Presentation on theme: "GMS Economic Corridor Development and Trade"— Presentation transcript:
1 GMS Economic Corridor Development and Trade By Arjun GoswamiDirector, Regional Cooperation and Operations Coordination Division, Southeast Asia DepartmentAsian Development Bank
2 Presentation Outline 1. GMS in a Nutshell 2. The Economic Corridor Approach3. The Hard Infrastructure Component and Investments Impact of Corridor Development4. The EWEC: the first GMS economic corridor5. The Trade Impact of the EWEC6. The Poverty Reduction Impact of the EWEC
3 GMS Program in a Nutshell Participating Countries: Cambodia, People’s Republic of China, Lao PDR, Myanmar, Thailand, and Viet NamStrategic Priorities:Vision – a more integrated, prosperous, and harmonious subregion“3Cs” – Connectivity, Competitiveness, CommunityGMS projects – totaled $14 billion as of end-2010
4 The Economic Corridor Approach Infrastructure is developed in specific geographical areas based on economic potential.Successful economic corridors serve as:Links to major markets/corridor nodal points;Arteries of trade, open opportunities for participation in regional and global value chains;Catalyze private investment;Provide demonstration effects;Extend connectivity to remote locations.
6 Corridor development over time First round of corridor investments: building the infrastructure base – mainly transport (bulk of GMS projects so far), then extends to other basic infra, e.g., power, telecomsSubsequent development requires other investments:Trade and logistics -- logistics facilities and services -- e.g., dry ports/inland container depots, warehouses, border SEZs, inter-modal transport linksUrban development -- utilities (urban water supply, power distribution, ICT), urban sanitation facilities, urban mass transportOthers – investments diversified across sectors in more advanced stages
7 East-West Economic Corridor VIE: East-West Corridor (Lao Bao-Dong Ha)LAO: East-West Corridor (Phin-Dansavanh)JBIC-assisted 2nd Mekong International BridgeWith assistance from the Royal Thai GovernmentJBIC-assisted Hai Van Tunnel Construction and Da Nang Port Improvement
8 Average Annual Growth Rate of Exports 2000-2009 (in %) Lao PDRMyanmarThailandVietnamGMSWorldNA22.4412.8818.0113.1630.1346.3527.3715.9017.5813.2820.9920.189.2411.1124.4715.7212.5016.46 Figures are for the year.Data Source: United Nations Commodity Trade Statistics Database. Growth rates calculated.
9 Export Performance of Thai–Lao EWEC Border Trade, 1997–2008 Source: EWEC Strategy and Action Plan
10 Poverty Reduction Impact of the EWEC Benefits from EWEC for Savannakhet Province, Lao PDR:Travel time and cost savings – e.g., bus trip from border with Viet Nam to Savannakhet reduced from 12 to 3 hrsNew buildings, service and other commercial facilities along Route 9FDI: increased from US$18M to US$200MNew income/livelihood opportunities for villagersImproved access to schools and safe waterPoverty incidence down by 35% in Savannakhet
11 Thank You For more information: on the GMS Program – visit On the midterm review of the GMS strategy – visit