GREATER MEKONG SUBREGION BUSINESS FORUM

GMS-BF

The Way Forward for Promoting Trade and Investment in GMS Economic Corridors
Progress of GMS-FRETA Establishment and Private Sector Assessment on the NSEC
U Win Ang Chairman of GMS-BF 4th GMS Economic Corridor Forum Mandalay, Union of Myanmar, 28 June 2012
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GMS-FRETA Establishment

An MoA was signed by the GMS-BF Board at the GMS Summit in Nay Pyi Taw, Myanmar on December 2011, effectively creating GMS-FRETA. An application for establishment of the GMS-FRETA Office in Vientiane has been submitted to the Lao Minister in Charge of GMS in April 2012. GMS-BF conducted FRETA Launch Meetings (in May-June 2012) in all 6 countries to finalize approval of legal documents and recruit founding members and board. Articles of Association and Business Plan were discussed, amended and approved. Government support to the success of GMS-FRETA is important.

Services GMS-FRETA can provide

GMS-FRETA takes a pragmatic and country-specific approach to corridor development GMS-FRETA is seen as filling the role set out but never allocated to a specific body in Annex 9 of the CBTA.

Agreeing, testing or certifying compliance with standards in the sense of Annex 9 of the CBTA.
Third party liability insurance cover, operational and legal helpline, business matching, and SME promotion. Preparation of a drivers handbook and transport operators data and information booklet in local language covering all GMS countries.

Cross Border Vehicle Support Services

Capacity Building for truck operators and drivers

GMS-FRETA Follow-up Actions

Assignment of GMS-FRETA Board Members is under process and will be completed in July 2012. The registration of GMS-FRETA Office with the Lao Governments concerned authority is under process and hope to be completed before July 2012. GMS-FRETA will prepare a specific operation plan for the year 2013 for each country to address the above pragmatic activities and support services in August 2012 The First General Meeting will be held in September 2012. Operation of GMS-FRETA to start in September 2012

Private Sector Views on Road Transport Along the NSEC

Study conducted in May 2012 by the GMS-BF to represent the views and challenges of the private sector along the NSEC This was made through desk research, site visits, and 44 interviews with NSEC users comprising of transport operators, freight forwarders, customs brokers, import-export operators, and traders.
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Trade and Traffic Along the NSEC

Trade and traffic** increased significantly
Traffic** and Trade at Chiang Khong and Chiang Saen Borders
Trade in Million USD 350 300 250 200 150 100 50 0 2008 2009 2010 2011 Truck Traffic 35000 30000 25000 20000 15000 10000 5000 0 Total trade at Chiang Khong and Chiang Saen Borders (in million USD) Annual truck traffic at Chiang Khong border

Major products traded on NSEC

Northbound: petroleum products, fruits and vegetables, palm oil, rubber products, orchids*, and roots Southbound: vegetables, fruits, furniture*, and construction materials Potential trade: computer parts, electronic parts, car parts

* Data from the Department of Foreign Trade Thailand (by value) ** Data from Chiang Khon Customs House

Findings of the Survey

Overall operational performance of NSEC is efficient, but challenges in some areas remain:

Misperception among potential users Lack of road safety standards along the corridor Limited possibilities of transshipment lead to high prices Transshipment breaks the cool chain of fresh and frozen produce Lack of transparency about agreements and other corridor information

Improvements needed to ensure future competitiveness of NSEC Provide education opportunities for service providers Facilitate access to finance

Thank You

GMS-BF Secretariat
Km 5 Kaysone Phomviharn Ave. Saysetha District, Vientiane Capital, Lao PDR www.gmsbizforum.com

7/18/2012