2001, now covers 15.1% of the total land area, reflecting an increasing concern for environmental protection and management in the country. This is vital for the Lao PDR, where most inhabitants live in the countryside, and forests represent a source of food, medical herbs, and additional income. The government has designated national biodiversity conservation areas in various parts of the country, 11 of which are in the southern provinces. This reflects the ecologically sensitive nature of the southern provinces, which will require utmost care when planning development of the SEC.

Labor Force and Employment

The labor force participation rate (LFPR) is highest in Cambodia (74.6%), followed by the rate in Thailand (72.3%), and the Lao PDR (66.6%). Although the LFPR in the SEC provinces in Cambodia (73.2%) is also the highest among the SEC national components,2 the LFPR in the SEC provinces in the Lao PDR (70.3%) is higher than that in the SEC areas in Thailand (62%). The average LFPR in the SEC provinces in the Lao PDR is higher than that of the whole country, whereas the LFPR in SEC provinces

2 The LFPR for SEC provinces in Cambodia is assumed to be the average of the LFPR in other urban areas and rural areas, as recent LFPR estimates are not available at the provincial level. Labor force data for Thailand are for 2007, whereas those for Cambodia and the Lao PDR are for 2005.


in Cambodia is about the same as that of the whole country. In the case of Thailand, the average LFPR for SEC provinces is lower than that of the whole country. The average LFPR of women in all SEC areas is around 60.0%, with the highest rate in Cambodia (69.5%), followed by the Lao PDR (66.4%) and Thailand (50.5%).

The average unemployment rates in SEC subcorridors do not vary widely, ranging from 4.2% in the Central Subcorridor to 5.3% in the Northern Subcorridor (Table 4). However, there are significant differences in unemployment rates among the national components of the subcorridors. The unemployment rate in SEC provinces in Thailand (an average of less than 1%) is the lowest in SEC areas. The low unemployment rate in SEC provinces in the Lao PDR (also less than 1%) reflects the fact that around 80% of employment is in the form of self-employment in the agriculture sector. SEC provinces in Cambodia have the highest unemployment rates, with the rate in the Northern Subcorridor reaching 10%. SEC provinces in Viet Nam have a lower unemployment rate than SEC provinces in Cambodia. Kompong Speu, Kompongchang, Sihanoukville, and Svayrieng have the lowest unemployment rates (3% or less), whereas Kandal, Phnom Penh, and Stung Treng have the highest unemployment rates in SEC areas in Cambodia (more than 10%). In Viet Nam, the unemployment rate is highest in Binh Dinh, Ca Mau, and Ho Chi Minh City (more than 5%), and lowest in Dong Nai and Gia Lai (around 4%). The average unemployment rate in SEC areas in Cambodia is higher than that in the whole country, whereas the rate in SEC areas of the Lao PDR, Thailand, and Viet Nam are lower than in the respective countries as a whole.

The average monthly wage rate of $30 to $45 in Viet Nam is slightly higher than that in Cambodia ($25 to $30).3 In Lao PDR, the monthly average wage rate ranges from $30 to $50. In contrast, workers in eastern Thailand, where the main activities are in industry and tourism, can earn an average of $100 to $130 per month. If benefits

3 Prime Ministerial Decree No. 03/2006/ND-CP raised minimum monthly salaries for unskilled and manual laborers from $45 to $55 in Ha Noi and Ho Chi Minh City, from $40 to $50 in the suburbs of these cities, and from $35 to $45 in all other areas.

Table 4: Unemployment Rates in Southern Economic Corridor Areas (%)



Republic Thailand Viet NamSubcorridor

averageCentral 6.5 – 1.2 4.8 4.2

Northern 10.0 – 1.2 4.6 5.3

Coastal 8.3 – 0.4 5.1 4.6

Intercorridor 9.1 0.7 – – 4.9

Whole country 5.3 1.4 1.4 5.1 –

Note: Data are for Cambodia, 2003–2004; the Lao People’s Democratic Republic and Viet Nam, 2005; Thailand, 2007. Statistics provided by the respective countries (see Appendix A for details).


and other allowances are included, the cost of labor in Thailand could go up to $300 per month.4

Income Level and Economic Structure

The economies of Cambodia, the Lao PDR, Thailand, and Viet Nam differ significantly from one another in terms of their overall level of economic development and their economic structures. In 2007, Viet Nam had a per capita gross domestic product (GDP) of $812. Cambodia’s per capita GDP was $625, the Lao PDR’s was $522, and Thailand’s was $3,400. Although SEC provinces in the four countries broadly reflect national characteristics, there are several differences among them and between the provinces within each national component. In terms of per capita gross provincial product (GPP), Thailand’s provinces are easily the wealthiest part of the SEC, with a per capita GPP of five to seven times the prevailing levels in SEC areas of Cambodia, the Lao PDR, and Viet Nam (Table 5). Per capita income levels also vary considerably among different provinces within the same national area. Despite these differences in income levels, the basic economic structures in most of the three SEC areas are broadly similar, with agriculture and agriculture-processing activities accounting for the major part of economic output. Exceptions are the highly industrialized areas in Thailand, such as those in Chonburi and Rayong, and in Viet Nam, such as those in Ho Chi Minh City and Ba Ria–Vung Tau Province.

4 Motoyoshi Susuki. 2009. Feasibility of the Industrialization Strategy of the Lao PDR. PowerPoint presentation on Expansion of Production Networks into the Less Developed ASEAN Region: Implications for Development Strategy.

Table 5: Per Capita Gross Provincial Product in Southern Economic Corridor Areas ($)

Subcorridor Cambodiaa


Republic Thailand Viet NamSubcorridor

averageCentral – – 5,501 2,321 2,816

Northern – – 5,501 538 2,221

Coastal – – 9,954 793 3,790

Intercorridor – 419b – – 522c

Average, all Southern Economic Corridor provinces – 419b 6,985 1,217 –

Per capita gross domestic product 625 522 3,400 812 –

Note: Gross domestic product and gross provincial product figures are for 2007. Statistics provided by the respective countries (see Appendix A for details).

a Gross provincial product figures are not available for Cambodia.b Excludes Khammouane and Sekong.c Uses per capita gross domestic product as a proxy for per capita gross provincial product in the

Intercorridor Link in Cambodia.


In Thailand, the industrial sector accounts for 61.2% of GPP in Chonburi and nearly 80% of GPP in Rayong. These two provinces have the highest per capita GPP in the SEC areas in Thailand, with that in Rayong reaching $24,310 and that in Chonburi reaching $11,275. In contrast, Chantaburi, Trat, and Sakaew, where agriculture predominates, have a per capita GPP ranging from $1,581 to $2,635. In Cambodia, economic growth has occurred mainly in urban areas, particularly in Phnom Penh and the tourist gateway Siem Reap. The service sector accounts for the largest share, representing 44% of GDP, followed by agriculture at 30% and industry at 26% of GDP. In Viet Nam, the industry sector has the largest share of GDP, at 42%, followed by services at 38% and agriculture at 20% of GDP. Industry predominates in Ho Chi Minh City, where it accounts for 46.4% of GPP, as well as in Dong Nai (57.7% of GPP) and Ba Ria–Vung Tau (89.1% of GPP). Ho Chi Minh City, Dong Nai, and Ba Ria–Vung Tau also have the highest per capita GPP in SEC areas of Viet Nam, reaching $2,085 in Ho Chi Minh City; $1,139 in Dong Nai; and $7,424 in Ba Ria–Vung Tau. Per capita GPP in other SEC provinces in Viet Nam, where agriculture predominates, ranges from $471 in Gia Lai Province to $865 in Tay Ninh Province.

Cross-Border Trade

Cambodia and Thailand

Border trade along the SEC takes place both formally and informally.5 Data on formal cross-border trade between Cambodia and Thailand shows that total cross-border exports from Thailand to Cambodia rose from $49.7 million in 1996 to $933 million in 2007, representing an increase of 30.5% per year.6 The Aranyaprathet border checkpoint (Central Subcorridor) accounted for about half of the total cross-border exports from Thailand to Cambodia, followed by the Klong Yai border checkpoint (Southern Coastal Subcorridor), with about one-third. Around two-thirds of the total cross-border exports from Thailand to Cambodia have taken place in the Central and Southern Coastal Subcorridors of the SEC (Figure 5). The major exports from Thailand include cement, chemical fertilizers, engines, livestock feeds, motorcycles and parts, petroleum, textiles, and woven fabrics. The largest export is motorcycles and parts.

Total cross-border imports to Thailand from Cambodia fluctuated from $39.5 million in 1996 to $46.5 million in 2007, representing an annual average growth rate of 1.5%. The Aranyaprathet border checkpoint accounted for two-thirds of the total cross-border imports to Thailand from Cambodia, and the Klong Yai border checkpoint accounted for one-fifth. The major products imported by Thailand through the border include corn feeds for livestock, metal wastes, ready-made clothing, soybean grain, tapioca, and used clothing. The balance of trade has consistently been in favor

5 There are no reliable estimates of informal trade. The Ministry of Industry and Commerce of the Lao PDR estimates informal trade to be two-thirds of total trade with Thailand and one-quarter of total trade with Viet Nam. Other estimates place informal trade between Thailand and the Lao PDR at between one-third and half of formal trade, and trade between Cambodia and Viet Nam at 20%–30% of formal trade.

6 Cross-border trade covers only formal trade and is defined as trade conducted through land borders, as contrasted to trade conducted through seaborne and airborne transport. See: C. Krainara. 2008. Cross-Border Trade and Commerce in Thailand: Policy Implications for Establishing Special Border Economic Zones. PhD dissertation, Asian Institute of Technology, Bangkok, Thailand.


of Thailand, with exports 20 times greater than imports in 2007, which suggests great potential to increase Cambodia’s exports to Thailand. Improved agricultural productivity and a more diversified production structure in Cambodia will greatly help realize this potential.

Cambodia and Viet Nam

Cross-border trade between Cambodia and Viet Nam increased from $79.2 million in 2005 to $163.3 million in 2007, representing an annual average growth rate of 45.1%. Cross-border exports from Cambodia almost tripled between 2005 and 2007, whereas cross-border imports from Viet Nam expanded by 35.7% annually over the same period.7 Cross-border trade has taken place mainly in the Central Subcorridor, with the value of trade through this subcorridor accounting for nearly three-fourths of total trade through the three subcorridors. Bavet–Moc Bai is the largest international border crossing between Cambodia and Viet Nam. Total trade through this crossing more than doubled from 2005 to 2007, with the increase being

7 Numbers based on the reports of the border authorities at the Moc Bai, Le Thanh, and Ha Tien border crossings in Viet Nam. Total trade figures are from International Monetary Fund, Direction of Trade Statistics Yearbook (Washington, DC. 2007).

Figure 5: Southern Economic Corridor Cross-Border Trade, 2007 ($ million)

Note: Data on cross-border trade between Veun Kham and Dong Kralor (Tra Pang Kriel) is not available.

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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),


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.


Most of the SEZs in the Cambodian component of the SEC are located along the Central Subcorridor, which is also the most developed among the subcorridors.

Viet Nam

FDI in Viet Nam has increased significantly in the past decade. Investment approvals reached $12 billion in 2006, which is four times the amount approved in 2002. The total registered FDI in Viet Nam amounted to $96.6 billion from 1988 to 2007, averaging around $5 billion per year. The major foreign investors are from the EU; Japan; the Republic of Korea; Singapore; Taipei,China; and the US. Almost one-half of the total FDI was in manufacturing, with real estate a distant second (12.2%). Other sectors with relatively significant shares are transport, storage, and communications (8.7%); hotels and restaurants (7.3%); mining and quarrying (6.7%); construction (5%); and agriculture and forestry (3.5%). In terms of location, 41.4% of FDI was made in the SEC’s Central Subcorridor, half of which went into Ho Chi Minh City. FDI in the Northern and Southern Coastal Subcorridors amounted to only 4.6% and 0.3% of total FDI in Viet Nam, respectively.

According to the Ho Chi Minh City government, the city is the most important economic center in Viet Nam, accounting for a large part of Viet Nam’s economy. Some 300,000 businesses, including many large enterprises, are involved in high-tech industries, light industries, construction, building materials, and processing of agricultural products. Many FDI projects are in high-tech industries, services, and real estate. Currently, the city has 15 industrial parks and export-processing zones: the Binh Chieu Industrial Park, the Cat Lai Industrial Park, the Hiep Phuoc Industrial Park, the Ho Chi Minh City automobile mechanical industrial complex, the Le Minh Xuan Industrial Park, the Linh Trung 1 Export Processing Zone, the Linh Trung 2 Export Processing Zone, the Phong Phu Industrial Park, the Saigon High-Tech Park, the Tan Binh Industrial Park, the Tan Tao Industrial Park, the Tan Thoi Hiep Industrial Park, the Tan Thuan Export Processing Zone, the Tay Bac Cu Chi Industrial Park, and the Vinh Loc Industrial Park.


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


the abundance of agricultural land, fertile soil, and low-cost labor, agriculture is also becoming an attractive sector for investors from neighboring countries with an average of around 12% of total FDI. Champasack and Attapeu provide good opportunities for investment in cash crops and industrial tree plantation crops, such as cassava, jatropha, palm, and rubber. The rich historical, cultural, and natural setting is boosting investment in the service sector, especially in the tourism industry. Champasack is establishing industrial parks covering 2,284 ha in three districts located around Pakse. The government also has established the Savannakhet–Seno Special Economic Zone in Savannakhet Province, covering 954 ha and comprising four zones. Site A, which is located next to the new Mekong bridge between Savannakhet and Mukdahan, targets the service sector (e.g., residential areas, border control facilities, and shopping and marketing centers), whereas Site B targets logistics-related ventures.

Tourism

Tourism is one of the most important sectors in the development of the SEC in particular and of GMS countries in general. Tourism has a wide range of backward and forward links with the service industry (e.g., hotels, restaurants, and travel agencies) and a large number of small and medium-sized enterprises catering to the requirements of the tourism industry. The SEC has tourist attractions, many of which can be further developed and linked together in a “tourism corridor.”

Thailand

Tourism is playing an increasing role in terms of foreign exchange earnings, job creation, and business development in Thailand’s service sector, especially in the light of the global economic crisis. A number of countries have adopted tourism as a tool for economic recovery and development, given the sector’s advantage of being primarily local resource based and its comparatively low dependence on imported goods. Tourist arrivals in the SEC’s Thailand provinces total 23.1 million, with most of the tourists visiting Bangkok (13.3 million visitors), Chonburi (6.5 million visitors), and Rayong (1.9 million visitors). As a major tourist destination for domestic (7.1 million) and international visitors (16.0 million), Thailand can help increase the number of tourists visiting Cambodia and Viet Nam through the SEC.

Cambodia

Cambodia, with its rich culture, history, and natural attractions, continues to attract an increasing number of tourists to the country, with international tourist arrivals doubling from 2004 to 2007 and the number of tourist arrivals breaching the 2 million mark for the second time in 2008. More than half (55.6%) of international tourists in 2007 visited the Angkor complex in Siem Reap, with the rest visiting Phnom Penh and other destinations. Around two-thirds of the visitors arrived by air (41.6% in Phnom Penh) and one-quarter arrived by land. Only a small percentage of visitors traveled by boat. Earnings from tourism in 2007 increased by 33.5% over 2006, reaching $1.4 billion. Domestic tourism is also quite significant with the number of domestic tourists increasing by 15.5% from 2006 to 6.7 million. The most popular destinations among domestic tourists are Phnom Penh and the coastal areas, especially Kampot and Sihanoukville.


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.


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


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.


The Lao PDR still lacks physical transport links within and among its provinces. Only 13% of the country’s 36,800 km road network is paved.9 The government, thus, faces the dual task of improving the existing network, particularly in the rural areas, and expanding physical connectivity among various parts of the country, including the links between urban and rural areas. Only 9.3% of the total road length (25,675 km) in Savannakhet is tarred and concreted. Champasack has only half the road length of Savannakhet, but more than 30% is tarred. The ADB-supported Champasack road improvement project (Vang Tao to Veun Kham, totaling 194 km) was completed in 2005, and the remaining 8 km to the Lao PDR–Cambodia border was completed in April 2008.

Rail Transport10

There are two railway lines in Cambodia. The Northern Line (386 km) runs from Phnom Penh to Banteay Meanchey Province in the Central Subcorridor and the Southern Line (264 km) runs from Phnom Penh to Sihanoukville in the Intercorridor Link. The train mainly carries heavy fuel oil for generators, cement, and rice on the inbound service to Phnom Penh, and wood and stones on the outbound service to

9 According to the Lao PDR Ministry of Public Works and Transportation, 4,811 km were tarred, 12,572 km were graveled, and 19,448 km were classified as earth roads in 2008.

10 A review of the GMS railway sector is being conducted to design a unified subregional railway development strategy that addresses both the environmental issues and the need for more efficient modes of freight transport.

Figure 6: Status of Southern Economic Corridor Roads

ADB = Asian Development Bank, ROK = Republic of Korea, WB = World Bank.

Mouth o f

Mekong

G u l f o f T h a i l a n d

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e

k

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i

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Sisophon

Siem Reap

Stung Treng

Kompong Cham

Patheay

Loc Ninh

Bien Long

Bien Hoa

Ho Chi Minh City

(Saigon)

Vung Tau

Moc Bai

Bavet

Svay Rieng

Neak Loeung

Can Tho

Ca Mau

Nam Can

Ha Tien

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Sre Ambet

THAILAND

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LAO

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ADB/Japan

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(realignment) completed

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funding

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completed by 2010–Viet Nam

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by 2010–ADB

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condition

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in 2004

Bridge over

Mekong to be

financed by Japan

(2010-2014)

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Airport

Southern economic corridor

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Boundaries are not necessarily authoritative.

0 20 40 60 100

80

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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.


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


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


main cities are connected through wireless communication technologies, which have limited access capacity. Mobile telephones account for about 90% of the market, with only 10% of users covered by fixed telephones. Maintenance costs for mobile telephone users are low due to the prepaid card system, whereas fixed-line users have higher costs and less reliability, due to cable accidents. The fixed telephone network infrastructure has remained undeveloped because private investors find the present market situation to be unattractive.

Telecommunication services in the Lao PDR have grown significantly during the past decade in terms of number of service providers and users. The number of fixed-line and mobile phone subscribers increased by 36.2% annually. The annual growth rates were 34.1% in Champasack and 25.2% in Savannakhet. In 2007, the telephone density was 201 per 1,000 inhabitants for the whole country; 180 per 1,000 inhabitants for Savannakhet; and 139 per 1,000 inhabitants for Champasack. As of the end of 2007, 93.4% of the total telephone capacity was being used by 1,711,850 subscribers.

Telecommunication services also have expanded rapidly in three SEC subcorridors in Viet Nam. This has helped ensure reliable communications among the regions and areas in the country. The number of telephone subscribers in the three subcorridors grew by 21.4% annually from 2000 to 2007, with an average annual increase of 19.6% in the Central Subcorridor, 27.5% in the Northern Subcorridor, and 32.5% in the Southern Coastal Subcorridor. The number of telephone subscribers per 100 people in the subcorridors increased from 7.2 in 2000 to 24.9 in 2007, or by three and a half times during this period. Nevertheless, there is still much room for improvement, especially in the Northern and Southern Coastal Subcorridors.

31

Development Potential and Opportunities

Overview

The SEC has considerable potential and excellent prospects for development, as it has the key ingredients to effectively integrate economic activities within the corridor. The SEC is economically diversified in terms of income and

economic structure, natural resource endowments, and labor markets, giving rise to many complementarities that could be pursued to promote its development. These complementarities provide a good base for the development of production networks that may be plugged into global value chains. The corridor has the necessary drivers of growth, including established markets, an agricultural and industrial base, and world-class tourism assets. With the appropriate physical, policy, and institutional framework, the SEC could very well be a primary generator of economic growth in GMS.12

Thailand and Viet Nam have a strong manufacturing base in the Central Subcorridor, specifically on the eastern seaboard of Thailand (in Chonburi and Rayong) and in Ho Chi Minh City and Vung Tau in Viet Nam. The industrial heartland of Thailand, which includes Bangkok and the eastern seaboard, is becoming a dominant region for heavy industries in Southeast Asia. The connection of these two manufacturing hubs will create many business opportunities along the SEC for both domestic and foreign investors. On the other hand, the Northern and Southern Coastal Subcorridors have advantages in agriculture, forestry, and fisheries production and processing, which also provide many investment opportunities in the SEC. Manufacturing enterprises can be promoted in areas where supply chains and logistics can be efficiently operated, with the effort being spearheaded by FDI in special economic zones in designated areas. Supply chain and logistics management would involve joint ventures with foreign investors, including investors from Thailand, in many supporting industries.

Thailand and Cambodia can attract more than 20 million tourists, given that Thailand is an aviation hub in Southeast Asia and Cambodia has a world-class tourist attraction such as Angkor Wat. In addition, the coastline along the SEC has good potential for tourism development, which can help create employment and raise incomes in the communities along the Southern Coastal Subcorridor, especially in SEC areas in Cambodia and Viet Nam. Indeed, increased connectivity along SEC subcorridors can facilitate the development of multicountry and circuit tours of its diverse tourism resources.

12 The relative effectiveness of the SEC, the EWEC, and the NSEC are analyzed in: M. Ishida. 2005. Effectiveness and Challenges of Three Economic Corridors of the Greater Mekong Subregion. Chiba, Japan: Institute of Developing Economies (IDE); and 2007. Evaluating the Effectiveness of GMS Economic Corridors: Why Is There More Focus on the Bangkok–Hanoi Road than the East–West Corridor? Chiba, Japan: IDE.


Comparative Advantages and Complementarities

There are differences and similarities among SEC subcorridors and among the national components of these subcorridors in terms of their state of development and their comparative advantages, giving rise to many complementarities and opportunities.

The major strengths of the Thailand component include its high-level infrastructure development and services, skilled labor force, strong management capacity, dynamic private sector, good technological base, well-established export-oriented manufacturing activities (particularly in skill-intensive industries), and strategic location in the Gulf of Thailand for deep seaport and industrial estate development. However, there is a growing shortage of unskilled labor, with the monthly average wage being around three to four times higher than in Cambodia and the Lao PDR.

The Cambodia component has the advantages of abundant agricultural land, water resources, forestry and fishery reserves, mineral resources (including oil and gas), world-renowned tourism assets such as those in Siem Reap and Phnom Penh, a large supply of unskilled workers, and coastal areas and scenic landscapes suitable for tourism development. However, the education and skills of the country’s labor force are still relatively low, and infrastructure, especially power supply, is inadequate.

The Viet Nam component has abundant agricultural land, forest and marine resources with substantial fishery reserves, mineral reserves (especially oil and gas), a strong science and technology base, a highly educated and skilled labor force, a strong industrial base, and major tourist attractions such as those in and around Ho Chi Minh City and the Mekong Delta.

The Lao PDR component also has abundant natural resources, including agricultural land, forests, minerals, water resources with substantial hydropower potential, an ample supply of unskilled labor, and a diversity of culture and landscapes. It is strategically located, connecting the SEC to the EWEC and, further northward, to the PRC. Like the Cambodian component, however, the education and skills of workers in the Lao PDR are still low, and infrastructure facilities and services require substantial improvement. Nevertheless, the relatively young population of Cambodia and the Lao PDR means that there is a growing labor force and an expanding consumer market that would support SEC development.

Central Subcorridor

This subcorridor is the largest among the four subcorridors and is the most developed region in Cambodia, with a labor force that is relatively more educated and skilled than the labor force in other subcorridors. The economy of this subcorridor has been growing rapidly and is expected to continue to do so in the future. The two international airports in Cambodia are located in this subcorridor, at Phnom Penh and Siem Reap, which also have the most attractive tourist destinations in the country. Almost all of the provinces in the subcorridor have abundant resources for agriculture development, especially for the cultivation of cassava, rice, rubber, sugarcane, and beans. Many garment factories have located their production bases in this subcorridor,

Development Potential and Opportunities 33

particularly in Phnom Penh and Kandal Province. With a per capita GDP that is higher than for Viet Nam as a whole, the subcorridor is expected to maintain a high rate of economic growth in the coming years. This subcorridor is close to the Cuu Long Delta region, which is rich in natural resources for agricultural production. The areas around the Cuu Long Delta region are suitable for the development of processing industries and for supplying industrial products to rural areas in this region.


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.


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.


Although SEC areas share broad similarities, several important complementarities also are evident, namely

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Investment Opportunities

The sectors and subsectors shown below have been identified as providing good opportunities for investment in SEC subcorridors, considering the comparative advantages and complementarities of SEC areas in the four countries. Although most investment opportunities are relevant to all of the subcorridors, there is some room for each of the subcorridors to emphasize certain activities.

Central Subcorridor

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Opportunities for Cooperation

The comparative advantages and complementarities among SEC areas also suggest certain opportunities for subregional cooperation to promote SEC development.

�� Agriculture and agro-industry, including livestock production, fisheries, and forestry. Promoting multicountry production and processing links can relieve raw material supply constraints, raise productivity, expand value-adding activities, and improve capacity utilization and marketing.

The realization of benefits from SEC development will require the promotion not only of subregional agro-industrial production on the basis of the comparative advantage of SEC components but also development of the subregional competitive advantage as a whole. This can be achieved by assisting each of the national areas to (i) identify and develop commercially viable agro-industrial projects, including subcontracting arrangements; (ii) facilitate the combination of different factors of production across national boundaries;13 (iii) pursue suitable policies (“software” aspects) to establish appropriate trade and investment regimes and accelerate human resources development efforts; and (iv) implement public investment programs (“hardware” aspects) to address physical infrastructure requirements.

�� Manufacturing. Promoting multicountry production networks that take into account differences in skills, wage differentials, natural resource endowments, and access to capital and technology.

The opportunities for manufacturing collaboration among the national areas of the SEC emerge from the comparative advantages of each national component and the economic complementarities among them. The opportunities in light manufacturing industries in the SEC can be classified as (i) natural resource–intensive industries such as agricultural, forestry, and mineral products processing, including production of alternative energy such as ethanol and biodiesel; (ii) unskilled labor–intensive industries such as production of garments and apparel; and (iii) human capital– and technology-intensive industries such as the production of electronics, medical products, pharmaceuticals, plastics, and rubber. These industries can be further classified into those having immediate or short-term potential and those having medium-term to long-term potential, which depends on the evolving labor supply-and-demand situation and wage rates among SEC national components, among other elements.

�� Cross-border investment and trade. Facilitating cross-border investment and trade (including transshipment of exports and imports) by simplifying and streamlining regulations and procedures.

Although SEC trade will undoubtedly be motivated by the inherent differences among the geographic areas that make up the corridor, it is equally clear that trade will be driven by the desire of businesspeople to exploit economies of scale and various gains from specialization. The

13 For instance, the transfer of agriculture technology across the borders from Thailand and Viet Nam can help improve agriculture productivity in Cambodia and the Lao PDR.


proposed initiatives in this area of cooperation are (i) establishment of an SEC trade and investment information system; (ii) development of regional marketing facilities; (iii) implementation of a trade valuation system at customs checkpoints, including training of personnel for implementing such a system; (iv) institutionalization of traditional informal trade; and (v) enhancement of mechanisms to facilitate small and medium-sized enterprise exporters’ access to working capital.

�� Tourism development. Developing tourism products that combine and link two or more countries.

The overall goal of tourism development and cooperation in the SEC is to make tourism a significant and sustainable contributor to economic growth, employment, foreign exchange earnings, and poverty reduction in the areas along the corridor while minimizing adverse social and environmental impacts. The completion of improvements in transport infrastructure along the SEC will boost the realization of the SEC’s vast tourism potential. Neighboring SEC provinces in Cambodia, the Lao PDR, Thailand, and Viet Nam can coordinate the development and promotion of their respective areas as tourist destinations, focusing on ecotourism and cultural and heritage tourism. The initiatives proposed within the framework of the ongoing GMS cooperation program in tourism include (i) joint promotion, marketing, and product development; (ii) facilitation of travel; (iii) creation of tourism infrastructure and related facilities; (iv) development of private sector–driven, community-based tourism models; and (v) capacity building. Joint promotion, marketing, and development of tourist attractions in the SEC are important to raising the awareness of such attractions in potential niche markets.

�� Cross-border economic zones and industrial estates. Establishing cross-border economic zones involving Cambodia, the Lao PDR, Thailand, and Viet Nam, and improving the planning, management, and marketing of existing and planned industrial estates.14

The development of cross-border economic zones can help SEC countries, such as Cambodia and the Lao PDR, create employment, transfer technology, and generate foreign exchange. However, it will be necessary to carefully plan and coordinate the creation of these zones to address matters such as location, taxes and tariffs, logistics and utilities, import and export procedures, and raw materials and parts supply.

The products that have been identified for production in many of the industrial estates or zones are mostly natural resource–intensive products and unskilled labor–intensive products, with a relatively smaller number of human capital– and technology-intensive products. The manufacturing of most natural resource– and unskilled labor–intensive products does not require very sophisticated facilities but only basic infrastructure that normally can be provided most efficiently in industrial estates. To assess

14 See: T. Tsuneishi. 2005. The Regional Development Policy of Thailand and Its Economic Cooperation with Neighboring Countries. Chiba, Japan: IDE; and 2008. Development of Border Economic Zones in Thailand: Expansion of Border Trade and Formation of Border Economic Zones. Chiba, Japan: IDE.


the opportunities for establishing industrial infrastructure in SEC areas, it is necessary to clearly differentiate among the various types of integrated industrial facilities that are needed in the SEC, and their functions and characteristics. The most basic facility is an industrial estate that enables manufacturing for both export and domestic markets. Export-oriented firms can qualify for bonded-warehouse types of schemes that give them tax and duty privileges. The zone also should permit nonmanufacturing, value-adding activities such as grading, sorting, bulk breaking, consolidation, branding, repacking, and simple assembly operations that normally are performed in a free trade zone setting.

