towards region wide connectivity greater mekong sub …...commitments in national development plans...

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2 nd Ministerial Conference on Regional Economic Cooperation and Integration United Nation Conference Center, Bangkok, Thailand 2124 November 2017 Towards Regionwide Connectivity in the Greater Mekong SubRegion (GMS) MR. OUDET SOUVANNAVONG CHAIRMAN OF THE GMS BUSINESS COUNCIL (GMS BC) PRESIDENT LAO NATIONAL CHAMBER OF COMMERCE AND INDUSTRY (LNCCI)

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Page 1: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

2nd Ministerial Conference on Regional Economic Cooperation and IntegrationUnited Nation Conference Center, Bangkok, Thailand

21‐24 November 2017

Towards Region‐wide Connectivity in the Greater Mekong Sub‐Region (GMS)

MR.  OUDET  SOUVANNAVONG

CHAIRMAN  OF  THE  GMS  BUSINESS  COUNCIL   (GMS ‐BC)PRES IDENT  LAO  NATIONAL  CHAMBER  OF  COMMERCE  AND   INDUSTRY   ( LNCCI )

Page 2: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

GMS Business Council (GMS-BC)

Established in October 2000, GMS‐BF is a private sector organization formed by National CCIs of six GMS countries and of corporate multinational enterprises operating in the GMS.

Its role is to provide needed private sector‐related products and services to facilitate the implementation of the GMS Economic Cooperation Program (ECP) , which actions is specified in the GMS Strategic Frameworks.

Its strategic focus and scope is to contribute to the effective implementation of the ECP through the involvement of the private sector in program activities and investment.

The GMS‐BF has been up‐graded to a GMS Business Council at the 4th GMS Summit  in  2015 in Thailand.

The GMS‐BC reports to the GMS Economic Corridor Forum (ECF) and the GMS Ministers’ Meeting annually.

The GMS‐BC is mandated to organize the GMS Business and Investment Conference and report the results to the GMS leaders at the GMS Summit 

Page 3: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

CambodiaLand area: 181, 035 sq kmPopulation: 15.1 MGDP per capita: US$ 1,042

MyanmarLand area: 676,577 sq kmPopulation: 51.5 MGDP per capita: US$ 964

Viet NamLand area: 330,972 sq kmPopulation: 90.7  MGDP per capita: US$ 1,895

Lao PDRLand area: 236,800 sq kmPopulation: 6,8 MGDP per capita: US$ 1,512

THE GREATER MEKONG SUB-REGION

ThailandLand area: 676,577 sq kmPopulation: 67.0 MGDP per capita: US$ 6,005

QuangxiLand area: 91,390 sq kmPopulation: 47.5  MGDP per capita: US$ 5,134

YunnanLand area: 152,124 sq kmPopulation: 47.1  MGDP per capita: US$ 4,230

GMSLand area:2,508,934 sq kmPopulation: 325.8 MGDP per capita: US$ 1,500

Source: ADB Statistics

Page 4: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

Vision and Goals 2013‐2022GMS Strategic Framework 2012‐2022 ◦ Substantial progress to future global and regional trends. ◦ Commitments in national development plans to the promotion of Regional and Global Integration.

◦ A greater integration within ASEAN and the Asia Region. 

GMS countries envision a Mekong Sub‐region that is more integrated, prosperous, and equitable1) an enabling policy environment and effective infrastructure 

linkages that will facilitate cross‐border trade, investment, tourism, and other forms of economic cooperation; 

2) the development of human resources and skills competencies. 

Environment and Social Interests will be fully respected in the formulation and implementation of the GMS Program. 

GDP Growth

FDI Growth

Page 5: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

Outreaching IssuesGMS, which comprises of five ASEAN Countries and two provinces in Southern China, has experienced impressive economic growth and development in recent years. 

During the past decade, the GMS road network has expanded by more than 200,000 km, and inland road freight has increased by two to three tiers. In the GMS Regional Investment Framework (RIF), more than 50 transport infrastructure projects (86% of total investment) has been identified with a value of 30 Billions US Dollars. 

Despite these progress and advances, remaining barriers to trade and transport continue to hamper the Sub‐region’s full economic potential.

The global business and economic landscape is transforming. at digital speed. The digital industry revolution is impacting on global and regional supply chains, and has enhanced the need for more efficient cross‐border facilities and services. 

The economic eco‐system is disruptive to traditional business thus hardly impact on the doing business of SMEs and MSMEs. There is a need to create more private sector led platforms to address the challenges.

Page 6: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

Sector Priorities1) Developing the Major GMS corridors as 

Economic Corridors;2) Strengthening transport linkages, 

particularly roads and railways; 3) Developing an integrated approach to 

deliver sustainable, secure, and competitive energy; 

4) Improving telecommunication linkages and ICT applications; 

5) Developing and promoting tourism in the Mekong as a single destination; 

6) Promoting competitive, climate‐friendly, and sustainable agriculture; 

7) Enhancing environmental performance;8) Supporting HRD initiatives that facilitate 

the process of GMS integration.

Page 7: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

Support Regional Connectivity ‐GMS Railways Network

Page 8: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

Support Regional Connectivity Initiatives

Marine Roll On Roll Off (RoRo)

Page 9: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

GMS Corridor Development – Trade & Transport Facilitation

Transport Facilitation:• Expanding and streamlining exchange of traffic rights arrangements; • Improving the Customs Transit System (CTS);• Accelerating infrastructure construction and improved procedures at border posts; • Pursuing the establishment of the GMS Freight Transporters’ Association (FRETA);• Strengthening the road transport industry; 

Trade facilitation:• Enhancing coordinated border management and aligning these to the ASEAN TTF measures, • Enhancing the sanitary and phyto‐sanitary regime for GMS trade, • Strengthening national and sub‐regional institutions for trade facilitation, and • Developing an effective regional trade logistics strategy; and • Capacity building and improving the legal and regulatory framework for TTF. 

