economic development of cambodia, laos ......5.9%, laos – 4.5%, myanmar – 35% and vietnam 8.9%....

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ECONOMIC DEVELOPMENT OF CAMBODIA, LAOS, MYANMAR, VIETNAM (CLMV) AND ASIAN COMMUNITY Professor Ho Ngoc Phuong University of Economics Ho Chi Minh City Vietnam Email: [email protected] 1. Introduction Cambodia, Laos, Myanmar, Vietnam (CLMV) is a region in Southeast Asia of which Vietnam, Laos and Cambodia known as Indochina. It lies roughly east of India, south of China. Vietnam received a much larger influence from China meanwhile Laos is influenced mainly by the culture of India. Cambodia had been influenced hardly from culture of India but still faced with some amounts of culture of China. Myanmar can be seen to be influenced equally by both India and China. CLMV have been new members of Association of Southeast Asian Nations (ASEAN) since mid 1990s. It accounted for 27.4% population (2005), made up 8% GDP (2007) of ASEAN. The average growth rate of GDP in 2007 recorded at 10.2% (Cambodia), 8.0% (Laos), 5.5% (Myanmar) and 8.3% (Vietnam) compared to 6.3% of ASEAN as a whole. 2. Overview of CLMV 2.1 Cambodia The country with nearly 14 million people recorded at 1.8% of population growth rate per annum during the period 2000-2005 has seen rapid progress in the last decade. Average annum GDP growth rate in that period recorded at 9.3%. Gross Domestic Product has increased from 1,404 (1990) to 5,172 million USD (2007). GDP per capita from 145 (1990) to 358 USD (2007) based on price of 1990 USD. In 2007 domestic investment rate of GDP accounted for 20.8%.

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Page 1: ECONOMIC DEVELOPMENT OF CAMBODIA, LAOS ......5.9%, Laos – 4.5%, Myanmar – 35% and Vietnam 8.9%. Relating to financing development, net inwards foreign direct investment (FDI) of

ECONOMIC DEVELOPMENT OF CAMBODIA, LAOS, MYANMAR, VIETNAM (CLMV)

AND ASIAN COMMUNITY

Professor Ho Ngoc Phuong University of Economics Ho Chi Minh City

Vietnam Email: [email protected]

1. Introduction

Cambodia, Laos, Myanmar, Vietnam (CLMV) is a region in Southeast Asia of which

Vietnam, Laos and Cambodia known as Indochina. It lies roughly east of India, south of

China. Vietnam received a much larger influence from China meanwhile Laos is

influenced mainly by the culture of India. Cambodia had been influenced hardly from

culture of India but still faced with some amounts of culture of China. Myanmar can be

seen to be influenced equally by both India and China.

CLMV have been new members of Association of Southeast Asian Nations (ASEAN)

since mid 1990s. It accounted for 27.4% population (2005), made up 8% GDP (2007) of

ASEAN. The average growth rate of GDP in 2007 recorded at 10.2% (Cambodia), 8.0%

(Laos), 5.5% (Myanmar) and 8.3% (Vietnam) compared to 6.3% of ASEAN as a whole.

2. Overview of CLMV

2.1 Cambodia

The country with nearly 14 million people recorded at 1.8% of population growth rate per

annum during the period 2000-2005 has seen rapid progress in the last decade. Average

annum GDP growth rate in that period recorded at 9.3%. Gross Domestic Product has

increased from 1,404 (1990) to 5,172 million USD (2007). GDP per capita from 145

(1990) to 358 USD (2007) based on price of 1990 USD. In 2007 domestic investment

rate of GDP accounted for 20.8%.

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Agriculture is the main domestic activity on which most rural households depend.

Manufacturing product is mostly conducted on a small-scale and informal basis. The

service sector is concentrated in trading activities and catering-related services.

The US and Cambodia signed a Bilateral Textile Agreement, which gave Cambodia a

guaranteed quota of US textile imports. Garment sector performance led to more than 9%

growth in 2007 and it employed more than 350,000 people and contributed more than

70% of Cambodia's exports.