�� Transport, power, and telecommunications. Improving coordination in transport planning and investment, pursuing power development and trade,15 rationalizing and upgrading telecommunication services, and mainstreaming environmental considerations in major infrastructure projects.

The general strategy for developing competitive advantage is to improve logistical support to reduce the transaction costs for traded goods. This strategy requires a broad definition of infrastructure. The initial focus is on physical infrastructure, specifically transport, power, and telecommunications. This has to be subsequently expanded to include the basic services needed to provide such infrastructure. Because of the importance of cross-border trade, this definition needs further extension to include trade in transport services, power, and telecommunications. Because new sources of financing are needed to fund infrastructure and facilitate trade, financing services also must be included in corridor infrastructure. In recognition of the rapidly evolving role of information technology in manufacturing and trade, the corridor’s infrastructure requirements should include various forms of data interchange, especially e-commerce via the internet. Environmental considerations are a major concern in GMS and should be an integral part of the process of planning and implementing major subregional infrastructure projects.

�� Skills development and migration. Improving the skills profile of the SEC’s Lao PDR and Cambodia components and addressing migration issues that have, at times, clouded bilateral relations.

Although wage differentials among SEC countries, especially between Thailand and Cambodia and between Thailand and the Lao PDR, would be a motivation for cross-border investment, this may not be immediately feasible on a major scale because the education and skill levels of workers in the Cambodia and Lao PDR components are still low. Improvement in primary and secondary education, adult education, and vocational training, as well as cross-border recognition of education and skills, will be necessary to enable these countries to maximize the benefits of closer subregional integration. Cooperative efforts among SEC countries can complement national programs to address this need.

15 There are many opportunities for investment in hydropower development and power interconnection and trade among neighboring countries in the SEC, which can be realized through cooperation. This is particularly true in Cambodia, where the supply of electric power falls substantially short of the demand despite the existing potential for hydropower development.


Another issue requiring joint action among SEC countries concerns the movement of labor, which includes such issues as illegal entry or illegal workers, security, infectious diseases, human trafficking, and poor labor conditions. The resolution of many of these issues will benefit both the sending and the receiving countries. For instance, counterflows of remittances, if properly channeled, could be a major source of local subregional investment. Cross-border migration is particularly heavy on the Thailand–Cambodia border. A significant portion of the incomes of these migrant workers is remitted to their place of origin, whether through informal channels or in kind, such as in the form of gold and jewelry. In the medium and long terms, the development of the SEC could induce migrant workers, who may have absorbed new skills or established contacts, to return to their places of origin and invest in their local economies.

40

Challenges and Constraints

Impediments and Constraints

The realization of the SEC’s full potential requires that certain impediments and constraints be addressed to improve the corridor’s competitiveness and to make possible the integration of economic activities along the corridor. These

impediments and constraints include both “hardware,” or physical infrastructure, requirements of economic corridor development and “software” aspects, such as policies, rules and regulations, procedures and standards, institutional arrangements and mechanisms, and activities aimed at developing nonphysical assets (e.g., capacity- and institution-building and management and control systems). The factors regarded as major impediments to and constraints on SEC development are discussed below. Because these factors are closely interrelated, it is necessary to take a coordinated approach to dealing with them.

Physical Infrastructure

There are differences in the availability and quality of infrastructure among SEC national components and among SEC subcorridors, with the Thailand component having the highest level of infrastructure development and the Cambodia and Lao PDR components having the lowest level. A critical constraint on the development of SEC provinces in Cambodia and the Lao PDR is the lack and poor state of physical infrastructure and facilities, especially of feeder roads connecting to the main transport routes. Limited storage and warehousing facilities, information technology equipment, and communication facilities also represent major bottlenecks. As mentioned previously, a major problem in Cambodia is the lack and unreliability of the electricity supply. In the urban areas of SEC countries, rapid growth in urbanization and industrialization has outpaced the provision of the necessary infrastructure, thus resulting in many bottlenecks. Among the subcorridors, infrastructure is most developed along the Central Subcorridor. There remain missing road links in both the Northern and Southern Coastal Subcorridors; segments in the Cambodia component of the Northern Subcorridor and the Viet Nam component of the Southern Coastal Subcorridor have very poor or nonexistent roads. Border-crossing facilities, especially along the Cambodia–Lao PDR border traversed by the Intercorridor Link, are undeveloped. Facilities at the Aranyaprathet–Poipet border checkpoint are not adequate to handle the volume of traffic, resulting in congestion and substantial delays.

Policies, Regulations, Procedures, and Standards

A major impediment to the efficient flow of people and goods in SEC subcorridors is the delay in the implementation of the cross-border transport agreement (CBTA). Specifically, there is an urgent need to implement arrangements involving the

Challenges and Constraints 41

exchange of traffic rights under the CBTA.16 Cambodia, the Lao PDR, Thailand, and Viet Nam are all signatories to the GMS CBTA. The CBTA is a compact and comprehensive multilateral instrument that covers in one document all the relevant aspects of cross-border transport facilitation, including (i) single-stop/single-window customs inspection; (ii) cross-border movement of people; (iii) transit traffic regimes; (iv) requirements that road vehicles must meet to be eligible for cross-border traffic; (v) exchange of commercial traffic rights (i.e., the ability of vehicles in one country to be operated in the neighboring country’s territory); and (vi) infrastructure issues such as road and bridge design standards, road signs, and signals. The CBTA will apply to selected and mutually agreed-upon routes and points of entry and exit in the signatory countries.

To allow for the early identification of implementation-related issues and demonstrate the efficacy of the CBTA, GMS ministers agreed at their 12th meeting in 2003 to carry out pilot testing of the CBTA at 7 of the 17 agreed-upon border-crossing points along 3 of the 11 agreed-upon routes. In the SEC, the pilot CBTA implementation is to be carried out at the Poipet–Aranyaprathet and Bavet–Moc Bai border checkpoints along the Central Subcorridor. This is to be done on the basis of bilateral memoranda of understanding between Cambodia and Thailand, signed in 2005, and between Cambodia and Viet Nam, signed in 2006. However, pilot CBTA implementation has yet to commence. A related bilateral road transport agreement, signed by the governments of Cambodia and Viet Nam in Ha Noi in October 2005, allows the exchange of commercial traffic rights between the two countries on a limited basis, thereby helping address the issue of time-consuming and costly transshipment of cargo at the border areas. The bilateral road transport agreement has been in effect since September 2006, and the current quota of vehicles allowed to cross borders has been increased from 40 per day to 150 per day. A similar agreement between Cambodia and Thailand, which was attached to the memorandum of understanding on pilot implementation at the Poipet–Aranyaprathet border checkpoint, was signed by the two during the third GMS summit but has not yet been implemented. A related agreement, signed by Cambodia and Thailand on the sidelines of the second Economic Corridors Forum (ECF) in Phnom Penh in September 2009, is expected to accelerate the exchange of traffic rights and address the current problem of transshipment that is causing bottlenecks in cross-border trade between the two countries.

Human Resources

There are two concerns involving human resources. The first is the availability, skill level, and mobility of labor in SEC areas. Cambodia and the Lao PDR have ample supplies of labor at low wages, which could complement the tightening labor market

16 Clearing border formalities at the Bavet–Moc Bai border crossing takes less than an hour, given the current low cross-border traffic, but it takes almost 5 hours, on average, to transship goods at the no-man’s zone because the exchange of traffic rights between Cambodia and Viet Nam has yet to apply to cargo trucks. The Aranyaprathet–Poipet border crossing is heavily congested with high volumes of border crossers and commercial vehicle traffic. Based on a time-release study conducted in December 2005, the total elapsed time for exports to Cambodia from Thailand averaged almost 405 minutes, with processing time averaging 67 minutes. The elapsed time is high due to congestion at the existing border facility, largely brought about by the transshipment rules, which require unloading and reloading of cargo at the border area.


in the Thailand component of the SEC. However, the low level of education and skills in Cambodia and the Lao PDR is impeding the pursuit of this complementarity. Workers in the subcorridors, especially in the coastal and mountainous areas of the Northern and Southern Coastal Subcorridors, have low levels of skills and knowledge and are unable to apply advanced technology and management practices to raise productivity or improve competitiveness. Policies and measures affecting labor migration also are inadequate. The second concern has to do with the low level of awareness, knowledge, and skills of officials carrying out transport and trade-facilitation measures. There is a substantial gap in this area, which requires the concerted training and capacity development of officials at the border areas, in the provinces, and in the capitals of SEC countries.

Institutional Factors

Weak coordination among agencies involved in transport, trade, and investment facilitation at both the central and local levels is a major issue. There also is a lack of connection between the higher levels and the operational levels of government. These issues have contributed to problems and delays in implementing agreements already adopted and ratified, including those in the CBTA. The involvement of local authorities and communities in developing the SEC has been inadequate. Mechanisms to effectively promote and support private sector participation in economic corridor development also have been deficient. The ECF was established in June 2008 to help improve coordination of GMS Economic Cooperation Program measures to develop economic corridors, institutionalize the involvement of local officials, and reinforce efforts to expand the participation of the private sector in economic corridor development. The ECF is a new mechanism that needs to be supported to ensure its effectiveness.

Internal and Bilateral Issues

There are also some internal (national) and bilateral issues involving social, economic, security, and political matters that may slow down the implementation of measures to develop the SEC. For instance, there are persistent questions regarding delineation of some border areas that need to be satisfactorily resolved before border-area development projects can be fully implemented.

Key Challenges

There are two principal challenges in SEC development: (i) how to fully integrate the less-developed areas of the SEC with the more-developed areas so that they can obtain meaningful benefits from the development of the corridor, and (ii) how to effectively address social and environmental concerns during SEC development.

Integrating Development of Less-Developed Areas

There is a wide variation of income and poverty levels among the national components of the SEC as well as among SEC subcorridors. Thus, a principal challenge is to achieve balanced development of SEC areas, with the less-developed countries significantly moving up the income ladder and not simply serving as transit zones. This requires

Challenges and Constraints 43

the integration of the less-developed national components into the more-developed ones and, similarly, the integration of the less-developed subcorridors—the Northern and Southern Coastal Subcorridors—into the more-developed Central Subcorridor. The Intercorridor Link will play an important role in this process. Efforts in this direction will have to deal with certain problems inherent in the less-developed areas of the SEC, including (i) inadequate physical infrastructure, (ii) low incomes that cannot support a higher level of investment and production, (iii) remoteness from the major economic and population centers, (iv) the presence in some SEC provinces of ethnic minority groups that use low levels of production technology and continue to practice shifting cultivation and nomadic living, and (v) low population density over widely dispersed residential areas.

Addressing Social and Environmental Concerns

Although the development of the SEC is expected to bring benefits to the local populace in terms of increased trade and investment and greater income-generating opportunities, there are potential undesirable consequences for the SEC and the people residing in the corridor and surrounding areas. These are already being experienced and need to be addressed effectively. Such consequences include the following:17

Social Impact

�� Displacement of local communities. Many subregional infrastructure projects require the relocation and resettlement of local inhabitants, causing their displacement and changes in their economic, social, and cultural situations. The effect of such displacement could be particularly severe among marginalized groups, such as residents of small and remote rural communities.

�� Spread of communicable diseases. The increased mobility of people, arising from improvements in physical connectivity, could lead to the spread of communicable diseases, such as HIV/AIDS and avian flu. Reports show the emergence of HIV/AIDS hot spots along GMS economic corridors following the increase in itinerant populations such as workers, drivers, and tourists in once-isolated rural communities.

�� Trafficking of women and children and illegal trade. Improved mobility and access may exacerbate the trafficking of women and children in border areas. Activities involving illegal trade in goods and wildlife also may increase.

�� Increased land prices. Land prices around road construction sites tend to rise due to speculation and expected increase in demand. This increases the vulnerability of small landowners, who may be prematurely enticed into selling or may be dispossessed of their property, particularly in areas where land rights are not properly defined or enforced.

�� Increased incidence of accidents. Road construction and expansion along the corridor may result in increased accidents, which could cause the loss of

17 Mekong Institute. 2006. Papers and Proceedings of the Second Regional Policy Formulation Meeting on Social and Environmental Impacts of Economic Corridors. Khon Kaen, Thailand, 18–20 September.


life or community assets such as cows and water buffaloes, or damage to property.

Environmental Impact

�� Deforestation and loss of biodiversity. Large subregional infrastructure projects and increased mobility of people and goods may create opportunities for the rapid exploitation of natural resources along the corridor. For example, road upgrading and expansion could lead to deforestation and loss of biodiversity by facilitating logging and transport of timber along the corridor. Land clearing for industrial and commercial purposes, due to increased demand and economic opportunities, also could result in deforestation and biodiversity loss.

�� Environmental degradation. Expanding industrial and economic activities along the corridor could lead to pollution and waste disposal issues or failure of ecosystem service functions such as carbon sequestration, water flow regulation, and nutrient dispersal in affected areas. Pollution is already a major concern in SEC population centers such as Bangkok, Ho Chi Minh City, Phnom Penh, and the Ba Ria–Vung Tau and Dong Nai provinces.

Social and environmental concerns in the SEC involve not only the negative effect of SEC programs and projects but also the broader issues affecting the overall sustainability of the SEC. In this regard, climate change is a critical issue with important implications for food security and the lives of the people in affected areas. Cambodia, Thailand, and Viet Nam have the most vulnerable areas in the SEC due to their long coastlines and the important role of agriculture in their economies. The potential effects of climate change on these areas include loss of agricultural land due to rising sea levels, falling crop yields, increasing frequency and intensity of typhoons and natural disasters, and decreasing groundwater quality.18 In particular, an increase in sea levels would seriously affect areas in and around the Mekong Delta in Cambodia and Viet Nam. Besides potentially submerging large tracts of land currently devoted to agriculture production, an increase in sea levels also could increase salt intrusion into the Mekong Delta. Such effects would have serious consequences for habitat and for the livelihoods of a large number of people living in these areas.19 It will be necessary not only to consider and implement adaptation measures but also to take climate change into account during project design and development.

18 ADB. 2009. The Economics of Climate Change in Southeast Asia: A Regional Review. Manila.19 An ADB–International Center for Environmental Management study has been conducted, in partnership

with the Ho Chi Minh City People’s Committee, to help the city respond to climate change. The study examines climate change threats and their effect on areas, communities, and sectors, and recommends adaptation options. Ho Chi Minh City has been identified as a city at high risk from the effects of climate change. See ADB. 2009. Final Report: Ho Chi Minh City Adaptation to Climate Change. Manila.

Strategy for Southern Economic Corridor Development

Development Vision, Goals, and Objectives

The vision for the SEC is to create a dynamic, prosperous economic corridor that increases the well-being of the people in the corridor, while ensuring that its development is inclusive and sustainable. It will serve as an engine of economic

growth and social development in the southern part of GMS. Based on this vision, the goals of SEC development are to create jobs, increase incomes, reduce poverty, and improve the living conditions of the people in the corridor and the surrounding areas.

To realize this vision and these goals, the objectives of the strategy and action plan (SAP) for SEC development are to (i) strengthen infrastructure and connectivity among the areas in the corridor, (ii) promote and facilitate trade and investment based on the underlying and evolving complementarities and comparative advantages of SEC areas, (iii) address social and environmental concerns during SEC development, and (iv) enhance mechanisms for promoting private sector participation and public–private sector collaboration in the development of the SEC. These objectives will be achieved through closer cooperation among the national components of the SEC in areas such as agriculture and agro-industry, manufacturing, cross-border trade and investment, tourism, transport, power and telecommunications, environment, and skills development and migration. Special attention will be given to spreading to the people in the provinces and local areas of the corridor the benefits of SEC development and to advancing the “software” aspects of economic corridor development, the implementation of which has fallen behind progress in addressing physical infrastructure constraints. Figure 7 summarizes the main elements of the SEC’s SAP.

Guiding Principles and Approaches

Implementation of the SAP for SEC development will be guided by the following basic principles and approaches:

�� #�� public sector establishing a conducive policy and regulatory environment, providing basic infrastructure and utilities, and facilitating cooperation among SEC countries and areas.

�� development plans and priorities of SEC countries. (Appendix B shows the key goals of these plans and the contribution of SEC development to their achievement.)


�� >��share in the benefits of SEC development.

�� <�� to realize early results on which further successes may be built.

�� ~��~��bottom–up approaches should be employed together with top–down approaches.

�� activities, in view of financial and human resource constraints.

Figure 7: Southern Economic Corridor Strategy and Action Plan at a Glance

Sharing Growth and Prosperity: A Strategy and Action Plan for the Southern Economic Corridor

�ision

Goals

��ecti�es

Action plan

Guidingprinciples

A dynamic and prosperous economic corridor that impro�es the well��eing of the people in theSouthern Economic Corridor and ensures that de�elopment is inclusi�e and sustaina�le�

Create �o�s� increase incomes� reduce po�erty� and impro�e li�ing conditions in the corridor�

Strengtheninfrastructure and

connecti�ity

�� measures�� illion

�� measures�� million

�� measures�� million

� measures�� million

�easures to

� address missing lin�s� connect rural areas to primary Southern Economic Corridor roads� strengthen�e�pand utilities �power� telecommunications� and water�� impro�e �order facilities

�easures to

� facilitate and support cross� �order transport agreement implementation� promote in�estment in agriculture and agro�industry� manufacturing� tourism� and logistics� promote de�elopment of cross��order economic �ones and industrial clusters

� �ed �y pri�ate sector� Pu�lic sector as catalyst and facilitator� Pragmatic and results oriented� Effecti�e integration of less de�eloped areas� Close coordination with related framewor�s and initiati�es

�easures to

� promote dialogue� increase in�ol�ement of cham�ers of commerce� impro�e access to funding� promote pu�lic� pri�ate partnership pro�ects

� Social: measures to upgrade la�or s�ills� deal with negati�e effects� and address migration issue� En�ironment: measures to maintain long�term sustaina�ility and address negati�e effects and climate change

Promote and facilitatetrade and in�estment

Address social anden�ironment concerns

Enhance pri�ate sectorparticipation

Strategy for Southern Economic Corridor Development 47

�� and with other frameworks and initiatives focused on the development of SEC areas (e.g., the Ayeyawaddy–Chao Phraya–Mekong Economic Cooperation Strategy; ASEAN, especially the Initiative for ASEAN Integration, the ASEAN Mekong Basin Development Cooperation, and the various ASEAN–Japan cooperation programs and projects; and the Emerald Triangle Cooperation Framework involving Cambodia, the Lao PDR, and Thailand).

Measures to Achieve Objectives

Strengthen Infrastructure and Connectivity

Many deficiencies remain in the infrastructure in SEC areas, especially in Cambodia and the Lao PDR, which constrains connectivity and investment in agro-industry, manufacturing, tourism, and other service industries. Although many road sections along the SEC have been improved, especially along the Central Subcorridor, there still are important missing links in the Northern and Southern Coastal Subcorridors for which further infrastructure investment is needed. The construction of a bridge across the Mekong River in Neak Loueng, Cambodia, in the Central Subcorridor is necessary to resolve the bottleneck there. In addition to these missing links, there also is a need to connect rural areas to the primary roads to improve access to the main corridor routes and enable these areas to benefit from the development of the corridor. Other important infrastructure requirements include developing multimodal transport links and providing power, water, and telecommunications in SEC areas that have poor or nonexistent services. Key measures include

�� ~��to reduce travel time and increase carrying capacity, safety, and reliability;

�� and to support priority agriculture, industry, and tourism projects in the corridor;

��

�� ^�� to facilitate the clearing of formalities at border checkpoints; and

�� &�� '�� telecommunication services in underserved, poorly served, or unserved areas in the corridor.

Promote and Facilitate Trade and Investment

The promotion and facilitation of trade and investment in the SEC entails measures to improve the competitiveness of the SEC for investment and exports, which in turn requires the reduction of transaction costs, including production, transport,


and distribution costs.20 The objective is to increase and diversify trade not only within the SEC but also among GMS countries and with the rest of the world. The development of transit trade will be important in facilitating access to large markets in Southeast, East, and South Asia, using the most efficient routes and means of transport. Investment promotion will cover not only cross-border investment but also investment coming from non-GMS countries. Emphasis will be on agriculture, agro-industry, manufacturing, tourism, and logistics. Efforts also will be taken to develop industrial clusters and value chains in the corridor and surrounding areas on a complementary basis. Key measures include components related to trade facilitation, investment promotion, agriculture and industry, tourism, and logistics.

Trade Facilitation

�� \�� #<�provisions (especially the exchange of traffic rights) and modernizing border checkpoint management.

�� >��inspection, risk management, and the use of information and communication technology, and facilitating transit arrangements in coordination with ASEAN-related initiatives.

�� the central and local levels.

�� >�� and border officials to raise awareness, knowledge, and skills in transport and trade facilitation.

�� centers in strategically located areas in the corridor.

Investment Promotion

�� opportunities.

�� about the SEC, including a prospectus on business opportunities in the key sectors and subsectors in SEC subcorridors.

�� documentation requirements covering investment in SEC areas.

�� and other permits, including setting up one-stop centers for approving investment applications, and institution/capacity building to support the operations of these centers.

20 A comprehensive set of measures has been proposed to more effectively implement trade and transport facilitation measures in GMS. See: ADB. 2009. Strategy and Work Program for Transport and Trade Facilitation in the Greater Mekong Subregion. Manila.


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


approach to address the possible negative effects of SEC development, such as the spread of communicable diseases, the increase of drug and human trafficking, and the displacement of local communities. The broad objective in terms of environmental concerns is to institute measures to maintain the long-term sustainability of SEC development, which includes action to effectively address the negative consequences of climate change and of major SEC programs and projects, such those involving tourism, industry, and infrastructure development. Key measures are as follows:

Social Concerns

�� less-developed areas of the corridor, such as those in Cambodia and the Lao PDR.

�� ~�� surveillance, public awareness, and response.

�� {��<��"

�� |�� trafficking of women and children.

�� educational and training institutions located in SEC areas.

�� \�� marginalized groups.

�� |�� >��>�� the SEC.

Environmental Concerns

�� information systems and other tools, and considering these findings and recommendations when developing the SEC.

�� is pursued in a sustainable manner.

�� and protection of natural resources in SEC areas, especially within national protected areas and environmental hot spots in the corridor.

�� |�� agricultural production and living conditions, especially in and around the Mekong Delta.

Enhance Private Sector Participation and Public–Private Sector Collaboration

Although the private sector is expected to serve as the primary engine of growth in SEC development, many factors have prevented this from being realized. First, the environment for private investment, in terms of the requisite infrastructure, policy, and regulatory framework in many SEC areas, is not conducive to greater private


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.


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 Nam Can

To �a Nan�To ��on �a�n

�a��

�� a�an �a�anna��

�o��

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�o C�� n� C��

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��n ��am

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To ��n� Ta�

To �� N�on

Thailand

Lao People’sDemocratic Republic

Viet Nam

Cambodia

53

Implementing the Strategy

Action Plan

The strategy for the development of the SEC is translated into an action plan containing specific, time-bound measures to achieve its goals and objectives. Covering a 5-year period (2009 to 2013), the action plan for SEC development

shows the following information for each of the objectives of the strategy: (i) the result or output expected, (ii) the indicators of progress and performance, (iii) the agency or body responsible for implementation, (iv) the time frame or target date for completion, and (v) the current status of the objective. It includes both measures that presently are being implemented and measures that are planned or proposed to be initiated within the 2009–2013 time period. The action plan matrix is given at the end of this chapter; a summary is presented in Table 6.

Table 6: Summary of Southern Economic Corridor Action Plan

Objective Sector or activityNumber of measures

Cost estimate ($ million)

1. Strengthen infrastructure and connectivity

1.1 Transport1.1.1 Roads1.1.2 Rail1.1.3 Water transport1.1.4 Air transport

1.2 Power1.3 Telecommunications1.4 Border Facilities

158232513

1,615.41,461.4

148.0TBD6.0

902.410.035.0

2. Promote and facilitate trade and investment

2.1 Trade and transport facilitation2.2 Investment promotion

2.2.1 Southern Economic Corridor– wide investment promotion2.2.2 Business information2.2.3 Promotion of investment in priority sectors/subsectors

AgricultureTourismLogisticsSpecial economic zones and industrial clusters

728

34

395

4

11.4339.7

0.30.2

50.1195.6

1.1

91.5

3. Address social and environmental concerns

3.1 Environmental concerns3.2 Social concerns

612

287.9114.3

4. Enhance private sector participation and public–private sector collaboration

4.1 Private sector participation4.2 Public–private partnership

51

0.90.1

TBD = To be determined.


Institutional Mechanisms and Arrangements

The implementation of the strategy and action plan (SAP) for SEC development will require substantial resources and close coordination of activities within the national components of the SEC and among existing GMS institutions. Such institutions include the GMS ministerial meetings, senior officials’ meetings, forums, and working groups; the GMS Business Forum (GMS–BF); and supporting GMS bodies such as the GMS Environment Operations Center, the Mekong Tourism Coordination Office, and national transport facilitation committees. In June 2008, GMS countries established the Economic Corridors Forum (ECF) in accordance with the directives given by GMS leaders at the third GMS summit. A Governors Forum, constituted under the ECF, is envisioned to increase and institutionalize the involvement of local authorities in economic corridor initiatives. The roles and tasks of GMS institutions, including the ECF, are summarized in Appendix C. Figure 9 shows the overall GMS organizational framework and indicates how the ECF fits into this framework.

The establishment of the ECF was a response to a significant gap in the institutional mechanisms necessary to coordinate and accelerate GMS economic corridor development. The ECF will serve as the main advocate and promoter of GMS economic corridor development. Its more specific functions are to

�� GMS economic corridor development;

�� ?�� areas along the economic corridors;

Figure 9: Greater Mekong Subregion Organizational Framework

NATIONAL

Public Sector

CentralLevel

LocalLevel

Private Sector Public Sector Private Sector

SUBREGIONAL

ProvincialGovernments

�oncernedMinistries��gencies

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corridors.c Prooposed.

Implementing the Strategy 55

�� GMS economic corridors; and

�� sector, and collaboration between the public and private sectors in GMS economic corridor development.

The ECF is a standing body dealing with economic corridor development within the GMS organizational framework. Next to the leaders summit, the GMS ministerial-level conference remains the highest policy-making and coordinating body under the GMS Economic Cooperation Program. The ECF will review the progress of implementation of the SEC’s SAP and will recommend actions to resolve major policy and implementation issues. These recommendations will then be considered by the GMS ministerial meeting, senior officials’ meeting, forums, and working groups, and appropriate actions will be taken by the concerned ministry or agency in GMS countries in accordance with agreements reached among them.

Financing

The implementation of the SAP will require approximately $3.3 billion over the next 5 years, or an average of $660 million per year (Table 7).22 This amount is less than the estimated financial requirements of the NSEC strategy and action plan ($5 billion) but more than that of the EWEC strategy and action plan ($1.5 billion). The largest cost component is for infrastructure, which comprises about three-quarters of the total. Roughly two-thirds of the estimated cost of infrastructure is for transport projects. Of the non-infrastructure components, investment promotion and facilitation measures account for the largest share (45%), followed by those for environment (38.2%) and social concerns (15.2%). Investment promotion and facilitation measures include programs and projects involving specific sectors, such as agriculture, tourism, and logistics (Figure 10).

In terms of funding commitments, around 46% of the total estimated cost has secured financing in the form of either actual or indicative commitments. The funding gap—those measures for which funding is still being or will be sought—is around $1.8 billion, or slightly over half of the total cost. Among the action plan components, environment, social, and transport and trade facilitation measures have the highest level of funding, with commitments or indicative commitments reaching nearly 100%. This is followed by investment promotion and facilitation measures, which have a 49.1% commitment or indicative commitment rate, and infrastructure, with a 36.5% commitment or indicative commitment rate. The unfunded amount for infrastructure includes two large power projects and a road project that are suitable for public–private partnership arrangements. Without these projects, the unfunded part of the SEC would be around $250 million. More than half of SEC transport projects (53.3%) have commitments or indicative commitments. There still are no funding commitments for measures to promote private sector participation. To effectively implement the action plan, it will be necessary to ensure that the indicative

22 Cost estimates for some projects in the action plan are not available.


Table 7: Financing the Southern Economic Corridor Strategy and Action Plan ($ million)a

Program/project component

Cost estimates

Total Committed

With indicative

commitment

Funding being/to be

soughtInfrastructure 2,562.8 498.8 460.0 1,604.0

Of which transport 1,615.4 436.4 425.0 754.0

Transport and trade facilitation

11.4 0.8 10.5 0.1

Investment promotion/ facilitation

338.7 155.0 11.4 172.3

Environment concerns 287.9 270.4 17.0 0.5

Social concerns 114.3 114.3 0.0 0.0

Promotion of private sector participation

1.0 0.0 0.0 1.0

Total 3,316.1 1,039.3 498.9 1,777.9a See Appendix D for details.

