National level coordination and stakeholder consultation mechanisms for regional cooperation and integration in GMS countries: Case Study of Lao PDR

Transcription

1 National level coordination and stakeholder consultation mechanisms for regional cooperation and integration in GMS countries: Case Study of Lao PDR Mr. Xaysomphet Norasignh ARTNeT Consultative Meeting on Bridging the Development Gaps in the GMS Centre for Analysis and Forecasting Hanoi, 1 2 June 2009

2 Contents 1. Introduction 2. Stakeholders in regional integration 3. Stakeholders in Transport and Trade Facilitation (CBTA and Economic Corridor) 4. Stakeholder Analysis of CBTA and Economic Corridors 5. Constructive suggestions on stakeholder involvement in regional integration

3 1. Introduction The objectives of the study are: Identifying the involvement of stakeholders in the GMS regional cooperation and the integration process Summarizing the keys finding and giving the recommendation along with action that needed to be taken in the future in order to improve the cooperation among stakeholders and to better enhance the regional cooperation especially in GMS integration;

4 1. Introduction Cooperation and Integration of Lao PDR with GMS countries GMS regional integration is one of the economic cooperation among 6 countries namely Cambodia, Laos, Myanmar, Thailand, Viet Nam, and Yunnan (PR China).

5 Country and regional integration Regional cooperation Programme Establishment years National Focal points/ministries Responsible departments/division ACMECS Lao-Thai, Lao-Vietnam, Lao- Myanmar, and Lao-Cambodia 2003 Ministry of Foreign Affair + Ministry of Industry and Commerce Department of Economic (MoFA) + Permanent Secretary Office (MoIC) ASEAN (10 countries and plus 3) 1997 MoFA +MoIC Department of ASEAN (MoFA) + Foreign Trade Policy Department (MoIC) CLMV (CMV more progresses) Recently since 2004 Ministry of Industry and Commerce Foreign Trade Policy Department GMS (6 countries cooperation) 992 Prime Minister Office National Secretariat of GMS MRC 1995 Prime Minister Office Department of Water and Environmental Bilateral cooperation Lao-Thailand (Join Committee Focus on research in economic, tourism, trade and investment Lao-Vietnam all sectors cooperation Lao-China Economic development in northern part of Laos with Yunnan Recently since 2000 Ministry of Industry and Commerce Foreign Trade Policy Department + Permanent Secretary Office Department of Industry and Trade, and Planning and Investment at provincial level (For Yunnan and Northern Part of Lao PDR

6 Bilateral Projects: Lao PDR-Thailand: 11 Projects Code LT 1.1 LT 1.2 LT 1.3 LT 1.4 LT 1.5 LT 1.6 LT 1.7 LT 1.8 LT 1.9 LT 1.10 LT 1.11 Program/project Expansion of the coverage of AISP offered by Thailand. Promotion of trade and investment to the exiting special Economic Zones (Savan-Seno) or industrial estates and border trade zones Review of rules and regulation to facilitation 2 way trade Exchange of investment mission between DDFI and BOI Intensifying exchange of trade and investment fairs in public and private sectors Cooperation between Thai-Laos customs Department Assistance on the production of goods in Laos and market access Feasibility study for the establishment of wholesale markets and distribution centers in Laos PDR and border areas Feasibility study on the implementation of barter trade and account trade system Sister city program: a. Savannakhet-mukdahan b. Ton pheung-chiang Sean c. Houay Sai-Chiang Khong d. Thakhek-Nakhon Phanom e. Pakse-Ubon Ratchatani f. Muang Nguen-Houay Kon (to be considered) g. Vientiane-Nong Khai Increase border checkpoints at Chiang Sean, Xieng kok and Tonpheung (Thai request)

7 Bilateral Projects: Cambodia-Lao PDR: 04 projects Code CL 1.1 CL 1.2 CL 1.3 CL 1.4 Program/project Sister City Program: a. Siem Reap - Pakse b. Stung Treng Champasak c. Preah Vihear Champasak Feasibility study on trade facilitation on border area between Champasak and Stung- treng Improvement of border checkpoints at Champasak (Voeun Kham) Champasak Preah Vihear (To be determined) Strengthening and promoting border trade between Lao PDR and Cambodia Bilateral Projects: Lao PDR-Vietnam: 02 Projects Code LV 1.1 LV 1.2 Program/project Strengthening cooperation in trade promotion Assessing the implementation of the transit Agreement signed

8 Bilateral Projects: Lao PDR-Myanmar: 08 Projects Code LM 1.1 LM 1.2 LM 1.3 LM 1.4 LM 1.5 LM 1.6 LM 1.7 LM 1.8 Program/project Sister City: a. Luang Phabang Mandalay (to be confirmed) b. Tonpheung Wan Pung (to be confirmed) To encourage the promotion of border trade and increase use of Myanmar-Laos currencies for border trade transactions. Facilitate transit shipment of goods to third country Establish contract points to facilitate the exchange of trade information To conduct/participate trade exhibition To conduct market festival at the border area of the two countries To start the operation of border trade at the Won Kyin-Xieng Kok and Won Pon-Mouang Mom border check points. Arrange frequent visits between public and private sectors of both sides