In 2005, exploitable oil and natural gas deposits were found beneath Cambodia's

territorial waters. Production of oil could potentially have a great effect on the future of

the economy. Mining also is attracting significantly investors’ interest for bauxite, gold,

iron and gems. The tourism industry continues to grow rapidly, with foreign arrivals

reaching 2 million in 2007. In 2007 the government signed a joint venture agreement to

form a new national airline.

More than 50% of the population is less than 21 years old. The population lacks

education and productive skills, particularly in the poverty-ridden countryside, which

suffers from an almost total lack of basic infrastructure.

In 2006, a US-Cambodia bilateral Trade and Investment Framework Agreement (TIFA)

was signed. Cambodia's emerging democracy has received strong international support

and as political stability lasts, the Cambodian economy is likely to grow at a respectable

pace in the near future.

2.2 Laos

The country with nearly 5.7 million people recorded at 1.6% of population growth rate

per annum during the period 2000-2005 began decentralizing control and encouraging

private enterprise in 1986. Average annum GDP growth rate in that period recorded at

6.3%. Gross Domestic Product has increased from 866 (1990) to 2,531 million USD

(2007). GDP per capita from 212 (1990) to 432 USD (2007) based on price of 1990 USD.

In 2007 domestic investment rate of GDP accounted for 39.7%.

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Laos remains a country with an underdeveloped infrastructure, particularly in rural areas.

It has no railroads, a rudimentary road system, and limited external and internal

telecommunications.

Subsistence agriculture, dominated by rice, accounts for about 40% of GDP and provides

80% of total employment. In the early 1990s, agriculture remains the foundation of the

economy.

Principal activities in the industrial sector include manufacturing, construction, mining,

processing agricultural and forestry goods, and producing hydroelectricity.

The economy will continue to benefit from aid from international donors and from

foreign investment in hydropower and mining. Construction will be another strong

economic driver, especially as hydroelectric dam and road projects gain steam.

In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-

based producers to benefit from lower tariffs on exports.

2.3 Myanmar

The country with nearly 48 million people recorded at 0.9% of population growth rate per

annum during the period 2000-2005 has been suffering from decades of stagnation,

mismanagement, and isolation. Average annum GDP growth rate in that period recorded

at 12.9%. Gross Domestic Product has increased from 5,179 (1990) to 22,320 million

USD (2007). GDP per capita from 129 (1990) to 457 USD (2007) based on price of 1990

USD. In 2007 domestic investment rate of GDP accounted for 15.4%.

Myanmar is an agricultural country and before World War II, it had been the world's top

exporter of rice. The country is rich in minerals. Petroleum is found east of the

Ayeyarwady in the Dry Zone. Major manufacturing industries include food processing,

______________________________________________________________________ Prof. Ho Ngoc Phuong

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wood and wood products, construction, materials, pharmaceuticals, fertilizer, natural gas,

and textiles and clothing. Exports include gas, wood products, pulses, fish, rice, clothing,

jade, and gemstones.

During 1980’s, the government had tried to improve the economy by nationalizing most

of the industries, but it was unsuccessful in its efforts. In the early 1990's, foreign

investment has been encouraged, but it was not successful again.

In the late 1990's Myanmar's economy has worsened due to U.S. economic sanctions and

the widespread Asian financial crisis. These decreased the amount of foreign investment

and increased inflation. In the period 2005-07, inflation averaged at about 30%. The

public sector enterprises remain highly inefficient and privatization efforts haven’t got

successful yet.

2.4 Vietnam

The country with about 85 million people recorded at 1.5% of population growth rate per

annum during the period 2000-2005 has made impressive economic progress in the last

decades. Average annum GDP growth rate in that period recorded at 7.5%. Gross

Domestic Product has increased from 6,472 (1990) to 22,595 million USD (2007). GDP

per capita from 98 (1990) to 259 USD (2007) based on price of 1990 USD. In 2007

domestic investment rate of GDP accounted for 41.6%.

