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