Experience Exchange Meeting on Thailand's National Development Progress

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    Thailands Regional Development and Regional

    Economic Cooperation

    By

    Mr.Choen Krainara, Office of the National Economic and Social

    Development Board

    Mr.Yossatorn Wattanapituksakul, Department of Foreign Trade

    for

    Session Experience Exchange Meeting of Countries

    at

    International Seminar on Regional Economic Development Promotion

    for Developing Countries

    15 September 2012, Beijing, China

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    Contents

    1. Regional development in Thailand1.1 Progress of Regional Development in Thailand

    1.2 Challenges of Regional Development in Thailand

    1.3 Prospects of Regional Development in Thailand

    2. Regional Economic Cooperation of Thailand2.1 Regional Economic Cooperation of Thailand

    2.2 Economic Cooperation with Neighboring countries

    2.3. Challenges of Regional Economic Cooperation of Thailand2.4 Prospects of Regional Economic Cooperation of Thailand

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    1. Regional development in Thailand

    1.1 Progress of Regional Development in Thailand

    1.2 Challenges of Regional Development in Thailand

    1.3 Prospects of Regional Development in Thailand

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    1.1. Progress of Regional Development in Thailand

    0

    2,000

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    1981

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    2009

    Unit : US$

    Bangkok and vicinities Central Western Eastern

    Southern Northern Northeastern Whole kingdom

    Gross Regional Product Per Capita (1981-2009)

    Source: Office of the National Economic and Social Development Board

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    1.2 Challenges of Regional Development in Thailand

    Central region still plays more important role in regional economic

    development particularly for industrial development, services and tradethan other regions.

    Southern region has highest agricultural and cross-border trade value.

    All regions are entering aging society and are expanding to urban areas.

    Shortages of labor and face problem on its quality.

    Still limited access to public health care.

    Narcotics problems tend to increase.

    Environmental and natural resources are likely to deteriorate in all regionsparticularly on soil erosion and encroachment of potential agriculturalland, as well as increasing of environmental problems e.g. air pollution,solid waste, drought and recurrent flooding with higher severity in allregions.

    Coastal zone erosion particularly on central and southern regions

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    1.3 Prospects of Regional Development in Thailand

    Promote balanced regional and rural development

    through border and rural industrialization.

    Accelerate decentralization of development

    resources.

    Properly manage natural resources and

    environmental degradation towards sustainabledevelopment.

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    2. Regional Economic Cooperation of Thailand

    2.1 Regional Trade Agreements Bilateral Agreements

    Thailand-Peru, JTEPA, Thailand-Australia,

    Thailand-New Zealand, ThailandIndia

    Plurilateral Agreements

    ASEAN, ASEAN-Korea, ASEAN-China,

    ASEAN-Japan, AANZ, APEC

    2.2 Economic Cooperation with Neighboring countries

    (1) Greater Mekong Sub-region: GMS Economic Corridor

    (2) The Ayeyawady - Chao Phraya - Mekong Economic Cooperation Strategy: ACMECS

    (3) Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)(4) Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation(BIMSTEC)2.3 Challenges of Regional Economic Cooperation of Thailand2.4 Prospects of Regional Economic Cooperation of Thailand

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    (1) Greater Mekong Sub-region:GMS Economic Corridors

    The Greater Mekong Subregion (GMS) is anatural economic area bound together by theMekong River, covering 2.6 million squarekilometers and a combined population ofaround 326 million.

    6 countries: China, Myanmar, Thailand,Cambodia, Laos, Vietnam

    Transport corridor through the Cross-borderTransportation Infrastructure (CBTI).

    Industrial estates on the border,communication and electricity transmissioncable, natural gas pipelines and tourismactivities along the 9 corridors.

    2.2 Economic Cooperation withNeighboring countries

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    (2) The Ayeyawady - Chao Phraya - MekongEconomic Cooperation Strategy: ACMECS

    - ACMECS will act as a catalyst to buildupon existing regional cooperation programsand complement bilateral frameworks with aview to transform the border areas of the fivecountries into zones of economic growth,social progress and prosperity, and to blendlocal, national and regional interests forcommon benefits, shared prosperity,enhanced solidarity, peace, stability andgood neighborliness.

    - Trade and Investment Facilitation ,Agriculture , Industry and Energy ,Environment , Tourism and HumanResource Development

    2.2 Economic Cooperation withNeighboring countries

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    (3) Indonesia-Malaysia-Thailand GrowthTriangle (IMT-GT)

    The IMT-GT subregion is a classic growthtriangle, characterized by many economiccomplementarities, geographical proximity, andclose historical, cultural and linguistic ties. Withthe total market of 72 million (2006) and landarea covering 602,293.9 square kilometer.

    Substantial improvement in physicalconnectivity of the IMT-GT subregions isexpected by 2011, with a number of road,airport and port projects being completed. Muchcloser collaboration between the public andprivate sectors, and participation of provincialand state governments in the process, areexpected to be achieved within the Roadmapimplementation period.

    2.2 Economic Cooperation withNeighboring countries

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    (4) Bay of Bengal Initiative for Multi-SectoralTechnical and Economic Cooperaion (BIMSTEC)

    The Bay of Bengal Initiative for Multi-SectoralTechnical andEconomicCooperation (BIMSTEC)comprisingBangladesh, Bhutan, India, Myanmar,Nepal, SriLankaandThailandestablishedin1997 is a $810 billioneconomy, sharingabout22% ofworldpopulationand 3.64% ofsurfacearea.

    BIMSTEC is expected to promote tradeandinvestmentin both South Asia and Southeast

    Asia. The closer cooperation are a key tools toimprove transportation infrastructure and logisticamong members, as well as, to provide tradefacilitation and technical assistance toLDCsinBIMSTEC.

    13sectorsofcooperation: TradeandInvestment,TransportandCommunication, Energy, Tourism,Technology, Fisheries,Agriculture, Public Health,Poverty Alleviation, Counter-Terrorism andTransnational Crime, Environment and NaturalDisaster Management, Culture, People to Peoplecontact

    2.2 Economic Cooperation withNeighboring countries

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    2.3 Challenges of Regional Economic Cooperation of Thailand

    The signed Free Trade Agreements (FTAs) of Thailand are clustered

    in Asia and Oceania. The more cross regional economic cooperation

    will diversify economic risk and create opportunities.

    The transformation of the border areas into zones of economic

    cooperation requires the equal effective economic policies of

    participating states. The imbalance and ineffective economic policies

    will rather create competition among the states.

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    2.4 Prospects of Regional Economic Cooperation of

    Thailand

    Expand cross-border trade with neighbouringcountries and intra-regional trade: ASEAN and ASEANtrading partners, Asian and developing countriesmarkets.

    Foster cross-border production and infrastructurelinkages with neighbouring countries.

    Promote full utilization of signed free trade

    agreements. Extend possible development assistances to

    neighbouring and developing countries.

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    Thank you