Figure 10: Funding Requirements of the Southern Economic Corridor Strategy and Action Plan


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.


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.


basis, after which the number of indicators would be expanded.26 To start with, the set of indicators shown in Table 8 is recommended.

After they are approved, these indicators will form part of the monitoring and evaluation system for SEC development, together with the output indicators emanating from various SEC programs and projects. Certain statistics, such as those on incidences of poverty, may not be available on an annual basis because SEC countries have varying schedules and time frames for collecting such information. Nevertheless, what is important is to be able to agree on and establish a workable tracking system, even with a limited coverage. Further progress can be made as experience is gained. In this regard, the inclusion of environmental performance indicators has been proposed. However, SEC countries need prior agreement on the indicators to be included in the monitoring and evaluation system, due to the sensitive nature and large number of these indicators.27

26 Qualitative analysis will supplement the use of quantitative indicators to come up with a fairly comprehensive report on progress in achieving expected results.

27 Environmental performance assessment at the subnational level is being undertaken through the GMS Environment Operations Center as part of the Biodiversity Conservation Initiative to identify environmental trends within the SEC and to assess the effectiveness of measures under this initiative and of sector environmental assessment interventions being implemented within the corridor.

Table 8: Proposed Initial Set of Indicators

Aspects to be monitored Proposed quantitative indicatorsImpact Poverty incidence in Southern Economic Corridor (SEC)

provinces/subcorridors

Per capita gross provincial product in SEC provinces/subcorridors

Outcomes/results Cross-border trade at the main border checkpoints

Volume of traffic at the main border checkpoints

Processing time for passengers and freight at the main border checkpoints

Tourist arrivals in SEC provinces

Approved/registered investment in border special economic zones

Foreign direct investment in SEC provinces

Outputs Data from project monitoring reports (e.g., kilometers of roads or railway constructed, upgraded, or rehabilitated); percent completion of civil works; number of training courses, programs, or workshops conducted; number of trainees; number and type of promotional fairs and meetings organized; studies completed (many of these can be obtained from the reports of Greater Mekong Subregion forums and working groups on the implementation of their respective strategies and action plans)


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el, n

avig

atio

n,

and

port

impr

ovem

ents

on

the

Mek

ong

Rive

r an

d fo

r ac

cess

to

the

port

in S

iem

Rea

p;

deve

lopm

ent

of

inte

rmod

al t

erm

inal

at

Khon

e Fa

lls

Use

of

the

Mek

ong

Ri

ver

for

tran

spor

t m

axim

ized

; tra

vel f

rom

Kh

one

Falls

in t

he L

ao

Peop

le’s

Dem

ocra

tic

Repu

blic

(La

o PD

R) t

o C

ambo

dia

mad

e

poss

ible

thr

ough

us

e of

inte

rmod

al

faci

litie

s

Del

inea

tion

of

proj

ect

scop

e; c

ondu

ct o

f pr

efea

sibi

lity/

feas

ibili

ty s

tudy

; fin

aliz

atio

n of

fin

anci

ng

arra

ngem

ents

; co

mm

ence

men

t of

civ

il w

orks

Min

istr

y of

Pub

lic

Wor

ks a

nd T

rans

port

, C

ambo

dia

2009

–201

1Pr

opos

ed

Stre

ngth

en In

fras

truc

ture

and

Con

nect

ivit

y co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rs

Imp

lem

enti

ng

A

gen

cies

/B

od

ies

Tim

e Fr

ame/

Targ

et D

ate

Stat

us/

Rem

arks

��V

ung

Tau

port

re

habi

litat

ion

Cap

acit

y an

d

effic

ienc

y of

por

t in

crea

sed

Com

plet

ion

of

reha

bilit

atio

n w

orks

Min

istr

y of

Tra

nspo

rt,

Vie

t N

am20

09O

ngoi

ng, w

ith

Japa

n Ba

nk f

or In

tern

atio

nal

Coo

pera

tion

(JB

IC)

finan

cing

��La

em C

haba

ng, P

hase

2

cons

truc

tion

of

C a

nd

D c

onta

iner

ter

min

als

Add

itio

nal c

apac

ity

inst

alle

d at

Lae

m

Cha

bang

por

t,

impr

ovin

g it

s ab

ility

to

han

dle

incr

ease

d fr

eigh

t vo

lum

es

Com

plet

ion

of

cons

truc

tion

of

C

and

D t

erm

inal

s

Min

istr

y of

Tra

nspo

rt,

Thai

land

2006

–201

1Pr

opos

ed. F

undi

ng

from

the

Gov

ernm

ent

of T

haila

nd

1.1.

4 A

ir T

ran

spo

rt

��U

pgra

ding

and

ex

tens

ion

of

Siha

nouk

ville

Air

port

Jets

the

siz

e of

Boe

ing

737s

acc

omm

odat

ed,

faci

litat

ing

trav

el t

o Si

hano

ukvi

lle f

rom

Ja

pan,

the

Rep

ublic

of

Kor

ea, S

inga

pore

, Th

aila

nd, a

nd V

iet

Nam

Com

plet

ion

of

upgr

adin

g an

d ex

tens

ion

Min

istr

y of

Pub

lic

Wor

ks a

nd T

rans

port

, C

ambo

dia

Targ

et c

ompl

etio

n

date

is 2

009

Prop

osed

��U

pgra

ding

of

Ra

ttan

akir

i and

Stu

ng

Tren

g ai

rpor

ts in

C

ambo

dia

Prom

otio

n of

su

breg

iona

l tou

rism

lo

op c

ompr

isin

g th

e U

nite

d N

atio

ns

Educ

atio

nal,

Scie

ntifi

c an

d Cu

ltura

l O

rgan

izat

ion ’

s (U

NES

CO) W

orld

H

erita

ge S

ites

prom

oted

an

d su

ppor

ted

Com

plet

ion

of

airp

ort

upgr

adin

gM

inis

try

of P

ublic

W

orks

and

Tra

nspo

rt,

Cam

bodi

a

2009

Part

of

AD

B-as

sist

ed

Mek

ong

Tour

ism

D

evel

opm

ent

Proj

ect

Stre

ngth

en In

fras

truc

ture

and

Con

nect

ivit

y co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rs

Imp

lem

enti

ng

A

gen

cies

/B

od

ies

Tim

e Fr

ame/

Targ

et D

ate

Stat

us/

Rem

arks

1.2

Pow

er

��Tr

ansm

issi

on li

ne:

220-

kilo

volt

(kV

) lin

k be

twee

n Ka

mpo

t an

d Si

hano

ukvi

lle

Ava

ilabi

lity

and

relia

bilit

y of

pow

er

supp

ly im

prov

ed

in K

ampo

t an

d Si

hano

ukvi

lle

Inst

alla

tion

of

tran

smis

sion

line

Elec

tric

ité

du

Cam

bodg

e (E

DC

),

Cam

bodi

a

2010

Ong

oing

, wit

h fin

anci

ng f

rom

AD

B ($

20 m

illio

n) a

nd J

BIC

($

22.3

mill

ion)

��Tr

ansm

issi

on li

ne:

115

kV li

ne f

rom

Tay

N

inh

in V

iet

Nam

to

Kom

pong

cham

and

Kr

atie

in C

ambo

dia,

in

clud

ing

two

115

kV

pow

er s

tati

ons

Elec

tric

ity

impo

rted

fr

om V

iet

Nam

; C

ambo

dian

vill

ages

el

ectr

ified

alo

ng t

he

rout

e

Inst

alla

tion

of

tran

smis

sion

line

and

co

nstr

ucti

on o

f th

e po

wer

sta

tion

s

EDC

, Cam

bodi

a;

Elec

tric

ity

of V

iet

Nam

To b

e de

term

ined

Poss

ible

Wor

ld

Bank

(In

tern

atio

nal

Dev

elop

men

t A

ssoc

iati

on [

IDA

])

finan

cing

, tog

ethe

r w

ith

EDC

��Tr

ansm

issi

on li

ne:

115

kV li

ne f

rom

Ban

H

at in

the

Lao

PD

R to

Stu

ng T

reng

in

Cam

bodi

a

Elec

tric

ity

impo

rted

fr

om t

he L

ao P

DR;

av

aila

bilit

y an

d re

liabi

lity

of p

ower

su

pply

in a

reas

alo

ng

the

rout

e im

prov

ed

Inst

alla

tion

of

tran

smis

sion

line

EDC

, Cam

bodi

a;

Elec

tric

ité

du L

ao, L

ao

PDR

To b

e de

term

ined

Poss

ible

Wor

ld B

ank

(IDA

) fin

anci

ng w

ith

EDC

and

Ele

ctri

cité

du

Lao

��Fe

asib

ility

stu

dy a

nd

cons

truc

tion

of

Nho

n Tr

ach

4 C

ombi

ned

C

ycle

Pow

er P

roje

ct

(720

-meg

awat

t [M

W])

Elec

tric

ity

supp

ly t

o H

o C

hi M

inh

Cit

y an

d su

rrou

ndin

g ar

eas,

in

clud

ing

indu

stri

al

zone

s, in

crea

sed

Com

plet

ion

of

feas

ibili

ty s

tudy

; fin

aliz

atio

n of

fin

anci

al p

acka

ge;

com

men

cem

ent

of

cons

truc

tion

Elec

tric

ity

of V

iet

Nam

2013

–201

5Pr

opos

ed. F

inan

cing

be

ing

soug

ht

Stre

ngth

en In

fras

truc

ture

and

Con

nect

ivit

y co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rs

Imp

lem

enti

ng

A

gen

cies

/B

od

ies

Tim

e Fr

ame/

Targ

et D

ate

Stat

us/

Rem

arks

��Sr

e Po

k II

hydr

opow

er

proj

ect

(200

MW

),

incl

udin

g 22

0 kV

tr

ansm

issi

on li

ne t

o St

ung

Tren

g an

d V

iet

Nam

bor

der

whe

re it

in

terc

onne

cts

wit

h

Vie

t N

am g

rid

Pow

er s

uppl

y

situ

atio

n in

St

ung

Tren

g an

d su

rrou

ndin

g ar

eas

impr

oved

; C

ambo

dian

sys

tem

at

the

area

con

nect

ed t

o

the

Vie

t N

am g

rid

Com

plet

ion

of

feas

ibili

ty s

tudy

; fin

aliz

atio

n of

fin

anci

al p

acka

ge;

com

men

cem

ent

of

cons

truc

tion

Min

istr

y of

Indu

stry

, En

ergy

, and

Min

es a

nd

EDC

, Cam

bodi

a

Targ

et d

ate

for

com

mis

sion

ing

of

hydr

opow

er p

lant

is

2017

Prop

osed

. Fin

anci

ng

bein

g so

ught

1.3

Tele

com

mu

nic

atio

ns

��G

MS

Info

rmat

ion

Supe

rhig

hway

N

etw

ork

Phas

e 2,

Th

aila

nd–C

ambo

dia

com

pone

nt: e

xpan

sion

of

fib

erop

tic

netw

ork

at

Ara

nyap

rath

et–

Poip

et b

orde

r ch

eckp

oint

fr

om 1

2- t

o 24

-cor

e

Info

rmat

ion

and

com

mun

icat

ions

te

chno

logy

fac

iliti

es

and

serv

ices

in t

he S

EC

area

s in

Tha

iland

and

C

ambo

dia

impr

oved

Com

plet

ion

of

upgr

adin

g of

fib

er

netw

ork

Com

mun

icat

ions

m

inis

trie

s in

Tha

iland

an

d C

ambo

dia

2009

–201

0Pr

ojec

t is

ong

oing

. Th

ere

is e

xist

ing

inte

rcon

nect

ion

betw

een

Tele

com

s C

ambo

dia

and

Tele

com

s of

Tha

iland

. U

pgra

ding

to

be

unde

rtak

en u

pon

com

plet

ion

of t

echn

ical

su

rvey

at

Poip

et s

tati

on

Stre

ngth

en In

fras

truc

ture

and

Con

nect

ivit

y co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rs

Imp

lem

enti

ng

A

gen

cies

/B

od

ies

Tim

e Fr

ame/

Targ

et D

ate

Stat

us/

Rem

arks

1.4

Bo

rder

Fac

iliti

es

Cen

tral

Sub

corr

idor

��Ex

pans

ion

and

impr

ovem

ent

of

bord

er f

acili

ties

at

Ara

nyap

rath

et–P

oipe

t be

twee

n C

ambo

dia

an

d Th

aila

nd a

nd

Bave

t–M

oc B

ai

betw

een

Cam

bodi

a

and

Vie

t N

am

Acc

ess

of p

eopl

e an

d bu

sine

ss e

nter

pris

es

to b

asic

urb

an

infr

astr

uctu

re a

nd

serv

ices

incr

ease

d;

econ

omic

dev

elop

men

t of

bor

der

area

s en

hanc

ed; c

onge

stio

n re

lieve

d an

d se

rvic

es

impr

oved

, res

ulti

ng in

fa

ster

cro

ssin

g ti

mes

, es

peci

ally

for

fre

ight

tr

affic

Con

stru

ctio

n an

d/or

im

prov

emen

t of

loca

l ro

ads

and

brid

ges,

dr

aina

ge, f

lood

con

trol

, w

ater

and

san

itat

ion

faci

litie

s, p

ublic

m

arke

ts, b

us t

erm

inal

s,

and

othe

r lo

gist

ical

su

ppor

t fa

cilit

ies

com

plet

ed

Con

cern

ed m

inis

trie

s/

agen

cies

and

pro

vinc

ial

auth

orit

ies

in

Cam

bodi

a, T

haila

nd,

and

Vie

t N

am

2011

(pr

ojec

t ap

prov

al);

im

plem

enta

tion

pe

riod

to

be

dete

rmin

ed

To b

e im

plem

ente

d un

der

the

prop

osed

G

MS

Cor

rido

r To

wn

Dev

elop

men

t pr

ojec

t,

whi

ch is

in t

he A

DB

loan

pip

elin

e fo

r 20

11

Inte

rcor

rido

r Li

nk

��C

onst

ruct

ion

of b

orde

r fa

cilit

ies

at N

a N

uk K

ien

(Lao

PD

R)–T

ra P

iy K

an

(Cam

bodi

a), l

inki

ng

Nat

iona

l Roa

d N

o. 7

in

Cam

bodi

a to

Nat

iona

l Ro

ad N

o. 1

3 in

the

Lao

PD

R

Abi

lity

of b

orde

r of

fices

to

han

dle

clea

ranc

e pr

oced

ures

and

re

quir

emen

ts im

prov

ed

Con

stru

ctio

n of

of

fice

build

ings

an

d in

stal

lati

on o

f ne

cess

ary

equi

pmen

t co

mpl

eted

Con

cern

ed m

inis

trie

s an

d ag

enci

es in

C

ambo

dia

and

the

Lao

PDR

2009

–201

1Th

e ro

ad s

ecti

ons

in

Cam

bodi

a an

d th

e La

o PD

R le

adin

g to

th

e re

spec

tive

bor

ders

w

ere

com

plet

ed in

20

07 w

ith

a lo

an f

rom

th

e PR

C. T

he L

ao P

DR

has

recl

assi

fied

the

bord

er c

ross

ing

as a

n in

tern

atio

nal

bord

er g

ate

Stre

ngth

en In

fras

truc

ture

and

Con

nect

ivit

y co

ntin

ued


Pro

mo

te a

nd

Fac

ilita

te T

rad

e an

d In

vest

men

t

Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

2.1

Trad

e an

d t

ran

spo

rt f

acili

tati

on

��Im

plem

enta

tion

of

key

prov

isio

ns o

f th

e cr

oss-

bord

er t

rans

port

ag

reem

ent

(CBT

A),

es

peci

ally

fac

ilita

tion

of

exch

ange

of

traf

fic r

ight

s an

d m

oder

niza

tion

of

bord

er m

anag

emen

t (in

clud

es in

form

atio

n di

ssem

inat

ion;

si

mpl

ifica

tion

, ha

rmon

izat

ion,

and

ra

tion

aliz

atio

n of

for

ms

and

proc

edur

es; a

nd

bord

er-c

ross

ing

faci

lity

impr

ovem

ents

)

��Tr

aini

ng/c

apac

ity

build

ing

for

impl

emen

ting

CBT

A

and

trad

e fa

cilit

atio

n in

itia

tive

s

Free

r an

d fa

ster

cro

ss-

bord

er m

ovem

ent

of

peop

le, g

oods

, and

ve

hicl

es; i

ncre

ased

cr

oss-

bord

er t

rade

, in

clud

ing

tran

sit

trad

e

Incr

ease

d sk

ills

and

capa

city

am

ong

pers

onne

l im

plem

enti

ng C

BTA

an

d tr

ade

faci

litat

ion

mea

sure

s

Volu

me

of c

ross

-bo

rder

tra

ffic

; pr

oces

sing

and

w

aiti

ng t

imes

at

bord

ers,

num

ber

of

truc

ks e

xam

ined

, and

ex

tend

ed r

educ

tion

of

tra

nssh

ipm

ent

requ

irem

ents

Num

ber

of

trai

ning

pro

gram

s an

d w

orks

hops

im

plem

ente

d; n

umbe

r of

per

sonn

el t

rain

ed

Min

istr

ies

of

tran

spor

t, f

inan

ce;

trad

e; h

ealt

h;

cust

oms,

imm

igra

tion

, qu

aran

tine

; and

oth

er

conc

erne

d bo

rder

co

ntro

l aut

hori

ties

of

SEC

cou

ntri

es

Min

istr

ies

of

tran

spor

t;

finan

ce; t

rade

; he

alth

; cus

tom

s,

imm

igra

tion

, qu

aran

tine

; and

oth

er

conc

erne

d bo

rder

co

ntro

l aut

hori

ties

of

SEC

cou

ntri

es

2009

–201

3

(Cen

tral

Sub

corr

idor

);

2010

–201

3

(Sou

ther

n C

oast

al

Subc

orri

dor)

; 20

11–2

013

(N

orth

ern

Subc

orri

dor)

2009

–201

3

Con

tinu

ing.

AD

B is

sup

port

ing

the

impl

emen

tati

on o

f th

e C

BTA

in p

ilot

bord

er c

heck

poin

ts.

Prio

rity

is o

n th

e fo

llow

ing

bord

er

chec

kpoi

nts:

Po

ipet

, Cam

bodi

a–A

rany

apra

thet

, Th

aila

nd; B

avet

, C

ambo

dia–

Moc

Bai

, V

iet

Nam

Init

ial f

ocus

on

the

Cen

tral

Sub

corr

idor

; to

cov

er o

ffic

ials

at

the

cent

ral a

nd lo

cal

leve

ls, i

nclu

ding

tho

se

in b

orde

r ar

eas

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��C

usto

ms

faci

litat

ion,

in

clud

ing

sing

le-

win

dow

insp

ecti

on, r

isk

man

agem

ent,

use

of

info

rmat

ion

tech

nolo

gy,

and

hand

ling

of t

rans

it

trad

e

��Im

prov

emen

t of

ha

ndlin

g of

san

itar

y–ph

ytos

anit

ary

(SPS

) re

quir

emen

ts in

GM

S cr

oss-

bord

er t

rade

(C

ambo

dia,

the

Lao

PD

R,

and

Vie

t N

am)

��Se

ttin

g up

of

com

mon

w

hole

sale

mar

kets

or

dist

ribu

tion

cen

ters

in

maj

or b

orde

r ar

eas

to

faci

litat

e an

d su

ppor

t tr

adin

g ac

tivi

ties

��A

dopt

ion

of a

mic

able

an

d ef

ficie

nt

arra

ngem

ents

for

fin

anci

al s

ettl

emen

t co

veri

ng c

ross

-bor

der

trad

e in

the

Nor

th–S

outh

Ec

onom

ic C

orri

dor

(NSE

C)

Stre

amlin

ed s

yste

m

and

proc

esse

s fo

r cu

stom

s in

spec

tion

at

bord

er c

heck

poin

ts,

incl

udin

g th

ose

for

tran

sit

trad

e

Risk

-bas

ed s

yste

m

of S

PS in

spec

tion

de

sign

ed a

nd a

pplie

d;

diag

nost

ic a

nd

test

ing

capa

citi

es

stre

ngth

ened

; ac

adem

ic t

rain

ing

for

man

agin

g SP

S pr

omot

ed (

Cam

bodi

a an

d th

e La

o PD

R)

Com

mon

who

lesa

le

mar

kets

or

dist

ribu

tion

cen

ters

es

tabl

ishe

d in

maj

or

bord

er a

reas

Suit

able

ar

rang

emen

ts f

or

finan

cial

set

tlem

ent

of c

ross

-bor

der

tran

sact

ions

in t

he

NSE

C im

plem

ente

d

Sing

le-w

indo

w

insp

ecti

on

impl

emen

ted;

ri

sk m

anag

emen

t an

d in

form

atio

n te

chno

logy

te

chni

ques

app

lied;

cu

stom

s tr

ansi

t sy

stem

est

ablis

hed

Sect

or a

naly

sis

of S

PS

capa

citi

es c

ompl

eted

; pr

opos

al f

or c

apac

ity

deve

lopm

ent

prep

ared

; pro

ject

ai

med

at

deve

lopi

ng

capa

citi

es a

nd

init

iati

ng r

isk-

base

d sy

stem

pre

pare

d

Plan

s fo

r se

ttin

g up

w

hole

sale

mar

kets

or

dis

trib

utio

n ce

nter

s pr

epar

ed a

nd

impl

emen

ted

Agr

eem

ent

amon

g SE

C c

ount

ries

to

cons

ider

mod

alit

ies

of

finan

cial

set

tlem

ent

to

faci

litat

e cr

oss-

bord

er

trad

e; n

egot

iati

on,

conc

lusi

on, a

nd

impl

emen

tati

on o

f bi

late

ral p

aym

ent

agre

emen

ts

Bord

er a

genc

ies

in

SEC

cou

ntri

es le

d by

cu

stom

s au

thor

itie

s

Insp

ecti

on a

nd

quar

anti

ne m

inis

trie

s an

d ag

enci

es; l

ocal

au

thor

itie

s

Loca

l aut

hori

ties

in

SEC

are

as; p

riva

te

sect

or

Mon

etar

y au

thor

itie

s,

min

istr

ies

of t

rade

an

d fin

ance

of

NSE

C

coun

trie

s

2009

–201

3

2009

(pr

ojec

t pr

epar

ator

y

tech

nica

l ass

ista

nce

[PPT

A])

; 201

1 (lo

an)

2009

–201

3

2010

–201

3

Init

ial f

ocus

on

the

Cen

tral

Sub

corr

idor

, to

be

clos

ely

coor

dina

ted

wit

h re

late

d A

ssoc

iati

on

of S

outh

east

Asi

an

Nat

ions

init

iati

ves

To b

e im

plem

ente

d un

der

the

prop

osed

; im

prov

ed S

PS

Han

dlin

g in

GM

S C

ross

-Bor

der

Trad

e pr

ojec

t, w

hich

is in

th

e A

DB

loan

pip

elin

e fo

r 20

11

Prop

osed

Prop

osed

; cou

ld b

e pu

rsue

d on

a p

ilot

basi

s us

ing

as a

m

odel

the

bila

tera

l pa

ymen

t ag

reem

ent

betw

een

Thai

land

and

M

alay

sia

ente

red

into

in

200

2

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Es

tabl

ishm

ent

of a

sy

stem

for

the

reg

ular

m

onit

orin

g an

d re

port

ing

of c

ross

-bo

rder

tra

de in

the

SEC

Syst

em f

or t

rack

ing

cros

s-bo

rder

tr

ade

esta

blis

hed

and

oper

atio

nal,

wit

h re

gula

r re

port

s pr

epar

ed/

diss

emin

ated

List

of

requ

ired

dat

a pr

epar

ed; s

yste

m

for

colle

ctio

n an

d co

mpi

lati

on d

esig

ned

and

put

in p

lace

; in

itia

l or

base

line

data

es

tabl

ishe

d

Trad

e m

inis

trie

s an

d st

atis

tica

l age

ncie

s of

SE

C c

ount

ries

2009

–201

3Pr

opos

ed. I

niti

ally

to

cove

r m

ajor

bor

der

chec

kpoi

nts

only

, es

peci

ally

alo

ng t

he

Cen

tral

Sub

corr

idor

2.2

Inve

stm

ent

pro

mo

tio

n

2.2.

1 SE

C-w

ide

inve

stm

ent

pro

mo

tio

n a

nd

fac

ilita

tio

n

��C

ondu

ct o

f SE

C

inve

stm

ent

foru

ms

wit

hin

SEC

cou

ntri

es

and

road

sho

ws

in m

ajor

fo

reig

n bu

sine

ss c

ente

rs

��O

rgan

izat

ion

of S

EC

inve

stm

ent

and

trad

e fa

irs

��St

ream

linin

g of

in

vest

men

t ap

prov

al

proc

edur

es in

SEC

are

as

Incr

ease

in d

omes

tic

and

fore

ign

inve

stm

ent

in S

EC

area

s

Incr

ease

in d

omes

tic

and

fore

ign

inve

stm

ent

in S

EC

area

s

Proc

edur

es a

nd

requ

irem

ents

for

ap

prov

al o

f pr

opos

ed

inve

stm

ents

in S

EC

area

s si

mpl

ified

and

st

ream

lined

At

leas

t on

e in

vest

men

t fo

rum

or

for

eign

mis

sion

co

nduc

ted

annu

ally

One

inve

stm

ent

and

trad

e fa

ir o

rgan

ized

on

ce e

very

2 y

ears

Dia

gnos

tic

anal

ysis

of

exis

ting

pro

cedu

res

and

requ

irem

ents

co

mpl

eted

; act

ion

plan

for

str

eam

linin

g fo

rmul

ated

, agr

eed

to, a

nd im

plem

ente

d

Gre

ater

Mek

ong

Subr

egio

n Bu

sine

ss

Foru

m (

GM

S–BF

);

indu

stry

and

tra

de

min

istr

ies,

inve

stm

ent

min

istr

ies/

agen

cies

, an

d ch

ambe

rs o

f co

mm

erce

and

in

dust

ry (

CC

Is)

of

SEC

cou

ntri

es; l

ocal

au

thor

itie

s

GM

S–BF

; ind

ustr

y an

d tr

ade

min

istr

ies

and

CC

Is o

f SE

C c

ount

ries

; lo

cal a

utho

riti

es

Indu

stry

min

istr

ies

and

inve

stm

ent

agen

cies

of

SEC

co

untr

ies;

loca

l au

thor

itie

s; G

MS–

BF

2009

–201

3

2009

–201

3

2009

–201

3

Con

tinu

ing.

May

be

unde

rtak

en s

epar

atel

y or

tog

ethe

r w

ith

GM

S-w

ide

inve

stm

ent

foru

ms

or m

issi

ons

Con

tinu

ing.

May

be

unde

rtak

en s

epar

atel

y or

tog

ethe

r w

ith

GM

S in

vest

men

t fo

rum

s

Prop

osed

. Ide

ntifi

ed

by t

he S

EC s

trat

egy

and

acti

on p

lan

(SA

P)

stud

y te

am b

ased

on

the

con

sult

atio

n m

eeti

ngs

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

2.2.

2 B

usi

nes

s in

form

atio

n

��C

ompi

lati

on o

f ap

plic

able

inve

stm

ent

polic

ies

and

regu

lati

ons,

in

clud

ing

proc

edur

es f

or

inve

stm

ent

appr

oval

in

SEC

are

as

��Pr

epar

atio

n of

a

pros

pect

us o

f bu

sine

ss

oppo

rtun

itie

s in

SEC

ar

eas

��Pr

epar

atio

n of

an

SEC

bu

sine

ss d

irec

tory

pr

ovid

ing

nam

es

and

addr

esse

s of

m

anuf

actu

rers

, tra

ders

, to

uris

t op

erat

ors,

and

se

rvic

e pr

ovid

ers

in S

EC

area

s to

geth

er w

ith

the

prod

ucts

and

ser

vice

s th

ey o

ffer

��D

evel

opm

ent

of a

n SE

C

web

site

pro

vidi

ng b

asic

in

form

atio

n on

SEC

wit

h hy

perl

inks

to

the

GM

S an

d G

MS–

BF w

ebsi

tes

Info

rmat

ion

on

inve

stm

ent

polic

ies,

re

gula

tion

s, a

nd

proc

edur

es in

SEC

ar

eas

read

ily a

nd

wid

ely

avai

labl

e

Busi

ness

op

port

unit

ies

in S

EC

area

s id

enti

fied,

co

mpi

led,

and

di

ssem

inat

ed

Busi

ness

dir

ecto

ry

mad

e w

idel

y av

aila

ble

to p

rosp

ecti

ve

inve

stor

s

Ava

ilabi

lity

of a

nd

acce

ss t

o in

form

atio

n on

SEC

thr

ough

el

ectr

onic

med

ia

impr

oved

Com

pend

ium

of

inve

stm

ent

polic

ies

and

regu

lati

ons

in

SEC

are

as p

repa

red,

pu

blis

hed,

and

di

ssem

inat

ed

Pros

pect

us p

repa

red,

pu

blis

hed,

and

di

ssem

inat

ed

Busi

ness

dir

ecto

ry

com

pile

d, p

ublis

hed

and

diss

emin

ated

SEC

web

site

des

ign

com

plet

ed; S

EC

web

site

est

ablis

hed

and

mai

ntai

ned

Indu

stry

min

istr

ies

and

inve

stm

ent

agen

cies

in S

EC

coun

trie

s; lo

cal

auth

orit

ies;

GM

S–BF

Indu

stry

, tra

de, a

nd

tour

ism

min

istr

ies

and

agen

cies

in

SEC

cou

ntri

es; C

CIs

in

SEC

are

as; l

ocal

au

thor

itie

s; G

MS–

BF

GM

S–BF

, CC

Is o

f SE

C

coun

trie

s

GM

S–BF

2009

–201

3

2009

–201

3

2009

–201

3

2010

–201

3

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Prop

osed

. Thi

s ca

n be

a s

ubse

t of

a

GM

S-w

ide

busi

ness

di

rect

ory.