9 2. Stakeholders in regional integration 1. GMS structure in Lao PDR 2. Cooperation among stakeholders

10 2. Stakeholders in regional integration Definition and characteristics of Stakeholders 1. Government/Central government 2. National Secretariat of GMS 3. Line Ministries/ 9 working sectors 4. Local authorities at municipality and provincial level 5. Lao National Chamber of Commerce and Industry (LNCCI) 6. Private sectors/association/entrepreneur 7. ADB and others donors 8. Custom department (both central and at border checkpoints) 9. People at the border location (border traders)

11 1. GMS structure in Lao PDR

12 2. Cooperation among stakeholders 1. Cooperation among NS of GMS and line ministries 2. Cooperation among line ministries on GMS issues 3. Cooperation among central government and line ministries (9 working sectors) 4. Cooperation among central government/working sectors and LNCCI/private sectors 5. Cooperation among NS of GMS and ADB 6. Cooperation among central government and local provincial level 7. Cooperation among NS of GMS and Custom Department 8. Cooperation among Central Government and people at local border

13 3. Stakeholders in Transport and Trade Facilitation (CBTA and Economic Corridor) 1. Genesis of the TTF cooperation Genesis and Implementation Status of CBTA and Economic Corridors Implementation status on NSEC Implementation status on EWEC Implementation status on CBTA

14 3. Stakeholders in Transport and Trade Facilitation (CBTA and Economic Corridor) The North South Economic Corridor (NSEC) covers major routes running from Kunming (PRC) Chai Rai Bangkok via Lao PDR and Myanmar, and from Kunming Ha Noi Hai Phong (Viet Nam). The East West Economic Corridor encompasses a road link about 1,450 kilometers long, running from Mawlamyine (Myanmar) Thailand Lao PDR Da Nang (Viet Nam). The Southern Economic Corridor is defined by three main road sub corridors, running from southern Thailand Cambodia southern Viet Nam.

15 3. Stakeholders in Transport and Trade Facilitation (CBTA and Economic Corridor) 2. Stakeholders in TTF (CBTA and Economic Corridor) Central Government Line ministries, including custom departments/at border checkpoints Government agencies/authorities at local and provincial level Private sectors/business group/association ADB People at border areas

16 The level of Influence, Importance, Interest and Impact of Stakeholders in GMS Program Stakeholder A Central Government / Policy maker level Stakeholder B Line Ministries (9 sectors), Stakeholder C NS of GMS Stakeholder D Local government authority at provincial level Stakeholder E LNCCI and Private sector - Association and Business group Stakeholder F ADB and other concerns partners/donors Stakeholder G Border traders Stakeholder H Custom office at border level INFLUENCE IMPORTANCE INTEREST IMPACT * ** *** **** Highest Highest Highest Highest High High High High High High High High Moderate to high High High High Moderate Moderate Moderate to high High in terms of competition High Highest Highest Low to moderate Low Moderate Low Moderate Moderate Low - Moderate Moderate Moderate

17 4. Stakeholder Analysis of CBTA and Economic Corridors Degree of Influence, Importance, & Interest of Stakeholders Relative to the Genesis and the Implementation of both CBTA and the Economic Corridor Project Cooperation Stakeholders Influence Importance Interest Impact Central Government/ Genesis Highest Highest Highest Highest Implementation Highest Highest Highest Highest MoIC and MPT/NTFC (Line ministries) Local authorities, and custom office ADB Genesis Highest Highest Highest Highest Implementation Highest Highest High Highest Genesis Low-Moderate Highest High Moderate Implementation Highest Highest Highest High Genesis Highest Highest High Highest Implementation Moderate Highest High Highest LNCCI and private sectors Border traders Genesis Low-Moderate Low-Moderate Moderate High Implementation Low-Moderate Moderate-High High High Genesis Low Moderate Low Low Implementation Low Moderate Low Low

18 Degree of Influence, Importance, Interest, and Impact of Stakeholders Relative Importance and Influence Matrix on the Genesis of CBTA and Economic corridor High importance/ High influence High importance/ Low influence A Central Government/ Line Ministries/ADB B Local government at provincial level C LNCCI/Private sector D Local border traders Low importance/ High influence Low importance/ Low influence

19 Degree of Influence, Importance, Interest, and Impact of Stakeholders Relative Importance and Influence Matrix on the Implementation of CBTA and Economic corridor High importance/ High influence A Central Government Line Ministries/Local government at provincial level C LNCCI/Private sector/traders B Donor/ADB High importance/ Low influence D Local border traders Low importance/ High influence Low importance/ Low influence

20 Factors account for stakeholder in Lao PDR of Influence and Importance implementation of CBTA and Economic Corridors The GMS CBTA s implementation is limited domestic and regional inter agency coordination, which require policy dialogues at the local level, to central level. The level of involvement among central and local provincial government sectors and private sectors were limited even though those stakeholders showed high influence and involvement in the regional economic integration. Public awareness activities on trade and transport laws and regulations have not been extensively carried out. Some traders/importers and exporters complain about lengthy, costly and unpredictable procedures.