Page 10: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

GMS Freight Transport Association (GMS‐FRETA)

Facilitate the implementation of the 

CBTA

Facilitate the implementation of the 

CBTA

Reduce the costs of logistics

Reduce the costs of logistics

Facilitate the free circulation of 

qualified/standardized vehicles

Facilitate the free circulation of 

qualified/standardized vehicles

Capacity building and certifying of transport enterprises, managers 

and truck drivers

Capacity building and certifying of transport enterprises, managers 

and truck drivers

Access to finance for the transport industryAccess to finance for the transport industry

Trade and transport data base for monitoring 

Trade and transport data base for monitoring 

Development of multimodal transport

Development of multimodal transport

Exchange of truck head and trailers.

Exchange of truck head and trailers.

Page 11: Towards Region wide Connectivity Greater Mekong Sub …...Commitments in national development plans to the promotion of Regional and Global Integration. ... In the GMS Regional Investment

GMS FRETA Essential Practical Measures

Border Operating hours:Time to be minimum 12 hrs. / 7 days a week in all major borders in the GMS Economic Corridors. This concerns CIQ and other related operations. 

Mutual recognition of trailers on all Economic Corridors:Truck trailers to be swapped at borders and pulled by home country truck units. This will apply on Trailers passport will need to be issued as for the vehicle passport. 

Rationalization of Maritime Container Trucking Operation:Maritime containers running between Thailand and Laos may only carry cargo in one direction thus automatically incur 50% empty running. An agreement is to be brokered between shipping lines, customs authorities and transport associations to allow round trip loading. 

Harmonization and mutual recognition of industry standards:• Develop compendium/comparison of truck and driver regulations and standards in each country

• Recommendation  for upgrading transport industry standards, including green freight standards

Recognition of all documents transferred by electronic means: In many borders hard copies of clearance documents to authorities are still required. Allowing recognition of electronic transferred documents will speed up clearance and remove the need of unnecessary long distance journeys.

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GMS‐FRETA Recent Initiatives

GMS‐FRETA by the Myanmar International Federation of Freight Transport Association (MIFFA) and the Thai Board of Trade (Logistic Chapter) successfully negotiated the exchange of truck head and trailers from Mae Sot –Myawaddy (Thailand‐Myanmar border) to Thilawa SEZ in Yangon.“The pilot project illustrates that trailer swapping at Mae Sot‐Myawaddy border is one effective intermediate solution for border logistics”. The Myanmar Times – 29 August 2017.

Training of Transport Operators and Truck Drivers in cooperation with the Mekong Institute (MI) supported by the EU Switch Program –GiZ to strengthen the capacity of transport operators and truck drivers. 

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National Transformation & Regional Logistics Strategy to Address Challenges

Integration of Cargo Flow • Development of Logistics Hub• Improvement of Major Logistics Routes• Improvement of Transport Efficiency• Provision of value added services at logistics hubs 

Business Stimulation • Attraction of Foreign Logistics Business• Strengthening of Domestic Logistics Business • Strengthening of Logistics Administration 

Market Expansion • Facilitation of GMS CBTA• More Improvement of Cross Border Procedures • Liberalization of Logistics Market• Fulfilment and operationalizing mandates of CBTA which today is partial with focus on ASEAN Single Window via National Single Windows and Single Stops 

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Private Sector Led Platform ‐Multimodal Trans‐shipment Hub (MTH) & Logistic Digital Market Place Physical Asset ‐MTH: movement of assets, e.g. trucks, containers, handling the movement of shipment goods in the region. Includes Dry Port as part of MTH. 

Digital Market Place ‐ e‐Cargo Commerce: Real‐time Exchange of Data E.g. multi‐modal transporter schedules, shipment notices and Customs declaration. Help resolve imbalances and inefficiencies of empty containers (MTs), back haulage and LCLs. Optimization Capabilities Supply/demand matching for bid/buy/exchange between cargo and transporters based on best‐matched price performance. 

Regulatory Framework – CBTA & ASEAN Single Window Implementation: A government‐approved body empowered and held accountable to operationalize the MTH and e‐cargo commerce platform through trade & transport facilitation and arbitration. 

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GMS‐BC Additional Private Sector Initiatives

Focus on new business advocacy and new economy groups ‐ Young Entrepreneurs and Women Entrepreneurs to share opportunities to develop the platforms for the 8 sectors specified in the GMS Strategic Framework.• GMS‐BC will organize its first Young Entrepreneur Forum in 2018

01

Platforms for Private Sector Development • Access to Market Platform‐ information sharing in all the GMS countries. A platform to support the access to knowledge and technology to accelerate development;

• Mentorship Platform to support the access to talent, and to make it easier for people to move among the region;

• Money & Capital Access and to initiate B2B on finance technology

02

HRD and capacity building of the private sector ‐ work with Mekong Institute (MI) for strengthening cross border transport and logistic under GMS‐FRETA.• GMS‐BC and MI agreed to work together to develop a GMC Cross‐Border data base for commerce, logistic and finance.

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GMS Business Council – SecretariatLNCCI Building, Kaysone Phomvihane AvenueSaysettha District, Vientiane Capital, Lao PDR

email: secretariat@gms‐bc.orgwww.gmsbizforum.com

GMS-BCGMS BUSINESS COUNCIL

THANK YOU!