WB Efforts in Trade & Transport WB Efforts in Trade & Transport Facilitation (TTF), all in Support Facilitation (TTF), all in Support

of of GMS Program on TTFGMS Program on TTF

Kazi Matin & Baher El-HifnawiKazi Matin & Baher El-Hifnawi

Workshop on World Bank’s Workshop on World Bank’s Regional Strategy PaperRegional Strategy Paper

Coverage of PresentationCoverage of Presentation

Country level Bank work on TTF in regionCountry level Bank work on TTF in region

Analytical work on regional TTF issues, on Analytical work on regional TTF issues, on contract farming for exports, on finance etccontract farming for exports, on finance etc

Workshops to develop consensus on what more Workshops to develop consensus on what more needed to be done to improve TTFneeded to be done to improve TTF

Work with ADB to support TTF jointly, if neededWork with ADB to support TTF jointly, if needed

TTF is critical to regional integrationTTF is critical to regional integration

Why is TTF important?Why is TTF important?World Bank’s (WB) focused efforts at the country level World Bank’s (WB) focused efforts at the country level

as a first step to effective sub-regional intervention as a first step to effective sub-regional intervention due todue to

– The Large share of GMS countries’ trade outside the sub-region The Large share of GMS countries’ trade outside the sub-region – the need to develop and strengthen national trade facilitation the need to develop and strengthen national trade facilitation

institutions and national coordination of trade and transport activities, institutions and national coordination of trade and transport activities, before doing it at a regional level before doing it at a regional level

……so WB’s strategy has been to engage national so WB’s strategy has been to engage national governments to establish and strengthen trade governments to establish and strengthen trade facilitation institutions and transport infrastructure.facilitation institutions and transport infrastructure.

What is Trade & Transport What is Trade & Transport FacilitationFacilitation

??

World Bank’s Efforts at the Country World Bank’s Efforts at the Country Level (Analysis & Projects)Level (Analysis & Projects)

Analytical work on trade issues, including facilitation in each of Analytical work on trade issues, including facilitation in each of the Mekong countriesthe Mekong countries

The Cambodia Trade Facilitation and Competitiveness Project The Cambodia Trade Facilitation and Competitiveness Project that (approved June 2005).that (approved June 2005).Customs Modernization project in Vietnam (approved October Customs Modernization project in Vietnam (approved October 2005). 2005). The Mekong Transport Infrastructure Development Project in The Mekong Transport Infrastructure Development Project in Vietnam is expected to improve connectivity and access from Vietnam is expected to improve connectivity and access from the Mekong Delta to the main ports in Vietnam as well as to the Mekong Delta to the main ports in Vietnam as well as to facilitate cross-border movements from Phnom Penh port facilitate cross-border movements from Phnom Penh port through to Vietnam (to be approved May 2006).through to Vietnam (to be approved May 2006).Lao PDR Trade Facilitation & Standards Project (Board in late Lao PDR Trade Facilitation & Standards Project (Board in late 2007)2007)

Completed transport corridors Completed transport corridors makes support to sub-regional TTF makes support to sub-regional TTF

timelytimelyADB invited WB to join ongoing GMS’ TTF program by ADB invited WB to join ongoing GMS’ TTF program by carrying out analytical work, & support in other wayscarrying out analytical work, & support in other waysThailand asked WB’s support for its ACMEC’s initiative: Thailand asked WB’s support for its ACMEC’s initiative: analytical work and possibly co-financing of infrastructure analytical work and possibly co-financing of infrastructure and other projects.and other projects.

In response, the WB:In response, the WB:– Carry out some analytical studies in several areas,Carry out some analytical studies in several areas,– participate in GMS Transportation forum, & GMS working groups participate in GMS Transportation forum, & GMS working groups – Work closely with NESDB, ACMECS Business Council, & Thai Work closely with NESDB, ACMECS Business Council, & Thai

chamber of Commerce, & potential Thai investorschamber of Commerce, & potential Thai investors

Interactions with Thai Chamber of Interactions with Thai Chamber of CommerceCommerce

Lao Border-area Thai Chambers to Lao Border-area Thai Chambers to discuss investment option in Lao PDR in discuss investment option in Lao PDR in late 2003late 2003Met Cambodia Border-area Thai Met Cambodia Border-area Thai Chambers to discuss investment options Chambers to discuss investment options in Cambodia in early 2005in Cambodia in early 2005Discussed with GMS & ACMECS Discussed with GMS & ACMECS Business Council on TTF issues 2006Business Council on TTF issues 2006

Interactions with Interested DonorsInteractions with Interested Donors

Work with ADB & its GMS Working gpsWork with ADB & its GMS Working gpsWork with UNESCAPWork with UNESCAPWork with EU’s support to ASEAN on TTFWork with EU’s support to ASEAN on TTFWork with Thai NEDA & TICAWork with Thai NEDA & TICA

Road Corridors linking Mekong Road Corridors linking Mekong Already Constructed Under GMS Already Constructed Under GMS

Source: ADB

Reduce Reduce CostCost (time & financial) of (time & financial) of Cross-Border Movement of ExportsCross-Border Movement of Exports

NS, EW & Southern road Corridors have reduced cost NS, EW & Southern road Corridors have reduced cost in in non-border non-border areas close to Corridors in areas close to Corridors in Lao, Lao, Cambodia, Vietnam & Myanmar;Cambodia, Vietnam & Myanmar;

Further cost-reductionsFurther cost-reductions for Lao, Cambodia, for Lao, Cambodia, Myanmar exports if TTF can be improved i.e. border Myanmar exports if TTF can be improved i.e. border crossing times lowered & made predictable & financial crossing times lowered & made predictable & financial cost of movement loweredcost of movement lowered

Additional cost reductions Additional cost reductions possible for Lao, possible for Lao, Myanmar & Cambodia, only if TTF improvements raise Myanmar & Cambodia, only if TTF improvements raise traffic volume traffic volume between Vietnam & Thailandbetween Vietnam & Thailand as well as as well as between Thailand & Chinabetween Thailand & China

Supporting sub regional TTF through the Supporting sub regional TTF through the GMS, ACMECS and other business councils GMS, ACMECS and other business councils

is now a World Bank Priorityis now a World Bank Priority

WB will continue with its analytical work bringing WB will continue with its analytical work bringing succesful experiences from other parts of the world.succesful experiences from other parts of the world.WB will analyze the different levels of interest in trade WB will analyze the different levels of interest in trade facilitation both across and within countries and work facilitation both across and within countries and work towards raising the awareness of the value of towards raising the awareness of the value of integration.integration.WB will work to raise awareness about actions needed to WB will work to raise awareness about actions needed to reduce TTF costs, as well to help mobilize the private reduce TTF costs, as well to help mobilize the private sector to discuss such actions with their respective sector to discuss such actions with their respective Governments.Governments.The WB, through the IFC, will work to catalyze private The WB, through the IFC, will work to catalyze private investments in the region.investments in the region.

World Bank ready to Co-finance a World Bank ready to Co-finance a TTF project with ADB, if neededTTF project with ADB, if needed

There maybe need for resources to There maybe need for resources to implement:implement:

--GMS Cross Border Transport Agreements--GMS Cross Border Transport Agreements--Develop/ implement customs transit system--Develop/ implement customs transit system--Implement --Implement regionally,regionally, & include Thailand & include Thailand

Thank YouThank You

!!