Iden

tifie

d by

SEC

SA

P st

udy

team

This

can

be

part

of

the

GM

S–BF

web

site

. Id

enti

fied

by S

EC S

AP

stud

y te

am

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

2.2.

3 Pr

om

oti

on

of

inve

stm

ent

in p

rio

rity

sec

tors

/su

bse

cto

rs

Ag

ricu

ltu

re

��Pr

omot

ion

of a

nd

supp

ort

for

cros

s-bo

rder

co

ntra

ct f

arm

ing

��Re

gion

al P

roje

ct o

n Ru

ral

Rene

wab

le E

nerg

y fo

r C

ambo

dia,

the

Lao

PD

R,

and

Vie

t N

am

Prac

tice

of

cros

s-bo

rder

con

trac

t fa

rmin

g ex

pand

ed in

SE

C a

reas

; sus

tain

able

te

chno

logi

es

prom

oted

; far

mer

s’

orga

niza

tion

s st

reng

then

ed; s

ocia

l re

spon

sibi

lity

amon

g fir

ms

prom

oted

Incr

ease

d in

vest

men

t re

sult

ing

in

(i) e

xpan

sion

of

area

s fo

r in

terc

ropp

ing

of b

iofu

el a

nd f

ood

crop

s; (

ii) p

roce

ssin

g fa

cilit

ies

esta

blis

hed

at c

omm

unit

y an

d re

gion

al le

vels

; (ii

i) ag

ricu

ltur

e w

aste

re

cycl

ing

faci

litie

s an

d bi

ogas

uni

ts

esta

blis

hed;

(iv

) ne

w

alte

rnat

ive

ener

gy

sour

ce u

sed

inst

ead

of

fuel

woo

d; (

v) b

iofu

el

polic

ies

and

stan

dard

s es

tabl

ishe

d; a

nd

(v)

carb

on c

redi

t sc

hem

es im

plem

ente

d fo

r ru

ral h

ouse

hold

s/co

mm

unit

ies

Stro

nger

pol

icy

supp

ort

for

cros

s-bo

rder

con

trac

t fa

rmin

g pr

ovid

ed;

num

ber

and

size

of

cont

ract

far

min

g ar

rang

emen

ts

incr

ease

d

Mar

gina

l lan

d ar

eas

utili

zed

for

biof

uel p

rodu

ctio

n;

agri

cult

ure

was

te

utili

zed

to g

ener

ate

both

ene

rgy

and

soil

prod

ucti

vity

; nu

mbe

r of

pro

cess

ing

faci

litie

s an

d bi

ogas

un

its

esta

blis

hed

in

rura

l com

mun

itie

s;

and

effe

ctiv

enes

s of

ca

rbon

cre

dit

sche

mes

im

plem

ente

d

Agr

icul

ture

and

tr

ade

min

istr

ies

of

SEC

cou

ntri

es; G

MS

Wor

king

Gro

up o

n A

gric

ultu

re

Agr

icul

ture

min

istr

ies

of S

EC c

ount

ries

2009

–201

3

2010

(pr

ojec

t pr

epar

ator

y te

chni

cal

assi

stan

ce [

PPTA

]);

2011

(lo

an)

Find

ings

of

rela

ted

stud

y of

the

GM

S W

orki

ng G

roup

on

Agr

icul

ture

will

be

use

d to

gui

de

acti

viti

es p

rom

otin

g co

ntra

ct f

arm

ing

in

SEC

are

as

PPTA

will

eva

luat

e th

e fe

asib

ility

of

cros

s-bo

rder

con

trac

t fa

rmin

g of

ene

rgy

crop

s, a

nd o

ther

sm

all

and

med

ium

-siz

ed

proc

essi

ng f

acili

ties

. Pr

ojec

t is

incl

uded

in

AD

B’s

loan

pro

gram

fo

r 20

11 w

ith

a $2

0 m

illio

n lo

an e

ach

for

Cam

bodi

a an

d V

iet

Nam

and

a g

rant

of

$10

mill

ion

to t

he

Lao

PDR

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Pr

oduc

tivi

ty a

nd q

ualit

y im

prov

emen

t of

cas

h cr

ops

(cas

tor

bean

, m

aize

, pot

ato,

ses

ame,

so

ybea

n) in

sel

ecte

d SE

C

prov

ince

s (B

atta

mba

ng,

Kam

pot,

Koh

Kon

g,

Purs

at)

Supp

ly o

f ca

sh

crop

s fo

r do

mes

tic

cons

umpt

ion

incr

ease

d; q

ualit

y of

ca

sh c

rops

upg

rade

d,

thus

impr

ovin

g pr

ospe

cts

of e

xpor

ts

to T

haila

nd

Qua

lifie

d se

eds

mor

e w

idel

y us

ed; i

ncre

ase

in y

ield

s

Agr

icul

ture

min

istr

ies

of C

ambo

dia

and

Thai

land

2010

–201

3Pr

opos

ed a

s a

bila

tera

l pro

ject

be

twee

n C

ambo

dia

and

Thai

land

und

er

the

Aye

yaw

addy

–C

hao

Phra

ya–

Mek

ong

Econ

omic

C

oope

rati

on S

trat

egy

(AC

MEC

S)

Log

isti

cs

��Es

tabl

ishm

ent

of a

GM

S lo

gist

ic in

form

atio

n pl

atfo

rm

��C

ondu

ct o

f se

min

ars

and

foru

ms

on t

he lo

gist

ics

indu

stry

in t

he S

EC

Incr

ease

d aw

aren

ess;

in

tere

st a

nd

inve

stm

ent

in lo

gist

ics

indu

stry

in S

EC

coun

trie

s

Info

rmat

ion

rega

rdin

g in

vest

men

t op

port

unit

ies

in t

he

logi

stic

s in

dust

ry

in S

EC c

ount

ries

di

ssem

inat

ed t

o pr

ospe

ctiv

e in

vest

ors

Pros

pect

us

indi

cati

ng b

usin

ess

oppo

rtun

itie

s in

the

lo

gist

ics

indu

stry

in

SEC

cou

ntri

es,

incl

udin

g re

late

d po

licie

s an

d pr

ogra

ms

for

its

deve

lopm

ent,

pr

epar

ed a

nd

diss

emin

ated

At

leas

t on

e an

nual

se

min

ar o

r fo

rum

on

logi

stic

s in

dust

ry

deve

lopm

ent

in S

EC

coun

trie

s

GM

S–BF

in

coor

dina

tion

wit

h co

ncer

ned

min

istr

ies

and

agen

cies

in S

EC

coun

trie

s

GM

S–BF

in

coor

dina

tion

wit

h co

ncer

ned

min

istr

ies

and

agen

cies

in S

EC

coun

trie

s

2009

–201

3

2010

–201

3

Can

be

part

of

GM

S–BF

web

site

. Id

enti

fied

by S

EC S

AP

stud

y te

am

Con

tinu

ing.

A

sym

posi

um o

n lo

gist

ics

deve

lopm

ent

in G

MS

was

hel

d in

Ku

nmin

g, Y

unna

n Pr

ovin

ce, o

n 6

June

20

09, i

n co

njun

ctio

n w

ith

the

Kunm

ing

Trad

e Fa

ir

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Re

view

of

polic

ies

affe

ctin

g in

vest

men

t in

th

e lo

gist

ics

indu

stry

in

SEC

cou

ntri

es

��Es

tabl

ishm

ent

of F

reig

ht

Tran

spor

t A

ssoc

iati

on

Redu

ced

or

elim

inat

ed b

arri

ers

to

entr

y of

inve

stm

ent

in

the

logi

stic

s in

dust

ry

in S

EC c

ount

ries

Frei

ght

Tran

spor

t A

ssoc

iati

on

esta

blis

hed

and

acti

vely

pro

mot

ing

polic

ies

and

mea

sure

s fo

r th

e de

velo

pmen

t of

the

logi

stic

indu

stry

in

SEC

cou

ntri

es

Revi

ew o

f po

licie

s af

fect

ing

inve

stm

ent

in t

he lo

gist

ics

indu

stry

com

plet

ed;

reco

mm

enda

tion

ad

opte

d an

d im

plem

ente

d

Term

s of

ref

eren

ce o

f as

soci

atio

n dr

afte

d;

orga

niza

tion

al

mee

ting

hel

d;

asso

ciat

ion

acti

viti

es

init

iate

d

Tran

spor

t an

d in

dust

ry m

inis

trie

s an

d in

vest

men

t m

inis

trie

s/ag

enci

es

of S

EC c

ount

ries

; G

MS–

BF

GM

S–BF

2009

–201

3

2010

–201

3

Prop

osed

. May

be

unde

rtak

en b

y th

e pr

opos

ed G

MS

Frei

ght

Tran

spor

t A

ssoc

iati

on

Prop

osed

by

the

Busi

ness

and

In

vest

men

t D

ialo

gue

at t

he t

hird

GM

S su

mm

it. F

inan

cing

be

ing

soug

ht t

o re

fine

earl

ier

stud

y an

d he

lp e

stab

lish

the

asso

ciat

ion

Tou

rism

��Jo

int

tour

ism

pro

mot

ion

and

mar

keti

ng p

rogr

am

focu

sing

on

SEC

tou

rist

de

stin

atio

ns

Incr

ease

in t

he

num

ber

of v

isit

ors

to S

EC t

ouri

st

dest

inat

ions

Join

t pr

omot

ion

and

mar

keti

ng

prog

ram

for

mul

ated

an

d im

plem

ente

d;

atte

ndan

ce in

key

in

tern

atio

nal t

rade

/to

uris

m f

airs

; inc

reas

e in

the

num

ber

of

visi

tors

to

SEC

de

stin

atio

ns

Mek

ong

Tour

ism

C

oord

inat

ion

Off

ice

(MTC

O);

tou

rism

m

inis

trie

s an

d m

arke

ting

age

ncie

s of

SEC

cou

ntri

es;

priv

ate

sect

or t

ouri

st

asso

ciat

ions

and

op

erat

ors

2009

–201

0M

TCO

has

pre

pare

d a

tour

ism

mar

keti

ng

and

prom

otio

n pl

an t

he in

clud

es

deve

lopm

ent

of t

he

Expl

ore

Mek

ong

web

site

, pre

para

tion

of

pro

mot

iona

l m

ater

ials

, att

enda

nce

at in

tern

atio

nal t

rade

/ to

uris

m f

airs

, and

re

viva

l of

the

Mek

ong

Tour

ism

For

um,

star

ting

in C

ambo

dia

in 2

010

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Pr

omot

ion

of in

vest

men

t to

impr

ove

exis

ting

an

d de

velo

p ne

w

tour

ist

dest

inat

ions

and

fa

cilit

ies

in S

EC a

reas

, in

clud

ing

hote

ls, r

est

area

s, a

nd t

ouri

sm

info

rmat

ion

cent

ers

��C

onst

ruct

ion

and/

or

impr

ovem

ent

of a

cces

s ro

ads

to m

ajor

tou

rist

de

stin

atio

ns in

SEC

are

as

��Im

plem

enta

tion

of

pilo

t pr

ojec

t on

sin

gle

GM

S vi

sa s

chem

e be

twee

n C

ambo

dia

and

Thai

land

Incr

ease

d in

vest

men

t to

upg

rade

exi

stin

g or

de

velo

p ne

w t

ouri

st

dest

inat

ions

and

fa

cilit

ies

Impr

oved

acc

ess

to m

ajor

tou

rist

de

stin

atio

ns in

SEC

ar

eas

Trav

el t

o an

d w

ithi

n G

MS

faci

litat

ed

Tour

ism

fac

iliti

es a

nd

serv

ices

upg

rade

d an

d/or

dev

elop

ed

Acc

ess

road

s re

quir

ing

impr

ovem

ent

or

cons

truc

tion

id

enti

fied;

pro

gram

fo

r ac

cess

-roa

d up

grad

ing

and/

or

cons

truc

tion

pre

pare

d an

d im

plem

ente

d

Com

plet

ion

of

ince

ptio

n ph

ase;

im

plem

enta

tion

of

exp

erim

enta

l ap

proa

ch a

nd s

yste

m;

com

plet

ion

of

eval

uati

on p

hase

MTC

O; G

MS–

BF;

tour

ism

min

istr

ies

and

mar

keti

ng a

genc

ies

of S

EC c

ount

ries

; pr

ivat

e se

ctor

tou

rist

as

soci

atio

ns a

nd

oper

ator

s

Tran

spor

t an

d to

uris

m

min

istr

ies

of S

EC

coun

trie

s

Con

cern

ed m

inis

trie

s an

d ag

enci

es o

f C

ambo

dia

and

Thai

land

2009

–201

3

2009

–201

3

2009

–201

3

Prop

osed

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

This

is b

eing

pur

sued

as

an

AC

MEC

S in

itia

tive

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��M

ekon

g To

uris

m

Dev

elop

men

t Pr

ojec

t co

veri

ng C

ambo

dia,

the

La

o PD

R, a

nd V

iet

Nam

��Su

stai

nabl

e To

uris

m

Dev

elop

men

t Pr

ojec

t (t

he L

ao P

DR

and

Vie

t N

am)

��D

evel

opm

ent

of t

he

“Em

eral

d Tr

iang

le”

tour

ism

zon

e (C

ambo

dia,

the

Lao

PD

R,

and

Thai

land

)

Hig

h-pr

iori

ty t

ouri

sm-

rela

ted

infr

astr

uctu

re

impr

oved

; sus

tain

able

to

uris

m d

evel

opm

ent

prom

oted

Tour

ism

infr

astr

uctu

re

and

acce

ss t

o m

ajor

to

uris

t at

trac

tion

s up

grad

ed; s

kills

for

m

arke

ting

sus

tain

able

an

d co

mm

unit

y-ba

sed

tour

ism

pro

ject

s im

prov

ed; s

mal

l-sca

le

tour

ism

fac

iliti

es,

such

as

villa

ge r

oads

an

d m

arke

t si

tes,

de

velo

ped

Tour

ism

dev

elop

men

t in

the

zon

e pr

omot

ed

and

faci

litat

ed

Com

plet

ion

of h

igh-

prio

rity

tou

rism

-re

late

d in

fras

truc

ture

(s

econ

dary

air

port

s an

d ac

cess

roa

ds

to t

ouri

st s

ites

) an

d en

viro

nmen

tal

impr

ovem

ent

proj

ects

Con

stru

ctio

n of

acc

ess

road

s an

d ot

her

supp

ort

faci

litie

s (e

.g.,

park

ing

lots

, tic

ket

boot

hs, w

alki

ng t

rails

) co

mpl

eted

; man

ager

s tr

aine

d an

d si

tes

prom

oted

Trav

el a

mon

g pa

rtic

ipat

ing

prov

ince

s fa

cilit

ated

, to

uris

t de

stin

atio

ns

in t

he p

rovi

nces

de

velo

ped

and

mar

kete

d, a

nd t

ouri

st

pers

onne

l tra

ined

in

com

mun

ity-

base

d ec

otou

rism

Tour

ism

, tra

nspo

rt,

and

envi

ronm

ent

min

istr

ies

of

Cam

bodi

a, t

he

Lao

PDR,

and

V

iet

Nam

Tour

ism

aut

hori

ties

of

the

Lao

PD

R an

d V

iet

Nam

Tour

ism

aut

hori

ties

of

Cam

bodi

a, t

he L

ao

PDR,

and

Tha

iland

; M

TCO

To b

e co

mpl

eted

in

200

9

2009

–201

3

2009

–201

3

AD

B fu

nded

; on

goin

g; c

ompl

eted

in

the

Lao

PD

R in

20

08; i

mpr

ovem

ent

of R

atta

naki

ri a

nd

Stun

g Tr

eng

airp

orts

, an

d en

viro

nmen

tal

impr

ovem

ent

in S

iem

Re

ap, a

re in

clud

ed in

th

is p

roje

ct

Ong

oing

. AD

B fu

nded

Wor

king

gro

up f

rom

th

e th

ree

coun

trie

s ha

s be

en e

stab

lishe

d;

fund

ing

requ

est

to

the

Uni

ted

Nat

ions

D

evel

opm

ent

Prog

ram

me/

Wor

ld

Trad

e O

rgan

izat

ion

pend

ing

sinc

e 20

06

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��D

evel

opm

ent

of t

ouri

sm

and

infr

astr

uctu

re a

long

th

e So

uthe

rn C

oast

al

Subc

orri

dor

��To

uris

m d

evel

opm

ent

in t

he “

Gre

en T

rian

gle”

(C

ambo

dia–

Lao

PDR–

Vie

t N

am d

evel

opm

ent

tria

ngle

)

Tour

ism

pot

enti

al o

f co

asta

l are

as a

long

th

e su

bcor

rido

r de

velo

ped

“Gre

en T

rian

gle”

pr

omot

ed a

nd

deve

lope

d as

a m

ajor

to

uris

t de

stin

atio

n

Tour

ism

pro

duct

s fo

r th

e ar

ea d

evel

oped

an

d m

arke

ted,

in

clud

ing

med

ium

-en

d ho

tels

and

re

sort

s, w

ater

tr

ansp

ort

serv

ices

, an

d ca

rava

n to

urs

Mas

ter

plan

pre

pare

d;

tour

ism

pro

duct

s fo

r th

e ar

ea d

evel

oped

an

d m

arke

ted

Tour

ism

aut

hori

ties

an

d to

uris

t op

erat

ors

in C

ambo

dia,

Tha

iland

an

d V

iet

Nam

; MTC

O

Tour

ism

aut

hori

ties

an

d to

uris

m o

pera

tors

in

Cam

bodi

a, t

he

Lao

PDR,

and

V

iet

Nam

2010

–201

3

2010

–201

3

Prop

osed

. The

roa

ds

on t

he m

ain

rout

e of

the

sub

corr

idor

ar

e be

ing

upgr

aded

or

reh

abili

tate

d (s

ee 1

.1.1

)

Ong

oing

; ina

ugur

al

mee

ting

hel

d in

O

ctob

er 2

007;

wit

h pa

rtia

l sup

port

fro

m

AD

B-su

ppor

ted

Mek

ong

Tour

ism

D

evel

opm

ent

Proj

ect;

fin

anci

ng f

rom

oth

er

sour

ces

bein

g so

ught

Spec

ial e

con

om

ic z

on

es a

nd

ind

ust

rial

clu

ster

s

��Es

tabl

ishm

ent

of s

peci

al

econ

omic

zon

es (

SEZs

) in

bor

der

area

s an

d jo

int

deve

lopm

ent

of b

orde

r ec

onom

ic z

ones

Inve

stm

ents

in b

orde

r ar

eas

prom

oted

and

fa

cilit

ated

thr

ough

th

e pr

ovis

ion

of t

he

nece

ssar

y fa

cilit

ies,

ut

iliti

es, a

nd s

ervi

ces

Faci

litie

s, u

tilit

ies,

an

d se

rvic

es in

pr

iori

ty S

EZs

prov

ided

an

d/or

upg

rade

d;

man

agem

ent

and

oper

atio

nal

proc

edur

es

esta

blis

hed

Indu

stry

, fin

ance

, tr

ade,

and

inve

stm

ent

min

istr

ies

and

agen

cies

of

SEC

co

untr

ies;

loca

l au

thor

itie

s; p

riva

te

sect

or

2010

–201

3Sp

ecifi

c pr

ojec

ts

incl

ude

the

Poip

et

and

Koh

Kong

in

dust

rial

est

ates

in

Cam

bodi

a, w

hich

ha

ve b

een

init

iate

d as

AC

MEC

S pr

ojec

ts

and

the

Siha

nouk

ville

ex

port

pro

cess

ing

proj

ect.

Fin

anci

ng is

be

ing

soug

ht

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/Pr

oje

cts

Exp

ecte

d

Ou

tco

mes

/Res

ult

s

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Im

prov

ing

the

plan

ning

, m

anag

emen

t, a

nd

mar

keti

ng o

f ex

isti

ng

and

plan

ned

indu

stri

al

esta

tes

and

SEZs

in

the

SEC

��Pr

omot

ion

of in

dust

rial

cl

uste

rs a

long

SEC

(e

.g.,

agro

-indu

stry

or

res

ourc

e-ba

sed

prod

ucti

on z

ones

in

sele

cted

are

as in

the

SE

C in

volv

ing

links

in

prod

ucti

on, p

roce

ssin

g,

and

mar

keti

ng)

��St

udy

of p

ossi

ble

pilo

t pr

ojec

ts f

or c

ross

-bor

der

supp

ly c

hain

s in

volv

ing

agri

cult

ural

and

sm

all

and

med

ium

-siz

ed

ente

rpri

ses

in S

EC a

reas

Indu

stri

al e

stat

es

and

SEZs

ope

rati

ng

at h

ighe

r le

vel

of e

ffic

ienc

y an

d ca

paci

ty

Feas

ible

indu

stri

al

clus

ters

iden

tifie

d an

d pr

omot

ed

Poss

ible

pilo

t pr

ojec

ts f

or c

ross

-bo

rder

sup

ply

chai

n de

velo

pmen

t id

enti

fied

and

prom

oted

Sem

inar

s an

d m

eeti

ngs

held

; lin

ks a

mon

g SE

Zs

esta

blis

hed;

co

oper

atio

n pr

ogra

ms

init

iate

d

Stud

y of

fea

sibi

lity

of e

stab

lishi

ng

clus

ters

in s

peci

fic

indu

stri

es c

ondu

cted

; pr

omot

iona

l mea

sure

s in

itia

ted

Stud

y of

pos

sibl

e pi

lot

proj

ects

com

plet

ed

and

disc

usse

d by

co

ncer

ned

auth

orit

ies

and

stak

ehol

ders

Indu

stry

, fin

ance

, tr

ade,

and

inve

stm

ent

min

istr

ies

and

agen

cies

of

SEC

co

untr

ies;

loca

l au

thor

itie

s; S

EZ

adm

inis

trat

ors

in

SEC

are

as; G

MS–

BF;

CC

Is o

f SE

C c

ount

ries

Indu

stry

, tra

de, a

nd

inve

stm

ent

min

istr

ies

and

agen

cies

of

NSE

C c

ount

ries

; loc

al

auth

orit

ies;

GM

S–BF

; C

CIs

of

SEC

cou

ntri

es

Indu

stry

, tra

de a

nd

inve

stm

ent

min

istr

ies

and

agen

cies

of

NSE

C

coun

trie

s; lo

cal

auth

orit

ies;

GM

S–BF

; C

CIs

of

NSE

C c

ount

ries

2010

–201

3

2010

–201

3

2010

–201

1

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Prom

ote

and

Faci

litat

e Tr

ade

and

Inve

stm

ent

cont

inue

d

Implementing the Strategy 79A

dd

ress

En

viro

nm

enta

l an

d S

oci

al C

on

cern

s

Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/r

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

3.1

Envi

ron

men

tal c

on

cern

s

��St

rate

gic

envi

ronm

enta

l as

sess

men

t (S

EA)

of

the

SEC

��In

tegr

ated

app

roac

h to

SEA

, Bio

dive

rsit

y C

onse

rvat

ion

Init

iati

ve,

and

Envi

ronm

enta

l Pe

rfor

man

ce A

sses

smen

t

��G

MS

Biod

iver

sity

C

onse

rvat

ion

Cor

rido

rs

for

pove

rty

redu

ctio

n an

d w

ater

shed

pr

otec

tion

(C

ambo

dia,

th

e La

o PD

R, a

nd

Vie

t N

am)

��Sc

opin

g an

d m

appi

ng o

f cl

imat

e ch

ange

rel

ated

ri

sks

(the

Lao

PD

R an

d V

iet

Nam

)

Envi

ronm

enta

l pr

otec

tion

and

m

anag

emen

t pr

acti

ces

and

appr

oach

es

stre

ngth

ened

to

ensu

re s

usta

inab

le

deve

lopm

ent

of

the

SEC

Envi

ronm

enta

l pr

otec

tion

and

m

anag

emen

t pr

acti

ces

and

appr

oach

es

stre

ngth

ened

to

ensu

re s

usta

inab

le

deve

lopm

ent

of

the

SEC

Envi

ronm

enta

l pr

otec

tion

and

m

anag

emen

t pr

acti

ces

and

appr

oach

es

stre

ngth

ened

to

ensu

re s

usta

inab

le

deve

lopm

ent

of

the

SEC

Risk

of

spec

ific

geog

raph

ic a

reas

id

enti

fied

and

poss

ible

res

pons

es

form

ulat

ed

SEA

cov

erin

g SE

C

area

s co

mpl

eted

and

co

nsid

ered

in u

pdat

e of

SEC

str

ateg

y an

d ac

tion

pla

n

Wor

ksho

ps a

nd

trai

ning

pro

gram

s he

ld o

n th

e su

bjec

t at

nat

iona

l and

su

breg

iona

l lev

els;

te

chni

cal r

epor

ts

prep

ared

Biod

iver

sity

C

onse

rvat

ion

Init

iati

ve

acti

viti

es in

sel

ecte

d cr

itic

al la

ndsc

apes

of

the

thre

e co

untr

ies

scal

ed u

p, u

sing

re

sult

s of

pilo

t pr

ojec

ts

Stud

y co

mpl

eted

; re

com

men

dati

ons

disc

usse

d in

w

orks

hops

and

se

min

ars;

act

ion

plan

to

addr

ess

risk

s fo

rmul

ated

GM

S W

orki

ng G

roup

on

Env

iron

men

t (W

GE)

; Env

iron

men

t O

pera

tion

s C

ente

r (E

OC

)

WG

E; E

OC

WG

E; E

OC

; ag

ricu

ltur

e, n

atur

al

reso

urce

s, a

nd

envi

ronm

ent

min

istr

ies

of t

he t

hree

co

untr

ies

EOC

To b

e de

term

ined

2009

–201

3

2009

(PP

TA);

21

10 (

loan

)

2009

–201

3

Prop

osed

Ong

oing

. Clu

ster

4

unde

r EO

C’s

St

rate

gic

Envi

ronm

ent

Ass

essm

ent

of S

ecto

r St

rate

gies

pro

ject

Prop

osed

. Inc

lude

d in

AD

B’s

pipe

line

for

lend

ing

and

gran

t pr

oduc

ts f

or 2

010;

PP

TA f

or t

his

proj

ect

is

in A

DB’

s pi

pelin

e fo

r no

nlen

ding

pro

duct

s an

d se

rvic

es in

200

9

Ong

oing

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/r

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��G

MS

flood

and

dro

ught

ri

sk m

anag

emen

t an

d m

itig

atio

n (C

ambo

dia,

th

e La

o PD

R, a

nd

Vie

t N

am)

Vul

nera

bilit

y of

af

fect

ed c

omm

unit

ies

to a

dver

se e

ffec

ts o

f flo

ods

and

drou

ght

redu

ced

Com

preh

ensi

ve

man

agem

ent

plan

pre

pare

d;

inte

grat

ed s

truc

tura

l an

d no

nstr

uctu

ral

mea

sure

s im

plem

ente

d

Agr

icul

ture

, na

tura

l res

ourc

es,

and

envi

ronm

ent

min

istr

ies

of t

he

four

cou

ntri

es; l

ocal

au

thor

itie

s of

SEC

ar

eas

2008

(PP

TA);

20

11 (

loan

)In

clud

ed in

AD

B’s

lend

ing

pipe

line

for

2011

3.2

Soci

al c

on

cern

s

��C

omm

unic

able

Dis

ease

s C

ontr

ol P

roje

ct (

Phas

e I)

(Cam

bodi

a, t

he L

ao P

DR,

an

d V

iet

Nam

)

��C

omm

unic

able

Dis

ease

s C

ontr

ol P

roje

ct (

Phas

e II)

(C

ambo

dia,

the

Lao

PD

R,

and

Vie

t N

am)

Vul

nera

bilit

y to

th

e sp

read

of

com

mun

icab

le

dise

ases

red

uced

Vul

nera

bilit

y to

th

e sp

read

of

com

mun

icab

le

dise

ases

red

uced

Abi

lity

to r

espo

nd

to e

pide

mic

s an

d

outb

reak

s st

reng

then

ed;

cove

rage

of

prev

enti

on a

nd

care

of

sele

cted

co

mm

unic

able

di

seas

es in

vul

nera

ble

popu

lati

ons

impr

oved

; kno

w-h

ow,

polic

ies,

sta

ndar

ds,

and

coor

dina

tion

am

ong

the

thre

e co

untr

ies

impr

oved

Abi

lity

to r

espo

nd

to e

pide

mic

s an

d

outb

reak

s st

reng

then

ed;

cove

rage

of

prev

entio

n an

d ca

re o

f se

lect

ed

com

mun

icab

le

dise

ases

in v

ulne

rabl

e po

pula

tions

impr

oved

; kn

ow-h

ow, p

olic

ies,

st

anda

rds,

and

co

ordi

natio

n am

ong

the

thre

e co

untr

ies

impr

oved

Hea

lth

min

istr

ies

of

the

thre

e co

untr

ies

Hea

lth

min

istr

ies

of

the

thre

e co

untr

ies

Targ

eted

to

be

com

plet

ed in

200

9

2009

(PP

TA);

