Towards Enhancing Regional Connectivity: Expanding, Widening, and Deepening Economic Corridors in the GMS Mr. Craig Steffensen Country Director ADB Thailand Resident Mission

Outline New GMS Strategic Framework GMS Corridors Trade and Transport Facilitation (TTF) in GMS Overlap of GMS and Thailand strategies

New GMS SF th GMS Summit, Myanmar, 2011 Anchored on corridor development – widening and deepening Multisector approach Software emphasis (including TTF) Knowledge intensive 3

Roads Telecommunications Power Transmission Line Infrastructure Development in GMS (1992)

Roads Telecommunications Power Transmission Line Infrastructure Development in GMS (2010)

Roads Telecommunications Power Transmission Line Infrastructure Development in GMS (2015 ‒ 2020)

Trade in GMS: Exports (USD bn)

GMS5 trade: Growing regional focus (Share in total GMS5 exports) Intra- GMS5 PRCASEAN5Rest of World Average annual growth of GMS5 exports, %21.2%9.7%9.3% Source: UNCOMTRADE and authors’ estimates. Note: All growth rates are average annual growth rates during

GMS and TTF: Overview About $15 billion invested in GMS since 1992; from ADB, member countries and Development Partners (1/3 each) Transport major sector, about 70% of total investments Early and high-level (Summits, Ministerial) recognition of need to complement increased physical connectivity by improved TTF to develop economic corridors Initial emphasis on the Cross-Border Transport Agreement (CBTA) Action Plan for TTF endorsed by the 16th GMS Ministerial Conference in 2010

ADB Partnerships for TTF Formulation, negotiation and initial implementation of the CBTA supported through series of TAs Action Plan for TTF developed and endorsed by the 16 th GMS Ministerial in Ha Noi in 2010; implementation supported by ongoing AusAID RETA for $6 million $25 million Government of Japan initiative for trade facilitation in Asia (focus: custom modernization); – Implementation being piloted in SE Asia; first project approved May 2012 and a second (for Myanmar) in Oct 2012

Recent Outcomes and Activities (1) Progress in CBTA ratification: Myanmar 15 annexes and protocols; Thailand 14. Remaining in process Establishment of GMS Freight Forwarders and Transporters Association (FRETA), a private-sector platform for TTF Greater recognition of need to align with ASEAN agreements on TTF De-emphasis on transit (GMS Customs Transit System) leading to separation of trade facilitation from transport issues

Recent Outcomes and Activities (2) Extension of the EWEC to GMS capitals (Bangkok, Ha Noi and Vientiane) and deep sea ports (Laem Chabang and Hai Phong); Exchange of traffic rights Aranyaprathet-Poipet (14 June 2012); Agreement on scheduled passenger transport service between Bangkok and Phnom Penh (by 1 August 2012); Protocol for PRC-Viet Nam Bilateral Road Transport Agreement; –Signed on 31 May 2012 and implementation in Q –Trucks and buses will be able to operate on the Kunming ‒ Hekou ‒ Lao Cai ‒ Ha Noi ‒ Hai Phong, and Ha Noi ‒ Friendship Gate ‒ Nanning-Shengzhen route

Overlap of GMS and Thailand Strategies 11 th National Economic and Social Development Plan Strat 4: Restructuring of the economy towards quality growth and sustainability Strat 5: Creation of regional connectivity for social and economic stability Strategies for Reconstruction and Future Development Strat 3: Spatial Development for New Economic Areas Strat 4: Infrastructure Development of 2012‒2020

Thank you!