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Trade and Investment Opportunities and Potentials along the EWEC

Trade and Investment Opportunities and Potentials along the EWEC. Rattanatay Luanglatbandith Regional Economist Asian Development Bank, Thailand Resident Mission

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Trade and Investment Opportunities and Potentials along the EWEC

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  1. Trade and Investment Opportunities and Potentials along the EWEC RattanatayLuanglatbandith Regional Economist Asian Development Bank, Thailand Resident Mission Executive Seminar on Business Opportunities and Development Potentials of East-West Economic Corridor (EWEC): with the Opening of the Third Thai-Lao Friendship Bridge 10 – 11 November 2011

  2. East-West Economic Corridor

  3. The Economic Corridor Approach Economic Corridor Strategy and Action Plans Hardware aspect: Infrastructure Software Aspect: Transport and Trade facilitation Economic Corridor Forum

  4. The Economic Corridor Approach Infrastructure is developed in specific geographical areas based on economic potential. Usually starts with transport links, but extends to other infrastructure as well as the “software” for their optimal use. Some Characteristics of Economic Corridors: • Create links to major markets; • With nodal points – centers of enterprise development; • Extend the benefits of improved transport linkages to remote locations and integrates them with more prosperous areas; • Open up investment opportunities; • Promote synergies through the clustering of projects; • Provide demonstration effects.

  5. EWEC Strategy and Action Plan (1) Strategic Goals • Enhance connectivity • Capacity development • Empower private sector • Reduce poverty Guiding Principles • Practicality, focus, sustainability • Poverty alleviation • Public-private partnership

  6. EWEC Strategy and Action Plan (2) Strategic initiatives: • Infrastructure/Transport & Trade Facilitation • Trade & Investment • Tourism • Agriculture & Agro-Industry • Private Sector Development • Social and Environmental Dimensions

  7. EWEC Connectivity: Huge Trade and Investment Potentials EWEC connectivity – linked to R 13 and R12 Central Corridor and then Eastern section of NSEC that links to Hanoi, Haiphong and Nanning EWEC – R13 linked to Central Southern Economic Corridor (SEC) and Hochi Minh City EWEC – linked to Dawei port in Myanmar EWEC –linked to SEC to Bangkok and Phnom Penh and Hochi Minh

  8. EWEC – Great potential Value chains Corridor – Expansion of Production networks thru better connectivity. Potential investment in automobile (2 and 4 wheels)/auto parts (labor intensive ones).Electric and electronic appliances/related parts.Food processing and wood processing.Textile (apparel/garments)-shift production base to labor and cheaper intensive places.Industrial/construction materials.

  9. EWEC – Great potential for organic agricultural production, especially organic vegetables – regional and global supply chains and value chainsEWEC – linked with other corridors Tourism industries –historical, cultural and ecotourism.

  10. What needs to be done • Physical infrastructure - necessary but not sufficient (soft and hardware) • Accelerate transport and trade facilitation • Development of logistics, including management of supply chains • Improvement of business environment, including development of SEZs, support for SMEs, related services industries and human resource development • National and subregional priorities must be aligned

  11. Thank you

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