Since 1986 Vietnam has moved from a centrally planned economy to a market oriented

system (this period named Đổi Mới- renovation). The economy has experienced rapid

growth. In 2000, the Bilateral Trade Agreement (BTA) between the U.S. and Vietnam

was signed. The BTA provided for Normal Trade Relations (NTR) status of Vietnamese

goods in the U.S. market. The BTA would also concomitantly attract foreign investment

to Vietnam, not only from the U.S, but also from Europe, Asia, and other regions. The

registered capital of foreign direct investment (FDI) recorded at USD20 billion in 2007

and USD64 billion in 2008 – the highest level ever known so far.

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Although the economic activities have oriented to market principles, many large

Vietnamese enterprises are still state-owned enterprises (SOEs) with some nationwide

trademarks such as VNPT,Viettel, VietcomBank, ICB, PetroVietnam. Vietnam has been

becoming as a leading agricultural exporter.

In the early 2007, Vietnam became World Trade Organization (WTO)'s 150th member.

Access to WTO provides an important boost to Vietnam's economy and to ensure the

continuation of liberalizing reforms. It also brings challenges to Vietnam’s economic

sectors to compete with foreign players. Although Vietnam’s economy in the past

decades is one of the fastest growing economies in the world, it is developing from an

extremely low base that required more time to catch up other advanced ASEAN countries.

3. Comparison analysis

Population of CLMV made up of 27.4% meanwhile Gross Domestic Product of CLMV

accounted for only 8% of ASEAN. Vietnam made up 69% total GDP within CLMV

(value 2007 USD).

In 2007, industry value added of ASEAN was 39.6%, meanwhile Cambodia – 26.8%,

Laos – 29.5%, Myanmar – 15.2% and Vietnam – 40.9% of total sectors (agriculture,

industry and service). Inflation rate of ASEAN recorded at 5% meanwhile Cambodia –

5.9%, Laos – 4.5%, Myanmar – 35% and Vietnam 8.9%.

Relating to financing development, net inwards foreign direct investment (FDI) of

ASEAN accounted for 4.7% of GDP. Cambodia and Vietnam have well done to attract

foreign investment with net inwards FDI 10% and 9.5% of GDP respectively. Myanmar

only 2.3% and Laos 7.8% of GDP.

Vietnam has recorded highest increased rate to receive official development assistance

(ODA) – more than ten times in 2006 compared to 1990. Laos is the second rank with

______________________________________________________________________ Prof. Ho Ngoc Phuong

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increased rate of 244%, Cambodia nearly 13% meanwhile Myanmar contracted 9%

during this period. ASEAN increased this rate more than 6%.

Net external debt of Laos recorded highest rate at 86% of GDP. Myanmar 50%,

Cambodia 48%, Vietnam 33% and ASEAN accounted for 36% of GDP. Gap between the

government revenues and expenditures (fiscal balance - % of GDP) almost negatively

recorded. Vietnam -5.4%, Cambodia - 1.2%, Myanmar – 0.0%, ASEAN -1.7%. Only

Laos positively recorded at + 20.2% of GDP.

Intraregional trade within ASEAN is different from country to country. Vietnam imports

only 27%, meanwhile Laos imports 79%, Cambodia 53% and Myanmar 47% of total

imports from ASEAN. Exports to ASEAN of Vietnam and Cambodia recorded at about

14% and 8% meanwhile Laos and Myanmar recorded at 66% and 56% of total exports

respectively. Average intraregional trade between countries of ASEAN accounted for

nearly 25% of total imports and exports.

Intraregional trade within (ASEAN+3) is another picture from country to country.

Vietnam imports 63%, meanwhile Laos imports 94%, Cambodia 73% and Myanmar 88%

of total imports from (ASEAN+3). Exports to ASEAN of Vietnam and Cambodia

recorded at about 37% and 12% meanwhile Laos and Myanmar recorded at 74% and

69% of total exports respectively. Average intraregional trade between countries of

(ASEAN+3) accounted for 44% of total imports and 34% of total exports.

