17th GMS MC Lao PDR Head of Delegation Statement

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The Seventeenth GMS Ministerial ConferencePhnom Penh, Cambodia

4 August 2011Remarks by H.E. Yaseng Lao

AmbassadorEmbassy of Lao People's Democratic Republic

H,E, Mr. Cham Prasidh, Senior Minister and Minister of Commerce of the Kingdom ofCambodia; H.E, Mr. Zhang Shaochun, Vice Minister, Ministry of Finance of the People'sRepublic of China; H.E. U Tin Naing Thein, Union Minister, Ministry of National Planningand Economic Development of the Union of Myanmar; Mr. Arkhom Termpittayapaisith,Secretary General, National Economic and Social Development Board of the Kingdom ofThailand; H,E, Mr. Va Hong Phuc, Minister, Ministry of Planning and Investment of theSocialist Republic of Viet Nam; and Dr, Bindu Lohani, Vice President in-Charge,Operations Group 2 of the Asian Development Bank

Excellencies, Distinguished Participants, Ladies and Gentlemen:

On behalf of the Government of the Lao PDR, [ am honored to participate in this1ih GMS Ministerial meeting being held in beautiful Phnom Penh Capital, Kingdom ofCambodia, as representative of the new GMS Minister for Lao PDR who will benominated soon, Allow me to take this opportunity to congratulate the Government ofCambodia for hosting this important event and thank you for the excellent arrangementsmade and thank the Asian Development Bank for its support.

Mr, Chairman, I recognize that our meeting this year is of particular importance, Aswe are almost at the end of the implementation of the Vientiane Plan of Action for GMSDevelopment (2008-2012) which was endorsed at the yd GMS Summit held in March2008 in Vientiane, Lao PDR, we prepare to take stock of past achievements, where we are


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and where we want to go. This is an important opportunity for us to discuss the new GMSLongTerm Strategic Framework for the decade after 2012.

Once again, on behalf of the Lao PDR, I would like to acknowledge with gratitudethe GMS initiatives that are bringing many benefits to the whole region and to each of theGMS member countries. The Lao POR, therefore, has included the GMS initiatives in itsown socio-economic development plan. One of the most remarkable achievements of theGMS program is that it has helped us to make the important transformation from alandlocked to a land-linked country and has provided us with the opportunity to integratewith our neighbors and with the regional and global economies. We have thereforeprioritized the implementation of the GMS Cross Border Transport Agreement by signingagreements between Lao PDR and the PRC, Lao PDR and Viet Nam, and Lao POR andCambodia respectively.

Lao PDR recently hosted the Third Economic Corridors Forumwhere we agreed ona number of actions-common ones as well as those specific to the three economiccorridors-to address impediments and pursue measures involving infrastructure, urbandevelopment, trade and transport facilitation, logistics development, and the promotion ofcross border economic links in agriculture, agro-industry, manufacturing and tourism. Wealso agreed on the need for enhanced regional planning. for corridor development andinstitutional arrangements that will bring economic corridor development closer to the localpopulation. In addition we discussed a monitoring system for trade and transportfacilitation, and ways to enhance multisector coordination for investments. We agreed thatGMS economic corridor development should not only promote economic activities, butalso ensure that benefits are widely spread, particularly to the less developed areas alongthe corridors, and that important environmental and social concerns are addressed.

In order to continue to be successful over the next decade, there are a number ofunderlying issues that will need to be addressed to ensure that transit countries will alsoenjoy tangible benefits. The Government of Lao PDR therefore strongly supports theefforts toward the development of the GMS economic corridors, where GMS roads andother hardware are complemented by supporting software, such as the cross-bordertransport agreements. To be able to realize the full potential of the transport corridors, and


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to transform them into full-fledged economic corridors, we have to collaborate on an equaland mutually beneficial basis to intensify our transport and trade facilitation efforts. Wemust eliminate the still numerous and significant nonphysical barriers to the free flow ofgoods and people between our borders.

