Magnet of Mekong Sub-region

Mekong is the longest river in the Southeast Asia, with a length of 4,800 kilometres, and the 12^th largest one in the world, originated from the Tibetan plateau, flowing towards the north – south across the six countries of China, Myanmar, Thailand, Laos, Cambodia and Vietnam. Each year, the water capacity in Mekong River is 475 billion cubic metres, 8^th ranked in the world. More than 100 tributary rivers of all size are flowing into the Mekong.

 

Since the beginning of 1990s of the last century, the trend of cooperation, development and integration has become the major trend promoting the cooperation in the Mekong sub-region. Coalition, economic development, poverty reduction, environmental protection and water resources are the driving force for countries in the basin of the Mekong river to seek for multilateral and bilateral cooperation mechanisms.

The cooperation programme of the Greater Mekong Subregion (GMS) was established in 1992 under the initiative of the Development Bank of Asia (ADB). Initially, GMS included countries lied in the basin of the Mekong River, Vietnam, Laos, Cambodia, Thailand, Myanmar and Yunnan Province of China. In 2004, the province of Guangxi of China was added into the GMS.

The cooperation programme aims to promote economic growth, sustainable development, poverty reduction, improving people's living standard in the basin of the Mekong River. Countries in the region have reached a cooperation agreement in development of transport infrastructure, agriculture, industry, energy, telecommunications, creating favourable conditions to stimulate the development of trade, tourism and human resource training ...

 

The cooperation in developing transport infrastructure has beeen given priority. The region has set up three main economic corridors, including East - West Economic Corridor (EWEC) of 1,450 kilometres in length, starting from Mawlamyine port city (Myanmar) running through Thailand and provinces of Savanakhet (Laos), Quang Tri, Thua Thien - Hue, Da Nang (Vietnam). In early 2007, with the completion of the second international bridge over Mekong River, the road transport of the EWEC had been improved and EWEC became first corridor to go into operation in the Mekong Sub-region.

 

The second corridor is North-South Economic Corridor (NSEC), including three routes along the axis of north – south: the Kunming - Chieng Rai - Bangkok, Kunming - Hanoi - Hai Phong, and Nanning- Hanoi. The NSEC corridor is expected to be completed by 2010.

 

The third is South Economic Corridor (SEC), including three road routes linking the southern Thailand through Cambodia to Vietnam. As planned, the southern corridor is expected to go into operation from 2010 - 2012.

 

In 2007, GMS passed the transport development strategy in Sub-mekong Region in the period of 2006 -2015, re-adjusting the planning of economic corridors in the sub-region into nine corridors to open linking routes of the three previous main corridors and open more new routes in the west linking Sub-Mekong region with India. In addition to the current three gateways to the eastern sea, including Ho Chi Minh CIty, Hai Phong and Danang, the planning will also open two more new gateways in Vietnam, Thanh Hoa and Quy Nhon.

 

Recently, GMS3 conference in Vientiane (Laos) in March, 2008 with the theme "Enhancing competitiveness through cooperation promotion", member countries had re-affirmed the cooperation in infrastructure (transport, energy and telecommunication) development as the focus of the cooperation programme of the cooperation programme, and the foundation for implementing the connection of resources, human, thereby enhancing the competitiveness of each economy and the whole sub-region.

The six major topics discussed at the conference included Strengthening transport connection; Facilitating trade and transport; Cooperation between state and private sectors to enhance trade and investment in GMS; Training human resources to raise the competitiveness; and GMS Cooperation and development.

Attending the GMS 3 conference, the senior delegation of the Government of Vietnam led by Prime Minister Nguyen Tan Dung continued to affirm the strong determination of Vietnam in strengthening cooperation and deepening economic integration in the sub-region, promoting cooperation for sustainable development, striving to gradually improve the socio-economic infrastructure in provinces along the corridors of the GMS such as East – West Economic Corridor, North - South Economic Corridor.

GMS BF has functions of providing private services and products to support economic cooperation and development programmes among countries in the GMS region and other related initiatives, supporting the development of the region through activities and human resources of the private sector. GMS BF has cooperated with associations of enterprises in member countries and regional private sector, with the main donors such as ADB, UNESCAP, executive representatives to implement operation programmes of enterprises in member countries, aiming to support multilateral development and bring the GSM to become a region with a strong economic development in the world. The GMS BF focused on supporting the actual needs of enterprises. In Vietnam, GMS BF has been carrying out some projects such as the Road No. 1 of Bangkok - Phnom Penh - Ho Chi Minh City -Vung Tau, upgrading of Kunming – Hanoi Road; the transport corridor of Northeast Thailand - South Lao PDR – Northeast Cambodia – Central Vietnam.

 

Apart from these above assistances, GMS BF has also helped provide the source of information about enterprises from the member countries through providing information on fairs, regional exhibitions, issuance of GMS business manuals. In addition, GMS BF has also promoted business opportunities from countries in the GMS region to the world, introduced and spread information on business opportunities in the region, enhanced the capacity of private organisations such as the Chamber of Commerce and Industry in order to boost cooperation and implement joint initiatives in the sub-region.

 

One of the biggest assistance from the GMS BF is the help for enterprises in the region to build up management capacity, organise training courses on the industry sector with an aim to improving criteria in the region.

 

Although GMS is still a poor region in Southeast Asia in particular and in the Asia in general, with weak infrastructure system and disparity in development level among localities, the region is considered as one of the fastest growing centres. The cooperation in the GMS sub-region is always stimulated by member countries. The Development Bank of Asia (ADB) has played an active role in the coordination, technical assistance and funding. Other donors have also interested and actively involved. The World Bank (WB) is considering the capability of becoming a co-sponsor with ADB in the GMS cooperation.