Tourism is a new industry for CLMV since early 1990s. Except Myanmar with closed

policy, Cambodia, Laos and Vietnam have been successfully attracting international

tourists. Thus, the number of international arrivals increased year by year steadily since

1990. In 2006, Cambodia attracted 1.7 million, Laos 0.84 million and Vietnam 3.6

million international tourists. Total international tourist arrivals of CLMV accounted for

nearly 12% of that of ASEAN.

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Telecommunication development in terms of number mobile phone subscribers per 100

populations of Cambodia and Vietnam amounted to 17.9 and 27.2 respectively. Laos and

Myanmar recorded at low level of 0.4. Meanwhile that of ASEAN is 40.8. Number of

internet users per 100 population of Vietnam amounted to 20.5, Laos 1.7, Cambodia 0.5

and Myanmar 0.1 compared to ASEAN 12.4.

4. Asian Community

The idea of establishing Asian Community has had a long history. Initially the creation of

a Greater East Asia Co-prosperity Sphere consisting of Asian nations was unsuccessful in

1940s.

The Association of Southeast Asian Nations (ASEAN) was formed on 8 August 1967 by

the Philippines, Malaysia, Thailand, Indonesia, and Singapore, as a political display

rather than economic cooperation during the Vietnam war.

Malaysia suggested to form an East Asia Economic Caucus in 1990 consisted of the

members of ASEAN (Brunei, Indonesia, Malaysia, the Philippines, and Thailand), the

Peoples' Republic of China, Japan, and South Korea. But this was not achieved because

of the objections from Japan and the United States.

Another effort was to form the ASEAN plus Three in 1997. In 1999, a Joint Statement on

East Asia Cooperation was issued on the matter of East Asian integration by ASEAN.

In 1998, ASEAN plus Three established The East Asian Vision Group. In 2001 the East

Asian Study Group was formed. In 2002, the East Asian Study Group submitted the Final

Report to ASEAN plus Three. This recommended establishing an East Asia Summit.

In 2005 East Asia Summit (EAS) established involving ASEAN plus Three, together

with India, Australia and New Zealand.

______________________________________________________________________ Prof. Ho Ngoc Phuong

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The Second Joint Statement on East Asia Cooperation Building on the Foundations of

ASEAN plus Three Cooperation supported the model of the community with ASEAN at

the centre, ASEAN plus Three at the next band and the East Asia Summit at the outer

band.

Japan proposed the Comprehensive Economic Partnership for East Asia (CEPEA) for the

East Asia Summit members. In 2009, the concept of the community was promoted during

the Japanese general election. However, after the change of government in Japan the

proposal was unclear yet. The Japanese Foreign Minister Katsuya Okada in October 2009

indicated that a Community based on the members of the East Asia Summit focusing on

political links with a common currency "very far off in the future". The Japanese proposal

is for a regional trade grouping based on the 16 members of the East Asia Summit.

ASEAN plus Three and East Asia Summit meetings also did not clarify yet what is the

shape of the community. Australia proposed on the Asia Pacific community in which

ASEAN will be at its core, will be further discussed at a 1.5 track conference to be

organized by Australia in December 2009. India also has its proposal for an Asian

Economic Community as well.

There is difference in the size and level of economic development and of the populations

within the EAS. The cultural, religious, language and ethnic groupings are diverse as well.

The Japanese Government projected an exchange program over the five years from 2007

to 2011 with up to 6,000 youths per annum visiting Japan from EAS members.

The Third EAS approved the establishment of the Economic Research Institute for

ASEAN and East Asia to further investigate economic integration between the EAS

members. The East Asia Summit (EAS) has gathered a momentum towards the creation

of an East Asian Community in the future. An Asian economic integration is beginning to

take shape. However, economic progress and social development will need the regional

stability and security.

______________________________________________________________________ Prof. Ho Ngoc Phuong

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The shape of the East Asia Community is to be defined. A future Asian Economic

Community may like the European Community. The community building is a long term

project.