20

10 (

loan

)

Ong

oing

, wit

h fin

anci

al a

ssis

tanc

e fr

om A

DB

Prop

osed

. Inc

lude

d in

A

DB’

s lo

an p

ipel

ine

for

2010

Add

ress

Env

iron

men

tal a

nd S

ocia

l Con

cern

s co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/r

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��H

IV/A

IDS

Prev

enti

on a

nd

the

Infr

astr

uctu

re S

ecto

r (C

ambo

dia,

the

Lao

PD

R,

and

Vie

t N

am)

Impr

oved

kno

wle

dge

base

, pra

ctic

es, a

nd

inst

itut

iona

l m

echa

nism

s fo

r th

e

effe

ctiv

e im

plem

enta

tion

of

H

IV/A

IDS

inte

rven

tion

s in

as

soci

atio

n w

ith

infr

astr

uctu

re p

roje

cts

Pack

age

of

inte

rven

tion

s pr

epar

ed, i

nclu

ding

m

onit

orin

g an

d

eval

uati

on

fram

ewor

k,

harm

oniz

ed

impl

emen

tati

on

arra

ngem

ent

opti

ons,

an

d co

re p

rinc

iple

s an

d ap

proa

ches

; gu

idel

ines

cov

erin

g th

e in

terv

enti

ons

prep

ared

and

di

ssem

inat

ed

Hea

lth

and

infr

astr

uctu

re

auth

orit

ies

of

part

icip

atin

g co

untr

ies

Targ

eted

to

be

com

plet

ed in

200

9O

ngoi

ng; p

roje

ct

also

cov

ers

the

PRC

; su

ppor

ted

by t

he

Coo

pera

tion

Fun

d fo

r Fi

ghti

ng H

IV/A

IDS

in

Asi

a an

d th

e Pa

cific

, es

tabl

ishe

d at

AD

B w

ith

supp

ort

from

th

e G

over

nmen

t of

Sw

eden

��M

itig

atin

g H

IV/A

IDS

risk

s in

infr

astr

uctu

re p

roje

cts

in G

MS

econ

omic

co

rrid

ors

(Cam

bodi

a, t

he

Lao

PDR,

and

Vie

t N

am)

Risk

s of

spr

ead

of

HIV

/AID

S al

ong

GM

S ec

onom

ic

corr

idor

s, a

risi

ng

from

infr

astr

uctu

re

proj

ects

, red

uced

and

m

anag

ed e

ffec

tive

ly

Spec

ific

HIV

/AID

S in

terv

enti

ons

befo

re, d

urin

g, a

nd

afte

r co

nstr

ucti

on

in A

DB-

finan

ced

proj

ects

in G

MS

econ

omic

cor

rido

rs

impl

emen

ted;

as

sess

men

t of

HIV

/A

IDS

risk

s as

soci

ated

w

ith

enha

nced

bor

der

cros

sing

und

er t

he

CBT

A c

ondu

cted

Tran

spor

t an

d he

alth

m

inis

trie

s of

the

thr

ee

coun

trie

s

2008

–201

1O

ngoi

ng. P

roje

ct

is b

eing

fun

ded

by

the

Gov

ernm

ent

of

Aus

tral

ia

Add

ress

Env

iron

men

tal a

nd S

ocia

l Con

cern

s co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/r

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��In

tegr

atin

g hu

man

tr

affic

king

and

saf

e m

igra

tion

con

cern

s fo

r w

omen

and

ch

ildre

n in

to r

egio

nal

coop

erat

ion

��So

cial

impa

ct

asse

ssm

ents

in s

peci

fic

loca

tion

s al

ong

the

econ

omic

cor

rido

rs

��D

evel

opin

g an

d pi

loti

ng

a fr

amew

ork

for

the

mut

ual r

ecog

niti

on o

f te

chni

cal a

nd v

ocat

iona

l sk

ills

in G

MS

Stra

tegi

es a

nd

mea

sure

s fo

r pr

even

ting

hum

an

traf

ficki

ng a

nd

prom

otin

g sa

fe

mig

rati

on in

GM

S de

velo

ped

and

impl

emen

ted

Find

ings

use

d to

im

prov

e cu

rren

t an

d fu

ture

pro

ject

s al

ong

the

corr

idor

s

GM

S te

chni

cal

and

voca

tion

al

skill

s re

cogn

itio

n fr

amew

ork

for

thre

e ke

y sk

ills

deve

lope

d an

d pi

lote

d

Trai

ning

for

loca

l an

d su

breg

iona

l of

ficia

ls o

n hu

man

tr

affic

king

and

saf

e m

igra

tion

con

duct

ed;

com

mun

ity-

base

d vu

lner

abili

ty

mon

itor

ing

and

refe

rral

sys

tem

s im

plem

ente

d in

as

soci

atio

n w

ith

AD

B-as

sist

ed G

MS

proj

ects

th

at a

re e

xpec

ted

to

acce

lera

te c

ross

-bo

rder

mob

ility

of

peop

le

Soci

al im

pact

as

sess

men

ts in

se

lect

ed lo

cati

ons

alon

g th

e ec

onom

ic

corr

idor

s co

mpl

eted

, in

clud

ing

effe

ct o

f

finan

cial

cri

sis

on

poor

and

m

argi

naliz

ed g

roup

s

Fram

ewor

k en

dors

ed

by g

over

nmen

ts

Labo

r, in

teri

or, a

nd

tour

ism

min

istr

ies

of

GM

S co

untr

ies

GM

S W

orki

ng G

roup

on

Hum

an R

esou

rce

Dev

elop

men

t (W

GH

RD)

GM

S W

GH

RD;

min

istr

ies

of

educ

atio

n

2009

–201

3

2009

–201

0

2009

–201

1

Ther

e is

an

ongo

ing

AD

B re

gion

al

tech

nica

l ass

ista

nce

(RET

A)

6448

cov

erin

g G

MS

and

Sout

h A

sian

cou

ntri

es

that

sup

port

s th

e C

oord

inat

ed M

ekon

g M

inis

teri

al In

itia

tive

ag

ains

t Tr

affic

king

in

par

tner

ship

wit

h th

e U

N In

ter-

Age

ncy

Proj

ect

on H

uman

Tr

affic

king

in G

MS

To b

e fu

nded

und

er

AD

B RE

TA 7

275:

Im

plem

enti

ng t

he

GM

S H

uman

Res

ourc

e D

evel

opm

ent

(HRD

) St

rate

gic

Fram

ewor

k an

d A

ctio

n Pl

an

(SFA

P)

To b

e fu

nded

un

der

RETA

727

5:

Impl

emen

ting

the

G

MS

HRD

SFA

P

Add

ress

Env

iron

men

tal a

nd S

ocia

l Con

cern

s co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/r

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Im

prov

ing

labo

r m

igra

tion

man

agem

ent

in G

MS

��St

anda

rd r

egio

nal

empl

oym

ent

cont

ract

fo

r te

chni

cally

ski

lled

mig

rant

wor

kers

in G

MS

��Tr

aini

ng p

rogr

ams

in b

asic

ski

lls

com

pete

ncie

s; b

asic

to

uris

m s

kills

; agr

o-in

dust

ry m

anag

emen

t,

incl

udin

g m

arke

ting

; and

sm

all a

nd m

ediu

m-s

ized

en

terp

rise

man

agem

ent

and

finan

cing

��C

oope

rati

on p

rogr

am

amon

g vo

cati

onal

tr

aini

ng in

stit

utes

in S

EC

area

s, in

clud

ing

cond

uct

of e

xcha

nge

prog

ram

s

Labo

r m

anag

emen

t im

prov

ed

Stan

dard

reg

iona

l em

ploy

men

t co

ntra

ct

adop

ted

Skill

leve

ls a

nd

empl

oyab

ility

, es

peci

ally

of

labo

r in

le

ss-d

evel

oped

are

as

of t

he S

EC, e

nhan

ced

Col

labo

rati

on a

mon

g vo

cati

onal

tra

inin

g in

stit

utes

in S

EC

area

s in

cur

ricu

lum

de

velo

pmen

t,

trai

ning

of

trai

ners

, an

d m

anag

emen

t de

velo

ped

and

enha

nced

Wor

ksho

ps, t

rain

ing

cour

ses

cond

ucte

d

Stud

ies,

con

sult

atio

ns

cond

ucte

d

Basi

c ne

eds

asse

ssm

ent

and

revi

ew o

f ex

isti

ng

trai

ning

pro

gram

s in

SE

C a

reas

com

plet

ed;

trai

ning

pro

gram

s fo

rmul

ated

and

im

plem

ente

d (n

umbe

r of

tra

inin

g pr

ogra

ms

cond

ucte

d an

d tr

aine

es)

Net

wor

k of

tra

inin

g in

stit

utes

and

ce

nter

s in

SEC

ar

eas

iden

tifie

d an

d es

tabl

ishe

d; p

rogr

am

of c

oope

rati

on

form

ulat

ed a

nd

impl

emen

ted

GM

S W

GH

RD;

labo

r m

inis

trie

s;

Inte

rnat

iona

l Lab

our

Org

aniz

atio

n;

Inte

rnat

iona

l O

rgan

izat

ion

for

Mig

rati

on (

IOM

)

GM

S W

GH

RD;

labo

r m

inis

trie

s;

Inte

rnat

iona

l Lab

our

Org

aniz

atio

n; IO

M

GM

S la

bor

and

educ

atio

n m

inis

trie

s an

d tr

aini

ng in

stit

utes

of

SEC

cou

ntri

es; C

CIs

of

SEC

cou

ntri

es

Trai

ning

inst

itut

es

in S

EC a

reas

; HRD

ag

enci

es in

NSE

C

coun

trie

s

2009

–201

1

2010

2010

–201

3

2010

–201

3

To b

e fu

nded

un

der

RETA

727

5:

Impl

emen

ting

the

G

MS

HRD

SFA

P

To b

e fu

nded

un

der

RETA

727

5:

Impl

emen

ting

the

G

MS

HRD

SFA

P

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

Add

ress

Env

iron

men

tal a

nd S

ocia

l Con

cern

s co

ntin

ued

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/r

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��W

ater

sup

ply

and

sani

tati

on (

Cam

bodi

a,

the

Lao

PDR,

and

Vie

t N

am)

Ava

ilabi

lity

of a

nd

acce

ss t

o w

ater

su

pply

in m

ajor

bo

rder

tow

ns

expa

nded

; san

itat

ion

situ

atio

n im

prov

ed

Wat

er a

nd s

anit

atio

n fa

cilit

ies

in m

ajor

bo

rder

tow

ns

cons

truc

ted

or

reha

bilit

ated

; wat

er

and

sani

tati

on

serv

ices

impr

oved

Wat

er s

uppl

y ag

enci

es

of C

ambo

dia

and

the

Lao

PDR;

con

cern

ed

prov

inci

al a

utho

riti

es

of V

iet

Nam

2010

(PP

TA);

20

11 (

loan

)To

be

impl

emen

ted

as

part

of

the

Cor

rido

r To

wns

Dev

elop

men

t Pr

ojec

t in

the

AD

B lo

an p

ipel

ine

for

2011

(s

ee S

ecti

on 1

.4)

Add

ress

Env

iron

men

tal a

nd S

ocia

l Con

cern

s co

ntin

ued


Enh

ance

Pri

vate

Sec

tor

Part

icip

atio

n a

nd

Pu

blic

–Pri

vate

Sec

tor

Co

llab

ora

tio

n

Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/R

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

4.1

Priv

ate

sect

or

par

tici

pat

ion

��C

oope

rati

on a

mon

g pr

ovin

cial

CC

Is in

the

SE

C, i

niti

ally

am

ong

thos

e in

the

bor

der

prov

ince

s

��Es

tabl

ishm

ent

of

mec

hani

sms

for

inte

ract

ion,

exc

hang

e of

info

rmat

ion,

and

co

ordi

nati

on b

etw

een

the

publ

ic a

nd p

riva

te

sect

ors

on S

EC is

sues

an

d co

ncer

ns

��Im

plem

enta

tion

of

prom

otio

nal m

easu

res

and

polic

y su

ppor

t fo

r sm

all a

nd m

ediu

m-s

ized

en

terp

rise

s in

SEC

are

as

Coo

rdin

atio

n an

d co

llabo

rati

on a

mon

g th

e pr

ivat

e se

ctor

in

SEC

pro

vinc

es

esta

blis

hed

and

impr

oved

Impr

oved

pub

lic–

priv

ate

sect

or

colla

bora

tion

on

SEC

mat

ters

; mor

e ac

tive

invo

lvem

ent

of t

he p

riva

te s

ecto

r in

the

pla

nnin

g an

d im

plem

enta

tion

of

SEC

init

iati

ves

Incr

ease

in t

he

num

ber

and

oper

atio

ns o

f sm

all

and

med

ium

-siz

ed

ente

rpri

ses

in S

EC

area

s

Mee

ting

am

ong

prov

inci

al C

CIs

in

SEC

bor

der

prov

ince

s he

ld; c

oope

rati

on

and

colla

bora

tion

on

spec

ific

area

s in

itia

ted

Peri

odic

mee

ting

s he

ld a

mon

g pu

blic

an

d pr

ivat

e se

ctor

re

pres

enta

tive

s of

SE

C c

ount

ries

to

disc

uss

SEC

issu

es a

nd

conc

erns

Prom

otio

nal m

easu

res

and

polic

y su

ppor

t pr

ogra

ms

iden

tifie

d,

form

ulat

ed, a

nd

impl

emen

ted

(e.g

., in

tec

hnol

ogy,

m

anag

emen

t,

finan

cing

, mar

keti

ng,

linki

ng u

p w

ith

prod

ucti

on a

nd

supp

ly c

hain

s)

GM

S–BF

; nat

iona

l and

pr

ovin

cial

CC

Is o

f SE

C

coun

trie

s

GM

S–BF

; con

cern

ed

min

istr

ies

of S

EC

coun

trie

s; p

rovi

ncia

l C

CIs

of

SEC

cou

ntri

es

GM

S–BF

2010

–201

3

2010

–201

3

2010

–201

3

Prop

osed

. Ide

ntifi

ed

by S

EC S

AP

stud

y te

am

May

be

cond

ucte

d un

der

the

ausp

ices

of

the

Eco

nom

ic

Cor

rido

rs F

orum

in

the

for

m o

f an

an

nual

or

sem

iann

ual

dial

ogue

A p

ropo

sed

busi

ness

de

velo

pmen

t su

ppor

t fa

cilit

y in

Sav

anna

khet

m

ay b

e a

usef

ul

mod

el t

o co

nsid

er

for

othe

r lo

cati

ons

in

the

SEC

cont

inue

d on

nex

t pa

ge


Mea

sure

s/Pr

og

ram

s/

Pro

ject

sEx

pec

ted

O

utc

om

es/R

esu

lts

Pro

gre

ss/

Perf

orm

ance

In

dic

ato

rsIm

ple

men

tin

g

Ag

enci

es/B

od

ies

Tim

e Fr

ame/

Ta

rget

Dat

eSt

atu

s/

Rem

arks

��Es

tabl

ishm

ent

of a

GM

S sm

all a

nd m

ediu

m-s

ized

en

terp

rise

dev

elop

men

t fu

nd

��Pr

ovis

ion

of in

form

atio

n to

the

pri

vate

sec

tor

on p

ossi

ble

sour

ces

of

finan

cing

for

com

mer

cial

an

d in

fras

truc

ture

pr

ojec

ts

Ava

ilabi

lity

of a

nd

acce

ss t

o fin

anci

ng

impr

oved

, inc

ludi

ng

wor

king

cap

ital

, pre

- an

d po

stsh

ipm

ent

expo

rt f

inan

cing

, an

d ex

port

cre

dit

insu

ranc

e

Acc

ess

of t

he p

riva

te

sect

or t

o va

riou

s so

urce

s of

fin

anci

ng

expa

nded

and

im

prov

ed

Stud

y fo

r es

tabl

ishm

ent

of

the

fund

com

plet

ed;

agre

emen

t re

ache

d an

d in

itia

l ste

ps t

aken

to

est

ablis

h th

e fu

nd

Mee

ting

s an

d se

min

ars

cond

ucte

d to

pre

sent

and

dis

cuss

in

form

atio

n ab

out

poss

ible

fin

anci

ng

sour

ces,

incl

udin

g th

e te

rms

and

cond

itio

ns,

proc

edur

es, a

nd

requ

irem

ents

for

ac

cess

ing

finan

cing

fr

om s

uch

sour

ces

GM

S–BF

GM

S–BF

; GM

S se

cret

aria

t an

d na

tion

al c

oord

inat

ors

2009

–201

3

2010

–201

3

Fund

ing

bein

g so

ught

. Pro

pose

d by

the

Bus

ines

s an

d In

vest

men

t D

ialo

gue

part

icip

ants

dur

ing

the

thir

d G

MS

sum

mit

Con

tinu

ing.

Iden

tifie

d by

SEC

SA

P st

udy

team

4.2

Pub

lic–p

riva

te p

artn

ersh

ip

��Pr

omot

ion

of p

ublic

–pr

ivat

e pa

rtne

rshi

ps

in t

he d

evel

opm

ent

of

tran

spor

t an

d ot

her

infr

astr

uctu

re, l

ogis

tics

, an

d su

ppor

t se

rvic

es in

SE

C a

reas

Incr

ease

d pu

blic

–pr

ivat

e pa

rtne

rshi

ps

in t

he d

evel

opm

ent

of

tran

spor

t an

d ot

her

infr

astr

uctu

re in

SEC

ar

eas

Wor

ksho

ps a

nd r

oad

show

s co

nduc

ted

to p

rese

nt k

ey G

MS

tran

spor

t an

d ot

her

infr

astr

uctu

re p

roje

cts

and

invi

te p

riva

te

sect

or p

arti

cipa

tion

in

sam

e

Infr

astr

uctu

re

min

istr

ies

of S

EC

coun

trie

s; G

MS–

BF

2010

–201

3Pr

opos

ed. I

dent

ified

by

SEC

SA

P st

udy

team

Enha

nce

Priv

ate

Sect

or P

arti

cipa

tion

and

Pub

lic–P

riva

te S

ecto

r C

olla

bora

tion

con

tinu

ed

Appendix A Basic Information on the Southern Economic Corridor National Components

Cambodia

Table A1: Population and Land Area

Provinces/CitiesTotal

population Land area

(km2)

Population density

(persons/km2)

Rural population

(%)Literacy rate (%)

Poverty incidence

(%)

Subcorridor 1 9,277,468 82,101 113 – – –

Banteay Meanchey 577,770 6,679 87 – 74.4 42.8

Battambang 998,896 11,622 86 89.7 87.5 42.8

Pursat 360,440 12,692 28 – 70.5 42.8

Kompongchnang 475,014 5,521 86 – 66.4 42.8

Kandal 1,235,385 3,537 349 – 77.7 32.1

Phnom Penh 1,043,000 290 3,597 – 88.8 4.6

Siem Reap 755,000 10,299 73 – 64.5 42.8

Kompongthom 569,060 13,814 41 – 70.8 42.8

Kompongcham 1,802,546 9,799 184 – 90.6 32.1

Svayrieng 513,000 2,966 173 95.6 79.5 32.1

Prey Veng 947,357 4,883 194 – 61.7 –

Subcorridor 2 1,882,390 61,173 31 – – –

Siem Reap 755,000 10,299 73 – 64.5 –

Stung Treng 111,734 12,016 9 78.3 92.7 42.8

Mondulkiri 706,000 14,288 49 – 61.2 52.0

Rattanakiri 138,804 10,782 13 84.7 55.9 52.0

Preah Vihear 170,852 13,788 12 – 61.2 –

Subcorridor 3 960,312 16,369 59 – – –

Koh Kong 305,000 11,160 27 77.8 76 26.8

Kampot 619,559 4,873 127 91.7 73.6 26.8

Kep 35,753 336 106 – 63.3 –

Subcorridor 4 6,110,893 58,909 104 – – –

Sihanoukville 305,000 868 351 – 76 26.8

Kompong Speu 598,880 7,017 85 – 70.8 52.0

continued on next page


Provinces/CitiesTotal

population Land area

(km2)

Population density

(persons/km2)

Rural population

(%)Literacy rate (%)

Poverty incidence

(%)Phnom Penh 1,043,000 290 3,597 – 88.8 4.6

Kandal 1,235,385 3,537 349 – 77.7 32.1

Kompongcham 1,802,546 9,799 184 – 90.6 32.1

Kratie 308,348 11,094 28 74.5 83.8 52.0

Mondulkiri 706,000 14,288 49 – 61.2 52.0

Stung Treng 111,734 12,016 9 78.3 92.7 52.0

Total of the 21 provinces 11,978,518 168,323 71 – – –

Whole country 14,000,000 181,035 77 – 74.4 34.7

Note: Cambodia’s provinces have their respective provincial towns or capital. The areas outside of the provincial towns are rural in character. Only a few of the provinces (Battambang, Kampot, Kratie, Rattanakiri, and Stung Treng) provided data on rural population. The proportion of people living in the provincial towns ranges from 10% to 30% of the population in the provinces, so the rural population in the provinces can be surmised to be anywhere from 70% to 90% of the population of the provinces. The exception is Phnom Penh which has a large urban population.

Source: Cambodian Investment Board; Council for the Development of Cambodia provincial offices; Ministry of Planning; National Institute of Statistics of Cambodia; Poverty incidence is from Kingdom of Cambodia Ministry of Planning and United Nations Development Programme, Cambodia Human Development Report 2007: Expanding Choices for Rural People (Phnom Pehn: Ministry of Planning and UNDP Cambodia, 2007).

Table A1: continued


Table A2: Income Level and Economic Structure

Provinces/ Cities

Per capita gross

provincial product ($)

Structure of production (%)

Unemployment rate (%)

Agriculture Industry Services

Subcorridor 1

Banteay Meanchey – – – – 8.0

Battambang – – – – 6.3

Pursat – – – – 3.5

Kompongchnang – – – – 3.1

Kandal – – – – 11.9

Phnom Penh – – – – 12.6

Siem Reap – – – – 4.6

Kompongthom – – – – 8.2

Kompongcham – – – – 4.3

Svayrieng – – – – 2.1

Prey Veng – – – – –

Subcorridor 2

Siem Reap – – – – 4.6

Stung Treng 638 – – – 18.6

Mondulkiri – – – – 69.9

Rattanakiri 549 55.1 7.2 37.7 6.5

Preah Vihear – – – – –

Subcorridor 3

Koh Kong – – – – 9.3

Kampot – – – – 7.3

Kep – – – – –

Subcorridor 4

Sihanoukville – – – – 9.3

Kompong Speu – – – – 2.8

Phnom Penh – – – – 12.6

Kandal – – – – 11.9

Kompongcham – – – – 4.3

Kratie 513 – – – 4.0

Mondulkiri – – – – 69.9

Stung Treng 638 – – – 18.6

Whole country 625 30.0 26.0 44.0 5.3

Source: Cambodia Ministry of Planning provincial offices; National Institute of Statistics of Cambodia.


Table A3: Labor Force Participation Rate (%)

Male/FemaleWhole

country Phnom PenhOther urban

areas Rural areasBoth sexes 74.6 60.8 69.5 77.0

Male 78.9 65.1 73.1 81.4

Female 70.7 56.7 66.0 73.0

Sources: National Institute of Statistics of Cambodia; Cambodia Ministry of Planning 2006 yearbook.

Table A4: Production of Main Agriculture Crops by Subcorridor, 2005–2006

SubcorridorsCultivated area (ha)

Harvested area (ha)

Yield (tons/ha)

Production (tons)

Rice

Subcorridor 1 1,782,628 1,759,758 27 4,291,162

Subcorridor 2 282,305 278,784 10 511,394

Subcorridor 3 133,652 108,871 8 376,236

Subcorridor 4 497,043 488,420 22 1,408,426

Maize

Subcorridor 1 67,471 47,265 29 165,179

Subcorridor 2 2,848 2,807 17 9,820

Subcorridor 3 1,647 1,642 6 2,777

Subcorridor 4 23,379 19,234 22 46,700

Cassava

Subcorridor 1 26,800 26,743 131 514,299

Subcorridor 2 1,861 1,798 48 18,935

Subcorridor 3 744 744 28 4,843

Subcorridor 4 21,954 21,946 84 416,902

Sugar Cane

Subcorridor 1 4,028 4,027 189 76,228

Subcorridor 2 1,160 1,160 96 19,376

Subcorridor 3 931 931 54 19,673

Subcorridor 4 2,006 2,006 147 43,074

ha = hectare.

Source: Cambodia Ministry of Agriculture, Forestry, and Fisheries.


Table A5: Production of Rice by Province, 2005–2006

Provinces/ Cities

Cultivated area (ha)

Harvested area (ha)

Yield (tons/ha)

Production (tons)

Subcorridor 1 1,782,628 1,759,758 27.7 4,291,162

Banteay Meanchey 205,432 203,165 2.1 420,843

Battambang 238,760 236,320 2.6 603,221

Pursat 91,770 91,717 2.2 197,797

Kompongchnang 119,818 119,721 2.1 257,188

Kandal 97,375 96,955 3.6 348,234

Phnom Penh 6,059 6,059 3.6 22,088

Siem Reap 189,032 189,032 1.7 324,470

Kompongthom 156,074 153,185 2.1 321,534

Kompongcham 219,512 215,548 2.9 633,720

Svayrieng 148,819 148,719 1.8 264,213

Prey Veng 309,977 299,337 3.0 897,854

Subcorridor 2 282,305 278,784 10.0 511,394

Siem Reap 189,032 189,032 1.7 324,470

Stung Treng 23,014 21,430 2.6 56,331

Mondulkiri 15,949 14,914 1.8 26,796

Rattanakiri 23,147 22,750 1.8 40,197

Preah Vihear 31,163 30,658 2.1 63,600

Subcorridor 3 133,652 108,871 8.3 376,236

Koh Kong 9,110 8,995 2.3 21,044

Kampot 121,621 96,955 3.6 348,234

Kep 2,921 2,921 2.4 6,958

Subcorridor 4 497,043 488,420 22.3 1,408,426

Sihanoukville 12,040 12,000 2.8 33,600

Kompong Speu 85,106 85,013 2.2 188,770

Phnom Penh 6,059 6,059 3.6 22,088

Kandal 97,375 96,955 3.6 348,234

Kompongcham 219,512 215,548 2.9 633,720

Kratie 37,988 36,501 2.7 98,887

Mondulkiri 15,949 14,914 1.8 26,796

Stung Treng 23,014 21,430 2.6 56,331

ha = hectare.



Table A6: Production of Maize by Province, 2005–2006

Provinces/ Cities


Harvested area (ha)

Yield (tons/ha)

Production (tons)

Subcorridor 1 67,471 47,265 28.1 165,179


Battambang 39,233 23,135 4.7 108,018

Pursat 404 404 3.2 1,298

Kompongchnang 1,992 1,992 1.5 2,913

Kandal 12,758 8,693 1.9 16,584

Phnom Penh 232 232 1.5 349

Siem Reap 876 876 2.3 1,984

Kompongthom 548 545 2.2 1,174

Kompongcham 6,961 6,921 2.9 19,994

Svayrieng 160 160 2.5 400

Prey Veng 1,140 1,140 2.6 2,911

Subcorridor 2 2,848 2,807 17.4 9,820

Siem Reap 876 876 2.3 1,984

Stung Treng 388 388 0.8 311

Mondulkiri 590 550 9.1 5,029

Rattanakiri 463 463 3.5 1,621

Preah Vihear 531 530 1.7 875

Subcorridor 3 1,647 1,642 6.2 2,777

Koh Kong 76 75 3.3 251

Kampot 1,421 1,417 1.7 2,352

Kep 150 150 1.2 174

Subcorridor 4 23,379 19,234 21.8 46,700

Sihanoukville 2 2 2.0 4

Kompong Speu 862 862 1.7 1,422

Phnom Penh 232 232 1.5 349

Kandal 12,758 8,693 1.9 16,584

Kompongcham 6,961 6,921 2.9 19,994

Kratie 1,586 1,586 1.9 3,007

Mondulkiri 590 550 9.1 5,029

Stung Treng 388 388 0.8 311

ha = hectare.