However, there are still many challenges ahead while aiming to narrow thedevelopment gaps within and among states and reduce poverty and socio-economicdisparities in the region before complementary with the ASEAN Economic Communitytakes effect in 2015. We are therefore pursuing, among others, the promotion of green,clean and competitive cities along the transport corridors, and the full involvement ofsubnational government authorities in the development and implementation of GMSinitiatives.This will ensure sustainability and maximize development impact.

The Lao PDR highly appreciates the GMS Economic Cooperation Program and itsnew Strategic Framework for 2012 to 2022, including the Core Environment Program, theBiodiversity Conservation Corridors Initiative Phase II, as well as the implementation of aprogram of action for Transport and Trade Facilitation. These programs and initiatives areimportant because they will also help us in the transition to a green economy.

However, GMS initiatives will only succeed in this regard if the GMS countriescontinue to show strong commitment and ownership through harmonized ~conomicand environment development plans and supporting legislation, compatible with theregional circumstances at each stage of development, while encouraging national andlocal institutions concerned, in order to maximize their implementation efforts matched withstrong monitoring systems. This also includes the pursuit of inclusive economic growthand aiming to be more competitive in an era of regional and international integration whichrequires the establishment of a knowledge economy and the creation of a skilled labourforce, including trained specialists, business operators, administrators and managers inorder to meet current economic development challenges.

In this context several additional factors are emerging for Lao PDR that will serveas drivers of change with impacts on cross .oorder cooperation and economic integration


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with prospects for capacity building and the development of human resources, skills andcompetencies at national and local levels. These factors are:

First, transport corridors have been developed in the GMS to facilitate themovement of goods, services, and people throughout the region. Greater attentionneeds to be given to transforming these into economic corridors through substantialcapacity building efforts for CBTA implementation and other transportation andtrade facilitation measures at the central and provincial levels and at the borders.This needs to be complemented with providing access to resources and marketsand taking advantage of opportunities for sharing knowledge and information;Secondly, climate change, in combination with the region's high susceptibility tonatural disasters, has the potential to threaten regional food security. We will beobligated to make agricultural production more resilient to changing climateconditions by implementing adaptation measures;Thirdly, food safety and agricultural competitiveness are important issues forseveral GMS member countries which are major exporters of a variety of highquality food and agricultural products. Domestic production will need to beprotected with an emphasis on, food safety with significant consequences for tradein agricultural products and the ability of Lao PDR to access regional andinternational value chains;Finally, the need for better management of natural resources is critical for the GMSwith implications for agro-economic development; improving poor agriculturalpractices particularly among the poor and most vulnerable rural households;addressing continuing large scale migration away from agriculture and rural areas;

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battling land degradation; improving currently inadequate water supply systems anda host of other related issues.Furthermore, we would like to emphasize the importance of strong participation of

the provincial authorities in the development of these corridors as I already noted earlier.Equally important is full participation of the private sector, and in our view the Business


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Forum's role needs to be further enhanced, especially to ensure pro-poor investments inour region.

To reduce the development gap among the GMS countries there is a need toharmonize regulations, standards and certification of traded products, thereby stimulatingtrade within the GMS and between GMS and other regions. For less developed countrieslike Lao PDR there is an opportunity to use these harmonized regulations and standardsas a benchmark for developing national ones, including implementation guidelines andtraining materials and a code of practice. This harmonization agenda is relatively new andwill require sustained efforts of all GMS partners.Excellencies, Distinguished Delegates, Ladies and Gentlemen,

Lao PDR will continue to work closely with the GMS countries to address new andemerging challenges facing our region. Our collective strong political will, coupled withsupport from our development partners and in partnership with all stakeholders, includingthe all-important private sector, will be crucial to finding solutions and facilitating the GMSsubregion moving closer towards true regional economic integration.

To conclude, allow me to appreciate the continued support from ADS and thoseinvolved in organizing the suceesful sessions preceding this meeting.

Finally,we are indeed looking forward to continue together on this important path.May I wish the Seventeenth GMS Ministerial Conference every success to pave the

way for the forthcoming GMS Summit which will be held in December 2011.Thank you.

17th GMS MC Lao PDR Head of Delegation Statement

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