______________________________________________________________________ Prof. Ho Ngoc Phuong

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______________________________________________________________________ Prof. Ho Ngoc Phuong

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REFERENCES CIA World Fact book. Cambodia Economy Profile 2008. December 18, 2008 CIA World Fact Book. Economy of Vietnam. 2008 ESCAP, (2008), Statistical Yearbook for Asia and the Pacific 2008, United Nations

Publication http://AsianInfo.org/Myanmar. http://en.wikipedia.org/wiki/East_Asian_Community http://en.wikipedia.org/wiki/Economy_of_Cambodia http://NationMaster.com, 2003-2009. The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2007, Columbia University

Press. The Library of Congress. The Country Studies Program, formerly the Army Area

Handbook Program. Laos – Economy.

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APPENDIXES Table 1: Population over the last years - thousands Countries 1990 1995 2000 2005

Cambodia 9,698 11,395 12,780 13,956

Laos 4,076 4,692 5,224 5,664

Myanmar 40,147 43,134 45,884 47,967

Vietnam 66,173 73,330 79,094 85,029

Total CLMV 120,094 132,551 142,982 152,616

ASEAN 440,574 481,288 519,996 557,669

% of ASEAN 27.3 27.5 27.5 27.4

0

100,000

200,000

300,000

400,000

500,000

600,000

1990 1995 2000 2005

Figure 1: Population over the last years - thousands

AseanTotal CLMVCambodiaLaosMyanmarVietnam

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Table 2: Population growth rate - % per annum Countries 1990-95 1995-00 2000-05 2007

Cambodia 3.3 2.3 1.8 1.7

Laos 2.9 2.2 1.6 1.7

Myanmar 1.4 1.2 0.9 0.9 Vietnam 2.1 1.5 1.5 1.4

ASEAN 1.8 1.6 1.4 1.3

Figure 2: Population growth rate - % per annum

0

0.5

1

1.5

2

2.5

3

3.5

1990-95 1995-2000 2000-2005 2007

0

0.5

1

1.5

2

2.5

3

3.5

AseanLaosMyanmarVietnamCambodia

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 3: Gross Domestic Product (million 1990 USD)

Countries 1995 2000 2005 2007 2007 USD Cambodia 1,920 2,711 4,237 5,172 8,639 Laos 1,181 1,593 2,164 2,531 4,163 Myanmar 6,878 10,244 18,779 22,320 18,510 Vietnam 9,600 13,433 19,290 22,595 71,174 Total 19,579 27,981 44,470 52,618 102,486 ASEAN 513,926 582,615 742,210 836,732 1,285,693

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1995 2000 2005 2007

Figure 3: Gross Domestic Product (million 1990 USD)

Cambodia

Laos

Myanmar

Vietnam

Total CLMV

Asean

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 4: Percentage of Gross Domestic Product (1990 USD) - % Countries 1995 2000 2005 2007 2007 USD Cambodia 9.8 9.7 9.5 9.8 8.4 Laos 6.0 5.7 4.9 4.8 4.1 Myanmar 35.1 36.6 42.2 42.4 18.1 Vietnam 49.0 48.0 43.4 42.9 69.4 Total 100.0 100.0 100.0 100.0 100.0 ASEAN 100.0 100.0 100.0 100.0 100.0 % CLMV 3.8 4.8 6.0 6.3 8.0

0

10

20

30

40

50

60

70

1995 2000 2005 2007 2007 USD

Figure 4: Percentage of Gross Domestic Product (1990 USD) - %

Cambodia

Laos

Myanmar

Vietnam

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 5: Annual Average GDP Growth Rate (1990 USD) - % Countries 90-95 95-00 00-05 2007 Cambodia 6.5 7.1 9.3 10.2 Laos 6.4 6.2 6.3 8.0 Myanmar 5.8 8.3 12.9 5.5 Vietnam 8.2 7.0 7.5 8.3 ASEAN 7.6 2.5 5.0 6.3

6.5 6.45.8

8.27.6

7.1

6.2

8.3

7

2.5

9.3

6.3

12.9

7.5

5

10.2

8

5.5

8.3

6.3

90-95 95-00 00 - 05 2007

Figure 5: Annual Average GDP Growth Rate (1990 USD) - %

CambodiaLaosMyanmarVietnamASEAN

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 6: GPD per capita (1990 USD) and annum growth rate (%)