Table A7: Production of Cassava by Province, 2005–2006

Provinces/ Cities


Harvested area (ha)

Yield (tons/ha)

Production (tons)

Subcorridor 1 26,800 26,743 131.2 514,299


Battambang 1,704 1,655 40.1 66,439

Pursat 413 413 14.6 6,043

Kompongchnang 521 521 3.1 1,610

Kandal 122 114 10.1 1,152

Phnom Penh 24 24 3.3 78

Siem Reap 1,141 1,141 12.0 13,691

Kompongthom 591 591 7.1 4,217

Kompongcham 20,430 20,430 19.9 406,408

Svayrieng 613 613 4.6 2,842

Prey Veng 121 121 6.6 801

Subcorridor 2 1,861 1,798 48.4 18,935

Siem Reap 1,141 1,141 12.0 13,691

Stung Treng 294 294 4.0 1,176

Mondulkiri 108 108 15.0 1,620

Rattanakiri 255 255 7.1 1,798

Preah Vihear 63 63 10.3 650

Subcorridor 3 744 744 28.0 4,843

Koh Kong 127 127 19.3 2,451

Kampot 546 546 3.7 2,037

Kep 71 71 5.0 355

Subcorridor 4 21,954 21,946 84.3 416,902


Kompong Speu 92 92 14.8 1,358

Phnom Penh 24 24 3.3 78

Kandal 122 114 10.1 1,152

Kompongcham 20,430 20,430 19.9 406,408

Kratie 866 866 5.7 4,903

Mondulkiri 108 108 15.0 1,620

Stung Treng 294 294 4.0 1,176

ha = hectare.



Table A8: Production of Sugarcane by Province, 2005–2006

Provinces/ Cities


Harvested area (ha)

Yield (tons/ha)

Production (tons)

Subcorridor 1 4,028 4,027 189.3 76,228

Banteay Meanchey 316 316 15.4 4,863

Battambang 327 326 26.9 8,863

Pursat 437 437 19.4 8,494

Kompongchnang 225 225 8.7 1,967

Kandal 270 270 25.5 6,885

Phnom Penh 0 0 0.0 0

Siem Reap 664 664 14.1 9,348

Kompongthom 109 109 14.3 1,564

Kompongcham 1,239 1,239 19.3 23,918

Svayrieng 287 287 24.9 7,148

Prey Veng 154 154 20.6 3,178

Subcorridor 2 1,160 1,160 95.7 19,376

Siem Reap 664 664 14.1 9,348

Stung Treng 247 247 21.0 5,187

Mondulkiri 76 76 36.0 2,736

Rattanakiri 135 135 12.1 1,630

Preah Vihear 38 38 12.5 475

Subcorridor 3 931 931 53.7 19,673

Koh Kong 50 50 17.0 850

Kampot 842 842 21.7 18,238

Kep 39 39 15.0 585

Subcorridor 4 2,006 2,006 146.5 43,074


Kompong Speu 65 65 12.0 780

Phnom Penh 0 0 0.0 0

Kandal 270 270 25.5 6,885

Kompongcham 1,239 1,239 19.3 23,918

Kratie 109 109 32.7 3,568

Mondulkiri 76 76 36.0 2,736

Stung Treng 247 247 21.0 5,187

ha = hectare.



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Table A10: Approved Investment by Country, 1994 through First Half of 2008

Regions CountriesRegister capital

($) Fixed assets ($) (%)

Americas 117,355,900 588,711,016.36 3.05

United States 58,881,000 509,117,417.60 2.64

Canada 58,174,900 79,348,213.76 0.41

Argentina 300,000 245,385.00 0.00

ASEAN 2,085,537,723 3,341,781,630.47 17.34

Malaysia 1,576,407,473 2,199,447,878,.85 11.41

Thailand 192,177,350 521,256,417.89 2.70

Singapore 193,397,100 325,883,228.44 1.69

Viet Nam 67,770,300 228,856,098.54 1.19

Indonesia 54,485,500 64,998,431.75 0.34

Philippines 1,300,000 1,339,575.00 0.01

Cambodia 1,440,874,394 5,842,251,382.45 30.31

Europe 241,249,350 898,547,056.58 4.66

Russian Federation 12,450,350 289,006,053.00 1.50

France 37,140,450 243,464,475.02 1.26

United Kingdom 128,110,100 138,532,233.66 0.72

Belgium 5,000,000 33,319,100.00 0.17

Norway 3,370,000 16,645,630.00 0.09

Sweden 4,000,000 15,003,780.00 0.08

Netherlands 13,100,000 14,578,000.00 0.08

Switzerland 8,000,000 11,781,595.00 0.06

Portugal 5,550,000 4,264,722.40 0.02

Bulgaria 250,000 520,777.50 0.00

Germany 118,800 230,690.00 0.00

Others and other Asia 1,307,239,080 8,600,693,171.70 44.63

PRC 551,469,678 5,623,658,496.72 29.18

Korea, Rep. of 159,946,000 1,769,132,467.98 3.18

Taipei,China 396,249,970 628,138,302.42 3.26

Hong Kong, China 116,773,252 273,646,734.39 1.42

Japan 22,584,200 136,312,435.89 0.71

Kazakhstan 1,750,000 64,170,347.25 0.33

Australia 53,376,500 59,292,291.60 0.31

Nepal 250,000 20,713,495.75 0.11

Kyrgyz Republic 970,000 18,928,031.95 0.10

Israel 800,000 2,124,999.30 0.01

Macau, China 1,829,680 1,909,080.00 0.01continued on next page


Regions CountriesRegister capital

($) Fixed assets ($) (%)New Zealand 559,800 1,461,085.40 0.01

Uzbekistan 30,000 585,403.05 0.00

India 400,000 340,000.00 0.00

Saudi Arabia 24,160,000 131,200,000.00 0.68

Sri Lanka 250,000 280,000.00 0.00

Total 5,192,256,446 19,271,984,257.56 100.00

ASEAN = Association of Southeast Asian Nations, PRC = People’s Republic of China.Source: Council for the Development of Cambodia; Cambodia Investment Board.

Table A11: Visitor Arrivals in Cambodia in 20081. Visitor arrivals in 2008: 2,125,465

2. Mode of arrival (Number of visitors)

Air�� Phnom Penh International Airport�� Siem Reap International Airport

1,239,407570,903668,504

Land and waterways�� Land�� Waterways

762,027690,13871,889

Same-day visitors 124,031

3. Visitor arrivals in 2007–2008

Visitors 2007 2008

Share (%) Change (%)

2007 2008 2008/2007Air 1,296,513 1,239,407 64.34 58.31 (4.40)

�� Phnom Penh International Airport 535,562 570,903 26.58 26.86 6.66

�� Siem Reap International Airport 761,251 668,507 37.78 31.45 (12.18)

Land and waterways 576,054 762,027 28.59 35.58 32.28

�� Land 531,064 690,138 26.35 32.47 29.95

�� Waterways 44,990 71,889 2.23 3.38 59.79

Subtotal 1,872,567 2,001,434 92.93 94.16 (12.99)

Same-day visitors 142,561 124,031 7.07 5.84 (13.00)

Total 2,015,128 2,125,465 100.00 100.00 5.48

( ) = negative value.

Source: Cambodia Ministry of Tourism.

Table A10: continued


Table A12: Number of Hotels and Guesthouses in the Southern Economic Corridor Subcorridors

Provinces/Cities Number of hotels Number of guesthousesSubcorridor 1 300 635

Banteay Meanchey 13 28

Battambang 19 15

Pursat 4 10

Kompongchnang 5 7

Kandal 0 47

Phnom Penh 148 278

Siem Reap 101 201

Kompongthom 4 10

Kompongcham 5 30

Svayrieng 1 9

Prey Veng 8 2

Subcorridor 2 117 237

Siem Reap 101 201

Stung Treng 5 10

Mondulkiri 2 18

Rattanakiri 9 8

Preah Vihear 10

Subcorridor 3 8 35

Koh Kong 6 13

Kampot 2 22

Kep 6 14

Subcorridor 4 209 524

Sihanoukville 42 108

Kompong Speu 0 10

Phnom Penh 148 278

Kandal 0 47

Kompongcham 5 30

Kratie 7 23

Mondulkiri 2 18

Stung Treng 5 10

Source: Cambodia Ministry of Tourism.


Table A13: Electricity Supply in the Southern Economic Corridor Subcorridors

Subcorridors

Electricity

Potential capacity Produced capacitySubcorridor 1

Banteay Meanchey 2,290 kVA 1,570 kVA

Battambang 1,950 kVA 1,475 kVA

Pursat 2,350 kVA 2,010 kVA

Kompongchhnang 3,840,970 kWh 3,148,590 kWh

Kandal Connected with Phnom Penh City

Phnom Penh 117 MW 105 MW

Siem Reap 10.5 MW 1,475 kVA

Kompongthom 3,500kVA 2,000 kVA

Kompogncham 3.6 kW 12.5 kW

Svayrieng 1,250 kVA 850 kVA

Prey Veng 1,250 kVA 850 kVA

Subcorridor 2

Siem Reap 10.5 MW 1,475 kVA

Stung Treng 1.5 MW 2,339,563 kWh

Mondulkiri 150 kVA 125 kVA

Rattanakiri 1,800 kVA 1,500 kVA

Preah Vihear 1,190 kVA 645 kVA

Subcorridor 3

Koh Kong 2,000 kVA 1,800 kVA

Kampot 193.2 MW –

Kep 3.08 MW 3 MW

Subcorridor 4

Sihanoukville – 0.5–0.8 MW

Kompong Speu Connected with Phnom Penh

Kratie 2,300 kVA 1,600 kVA

kVA = kilovolt-amps, kWh = kilowatt-hour, MW = megawatt.

Note: For the other provinces, see the electricity supply situation in Subcorridors 1 and 2. The power station in Siem Reap Province was first built in 1960. This station has been retired and is now functioning as a substation. A new station, which is located away from the old site, was commissioned in 2003.

Source: Electricité du Cambodge.


Table A14: Key Resources in Southern Economic Corridor Provinces in Cambodia

Mining resources Other resourcesSubcorridor 1

Banteay Menachey limestonephosphate

Daunsam flooded forest

Battambang limestonegold oreiron orealuminumprecious stones

Tonle Sap RiverSamkok MountainDaunsam flooded forest

Pursat clayphosphateantimonychromium

Oral MountainSamkok MountainTonle Sap River

Kompongchhang claygranite

Oral MountainTonle Sap River

Kandal molybdenum

Phnom Penh rivers

Siem Reap claygranite

Kulen MountainTonle Sap River

Komponghthom claygold

Tonle Sap River

Kompongcham claygold

Subcorridor 2

Siem Reap claygranite

Kulen MountainTonle Sap River

Stung Treng clayiron oremarbleprecious stonescoaldolomite

Mondulkiri lead, copper, zincgranitegoldaluminumbauxite

Phnom PreckPhom Namlear

Rattanakiri lead, copper, zincgoldprecious stones

Preah Vihear lead, copper, zincgoldprecious stones



Mining resources Other resourcesSubcorridor 3

Koh Kong limestonegraphitegoldiron orephosphates

Bokor Mountain

Kampot white sand Bokor MountainKirirom PlateauPhnom Samkok

Subcorridor 4

Sihanoukville white sandoil and gas

Bokor Mountainbeautiful beaches

Kompong Speu lead, copper, zincsilvertintungstenlimestone

Bokor MountainKirirom Plateau

Phnom Penh rivers

Kandal molybdenum

Kompongcham claygold

Kratie lead, copper, zincgranitegoldprecious stones

Mondulkiri lead, copper, zincgranitegoldaluminum

Phnom PreckPhom Namlear

Stung Treng clayiron oremarbleprecious stonescoaldolomite


Source: Prime Investment Information in Cambodia, Council for the Development of Cambodia.


Table A15: Potential Hydropower Sites in Southern Economic Corridor Provinces in Cambodia

Potential Sites Value

Battambang

Battambang I

�� Distance from provincial town (km) 40�� Capacity (MW) 24�� Project cost estimate ($ million) 49

Battambang II�� Distance from provincial town (km) 120�� Capacity (MW) 36�� Project cost estimate ($ million) 60

Siem Reap

Stung Siem Reap Krom�� Distance from provincial town (km) 55 �� Capacity (MW) 1.2

Stung Tanat�� Distance from provincial town (km) 100�� Capacity (MW) 4

Stung Treng

Sre Pork Krom II�� Distance from provincial town (km) 30�� Capacity (MW) 222�� Project cost estimate ($ million) 339

Se San Krom II�� Distance from provincial town (km) 28�� Capacity (MW) 207�� Project cost estimate ($ million) 374

Pursat Province

Stung Atai�� Distance from provincial town (km) 140�� Capacity (MW) 110�� Project cost estimate ($ million) 156

Stung Resey Chrom Leu

�� Distance from provincial town (km) 130�� Capacity (MW) 32�� Project cost estimate ($ million) 65




Pursat Province

Pursat I�� Distance from provincial town (km) 90�� Capacity (MW) 75

Pursat II�� Distance from provincial town (km) 70�� Capacity (MW) 17

Pursat III�� Distance from provincial town (km) 30�� Capacity (MW) 1.5

Pursat IV�� Distance from provincial town (km) 25�� Capacity (MW) 1.5

Kompongthom Province

Steung Chinith�� Distance from provincial town (km) 75�� Capacity (MW) 5

Steung Sen�� Distance from provincial town (km) 95�� Capacity (MW) 40

Steung Stuoang�� Distance from provincial town (km) 50�� Capacity (MW) 4

Steung Chikreng�� Distance from provincial town (km) 100�� Capacity (MW) 1

Rattanakiri Province

Prek Leang I�� Distance from provincial town (km) 70�� Capacity (MW) 55

Prek Leang IA�� Distance from provincial town (km) 60�� Capacity (MW) 12

Prek Leang II�� Distance from provincial town (km) 80�� Capacity (MW) 44

Sesan Krom III�� Distance from provincial town (km) 30�� Capacity (MW) 375




Potential Sites ValueRattanakiri Province

Srepok Krom III�� Distance from provincial town (km) 32�� Capacity (MW) 330

Mondulkiri

Preck Pock Krom 4

�� Distance from provincial town (km) 100�� Capacity (MW) 235

Preck Roveang 1


Preck Roveang 2


Preck Chbar�� Distance from provincial town (km) 95�� Capacity (MW) 5

Preck Otalay 1�� Distance from provincial town (km) 20�� Capacity (MW) 5

Preck Otalay 2


Preck Otalay 3


Preck Otalay 4�� Distance from provincial town (km) 30�� Capacity (MW) 7

Preck Phear 1


Preck Phear 2�� Distance from provincial town (km) 40�� Capacity (MW) 8





Preck Phear 3�� Distance from provincial town (km) 45�� Capacity (MW) 9

Kampot Province

Kam Chai�� Distance from provincial town (km) 15�� Capacity (MW) 180�� Project cost estimate ($ million) 250

Kpong Reap Bok Ko�� Distance from provincial town (km) 40�� Capacity (MW) 24

Au Trav�� Distance from provincial town (km) 14�� Capacity (MW) 1

Koh Kong Province

Kirirom III�� Distance from provincial town (km) 150�� Capacity (MW) 13�� Project cost estimate ($ million) 29

Steung Rusey Chom Kandal�� Distance from provincial town (km) 50 �� Capacity (MW) 125

�� Project cost estimate ($ million) 275

Steung Rusey Chom Krom�� Distance from provincial town (km) 25�� Capacity (MW) 125�� Project cost estimate ($ million) 130

Steung Cheay Areng�� Distance from provincial town (km) 55�� Capacity (MW) 260�� Project cost estimate ($ million) 502

Steung Tatay�� Distance from provincial town (km) 50�� Capacity (MW) 80�� Project cost estimate ($ million) 215

Steung Metek 1�� Distance from provincial town (km) 55�� Capacity (MW) 175

Steung Metek II�� Distance from provincial town (km) 40�� Capacity (MW) 210




Potential Sites ValueKoh Kong Province

Steung Metek III�� Distance from provincial town (km) 20�� Capacity (MW) 50

Steung Keb 1�� Distance from provincial town (km) 12�� Capacity (MW) 4

Steung Keb II�� Distance from provincial town (km) 25�� Capacity (MW) 26

Steung Oslar�� Distance from provincial town (km) 130�� Capacity (MW) 2

Kirirom 2


Kratie Province

Sambo�� Distance from provincial town (km) 40–50�� Capacity (MW) 467–3,300�� Project cost estimate ($ million) 700–3,940

Prek Chhlong 1�� Distance from provincial town (km) 120�� Capacity (MW) 7

Prek Chhlong 2�� Distance from provincial town (km) 60�� Capacity (MW) 24

Prek Te 1�� Distance from provincial town (km) 75�� Capacity (MW) 7



Prek KamPhy 1�� Distance from provincial town (km) 60�� Capacity (MW) 2




Potential Sites ValueKratie Province

Prek KamPhy 2�� Distance from provincial town (km) 40�� Capacity (MW) 6

Prek Krearng 1�� Distance from provincial town (km) 75�� Capacity (MW) 8

Prek Krearng 2�� Distance from provincial town (km) 50�� Capacity (MW) 6

km = kilometer, MW = megawatt.

Source: Council for the Development of Cambodia provincial offices; Electricite du Cambodge.




Table A16: Population, Poverty, and Income Distribution

Country/ Province Population

Land area (km2)

Density per km2

Population aged

15 to 64 (%)

Rural population

(%)

Literacy rate (%)

Poverty incidence

(%)Gini

coefficientLao People’s DemocraticRepublic 5,873,600 236,800 24.8 56.67 72.8 72.7 33.5 0.34

Khammouane 352,600 16,315 21.6 54.73 78.7 69.9 33.7 0.29

Savannakhet 858,500 21,774 39.4 56.41 77.5 68.5 43.1 0.31

Saravane 341,100 10,691 31.9 52.29 91.3 61.6 54.3 0.27

Champasack 625,700 15,415 40.6 55.75 79.5 81.8 18.4 0.30

Sekong 90,100 7,665 11.7 51.02 78.4 61.7 41.8 0.31

Attapeu 118,100 10,320 11.4 52.85 83.0 63.9 44.0 0.29

Note: Population density is the ratio of total population to total land area. Literacy rate for population aged 15 to 64 from Government of the Lao People’s Democratic Republic, Results from the Population and Housing Census 2005. Poverty incidence and Gini coefficient were taken from M. Andersson, A. Engvall, and A. Kokko, Determinants of Poverty in Lao PDR (Stockholm: Stockholm School of Economics, March 2006), which is based on results of the Government of the Lao People’s Democratic Republic, Lao Expenditure and Consumption Survey 2002/2003. The Asian Development Bank, Midterm Review of the Greater Mekong Subgregion Strategic Framework (2002–2012) (Manila, 2007) cited the poverty incidence in the Lao PDR as 32.7% and the Gini coefficient as 0.37%. A Gini coefficient of zero means an equal income distribution, whereas a coefficient equal to 1 means absolute inequality (i.e., one person receives all the income).

Source: Lao People’s Democratic Republic. 2008. Lao PDR Statistical Yearbook 2007. Vientiane: Lao Department of Statistics.

Table A17: Population and its Economic Activities

Country/ProvinceTotal active population

Farmer (%)

Mixed farmer (%)

Nonfarm activity (%)

Lao People’s Democratic Republic 2,738,300 64.6 14.0 21.4

Female 1,375,800 66.5 14.8 18.7

Khammouane 166,900 81.4 2.2 16.4

Female 85,800 84.1 2.2 13.7

Savannakhet 431,000 85.9 1.1 13.0

Female 218,200 87.7 1.1 11.2

Saravane 167,100 79.8 12.9 7.3

Female 88,100 81.5 12.7 5.8

Champasack 305,400 62.9 17.5 19.6

Female 156,400 65.2 17.8 17.0

Sekong 40,100 66.8 18.7 14.5

Female 20,500 69.4 19.5 11.1

Attapeu 54,400 83.7 1.9 14.4

Female 28,400 87.3 2.1 10.6



Table A18: Villages with Access to Basic Infrastructure

Country/Province

Number of

villages

Road accessa

(%)Electricity

(%)

Primary school

(%)Telephone Densityb

Lao People’s Democratic Republic 9,113 59.7 41.7 80.9 201

Khammouane 658 48.6 59.4 82.5 –

Savannakhet 1,012 70.5 54.2 89.8 180

Saravane 682 56.3 43.5 82.4 –

Champasack 645 59.2 55.0 93.2 139

Sekong 252 36.9 24.2 72.2 –

Attapeu 174 48.3 25.3 79.3 –

a Percentage share of villages located less than 200 meters from all-season roads accessible by cars and trucks.b Telephone density is defined as the number of telephone subscribers per 1,000 inhabitants.

Source: Lao People’s Democratic Republic. 2008. Village Census 2007. Vientiane: Lao Department of Statistics.

Table A19: Population, Labor Force, and Income

Education level (%)a

Participation rate (%)

Unemployment rate (%)

Nonfarm activity

(%)bAverage wage ($)c

Average labor

cost ($)d

Lao People’s DemocraticRepublic 11.2 66.6 1.4 21.4 51 3,132

Female – 66.3 0.9 18.7 – –

Khammouane 9.2 69.1 0.9 16.4 36 –

Female – 69.3 0.7 13.7 – –

Savannakhet 10.0 71.1 1.0 13.0 47 2,349

Female – 70.6 0.6 11.2 – –

Saravane 5.4 73.2 0.1 7.3 49 –

Female – 75.0 0.1 5.8 – –

Champasack 12.2 68.6 1.1 19.6 40 2,867

Female – 69.1 0.7 17.0 – –

Sekong 4.2 70.3 0.6 14.5 50 –

Female – 70.5 0.4 11.1 – –

Attapeu – 69.5 0.4 14.4 31 –

Female – 69.9 0.2 10.6 – –a Percent of total population that completed secondary school of the school year 2004–2005. Participation rate was

calculated using a population group from 15 to 64 years of age.b Percent of total population having occupation outside the agriculture sector.c Based on Lao People’s Democratic Republic, The Household of Lao PDR: Social and Economic Indicators, Lao Expenditure

and Consumption Survey 2002/03 (Vientiane: Lao Department of Statistics, 2004). Wage rates were converted to US dollars using the 2003 annual average exchange rate of 10,571 kips (KN) = $1.

d Calculated using the 2005 average annual exchange rate of KN10,654 = $1 and data from the Investment Climate Survey (2005) collaboration among ADB, the Government of the Lao PDR, and the World Bank in seven provinces (Champasack, Luangnamtha, Luang Prabang, Oudomxay, Savannakhet, Vientiane Capital, and Xayaboury). The survey included 303 firms operating in manufacturing and tourism service sectors.



Table A20: Income Levels and Economic Structure (Five-Year Average, 2003–2007)

Country/ Province

GDP/GPP ($ million)

GDP/GPP per capita

($ million)


Agriculturea Industryb ServiceLao People’s DemocraticRepublic 2,889.7 522 42.7 29.2 28.1Khammouane – – – – –Savannakhet 382.2 460 51.6 23.5 24.9Saravane 87.6 256 50.4 20.1 29.5Champasack 381.6 625 53.4 22.5 24.1Sekong – – – – –Attapeu 39.9 337 – – –

Note: Gross domestic product (GDP), gross provincial product (GPP), and sectoral production figures represent the average values of 5 years (2003–2007) using the current exchange rate. Unemployment rates are based on Lao People’s Democratic Republic, Population and Housing Census 2005 (Vientiane: Lao Department of Statistics, 2006).aIncludes agriculture, livestock, and forestry products.bIncludes manufacturing, energy, mining and quarrying, and construction.

Source: Asian Development Bank. 2007. Key Indicators for Asia and Pacific 2007. Manila; Lao People’s Democratic Republic. 2006. Population and Housing Census 2005. Vientiane: Lao Department of Statistics. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province; Champasack Province: Summary of the implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.

Table A21: Share of Intraregional Trade to Total Trade (%)

2000 2001 2002 2003 2004 2005 2006 2007Trade/gross domestic product 31.7 31.4 28.4 40.3 37.3 40.9 55.4 46.6Lao People’s DemocraticRepublic 59.8 60.3 70.4 77.2 65.3 70.4 77.3 68.5Savannakhet – – 24.2 29.9 29.5 42.6 62.2 64.0

at Savannakhet–Mukdahan border checkpoint – – 59.5 70.2 62.4 66.2 39.3 45.0

at Dansavan–Lao Bao border checkpoint – – 40.4 29.7 37.5 33.8 60.6 54.9

Champasack – – – – – 10.5 6.5 8.1at Vang Tao – – – – – – – –

Note: Ratio of total trade (import plus export) with Greater Mekong Subregion countries to total trade with the rest of the world. The data for Savannakhet and Champasack indicate the percentages of cross-border trade to total provincial trade.

Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Commerce. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province. For Champasack Province: Summary of the Implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.


Table A22: Share of Lao People’s Democratic Republic Trade with Greater Mekong Subregion Countries to Total Greater Mekong

Subregion Intraregional Trade (%)

2000 2001 2002 2003 2004 2005 2006 2007Cambodia 0.03 0.07 0.03 0.03 0.07 0.01 0.01 0.02China, People’s Republic of 7.88 14.85 8.08 15.15 14.29 11.13 9.00 9.58Myanmar 0.08 0.00 0.01 0.04 0.00 0.00 0.00 0.36Thailand 77.61 69.04 81.54 73.69 73.45 74.55 73.69 70.44Viet Nam 14.40 16.04 10.34 11.09 12.19 14.31 17.31 19.60

Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Import–Export, 2008.

Table A23: Share of Informal Cross-Border Trade (as % of Total Trade)

2000 2001 2002 2003 2004 2005 2006Total trade 8.2 13.9 15.4 2.5 2.1 0.4 0.2Greater Mekong Subregion countries 23.2 42.4 41.4 11.0 10.8 2.2 0.6Thailand 49.2 92.8 56.5 6.5 6.5 1.1 0.6Viet Nam 26.2 41.0 9.1 25.4 25.2 19.9 23.5

Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Statistics and Planning, 2008.

Table A24: Average Share of Commodities Traded to Total Trade, 2005–2007 (%)

CommodityLao People’s

Democratic Republic Savannakhet ChampasackExport Mining 46.6 93.0 –

Wood and wood products 12.0 3.6 32.4Agriculture and forest products 7.5 0.3 64.3Industry and handicrafts 20.1 0.3 3.3Electricity 13.7 – –Other 0.2 5.6 –

Import Capital goods 36.2 18.9 47.1Fuel and gas 24.3 62.8 30.0Raw materials 20.8 3.1 11.3Electronic appliances 4.6 0.4 5.3Foodstuffs 3.4 11.1 3.2Vehicles and spare parts 5.9 – –Electricity 1.7 – –Other 3.2 3.8 3.2

Source: Lao People’s Democratic Republic Ministry of Industry and Commerce, Department of Commerce. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province. For Champasack Province: Summary of the implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.


Table A25: Sources of Foreign Direct Investment in the Lao People’s Democratic Republic

(Five-Year Average, 2003–2007, Share to Total) (%)

Investor


Republic Savannakhet ChampasackAssociation of Southeast Asian Nations 40.1 61.6 –

Cambodia 0.0 – –

Indonesia 0.1 7.3 –

Malaysia 4.6 1.6 –

Myanmar 0.0 – –

Philippines 0.0 – –

Singapore 2.5 1.1 –

Thailand 23.6 24.7 –

Viet Nam 9.2 26.8 –

Northeast Asia and the People’s Republic of China 26.5 24.7 –

China, People’s Republic of 21.8 10.9 –

Korea, Republic of 4.5 13.6 –

Taipei,China 0.2 – –

Organisation for Economic Co-operation and Development 30.3 14.0 –

Australia 12.3 10.8 –

Canada 2.1 – –

France 8.9 0.5 –

Germany 0.1 – –

Italy 0.0 – –

Japan 4.0 0.3 –

Netherlands 0.0 – –

Sweden 0.0 – –

Switzerland 1.2 – –

United Kingdom 0.3 2.4 –

United States 0.3 – –

Other 4.1 – –

Totala ($ million) 1,216.207 476.267 277.026a Average investment volume over 5 years (2003–2007).

Source: Lao People’s Democratic Republic Ministry of Investment and Planning, Department of Foreign and Domestic Investment, Statistics and Planning Division. For Savannakhet Province: Statistical Yearbook 2007, Department of Planning and Investment of Savannakhet Province. For Champasack Province: Summary of the implementation of Socio-Economic Plan 2007–2008, Department of Planning and Investment of Champasack Province.


Table A26: Foreign Direct Investment in the Lao People’s Democratic Republic by Sector (Five-Year Average, 2003–2007, Share to Total) (%)

Sector


Republic Savannakhet ChampasackElectricity generation 53.16 – –

Agriculture 12.37 54.4 52.3

Mining 10.12 – –

Industry and handicrafts 6.28 39.7 28.5

Services 4.80 5.9 19.3

Trading 4.38 – –

Construction 2.79 – –

Hotel and restaurant 2.61 – –

Wood industry 1.19 – –

Banking 0.82 – –

Telecommunications 1.11 – –

Garment 0.26 – –

Consulting 0.11 – –

Note: Total foreign direct investment excludes domestic investment.

Source: Lao People’s Democratic Republic Ministry of Investment and Planning, Department of Foreign and Domestic Investment, Statistics and Planning Division, 2008.

Table A27: Tourist Arrivals in the Lao People’s Democratic Republic, 2000–2007 (%)

Country of origin 2000 2001 2002 2003 2004 2005 2006 2007Association of Southeast Asian Nations

71.7 70.1 69.2 68.0 71.4 72.5 73.4 78.4

Cambodia 0.2 0.3 0.4 0.4 0.4 0.5 0.3 0.3

Thailand 60.0 55.9 57.5 59.4 54.7 55.1 55.6 58.5

Viet Nam 0.0 12.2 9.7 6.5 14.6 15.1 15.7 17.9

Other Asia and the Pacific nations

10.3 12.0 9.5 10.3 10.2 9.6 9.6 8.2

Europe 11.7 12.0 13.9 14.8 12.5 12.0 11.4 9.1

Canada, the United States, others in the Americas

5.7 5.1 6.3 6.2 5.3 5.5 5.0 3.8

Africa and the Middle East 0.6 0.8 1.1 0.7 0.6 0.4 0.5 0.5

Source: Lao National Tourism Administration. 2008. 2007 Statistical Report on Tourism in Laos. Vientiane: Lao National Tourism Administration, Planning and Cooperation Department.


