Presentation is loading. Please wait.

Presentation is loading. Please wait.

GMS Economic Corridor Development and Trade

Similar presentations

Presentation on theme: "GMS Economic Corridor Development and Trade"— Presentation transcript:

1 GMS Economic Corridor Development and Trade
By Arjun Goswami Director, Regional Cooperation and Operations Coordination Division, Southeast Asia Department Asian Development Bank

2 Presentation Outline 1. GMS in a Nutshell
2. The Economic Corridor Approach 3. The Hard Infrastructure Component and Investments Impact of Corridor Development 4. The EWEC: the first GMS economic corridor 5. The Trade Impact of the EWEC 6. 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 Nam Strategic Priorities: Vision – a more integrated, prosperous, and harmonious subregion “3Cs” – Connectivity, Competitiveness, Community GMS 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, telecoms Subsequent development requires other investments: Trade and logistics -- logistics facilities and services -- e.g., dry ports/inland container depots, warehouses, border SEZs, inter-modal transport links Urban development -- utilities (urban water supply, power distribution, ICT), urban sanitation facilities, urban mass transport Others – 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 Bridge With assistance from the Royal Thai Government JBIC-assisted Hai Van Tunnel Construction and Da Nang Port Improvement

8 Average Annual Growth Rate of Exports 2000-2009 (in %)
Lao PDR Myanmar Thailand Vietnam GMS World NA 22.44 12.88 18.01 13.16 30.13 46.35 27.37 15.90 17.58 13.28 20.99 20.18 9.24 11.11 24.47 15.72 12.50 16.46  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 hrs New buildings, service and other commercial facilities along Route 9 FDI: increased from US$18M to US$200M New income/livelihood opportunities for villagers Improved access to schools and safe water Poverty 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

Download ppt "GMS Economic Corridor Development and Trade"

Similar presentations

Ads by Google