Countries 2000 2005 2007

2007 (USD 2005 PPP)

% 1995-00

% 2000-05

% 2007

Cambodia 212 304 358 1701 4.7 7.4 8.3 Laos 305 382 432 2020 3.9 4.6 6.2 Myanmar 223 391 457 0 7.0 11.9 4.6 Vietnam 170 227 259 2454 5.3 6.0 6.8 ASEAN 1120 1331 1462 4561

Figure 6: GPD per capita (1990 USD)

0500

100015002000250030003500400045005000

2000 2005 2007 2007(USD2005

PPP)

Cambodia

Laos

Myanmar

Vietnam

ASEAN

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 7: Domestic investment rate - % of GDP Countries 1995 2000 2005 2007 Cambodia 13.6 17.5 18.5 20.8 Laos 11.3 10.4 31.9 39.7 Myanmar 14.2 12.4 12.5 15.4 Vietnam 27.1 29.6 35.4 41.6 ASEAN 33.7 24.8 24 24.1

0 10 20 30 40 50

Percentage

1995

2000

2005

2007

Figure 7: Domestic investment rate - % of GDP

ASEAN

Vietnam

Myanmar

Laos

Cambodia

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 8: Value added by sectors - % of total value added Countries Agriculture Industry Service 2000 2007 2000 2007 2000 2007 Cambodia 37.9 31.9 23 26.8 39.1 41.3 Laos 52.5 44.8 22.9 29.5 24.6 25.7 Myanmar 57.2 49.9 9.7 15.2 33.1 34.9 Vietnam 24.5 21.0 36.7 40.9 38.7 38.0 ASEAN 12.4 11.7 40.6 39.6 46.9 48.6

0

10

20

30

40

50

60

Percentage

Agriculture Industry Service

Sectors

Figure 8.1: Value added by sectors - % of total value added - 2000

Cambodia

Laos

Myanmar

Vietnam

ASEAN

0

5

10

15

20

25

30

35

40

45

50

Percentage

Agriculture Industry Service

Sectors

Figure 8.2: Value added by sectors - % of total value added - 2008

Cambodia

Laos

Myanmar

Vietnam

ASEAN

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 9: Inflation rate per annum - % Countries 1995 2000 2005 2006 2007 Cambodia 1.1 -0.8 5.7 4.7 5.9 Laos 19.6 25.1 7.2 6.8 4.5 Myanmar 25.2 -0.1 9.4 20.0 35.0 Vietnam 12.7 -1.7 8.3 7.4 8.9 ASEAN 6.9 2.4 6.8 8.0 5.0

-5 0 5 10 15 20 25 30 35

1995

2000

2005

2006

2007

Figure 9: Inflation rate per annum - %

ASEANVietnamMyanmarLaosCambodia

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 10: Foreign Direct Investment

Inward foreign direct investment – 2007 FDI stock FDI net inflows

Countries % ASEAN Mil. USD

% of GDP

% ASEAN

Mil. USD

% of GDP

Cambodia 0.7 3821 44.2 1.4 867 10.0 Laos 0.2 1180 28.3 0.5 324 7.8 Myanmar 1.0 5433 29.3 0.7 428 2.3 Vietnam 7.3 40235 56.5 11.1 6739 9.5 Total 9.2 50669 13.8 8358 ASEAN 100.0 550952 42.9 100.0 60514 4.7

0

10

20

30

40

50

60

Cambodia Laos Myanmar Vietnam

Figure 10.1 : FDI stock as percentage of GDP - 2007

0

2

4

6

8

10

Cambodia Laos Myanmar Vietnam

Figure 10.2: FDI net inflows as percentage of GDP - 2007

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 11: Official Development Assistance (ODA) - million USD Countries 1990 1995 2000 2005 2006