Table A28: Tourist Arrivals and Revenues from Tourisma

Share Growth rate

Country/province Visitors (%) Revenue (%) Visitors (%) Revenue (%)Lao People’s Democratic Republic 1,093,106b $151,914,400c 13.3 11.3

Khammouane 5.2 1.3 19.6 21.3

Savannakhet 18.3 4.6 19.2 17.0

Saravane 0.8 0.2 21.1 14.2

Sekong 0.5 0.2 40.0 42.0

Champasack 9.5 2.5 23.0 21.5

Attapeu 1.2 0.3 16.3 15.2

a Five-year average of shares and growth rates of tourist arrivals and revenues, as percent of total, 2003–2007.

b Total number of visitors.c Total revenue.

Source: Lao National Tourism Administration. 2008. 2007 Statistical Report on Tourism in Laos. Vientiane: Lao National Tourism Administration, Planning and Cooperation Department.

Table A29: National Biodiversity Conservation Areas, 2008

Province

Name of conservation

area

Country/ province

area (km2)

Size of conservation

area (km2) % Activity Access

Lao People’s Democratic Republic 236,800 35,720 15.1

Total area 11 conservation

areas

74,515 19,035 25.5

Champasack 15,415 4,700 30.5

Xe Pian 2,400 Trekking, bird-watching, elephant

riding

South of Pakse; Road

No. 6

Dong Houa Sao

1,100 None yet Easily accessible from Road

No. 13

Phou Xieng Thong

1,200 Trekking and orchid

photography

Easily accessible from Road

No. 13

Attapeu 10,320 1,975 19.1

Dong Amphanh

1,975 19.1 None yet Remote and mountainous; mainly limited to dry season



Province

Name of conservation

area

Country/ province

area (km2)

Size of conservation

area (km2) % Activity Access

Saravane 10,691 2,595 24.3

Xe Xap 1,335 None yet No paved road to Ta Oy

Xe Bang Nouan

1,260 None yet Not easily accessible

Savannakhet 21,774 3,470 15.9

Dong Phou Vieng

400 Trekking Road No. 9

Phou Xang Hae

1,100 Trekking Road No.9

Dong Si Thuan 1,970

Khammouane 16,315 6,295 38.6

Hin Namno 895 None yet Highway 12 to Muang Boualapha

Nakai-Nam Theun

3,710 None yet Route 8B; from Thakek via Route12

then Route 8B

Phou Hin Boun

1,690 Trekking, rafting,

kayaking, caves

Route 8

Source: Lao National Tourism Administration. 2008. 2007 Statistical Report on Tourism in Laos. Vientiane: Lao National Tourism Administration, Planning and Cooperation Department; Lao Ecotourism.



Thailand

Table A30: Population and Land Area

Location/area

Total population

Land area (km2)

Population density (people

per km2)

Literacy rate (%)

Poverty incidence

(%)Thailand 63,830,000 513,100 124.40 93 11.25

Bangkok 6,842,000 1,568 4,363.50 98.0 1.64

Chonburi 1,169,000 4,363 267.93 97.6 1.30

Rayong 584,000 3,552 83.15 97.2 5.60

Chantaburi 527,000 6,338 164.41 94.9 4.14

Trat 240,000 2,885 83.18 92.1 12.45

Sakaew 532,000 7,195 73.94 93.7 13.75

Source: National Statistical Office of Thailand; United Nations Development Programme (UNDP). 2007. Thailand Human Development Report 2007: Sufficiency Economy and Human Development. Bangkok: UNDP.

Table A31: Labor Force Indicators, 2007

Location/area

Participation rate (%)

Under-employment rate (%)

Under- employment rate (%)

Women (%)

Average wage ratea

Thailand 72.3 1.4 98.1 98.0 104.5

Bangkok 56.5 0.7 55.8 – 131.3

Chonburi 60.3 0.4 59.9 53.4 116.4

Rayong 74.9 0.3 97.7 42.8 105.4

Chantaburi 61.2 0.4 60.8 54.9 111.8

Trat 61.9 0.2 61.7 53.7 100.8

Sakaew 56.4 1.7 54.7 47.8 103.4a Minimum wage rate per day over 22 workdays in 2007, using exchange rate of Baht 34 = $1.

Source: Thailand Ministry of Labor, 2007; National Statistical Office of Thailand.


Table A32: Income Levels and Economic Structure

Location/area

Gross provincial product per capita

($)


Agriculture Industry ServicesThailand 3,400 11 44 45

Bangkok 9,422 0.1 25.6 74.2

Chonburi 11,275 4.05 61.20 34.75

Rayong 24,310 2.92 89.08 8.00

Chantaburi 2,129 29.59 12.73 57.68

Trat 2,635 45.37 8.68 45.95

Sakaew 1,581 28.20 16.02 55.78

Note: Gross provincial product data from 2007; economic structure data from 2006.

Source: Thailand National Economic and Social Development Board.

Table A33: Trade between Thailand and Viet Nam

Year

Total bilateral trade

Exports from Thailand

Imports to Thailand

Tradebalance

Value ($ million)

Change (%)

Value ($ million)

Change (%)

Value ($ million)

Change (%)

1998 823.3 13.3 591.7 7.8 231.5 30.4 360.1

1999 800.6 (2.8) 572.8 (3.2) 227.8 (1.6) 345.1

2000 1,179.4 47.3 847.4 47.9 332.1 45.8 515.3

2001 1,127.0 (4.5) 801.2 (5.4) 325.8 (1.9) 475.5

2002 1,186.0 5.3 948.0 18.3 238.6 (26.8) 709.4

2003 1,595.0 34.42 1,263.3 33.3 331.7 39.02 931.6

2004 2,313.7 45.17 1,877.0 48.7 436.7 31.66 1,440.3

2004 (January– November)

2,158.5 – 1,746.7 – 411.8 – 1,334.9

2005 (January– November)

2,920.1 35.28 2,101.7 20.32 818.4 98.74 1,283.3

( ) = negative value.

Source: Thailand Ministry of Commerce, 2006.


Table A34: Border Trade between Thailand and Cambodia, 2004–2007 ($ million)

Year

Border

TotalAranyaprathet–

PoipetKlong Yai–Kho

Kong2004 Export 336.47 175.19 511.66

Import 18.05 0.99 19.04

Balance 318.42 174.2 492.61

2005 Export 349.20 273.86 623.06

Import 18.37 1.10 19.48

Balance 330.83 272.76 603.58

2006 Export 382.12 331.2 713.32

Import 24.29 75.54 99.84

Balance 357.82 328.97 686.79

2007 Export 442.04 346.41 788.45

Import 32.46 3.57 28.89

Balance 409.57 342.83 752.41

Note: Exchange rate used is $1 = Baht 34.

Source: Thailand Ministry of Commerce, Foreign Trade Department.

Table A35: Approval of Applications for Foreign Direct Investment in Thailand, 2005–2007

2005 2006 2007Number of projects 1,253 1,222 1,342

Total investment (billion baht) 571.1 373.2 744.5

Employment 314,614 177,571 215,427

Number of projects

Major foreign shareholders

Japan 368 360 352

Europe 155 135 174

Taipei,China 63 69 52

United States 57 52 63

Hong Kong, China 28 26 25

Singapore 81 65 89

Ownership

100% Thai 429 437 452

100% foreign 414 405 479

Joint venture 410 380 411



2005 2006 2007Number of projects

Sector

Agricultural products 204 171 200

Minerals and ceramics 36 32 35

Light industry 104 106 96

Metal processing 261 270 248

Electronics and electrical 230 228 258

Chemicals, plastic, and paper 170 131 155

Service and infrastructure 246 284 350

Location distribution

Zone 1a 348 373 440

Bangkok 168 173 243

Metropolitan areas 180 200 197

Zone 2b 565 487 534

Rayong 125 117 146

Phuket 11 10 10

Other 429 360 378

Zone 3c 340 362 368

36 provinces 287 306 314

22 provinces 53 56 54

North 59 62 68

Central 21 11 20

Northeast 110 123 98

East 52 66 62

West 14 17 16

South 55 62 66

Otherd 29 21 38

a Bangkok, Nokhon Pathom, Nontabur, Patumthani, Samut Prakarn, and Samut Sakhon.b Phuket, Rayong, and others (Angthong, Ayuttaya, Chachoengsao, Chonburi, Kanchanaburi, Nakhon

Nayok, Ratchaburi, Samut Songkhram, Saraburi, and Suphanburt).c The 58 remaining provinces are divided into a group of 22 provinces and a group of 36 provinces.d International maritime transport activity.

Source: Thailand Board of Investment.



Table A36: Tourist Arrivals, 2007

Country of origin Chonburi Bangkok Rayong Chantaburi Trat SakaewThailand 1,798,728 3,468,287 1,519,472 527,271 676,917 310,745

Malaysia 87,220 300,194 10,812 1,910 375 540

Singapore 37,876 424,475 12,259 2,223 965 135

China, People’s Republic of 470,184 963,103 12,901 2,012 1,795 393

Hong Kong, China 191,340 299,769 11,017 2,020 1,528 110

Japan 97,460 1,448,006 21,410 2,341 3,178 2,129

Korea, Republic of 573,741 309,089 15,056 1,842 3,499 13,476

Taipei,China 258,966 226,011 10,539 1,924 3,010 82

Austria 20,648 81,329 11,697 1,451 5,305 188

Belgium 16,264 62,526 10,053 1,350 7,402 124

Denmark 30,450 90,215 14,351 1,490 14,979 100

France 47,241 281,139 21,245 1,655 18,783 3,246

Germany 218,557 448,635 44,399 2,102 34,878 922

Italy 28,590 122,331 9,984 1,324 11,761 154

Netherlands 39,799 152,970 14,367 1,709 14,338 450

Sweden 38,998 127,089 24,760 1,654 36,534 331

Switzerland 26,668 132,031 19,688 1,769 11,449 279

United Kingdom 222,119 533,499 22,345 2,922 29,571 1,061

United States 82,646 535,634 12,849 2,324 12,919 1,760

Canada 14,757 113,903 7,623 1,030 5,409 179

Middle East 157,139 397,646 4,572 827 6,490 26

Australia 70,597 464,823 9,747 1,348 6,186 363

New Zealand 13,156 73,552 7,149 1,003 4,009 200

India 279,006 457,516 6,589 5,611 3,797 256

Russian Federation 889,752 163,341 8,374 816 20,686 13

Eastern Europe 70,295 99,370 6,698 1,273 2,749 39

Indonesia 37,347 137,074 2,735 477 2,483 54

Philippines 11,334 112,721 3,102 395 2,555 205

Finland 64,999 41,300 19,393 448 3,120 84

Norway 29,302 52,637 5,903 542 3,313 142

Spain 2,791 61,353 2,564 585 2,855 164

Africa 4,396 55,706 2,195 3,112 1,898 70

Myanmar 2,374 31,001 833 206 1,854 18

Israel 14,624 94,555 1,355 281 2,295 32



Country of origin Chonburi Bangkok Rayong Chantaburi Trat SakaewLao People’s Democratic Republic 7,768 20,568 594 190 1,200 141

Viet Nam 53,006 133,784 692 245 1,120 93

Brunei Darussalam 3,316 8,845 577 177 1,056 121

Cambodia 8,521 21,087 422 233 2,012 2,477

Other South Asia 22,041 – 635 69 856 8

Other Americas 7,969 – 1,344 113 1,290 427

Others 99,342 772,635 17,669 3,861 16,329 444

Totals 6,151,327 13,319,749 1,929,969 584,135 982,748 341,781

Source: Tourism Authority of Thailand.


Table A37: Major Tourist Attractions in the Thailand Component of the Southern Economic Corridor

Area Ecotourism Historical CulturalBangkok – Grand Palace, Arun

Temple, the Chakri Maha Prasat Throne Hall

Rattanakosin Island

Chanthaburi Namtok Plew National Park, Khao Kichakut National Park, Khao Soi Dao Wildlife Sanctuary, Kung Wiman Beach, Chao Lao Beach

Chanthaburi National Museum, Maritime Museum, Tuk Daeng, Kook Khi Kai

Khung Kraben Research Development Center, Oasis Seaworld

Chonburi Pataya Beach, Sichang Island, Sam Muk Island

– Buffalo running festival

Rayong Samet Island, Khao Laem Ya – –

Sakaew Pangsida National Park Prasat Khaonoi, Prasat Sadok Kok Thom

–

Trat Ko Chang National Park, Ko Mak, Ko Kut, Mai Rood Beach, Ban Chuen Beach

Wat Bupharam, Residence Kampot, Khao Lan Memorial

–

Source: Tourism Authority of Thailand.


Viet Nam

Table A38: Population and Land Area by Subcorridor and by Province

AreaTotal

populationLand area

(km2)

Population density (people per km2)

Rural population

(%)

Illiteracy rate(%)

Incidence of poverty

(%)

Subcorridor 1 10,601,400 14,028.1 756 36.4 2.00 1.7

Tay Ninh 1,053,800 4,035.9 261 82.8 4.9 6.7

Ho Chi Minh City 6,347,000 2,098.7 3,024 14.5 0.9 0.5

Dong Nai 2,253,300 5,904.0 382 68.4 3.9 0.5

Ba Ria–Vung Tau 947,300 1,989.6 476 55.7 3.3 6.7

Subcorridor 2 2,744,700 21,576.5 127 72.7 10.2 19.7

Gia Lai 1,165,800 15,536.9 75 71.3 22.4 25.6

Binh Dinh 1,578,900 6,039.6 261 73.7 1.3 15.4

Subcorridor 3 2,946,200 11,680.0 252 76.5 3.2 11.6

Kien Giang 1,705,200 6,348.3 266 74.0 4.1 10.3

Ca Mau 1,241,000 5,331.7 233 80.0 2.1 13.3

Subcorridors Total 16,292,300 47,284.6 345 49.7 3.6 6.4

Whole country 85,154,900 331,211.6 257 72.6 4.0 14.8

Subcorridors Total/ Whole country (%) 19.1 14.3 1.3 – – –

km2 = square kilometer.

Source: Data on population, land area, population density, and rural population from Statistical Yearbook of Viet Nam 2007; data on illiteracy rate and poverty incidence from Statistical Data of Labor Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).


Table A39: Population as of January 2007

2000 2003 2004 2005 2006 2007Subcorridor 1 9,063,800 9,599,500 9,830,900 10,058,300 10,314,700 10,601,400

Tay Ninh 976,300 1,017,100 1,029,800 1,038,400 1,046,800 1,053,800

Ho Chi Minh City 5,226,100 5,554,800 5,730,800 5,911,600 6,107,800 6,347,000

Dong Nai 2,039,400 2,142,700 2,172,100 2,194,500 2,225,100 2,253,300

Ba Ria–Vung Tau 822,000 884,900 898,200 913,800 935,000 947,300

Subcorridor 2 2,498,000 2,605,500 2,640,700 2,673,300 2,711,600 2,744,700

Gia Lai 1,017,000 1,075,200 1,095,500 1,116,200 1,144,600 1,165,800

Binh Dinh 1,481,000 1,530,300 1,545,200 1,557,100 1,567,000 1,578,900

Subcorridor 3 2,663,300 2,787,800 2,831,000 2,875,300 2,914,000 2,946,200

Kien Giang 1,524,000 1,606,600 1,630,400 1,657,000 1,683,100 1,705,200

Ca Mau 1,139,300 1,181,200 1,200,600 1,218,300 1,230,900 1,241,000

Total 14,225,100 14,992,800 15,302,600 15,606,900 15,940,300 16,292,300

Source: Statistical Yearbook 2007 of relevant provinces.

Table A40: Illiteracy Rate and Poverty Incidence

AreaEmployed population

Illiteracy Incidence of poverty

Per 1,000 people %

Per 1,000 people %

Subcorridor 1 5,489,800 118.3 2.2 177.1 1.7

Tay Ninh 613,600 30.2 4.9 70.6 6.7

Ho Chi Minh City 3,288,000 29.3 0.9 31.7 0.5

Dong Nai 1,150,800 45.2 3.9 11.3 0.5

Ba Ria–Vung Tau 437.400 13.6 3.3 63.5 6.7

Subcorridor 2 1,372,700 133.4 9.7 541.6 19.7

Gia Lai 550,600 123.1 22.4 298.4 25.6

Binh Dinh 822,100 10.3 1.3 243.2 15.4

Subcorridor 3 1,523,900 49.1 3.2 340.7 11.6

Kien Giang 882,000 36.3 4.1 175.6 10.3

Ca Mau 641,900 12.8 2.1 165.1 13.3

Total: Subcorridors Total: Whole country

8,386,40044,171,900

300.81,766.9

3.64.0

1,059.412,602.9

6.514.8

Source: Statistical Data of Labor Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).


Table A41: Land Use by Subcorridor (hectare)

Area

Agriculture production

landForestry

landSpecialty

landHomestead

land Total landWhole country 9,436,200 14,514,200 1,433,500 611,900 33,121,200

Subcorridor 1 755,900 318,800 117,200 48,000 1,402,900

Tay Ninh 278,500 69,700 18,700 8,700 403,600

Ho Chi Minh City 77,900 33,400 28,900 20,700 209,900

Dong Nai 289,700 179,700 43,400 13,800 590,400

Ba Ria–Vung Tau 109,800 35,700 26,200 4,800 199,000

Subcorridor 2 635,900 1,049,100 60,200 20,700 2,157,700

Gia Lai 449,500 799,800 37,000 13,200 1,553,700

Binh Dinh 136,400 249,300 23,200 7,500 604,000

Subcorridor 3 583,400 207,300 42,000 18,000 1,188,000

Kien Giang 441,300 102,900 21,600 11,300 634,800

Ca Mau 142,100 104,400 20,400 6,700 553,200

Subcorridors Total 1,975,200 1,575,200 219,400 116,700 4,748,600


Table A42: Structure of Land Use by Subcorridor (%)

Area

Agriculture production

landForestry

landSpecialty

landHomestead

landWhole country 28.5 43.8 4.3 1.8

Subcorridor 1 53.9 22.7 8.3 3.4

Tay Ninh 69.0 17.3 4.6 2.2

Ho Chi Minh City 37.1 15.9 13.7 9.9

Dong Nai 49.1 30.7 7.4 2.3

Ba Ria–Vung Tau 55.2 18.0 13.2 2.4

Subcorridor 2 29.5 48.6 2.8 1.0

Gia Lai 32.2 51.5 2.4 0.9

Binh Dinh 22.6 41.3 3.8 1.2

Subcorridor 3 49.1 17.4 3.5 1.5

Kien Giang 69.5 16.2 3.4 1.8

Ca Mau 26.2 19.6 3.8 1.3

Subcorridors Total 41.6 33.2 4.6 2.5



Table A43: Income and Structure of Production

Area

Per capita gross domestic product/

gross provincial product ($)

Structure of production (%)Unemploy-ment rate

(%)Agriculture Industry Services

Whole country 812 20.30 41.58 38.12 5.13

Subcorridor 1 2,321 4.00 59.50 36.50

Tay Ninh 865 36.78 29.11 34.11 4.58

Ho Chi Minh City 2,085 1.30 46.40 52.30 6.03

Dong Nai 1,139 12.10 57.70 30.20 4.26

Ba Ria–Vung Tau 7,424 2.26 89.12 8.63 4.54

Subcorridor 2 538 39.00 29.60 31.40

Gia Lai 471 47.16 25.96 26.88 4.10

Binh Dinh 580 34.20 31.80 34.00 5.21

Subcorridor 3 793 44.70 27.30 28.00

Kien Giang 818 43.67 26.26 30.06 4.96

Ca Mau 764 34.40 28.50 37.10 5.26

Subcorridors Total 1,744 – – – –

Note: Unemployment rate in urban areas based on Statistical Data of Labor Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).

Table A44: Population and Gross Domestic Product, 2007

Area Population

Gross domestic product (D billion)a

Agriculture Industry Service TotalWhole country 85,154,900 232,188.0 475,681.0 436,146.0 1,144,015.0

Subcorridor 1 10,601,400 16,445.4 241,316.1 148,012.2 405,773.7

Tay Ninh 1,053,800 5,504.0 4,354.5 5,104.3 14,962.8

Ho Chi Minh City 6,347,000 3,057.0 106,052.0 119,686.0 228,795.0

Dong Nai 2,253,300 5,175.0 24,714.0 12,943.0 42,832.0

Ba Ria–Vung Tau 947,300 2,691.4 106,195.6 10,278.9 119,165.9

Subcorridor 2 2,744,700 9,512.2 7,207.4 7,615.2 24,334.8

Gia Lai 1,165,800 4,350.6 2,395.1 2,479.2 9,224.9

Binh Dinh 1,578,900 5,161.6 4,812.3 5,136.0 15,109.9

Subcorridor 3 2,946,200 17,240.9 10,520.1 10,817.5 38,578.5

Kien Giang 1,705,200 10,028.9 6,030.3 6,903.6 22,962.8

Ca Mau 1,241,000 7,212.0 4,489.8 3,913.9 15,615.7

Subcorridors Total 16,292,300 43,198.5 259,043.6 166,444.9 468,687.0

Subcorridors (% of whole country)

19.1 18.6 54.5 38.2 41.0

a 2007 figures in current prices, in billion dong.

Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical Publishing House, 2008).


Table A45: Gross Rice Output (tons)

Area 2000 2004 2005 2006 2007Subcorridor 1 1,126,500 1,172,800 1,114,800 1,078,800 1,159,500

Tay Ninh 82,700 74,800 70,400 74,400 77,900

Ho Chi Minh City 235,300 159,400 133,600 104,200 117,000

Dong Nai 270,300 296,500 325,200 305,800 324,600

Ba Ria–Vung Tau 538,200 642,100 585,600 594,400 640,600

Subcorridor 2 698,100 792,400 761,100 889,000 858,400

Gia Lai 175,100 222,000 233,700 281,200 279,200

Binh Dinh 523,000 570,400 527,400 607,800 579,200

Subcorridor 3 3,134,800 3,143,400 3,331,300 3,147,700 3,396,600

Kien Giang 2,284,300 2,739,800 2,944,300 2,744,300 2,977,400

Ca Mau 850,500 404,100 387,000 403,400 419,200

Total 4,959,400 5,108,600 5,207,200 5,115,500 5,414,500

Per capita rice production (kilograms per person)

Total 349 340 333 320 332

Subcorridor 1 124 119 111 105 109

Subcorridor 2 279 304 285 328 313

Subcorridor 3 1,177 1,128 1,158 1,080 1,153



Table A46: Fisheries Production (tons)

Area 2000 2004 2005 2006 2007Subcorridor 1 207,100 307,300 303,400 316,100 324,000

Tay Ninh 3,900 6,700 6,700 6,700 6,900

Ho Chi Minh City 47,800 56,200 53,300 56,700 55,000

Dong Nai 15,500 29,800 28,500 30,500 32,200

Ba Ria–Vung Tau 139,900 199,000 214,600 222,200 229,900

Subcorridor 2 78,000 101,300 110,800 110,600 118,400

Gia Lai 200 300 443 551 63,300

Binh Dinh 77,800 101,000 110,400 110,000 117,800

Subcorridor 3 447,000 557,600 608,100 652,800 706,200

Kien Giang 249,200 321,400 353,800 377,800 410,800

Ca Mau 197,800 236,200 254,300 275,000 295,400

Subcorridors Total 732,100 966,200 1,022,300 1,079,500 1,148,600

Whole country 2,250,500 3,142,500 3,465,900 3,720,500 4,149,000

Total subcorridors/ Whole country (%)

32.5 30.7 29.5 29.0 27.7

Subcorridor 1/Total subcorridors (%)

28.3 31.8 29.7 29.3 28.2


10.7 10.5 11.1 10.2 10.3


61.0 57.7 59.4 60.5 61.5



Table A47: Gross Forestry Output at Constant 1994 Prices (D billion)

Area 2000 2004 2005 2006 2007Subcorridor 1 212.1 239.6 224.1 270.3 259.4

Tay Ninh 86.5 116.2 116.9 120.6 123.5Ho Chi Minh City 37.0 33.6 34.9 42.4 31.3

Dong Nai 61.7 56.5 57.9 69.2 64.7Ba Ria–Vung Tau 26.9 33.3 34.4 38.0 39.9

Subcorridor 2 182.4 236.4 251.3 255.9 265.8Gia Lai 81.6 106.3 117.5 119.5 124.0Binh Dinh 100.8 130.1 133.8 136.4 141.8

Subcorridor 3 178.4 203.3 207.5 201.6 197.1Kien Giang 41.2 83.7 85.6 88.4 89.6Ca Mau 137.2 119.6 121.9 113.2 107.5

Total 572.9 679.3 682.9 727.8 722.3Subcorridor 1/Total (%) 37.0 35.3 32.8 37.1 35.9Subcorridor 2/Total (%) 31.8 34.8 36.8 35.2 36.8Subcorridor 3/Total (%) 31.2 29.6 30.4 27.7 27.3

D = dong.


Table A48: Educational Level of Economically Active Population Aged 15 Years and Older (%)

Area Illiterate

Did not finish primary school

Finished primary school

Finished secondary

school

Finished high

schoolCountry total 5.06 14.25 29.23 31.84 19.62Subcorridor 1

Tay Ninh 5.63 23.64 41.28 15.01 14.44Ho Chi Minh City 0.95 8.35 27.62 22.86 40.21Dong Nai 4.21 15.04 33.84 24.93 21.95Ba Ria–Vung tau 3.24 17.20 36.01 21.70 21.82

Subcorridor 2Gia Lai 28.8 18.14 20.79 19.34 12.94Binh Dinh 1.98 20.48 39.38 25.01 14.37

Subcorridor 3Kien Giang 3.70 28.62 42.07 16.10 8.51Ca Mau 2.53 28.49 47.67 15.33 5.98

Source: Statistical Data of Labor-Employment in Viet Nam 2005 (Ha Noi: Labor-Social Publishing House, 2006).


Table A49: Average Per Capita Monthly Income (D thousanda)

Area

Salary and

wages

Agriculture, forestry,

and fisheries

Non-agriculture, forestry,

and fishing Others TotalWhole country 218 158 145 115 636

Subcorridor 1

Tay Ninh 259 205 148 85 697

Ho Chi Minh City 650 26 452 352 1,480

Dong Nai 369 173 221 104 867

Ba Ria–Vung Tau 356 98 213 110 778

Subcorridor 2

Gia Lai 151 177 109 61 498

Binh Dinh 188 134 169 61 553

Subcorridor 3

Kien Giang 178 263 138 96 675

Ca Mau 113 318 176 59 666a 2006 figures in current prices in dong (D).


Table A50: Average Per Capita Monthly Income by Income Quintiles (D thousanda)

Area

Quintile

Average1 2 3 4 5Whole country 184 319 459 679 1,542 636

Subcorridor 1

Tay Ninh 267 396 517 699 1,606 697

Ho Chi Minh City 554 824 1,076 1,493 3,453 1,480

Dong Nai 297 502 711 933 1,892 867

Ba Ria–Vung Tau 240 381 551 769 1,939 776

Subcorridor 2

Gia Lai 146 231 369 585 1,157 498

Binh Dinh 197 320 440 599 1,210 553

Subcorridor 3

Kien Giang 210 359 485 675 1,649 675

Ca Mau 209 361 506 734 1,517 666a 2006 figures in current prices in dong (D).



Table A51: Difference between the Highest Income Quintile and the Lowest Income Quintile, 2006

(Average Monthly Per Capita Income, D thousand)

Area

Lowest income quintile

Highest income quintile

Highest income quintile compared with the

lowest quintileWhole country 184 1,542 8.4

Subcorridor 1

Tay Ninh 267 1,606 6.0

Ho Chi Minh City 554 3,453 8.1

Dong Nai 297 1,892 6.4

Ba Ria–Vung Tau 240 1,939 8.1

Subcorridor 2

Gia Lai 146 1,157 7.9

Binh Dinh 197 1,210 6.1

Subcorridor 3

Kien Giang 210 1,649 7.8

Ca Mau 209 1,517 7.3

D = dong.


Table A52: Export Turnover ($ million)

Area 2005 2006 2007Subcorridor 1 24,453.4 29,004.4 33,515.8

Tay Ninh 260.9 404.0 493.3

Ho Chi Minh City 13,307.6 15,526.7 18,303.0

Dong Nai 3,186.0 4,275.0 5,474.0

Ba Ria–Vung Tau 7,698.9 8,798.7 9,245.5

Subcorridor 2 254.3 292.1 454.4

Gia Lai 39.4 48.3 127.1

Binh Dinh 214.9 243.8 327.3

Subcorridor 3 736.5 813.2 866.8

Kien Giang 215.6 230.3 266.0

Ca Mau 520.9 582.9 600.8

Total 25,444.2 30,109.7 34,837.0

Subcorridor 1/Total (%) 96.1 96.3 96.2





Table A54: Exports and Imports through the Moc Bai Border Gate ($ thousand)

2005 2006 2007First 6 months

of 2008Total trade 52,385 94,305 112,753 92,984

Formal 48,303 94,302 112,750 91,238

Informal 4,082 3 3 1,748

Total export 31,778 36,770 46,693 34,538

Formal 27,697 36,767 46,691 32,106

Informal 4,081 3 2 1,746

Total import 20,606 57,535 66,059 59,392

Formal 20,606 57,535 66,060 59,131

Informal – – – 260

Source: Moc Bai Border Gate Economic Zone management board.