21 Factors account for stakeholder in Lao PDR of Influence and Importance implementation of CBTA and Economic Corridors Lao international trade and transport services still depend on neighboring countries for accessing to the third countries seaports since Laos is located in the center of among GMS countries; therefore, being able to access to third market, it is a must to use neighboring countries for access to seaports, Certain international transport links have not been upgraded to meet prevailing international standards, due to local financial support was not enough for the construction and maintenance of roads, bridges, ports, warehouses, and etc, Transport industry still lacks of business and technical competence as well as capital to expand the business to foreign countries,

22 5. Constructive suggestions on stakeholder involvement in regional integration Strengthen the capacity of National Secretariat of GMS skill is needed. The organization is new which has been established since 30 October 2006, and there are considering as few people taking responsible for this huge task. Adapting the conflicts between Lao PDR s domestic laws and regulations and the GMS CBTA regulation. In this case, the working group together with GMS countries should put more efforts on adapting those regulations that has burdened conflict with each other as soon as possible by referring to the objective of 3 Cs (Community).

23 5. Constructive suggestions on stakeholder involvement in regional integration Private sectors are limited participating on GMS development program or decision making, especially on cooperation issue. Although government of Lao PDR provides more channels to private sectors to participate in the GMS development program, the participation from private sectors seems to limit on the idea contribution to the government plan, but if they can, the mechanism to provide feedback is still slow. Strengthening the capacity staff and coordination among key stakeholders in trade sectors are needed. Even though there are many tasks were implemented in Lao PDR, the government of Lao PDR also realized that, the needs of providing assistance in developing the capacity of officials in both software and hardware aspect of trade facilitation are also existed.

24 5. Constructive suggestions on stakeholder involvement in regional integration Policy making on regional cooperation should be demand driven from grassroots. On policy making especially regional integration, the government should allow private sectors or more stakeholders to get involve actively. Increase the support on competition capacity to private sectors. More Lao businesspeople sharing the view that they cannot compete with foreign business operators in terms of financial and skill.

25 5. Constructive suggestions on stakeholder involvement in regional integration Securing on the sustainable development especially on financial support to the project development and implementation. The government of Lao PDR should include more donors to the GMS program or create donor trust fund for GMS program economic development. Follow up the implementation on CBTA and SFA TFI regularly. The government could consider setting up special task force on CBTA and SFA TFI to work with NS of GMS in order to keep up with the implementation status.

26 5. Constructive suggestions on stakeholder involvement in regional integration Regularly conduct study pros and cons of cooperation and project initiative in each sector in order to avoid donors driven. The government of Lao PDR should assign NS of GMS to regularly conduct research on the GMS issue, for instance, study pros and cons of cooperation and project initiative in each sector in order to avoid donors driven. Considering private sector as one of key players in terms of setting cooperation policy on GMS issue. Private sector is playing an importance role in economic development in Lao PDR. The NS of GMS should count private sector as working sector and assign private working sector to be part of Trade Facilitation or Transportation.

27 References boder/default.asp Midterm Review of the GMS Strategic Framework, , ADB Ministry of Industry and Commerce, Department of Import and Export, Statistics Division GMS Regional Policy Dialogue, Mekong Institute, Khon Khean, Thailand April 2008 Policy Strategy to Increase GMS Intraregional Trade, ADB Interviewed with Mrs. Keobang A Keola, Director General of NS GMS, Lao PDR, and Mr. Heuan, Deputy Director General, NS GMS, October 08 Poverty Matters Newsletter (Issue 6, December 2007) from the Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies and the Poverty Reduction Fund. Country Strategy and Program Lao PDR ; 2006 ADB Summary of The fifth Meeting of the trade facilitation working group, May 2007, Bangkok, Thailand SUMMARY OF PROCEEDINGS, GREATER MEKONG SUBREGION ECONOMIC COOPERATION PROGRAM, Special Meeting of the Trade Facilitation Working Group, April 2005, ADB Manila, Status Report on the Vientiane Plan of Action for GMS Development, , as of December 2008, Yann Duval (2008), Economic Cooperation and Regional Integration in the Greater Mekong Subregion (GMS, Trade and Investment Division, Staff Working Paper 02/08, 18 September 2008.

28 Thank You