41.3 551.0 395.9 540.7 529.0 100.0 13.3 9.6 13.1 12.8 149.1 306.9 281.6 295.7 364.2 100.0 205.8 188.9 198.3 244.3 160.8 150.2 105.6 144.7 146.6 100.0 93.4 65.7 90.0 91.2 180.6 834.8 1681.4 1907.0 1846.4 100.0 462.2 931.0 1055.9 1022.4 4783.1 5012.2 5669 6021.2 5087.4

1. Cambodia: - % change to 1990 2. Laos: - % change to 1990 3. Myanmar: - % change to 1990 4. Vietnam: - % change to 1990 5. ASEAN: - % change to 1990 100.0 104.8 118.5 125.9 106.4

0 1000 2000 3000 4000 5000 6000 7000

1990

1995

2000

2005

2006

Figure 11: Official Development Assistance (ODA) by the years 1990 - 2006 - million USD

ASEANVietnamMyanmarLaosCambodia

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 12: Net external debt – million USD

Countries Million USD % of GDP 2000 2005 2006 2000 2005 2006

Cambodia 2628 3515 3527 72 56 48 Laos 2502 2690 2985 144 94 86 Myanmar 5928 6645 6828 81 56 50 Vietnam 12825 19211 20202 41 36 33 ASEAN 347940 328095 332581 69 42 36

Figure 12: Net external debt 2000-2006 as % of GDP

0

20

40

60

80

100

120

140

160

2000 2005 2006

Cambodia Laos Myanmar Vietnam ASEAN

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 13: Government revenues and expenditures - % of GDP

Countries Government

revenues Government expenditures Fiscal balance

2000 2007 2000 2007 2000 2007 Cambodia 10.0 12.1 14.8 15.4 -2.1 -1.2 Laos 12.4 13.6 19.6 -6.6 -2.7 20.2 Myanmar 4.2 3.5 0.7 0.0 Vietnam 20.1 24.9 22.6 28.1 -4.3 -5.4 ASEAN 18.2 18.8 18.6 20.5 -0.7 -1.7

Table 14: ASEAN Intraregional Trade

Imports from ASEAN - % of total imports Countries 1990 1995 2000 2005 2006 Cambodia 42.7 74.7 39.1 50.9 53.2 Laos 61.0 70.0 70.3 78.3 79.1 Myanmar 46.3 51.5 45.5 51.3 47.1 Vietnam 10.0 31.4 27.8 24.5 27.1 ASEAN 16.6 19.0 23.2 24.2 24.8 Exports to ASEAN - % of total exports 1990 1995 2000 2005 2006 Cambodia 77.6 66.1 5.3 9.3 8.4 Laos 75.4 30.7 51.3 55.8 66.3 Myanmar 47.0 42.3 23.1 55.7 56.1 Vietnam 16.2 14.2 17.5 15.7 13.9 ASEAN 18.4 22.7 22.2 25.4 24.8

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Figure 13: Imports from ASEAN - % of total imports

42.7

74.7

39.1

50.9

53.2

61

70

70.3

78.3

79.1

46.3

51.5

45.5

51.3

47.1

10

31.4

27.8

24.5

27.1

16.6

19

23.2

24.2

24.8

0 50 100 150 200 250 300

1990

1995

2000

2005

2006

Cambodia Laos Myanmar Vietnam ASEAN

Figure 14: Exports to ASEAN - % of total exports

77.6

66.1

5.3

9.3

8.4

75.4

30.7

51.3

55.8

66.3

47

42.3

23.1

55.7

56.1

16.2

14.2

17.5

15.7

13.9

18.4

22.7

22.2

25.4

24.8

0 50 100 150 200 250

1990

1995

2000

2005

2006

Cambodia Laos Myanmar Vietnam ASEAN

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Table 15: ASEAN plus 3 Intraregional Trade Countries Imports from ASEAN+3 - % of total imports 1990 1995 2000 2005 2006 Cambodia 59.6 84.4 56.6 70.4 72.5 Laos 78.9 83.3 79.0 90.3 93.5 Myanmar 66.3 86.2 81.2 87.1 87.9 Vietnam 44.3 63.4 62.6 61.5 62.7 ASEAN+3 30.6 39.9 42.2 44.8 44.4 Exports to ASEAN+3 - % of total exports 1990 1995 2000 2005 2006 Cambodia 86.9 70.0 7.9 13.5 12.4 Laos 83.3 44.5 56.6 61.7 73.6 Myanmar 56.7 61.0 36.4 69.9 68.9 Vietnam 68.5 53.2 48.4 41.2 37.3 ASEAN+3 29.0 34.3 33.4 35.1 34.0