Table A53: Import Turnover ($ million)

Area 2005 2006 2007Subcorridor 1 15,818.6 17,684.6 22,616.4

Tay Ninh 182.9 269.3 298.3

Ho Chi Minh City 10,945.3 11,637.1 14,924.0

Dong Nai 4,183.0 4,999.0 6,329.0

Ba Ria–Vung Tau 605.4 779.2 1,065.1

Subcorridor 2 128.2 121.4 158.8

Gia Lai 16.1 13.1 17.2

Binh Dinh 112.1 108.3 141.6

Subcorridor 3 33.2 31.5 18.5

Kien Giang 29.2 24.2 18.5

Ca Mau 4.0 7.3 –

Total 15,979.7 17,837.5 22,793.7






Table A55: Export and Import through Le Thanh Border Gate (Gia Lai Province) ($ thousand)

2006 20072008

(first 11 months )Total trade 15,612 17,176 24,400

Formal 10,928 12,367 17,568

Informal 4,684 4,809 6,832

Total export 12,712 13,176 16,200

Formal 8,100 9,355 12,150

Informal 4,612 3,821 4,500

Total import 2,900 4,000 8,200

Formal 2,828 3,012 6,642

Informal 72 988 1,558

Le Thanh export/Gia Lai Province export (%) 26.3 10.4 –

Source: Customs office of the Le Thanh Zone.

Table A56: Export and Import through the Ha Tien Border Gate

YearTotal

($ thousand)Export

($ thousand)Import

($ thousand)

% of Total Kien Giang Province

2000 11,410 10,510 900 15.0

2001 9,919 7,262 2,656 8.4

2002 7,652 6,469 1,183 6.2

2003 7,797 6,988 809 5.1

2004 9,774 8,541 1,233 5.3

2005 11,237 7,769 3,468 4.5

2006 18,599 15,254 3,345 6.9

2007 26,110 22,290 3,820 9.4

Source: Ha Tien Border Gate Economic Zone management board.


Table A57: Foreign Direct Investment Projects Licensed in 1988–2007

Year

Number of

projects

Total registered

capital ($ million)

Total charter capital

($ million)

Foreign- side charter

capital ($ million)

Viet Nam-side charter

capital ($ million)

Implementation capital

($ million)

1988 37 341.7 258.7 219.0 39.7 –

1989 67 525.5 300.9 245.0 55.9 –

1990 107 735.0 720.1 623.3 96.8 –

1991 152 1,291.5 1,072.4 883.4 189.0 328.8

1992 196 2,208.5 1,599.3 1,343.7 255.6 574.9

1993 274 3,037.4 1,842.5 1,491.1 351.4 1,017.5

1994 372 4,188.4 2,539.7 2,030.3 509.4 2,040.6

1995 415 6,937.2 3,705.1 2,857.0 848.1 2,556.0

1996 372 10,164.1 3,511.4 2,906.3 605.1 2,714.0

1997 349 5,590.7 2,649.1 2,046.0 603.1 3,115.0

1998 285 5,099.9 2,474.2 1,939.9 534.3 2,367.4

1999 327 2,565.4 975.1 870.5 104.6 2,334.9

2000 391 2,838.9 1,312.0 951.8 360.2 2,413.5

2001 555 3,142.8 1,708.6 1,643.0 65.6 2,450.5

2002 808 2,998.8 1,272.0 1,191.4 80.6 2,591.0

2003 791 3,191.2 1,138.9 1,055.6 83.3 2,650.0

2004 811 4,547.6 1,217.2 1,112.6 104.6 2,852.5

2005 970 6,839.8 1,973.4 1,875.5 97.9 3,308.8

2006 987 12,004.0 4,674.8 4,328.3 346.5 4,100.1

2007 1,544 21,347.8 8,183.6 6,800.0 1,383.6 8,030.0

Total 9,810 99,596.2 43,129.0 36,413.7 6,715.1 45,445.5



Table A58: Foreign Direct Investment Projects Licensed in 1988–2007 by Economic Activity

Sector

Number of

projects

Total registered

capital ($ million)


($ million)

Foreign–side

charter capital

($ million)

Viet Nam–side

charter capital

($ million)Total 9,810 99,596.2 43,129.0 36,413.7 6,715.3

Agriculture and forestry 518 3,397.5 1,512.2 1,322.4 189.8

Fishing 156 515.1 249.3 188.4 60.9

Mining and quarrying 119 3,742.8 2,892.3 2,525.9 366.4

Manufacturing 6,323 52,345.4 21,328.6 18,598.4 2,730.2

Electricity, gas, and water supply 30 1,937.7 612.3 594.6 17.7

Construction 254 6,808.0 2,171.3 1,600.9 570.4

Wholesale and retail trade 108 641.9 292.2 192.9 99.3

Hotels and restaurants 291 7,620.6 3,144.9 2,474.0 670.9

Transport; storage, and communications 272 5,072.3 3,788.4 2,918.7 869.7

Financial intermediation 65 862.7 791.1 730.6 60.5

Real estate renting business activities 1,341 14,191.8 5,252.3 4,391.9 860.4

Education and training 101 146.8 72.7 60.3 12.4

Health and social work 54 591.4 224.8 188.5 36.3

Recreational, cultural, and sports activities 112 1,683.5 769.4 603.1 166.3

Community and personal service activities 66 38.7 27.2 23.1 4.1



Table A59: Foreign Direct Investment Projects Licensed in 1988–2007 by Province and Subcorridor

Area

Number of

projects

Total registered

capital ($ million)


($ million)

Foreign- side

charter capital

($ million)

Viet Nam- side

charter capital

($ million)Whole country 9,810 99,596.2 43,129.0 36,413.7 6,715.3

Tay Ninh 157 665.6 401.1 392.8 8.3

Ho Chi Minh City 2,816 20,174.2 8,601.4 679.0 1,811.4

Dong Nai 986 12,824.2 4,968.8 4,741.3 228.5

Ba Ria–Vung Tau 222 7,520.1 3,059.7 2,604.9 454.8

Subcorridor 1 4,181 41,184.1 17,031.0 14,526.0 2,503.0

% of Whole country 42.6 41.4 39.5 39.9 37.3

Gia Lai 7 24.0 22.9 13.0 9.9

Binh Dinh 38 253.1 136.5 125.6 10.9

Subcorridor 2 45 277.1 159.4 138.6 20.8

% of Whole country 4.6 2.8 3.7 3.8 3.0

Kien Giang 21 501.0 225.1 150.3 74.8

Ca Mau 10 20.9 18.7 13.8 4.9

Subcorridor 3 31 521.9 243.8 164.1 79.7

% of Whole country 0.3 0.5 0.6 0.5 1.2

Source: Statistical Yearbook of Viet Nam 2007 (Ha Noi: Statistical publishing house, 2008).

Table A60: Visitors Serviced by Accommodation

Area 2005 2006 2007Subcorridor 1 4,856,100 6,333,600 6,704,900

Tay Ninh 369,800 355,800 364,900

Ho Chi Minh City 2,840,000 3,301,000 3,350,000

Dong Nai 552,600 860,200 1,100,700

Ba Ria–Vung Tau 1,093,700 1,816,600 1,889,300

Subcorridor 2 553,000 702,800 828,100

Gia Lai 309,700 355,200 441,600

Binh Dinh 243,300 347,600 386,500

Subcorridor 3 2,335,700 2,426,300 3,048,900

Kien Giang 1,820,100 1,897,000 2,516,900

Ca Mau 515,600 529,300 532,000

Total 7,744,800 9,462,700 10,581,900






Table A61: Number of Visitor Arrivals in Southern Economic Corridor Areas

Province 2005 2006 2007Tay Ninh Province 369,865 355,780 364,887

From Viet Nam 366,117 352,593 361,641

From other countries 3,748 3,187 3,246

Ho Chi Minh City 2,840,000 3,301,000 3,350,000

From Viet Nam 1,468,000 1,684,000 1,709,000

From other countries 1,372,000 1,617,000 1,641,000

Dong Nai Province 296,427 346,811 546,295

From Viet Nam 280,877 329,706 529,217


Ba Ria–Vung Tau Province 1,093,700 1,816,600 1,889,300

From Viet Nam 1,017,100 1,724,700 1,794,600


Gia Lai Province 291,700 335,400 420,900

From Viet Nam 287,600 331,200 416,400


Binh Dinh Province 347,600 386,500 432,800

From Viet Nam 323,600 352,000 394,200


Kien Giang Province 420,000 505,900 601,100

From Viet Nam 381,200 441,300 527,800


Ca Mau Province 451,400 529,300 532,000

From Viet Nam 446,200 519,700 521,000




Table A62: Number of Telephone Subscribers (as of 31 December)

Area 2000 2003 2004 2005 2006 2007Subcorridor 1 901,100 1,661,800 1,891,700 2,362,500 2,655,000 3,205,600

Tay Ninh 33,300 71,500 88,900 226,900 124,700 158,700

Ho Chi Minh City 699,800 1,228,000 1,333,100 1,606,000 1,992,800 2,385,600

Dong Nai 108,200 243,400 283,000 379,300 337,200 418,100

Ba Ria–Vung Tau 59,800 118,900 186,700 150,300 200,300 243,200

Subcorridor 2 59,000 117,300 141,900 178,900 241,700 329,500

Gia Lai 22,600 47,400 60,600 77,700 101,100 163,900

Binh Dinh 36,400 69,900 81,300 101,200 140,600 165,600

Subcorridor 3 73,400 173,900 226,900 314,700 285,200 527,500

Kien Giang 43,900 93,700 113,100 177,000 175,600 385,300

Ca Mau 29,500 80,200 113,800 137,700 109,600 142,200

Total 1,033,500 1,953,000 2,260,500 2,856,100 3,181,900 4,062,600

Subscribers per 100 people

Total 7.2 13.0 14.8 18.3 19.9 24.9

Subcorridor 1 9.9 17.3 19.2 23.5 25.7 30.2

Subcorridor 2 2.4 4.5 5.4 6.7 8.9 12.0

Subcorridor 3 2.7 6.2 8.0 10.9 9.8 17.9


Appendix B

Key Goals of National Development Plans and the Role of Southern Economic Corridor Development

Cambodia


Republic Thailand Viet NamNational Strategic Development Plan 2006–2010

Sixth National Socioeconomic Development Plan

Tenth National Economic and Social Development Plan

Socioeconomic Development Plan 2006–2010

�� Good governance�� Integration of

country into the region and the world

�� Enhancement of agriculture

�� Infrastructure development

�� Job creation and private sector development

�� Capacity building and human resource development

�� Enhancement of export competitiveness

�� Trade facilitation�� Improvement

of business environment

�� Capacity building�� Increased trade

opportunities for the poor

�� Human and social development

�� Increased competitiveness

�� Infrastructure development

�� Environmental sustainability

�� Good governance

�� Acceleration of country’s regional and international integration

�� Poverty reduction

�� Balanced regional growth

�� Environmental sustainability

Contribution of Southern Economic Corridor Development�� Strengthening physical infrastructure and connectivity to enhance competitiveness,

facilitate regional and international integration, spread economic benefits, and reduce poverty

�� Promoting and facilitating trade and investment in agriculture, agro-industry, manufacturing, tourism, and logistics to help in job creation, poverty reduction, and private sector development

�� Addressing social and environmental concerns, including capacity building and human resource development, environmental sustainability, and mitigation of potential negative social and environmental effects

�� Enhancing private sector participation to increase investment and employment opportunities and to promote improvement of business environment

Appendix C

Tasks of Key Greater Mekong Subregion Institutions in Southern Economic Corridor Development

Greater Mekong Subregion Institutions

The proposed institutional arrangements and mechanisms for implementing the strategy and action plan (SAP) for Southern Economic Corridor (SEC) development proposes to utilize to the fullest extent possible the existing Greater Mekong

Subregion (GMS) institutional framework, which includes the leaders summit, the ministerial conference, the senior officials’ meeting, and GMS forums and working groups. In June 2009, GMS countries established the Economic Corridors Forum (ECF) to help accelerate the transformation of transport into economic corridors. Besides focal GMS bodies, several GMS mechanisms also have been established to support the implementation of priority GMS programs and projects. The key tasks of these institutions in promoting SEC development are summarized below.

All GMS organizational bodies are responsible to GMS leaders. GMS summits are held once every 3 years. The ministerial conferences are held yearly, except during years when there is a GMS summit. The senior officials’ meetings are held twice yearly. The sectoral forums and working groups, which meet at least once a year, include the Subregional Investment Working Group, the Subregional Telecommunications Forum, the Subregional Trade Facilitation Working Group, the Subregional Transport Forum, the Tourism Working Group, the Working Group on Agriculture, the Working Group on Environment, and the Working Group on Human Resource Development.

Leaders Summit

Sets vision and major directions for the GMS Program and its components, including SEC development.

Ministerial Conference

�� <��<|�� "

�� of the SAP for SEC development.

�� <|>�� ^��high-level resolution and other related matters brought to its attention.


Senior Officials’ Meeting

�� implementation of the SAP for SEC development.

�� <�� <|>�� authority to decide.

�� <|>��or implementation issues requiring action from higher authorities.

�� ?��\�� &�?��\'� �� private sector participation in SEC development.

Greater Mekong Subregion Forums and Working Groups

�� \�� specific focus on the SEC in their respective sectors and areas of concern.

�� &��plan for SEC development) in their respective sectors and areas of concern.

�� |�� respective sectors and areas of concern.

�� \�� SEC initiatives in their respective sectors and areas of concern.

�� ?��\�� in SEC development.

Greater Mekong Subregion Secretariat

�� *�� other concerned GMS institutions on matters involving SEC development.

�� |�� ?�� performing functions related to SEC development.

�� <|� � �� submission to the senior officials’ meeting, the ministers’ meeting, and the ECF (proposed below).

�� *��~��matters involving SEC development.

National Coordinators

�� \��>�� "

�� ?��<|�� issues in coordination with GMS secretariat in their respective areas.


�� \��>�� 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.


�� 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


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.


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.


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,


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


�� Preah Vihear–Stung Treng Section (Road No. 66)

Not available Funding being sought

�� #�� Rattanakiri Section (Road No. 66)

Not available Funding from the Cambodia and Viet Nam governments

�� &� '�� class 4 to class 3 road from Cambodia –Viet Nam border at Pleiku to Quy Nhon

120.0 Funding from Government of Viet Nam


�� 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



Program/Project


1.1.2 Rail

�� Cambodia (600 km for rehabilitation; 48 km for reconstruction)

73.0 Funding from ADB, OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development, governments of Cambodia and Malaysia

�� Phnom Penh to Viet Nam border at Loc Ninh (254 km) and from Loc Ninh to Ho Chi Minh City (129 km)

75.0 (Viet Nam)

Not available (Cambodia)

Financing sources to be identified

1.1.3 Water transport

�� improvements on the Mekong River and for access to the port in Siem Reap; development of intermodal terminal at Khone Falls

To be determined

Funding from Japan Bank for International Cooperation

�� #�� Not available Funding from Government of Thailand

�� *�� |�� of C and D container terminals

Not available

1.1.4 Air transport

�� ~�� Sihanoukville Airport

To be determined

�� Treng airports in Cambodia

6.0 Part of ADB-funded Mekong Tourism Development Project (loan of $15.6 million to Cambodia covering four components)

1.2 Power

�� #�� >��&��' link between Kampot and Sihanoukville

52.4 Funding from ADB and Japan Bank for International Cooperation

�� #�� Tay Ninh in Viet Nam to Kompongcham and Kratie in Cambodia, including two 115 kV power stations

Not available Possible funding from the World Bank and Electricité du Cambodge

�� #�� Ban Hat in the Lao People’s Democratic Republic (PDR) to Stung Treng in Cambodia

Not available Possible financing from the World Bank, Electricité du Cambodge, and Electricité du Lao

�� \�� Nhon Trach 4 Combined Cycle Power Project (720 megawatts [MW])

450.0 Financing being sought

Appendix D: continued



Program/Project


�� |��{��|�� (200 MW), including 220 kV transmission line to Stung Treng and Viet Nam border where it interconnects with Viet Nam grid

400.0 Financing being sought

1.3 Telecommunications

�� ?�� (GMS) Information Superhighway Network Phase 2, Thailand– Cambodia component: expansion of fiber-optic network at Aranyaprathet–Poipet border checkpoint from 12- to 24-core

10.0 Funding from Government of Thailand; estimate for the Cambodia–Thailand component

1.4 Border facilities

Central Subcorridor

�� ~�� border facilities at the Aranyaprathet–Poipet crossing between Cambodia and Thailand and in the Bavet–Moc Bai crossing between Cambodia and Thailand

35.0 To be funded partly from proposed Corridor Town Development projects I and II, in ADB pipeline for 2011 and 2012, respectively. Cost indicated is net of assumed cost of water and sanitation

Intercorridor link

�� >�� facilities at Na Nuk Kien (Lao PDR)– Tra Piy Kan (Cambodia), linking National Road No. 7 in Cambodia to National Road No. 13 in the Lao PDR

Not available Ongoing

2.1 Trade and transport facilitation

�� of the cross-border transport agreement, especially facilitation of exchange of traffic rights and modernization of border management (includes information dissemination; simplification, harmonization, and rationalization of forms and procedures; border- crossing facility improvements)

5.0 For all economic corridors

�� #�� implementing cross-border transport agreement and trade facilitation initiatives


�� > window inspection, risk management, use of information technology, and handling of transit trade





Program/Project


�� phytosanitary requirements in GMS cross-border trade (Cambodia, the Lao PDR, and Viet Nam)

0.8 Project preparation for all economic corridors; ADB pipeline includes the Improved Sanitary–Phytosanitary Handling in GMS Cross-Border Trade project, in 2011 (loan/grant of $15 million each for Cambodia and the Lao PDR, and $30 million for Viet Nam)

�� markets or distribution centers in major border areas to facilitate and support trading activities

To be determined

�� <�� arrangements for financial settlement covering cross border trade in the North–South Economic Corridor

To be determined

�� regular monitoring and reporting of cross-border trade in the Southern Economic Corridor (SEC)

0.05 Source to be determined

2.2 Investment promotion

2.2.1 SEC-wide investment promotion and facilitation

�� within SEC countries and road shows in major foreign business centers


�� !��}�� trade fairs


�� procedures in SEC areas


2.2.2 Business information

�� policies and regulations, including procedures for investment approval in SEC areas


�� |�� business opportunities in SEC areas


�� |�� directory, providing names and addresses of manufacturers, traders, tourist operators, and service providers in SEC areas together with the products and services they offer





Program/Project


�� providing basic information on the SEC with hyperlinks to GMS and GMS Business Forum websites


2.2.3 Promotion of investment in priority sectors/subsectors

Agriculture

�� |�� Energy for Cambodia, the Lao PDR, and Viet Nam

50.0 Included in ADB’s pipeline for 2010; project preparatory technical assistance (PPTA) approved in 2008

�� |�� > border contract farming


�� |��^�� of cash crops (castor bean, maize, potato, sesame, soybean) in selected SEC provinces (Battambang, Kampot, Koh Kong, Pursat)

Not available Ayeyawaddy–Chao Phraya–Mekong Economic Cooperation Strategy project

Logistics

�� #�� development project

0.8 Project preparation for all economic corridors; project included in ADB’s indicative pipeline for 2011 ($63 million)

�� ?�� information platform


�� the logistics industry in the SEC


�� investment in the logistics industry in SEC countries


�� ?��\�� Transport Association


Tourism

�� marketing program focusing on SEC tourist destinations

5.0 Mekong Tourism Coordination Office and other sources

�� |�� improve existing and develop new tourist destinations and facilities in SEC areas, including hotels, rest areas, and tourism information centers

47.1 Funded under ongoing ADB loan




Program/Project


�� of access roads to major tourist destinations in SEC areas

10.0 Proposed under ADB loan/grant pipeline in 2009

�� on single GMS visa scheme between Cambodia and Thailand

5.0 Ayeyawaddy–Chao Phraya–Mekong Economic Cooperation Strategy project

�� ?��#�� Project covering Cambodia, the Lao PDR, and Viet Nam

14.9 Funded under ongoing ADB project

�� #�� Project (Cambodia, the Lao PDR, and Viet Nam)

23.0 Funded under ongoing ADB project

�� Triangle” Tourism Zone (Cambodia, the Lao PDR, and Thailand)

10.6 Funding requested from United Nations Development Programme/World Trade Organization

�� infrastructure along the Southern Coastal Subcorridor and Sihanoukville

80.0 Koh Kong, $62.8 million; Sihanoukville, $17.2 million; financing being sought

�� #�� Triangle” (Cambodia–Lao PDR– Viet Nam Development Triangle)

Not available Partially supported by ongoing ADB-funded Mekong Tourism Development Project

Special economic zones and industrial clusters

�� zones in border areas, and joint development of border economic zones

91.2 For Poipet ($91.2m); financing being sought

�� management, and marketing of existing and planned industrial estates and special economic zones in the SEC


�� |�� 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)


�� cross-border supply chains involving agriculture and small and medium- sized enterprises in SEC areas





Program/Project


3.1 Environmental Concerns

�� of the SEC


�� environmental assessment, Biodiversity Conservation Initiative, and Environmental Performance Assessment, including cumulative impact assessment and spatial planning in the SEC

0.5 Ongoing under Environment Operations Center

�� ?�� Corridor Initiative, Phase II (Cambodia, the Lao PDR, Thailand, and Viet Nam)

17.0 Included in ADB’s pipeline for nonlending services for 2011

�� ?�� Corridors for Poverty Reduction and Watershed Protection (Cambodia, the Lao PDR, and Viet Nam)

130.0 Included in ADB pipeline for 2010

�� change–related risks (the Lao PDR and Viet Nam)

9.9 Ongoing under Environment Operations Center

�� ?�� management and mitigation (Cambodia, the Lao PDR, and Viet Nam)

130.0 Included in ADB’s pipeline for 2010

3.2 Social Concerns

�� Project (Phase I) (Cambodia, the Lao PDR, and Viet Nam)

39.7 Ongoing under ADB-funded project

�� Project (Phase II) (Cambodia, the Lao PDR, and Viet Nam)

41.5 Included in ADB pipeline for 2010

�� {��<��|�� Infrastructure Sector (Cambodia, the Lao PDR, and Viet Nam)

1.15 Ongoing with support from ADB and Government of Sweden

�� ?��{��<�� infrastructure projects in GMS economic corridors (Cambodia, the Lao PDR, and Viet Nam)

6.0 Ongoing with funding from Government of Australia

�� safe migration concerns for women and children into regional cooperation

0.40 Assumed share of GMS in total project cost




Program/Project


�� locations along GMS economic corridors

0.01 Funded under an ongoing ADB regional technical assistance (RETA 7275); assumed share of SEC countries

�� for the mutual recognition of technical and vocational skills in GMS

0.2 Funded under an ongoing ADB RETA (7275); assumed share of SEC countries

�� ?� 0.2 Funded under an ongoing ADB RETA (7275); assumed share of SEC countries

�� contract for technically skilled migrant workers in GMS

0.02 Funded under an ongoing ADB RETA (7275); assumed share of SEC countries

�� #�� competencies; basic tourism skills; agro-industry management, including marketing; and small and medium-sized enterprise management and financing

To be determined

�� vocational training institutes in SEC areas, including conduct of exchange programs

To be determined

�� (Cambodia, the Lao PDR, and Viet Nam)

25.0 Subsumed under the proposed GMS Corridor Towns Development projects I and II in ADB loan pipeline for 2011 and 2012, respectively

4.1 Private Sector Participation and Public–Private Sector Collaboration

�� |�� provincial chambers of commerce and industry in the SEC, initially among those in the border provinces


�� interaction, exchange of information, and coordination between the public and private sectors on SEC issues and concerns


�� |�� support for small and medium-sized enterprises in SEC areas

0.3 Study and piloting. Source to be determined




Program/Project


�� ?�� 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


�� |�� private sector on possible sources of financing for commercial and infrastructure projects



Bibliography

Abonyi, G. 2006. Linking Greater Mekong Subregion Enterprises to International Markets: The Role of Global Value Chains, International Production Networks and Enterprise Clusters. Studies in Trade and Investment, 59. Bangkok: Economic and Social Commission for Asia and the Pacific.

Asian Development Bank (ADB). 2002. Building on Success: A Strategic Framework for the Next Ten Years of the Greater Mekong Subregion Economic Cooperation Program. Manila.

———. 2004a. The GMS Beyond Borders: Regional Cooperation Strategy and Program (2004–2008). Manila.

———. 2004b. The Mekong Region: An Economic Overview. Manila.

———. 2005. The Greater Mekong Subregion Tourism Sector Strategy. Manila.

———. 2006a. The GMS Beyond Borders: Regional Cooperation Strategy and Program Update (2007–2009). Manila.

———. 2006b. GMS Transport Sector Strategy Study. Manila.

———. 2007a. The Mekong Region: Trade Trends, Patterns, and Policies. Manila.

———. 2007b. Midterm Review of the Greater Mekong Subregion Strategic Framework 2002–2012. Manila.

———. 2008. Regional Cooperation Business Plan: Greater Mekong Subregion (2009–2011). Manila.

———. 2009a. Asian Development Outlook 2009. Manila.

———. 2009b. East–West Economic Corridor Strategy and Action Plan. Draft report. Manila.

———. 2009c. The Economics of Climate Change in Southeast Asia: A Regional Review. Manila.

———. 2009d. Final Report: Ho Chi Minh City Adaptation to Climate Change. Manila.

———. 2009e. GMS Southern Economic Corridor: The Cambodian Component. Draft report. Manila.

———. 2009f. GMS Southern Economic Corridor: The Lao PDR Component. Draft report. Manila.

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———. 2009g. GMS Southern Economic Corridor: Profile, Potential, and Opportunities for Cooperation. Draft report. Manila.

———. 2009h. GMS Southern Economic Corridor: The Viet Nam Component. Draft report. Manila.

———. 2009i. Strategy and Work Program for Transport and Trade Facilitation in the Greater Mekong Subregion. Draft paper presented at the regional workshop on the subject, Bangkok, Thailand, 3–4 June.

———. 2009j. Toward Sustainable and Balanced Development: A Strategy and Action Plan for the GMS North–South Economic Corridor. Draft report. Manila.

Asian Development Bank Institute. 2006. Mekong Region: Foreign Direct Investment. Tokyo.

Bank Information Center. Undated. Whose Development Is It Anyway?: Analysis of Civil Society Engagement with the Multilateral Development Banks in Mekong/SE Asia. Washington, DC: Bank Information Center.

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———. Evaluating the Effectiveness of GMS Economic Corridors: Why Is There More Focus on the Bangkok–Hanoi Road than the East–West Corridor? Discussion Paper No. 123. Chiba, Japan: IDE.

Kammeier, D.H., J. Guimaraes, and R. Mallon. 2006. The Dynamics of Rural, Urban and Regional Linkages: Development Trends and Prospects in the Greater Mekong Subregion. Manila: ADB.

Krainara, C. 2008. Cross-Border Trade and Commerce in Thailand: Policy Implications for Establishing Special Border Economic Zones. PhD dissertation, Asian Institute of Technology, Bangkok, Thailand.

Kumagai, S., T. Gokan, I. Isono, and S. Keola. 2008. The IDE Geographical Simulation Model: Predicting the Long-Term Effects of Infrastructure Development Projects. Discussion Paper No. 159. Chiba, Japan: IDE.

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———. 2008. Development of Border Economic Zones in Thailand: Expansion of Border Trade and Formation of Border Economic Zones. Discussion Paper No. 153. Chiba, Japan: IDE.

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Web Resources

www.adb.orgwww.adb.org/gmswww.aseansec.orgwww.exploremekong.orgwww.gms-ain.orgwww.gmsbizforum.comwww.gms-eoc.orgwww.gmslogistics.orgwww.mekongtourism.orgwww.visit-mekong.com

Sharing Growth and Prosperity: Strategy and Action Plan for the Greater Mekong Subregion Southern Economic Corridor

The Southern Economic Corridor (SEC), one of the priority economic corridors under the Greater Mekong Subregion (GMS) Economic Cooperation Program, was designated as a GMS flagship initiative in 2002. Efforts have been taken since then to develop SEC but these were pursued mainly on a project-by-project basis. A series of consultations in SEC countries were conducted from the third quarter of 2008 to initiate a holistic approach to the development of SEC. The strategy and action plan for SEC is the product of these and subsequent consultations with government officials, representatives of the private sector, and other stakeholders in these countries. Besides providing a vision and framework for developing SEC, this strategy and action plan is aimed at improving coordination, ensuring effective implementation, and helping the mobilization of resources and the broadening of support for SEC development. The second GMS Economic Corridors Forum which was held in Phnom Penh, Cambodia on 17 September 2009 discussed and generally agreed with the directions set forth in this strategy and action plan for SEC development.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.orgISBN 978-92-9092-054-0 Publication Stock No. RPT101729 Printed in the Philippines

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