Figure 15.1: Imports from ASEAN +3 - % of total imports

59

.6

84

.4

56

.67

0.4

72

.5

78

.9

83

.3

79

90

.39

3.5

66

.3

86

.2

81

.2

87

.18

7.9

44

.3

63

.4

62

.6

61

.56

2.7

30

.6

39

.9

42

.2

44

.84

4.4

0 50 100 150 200 250 300 350 400

1990

1995

2000

2005

2006

Cambodia Laos Myanmar Vietnam ASEAN+3

______________________________________________________________________ Prof. Ho Ngoc Phuong

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Figure 15.2: Exports to ASEAN +3 - % of total exports

86

.9

70

7.9

13

.51

2.4

83

.3

44

.5

56

.6

61

.77

3.6

56

.7

61

36

.4

69

.9

68

.9

68

.5

53

.2

48

.4

41

.23

7.3

29

34

.3

33

.4

35

.13

4

0 50 100 150 200 250 300 350

1990

1995

2000

2005

2006

Cambodia Laos Myanmar Vietnam ASEAN+3

Table 16: International tourism development

Countries International tourist arrivals

thousands 1990 2000 2006

% Cambodia 17 466 1700 3.1 Laos 14 191 842 1.6 Myanmar 21 208 264 0.5 Vietnam 250 2140 3606 6.7 Total 302 3005 6412 11.9 ASEAN 21469 37763 54127 100.0

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17

14

21

25

0

46

6 19

1

20

8

21

40

17

00

84

2

26

4

36

06

0

500

1000

1500

2000

2500

3000

3500

4000

1990 2000 2006

Figure 16.1: International tourist arrivals of CLMV - thousands

Cambodia Laos Myanmar Vietnam

30

22

14

69 3

00

53

77

63

64

12

54

12

7

0

10000

20000

30000

40000

50000

60000

70000

1990 2000 2006

Figure 16.2: International tourist arrivals of CLMV compared to ASEAN- thousands

CLMV ASEAN

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Table 17: Telecommunication development

Number of fixed telephones per 100 population

Number of mobile telephone subscribers per 100 population

Countries 1995 2000 2007 1995 2000 2007 Cambodia

0.1 0.2 0.3 0.1 1.0 17.9 Laos 0.4 0.8 1.6 0.0 0.0 0.4 Myanmar 0.4 0.6 1.0 0.0 0.0 0.4 Vietnam

1.1 3.2 32.7 0.0 1.0 27.2 ASEAN 2.9 4.8 11.2 0.7 4.3 40.8

Table 18: Internet development

Number of Internet users per 100 population

Countries 2000 2005 2007 Cambodia 0.0 0.3 0.5 Laos 0.1 0.9 1.7 Myanmar 0.0 0.1 0.1 Vietnam 0.3 12.6 20.5 ASEAN 3.3 9.3 12.4

Table 19: Energy consumption per capita – kg of oil equivalent

Countries kg of oil equivalent growth rate - % per annum 1995 2000 2006 90-06 00-06 Cambodia 278 288 319 0.9 1.7 Laos - - - - - Myanmar 245 244 268 0.8 1.5 Vietnam 384 424 535 2.9 4 ASEAN 498 557 633 2.6 2.2

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______________________________________________________________________ Prof. Ho Ngoc Phuong

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Table 20: Household electricity consumption (million kilowatt-hours per capita)

Countries kilowatt-hours per capita growth rate % per annum

2000 2005 90-05 00-05 Cambodia 7 8 0.8 2.3 Laos 62 88 4.4 7.2 Myanmar 28 30 4.6 1.5 Vietnam 139 229 20.6 10.5 ASEAN 180 231 8.1 5.1