Thailand’s 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

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 Thailand

2.4 Prospects of Regional Economic Cooperation of Thailand

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

1.1. Progress of Regional Development in Thailand

0

2,000

4,000

6,000

8,000

10,000

12,0001

98

1

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

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

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 trade than 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 regions

particularly on soil erosion and encroachment of potential agricultural land, as well as increasing of environmental problems e.g. air pollution, solid waste, drought and recurrent flooding with higher severity in all regions.

• Coastal zone erosion particularly on central and southern regions

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 sustainable development.

2. Regional Economic Cooperation of Thailand

2.1 Regional Trade Agreements• Bilateral Agreements Thailand-Peru, JTEPA, Thailand-Australia,Thailand-New Zealand, Thailand –India• Plurilateral AgreementsASEAN, 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

2.1 Regional Trade Agreements (signed)

Bilateral Agreements (5)

Thailand - Peru

Thailand - Japan

Thailand - Australia

Thailand - New Zealand

Thailand – India

Plurilateral Agreements (6)

ASEAN

ASEAN-Korea

ASEAN-China

ASEAN-Japan

AANZ

APEC

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

• The Greater Mekong Subregion (GMS) is a

natural economic area bound together by the

Mekong River, covering 2.6 million square

kilometers and a combined population of

around 326 million.

• 6 countries: China, Myanmar, Thailand,

Cambodia, Laos, Vietnam

• Transport corridor through the Cross-border

Transportation Infrastructure (CBTI).

• Industrial estates on the border,

communication and electricity transmission

cable, natural gas pipelines and tourism

activities along the 9 corridors.

2.2 Economic Cooperation with Neighboring countries

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

- ACMECS will act as a catalyst to build

upon existing regional cooperation programs

and complement bilateral frameworks with a

view to transform the border areas of the five

countries into zones of economic growth,

social progress and prosperity, and to blend

local, national and regional interests for

common benefits, shared prosperity,

enhanced solidarity, peace, stability and

good neighborliness.

- Trade and Investment Facilitation ,

Agriculture , Industry and Energy ,

Environment , Tourism and Human

Resource Development

2.2 Economic Cooperation with Neighboring countries

(3) Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)

• The IMT-GT subregion is a classic growth

triangle, characterized by many economic

complementarities, geographical proximity, and

close historical, cultural and linguistic ties. With

the total market of 72 million (2006) and land

area covering 602,293.9 square kilometer.

• Substantial improvement in physical

connectivity of the IMT-GT subregions is

expected by 2011, with a number of road,

airport and port projects being completed. Much

closer collaboration between the public and

private sectors, and participation of provincial

and state governments in the process, are

expected to be achieved within the Roadmap

implementation period.

2.2 Economic Cooperation with Neighboring countries

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

• The Bay of Bengal Initiative for Multi-Sectoral

Technical and Economic Cooperation (BIMSTEC)

comprising Bangladesh, Bhutan, India, Myanmar,

Nepal, Sri Lanka and Thailand established in

1997 is a $810 billion economy, sharing about

22% of world population and 3.64% of surface

area.

• BIMSTEC is expected to promote trade and

investment in both South Asia and Southeast

Asia. The closer cooperation are a key tools to

improve transportation infrastructure and logistic

among members, as well as, to provide trade

facilitation and technical assistance to LDCs in BIMSTEC.

• 13 sectors of cooperation: Trade and Investment, Transport and Communication, Energy, Tourism, Technology, Fisheries, Agriculture, Public Health,

Poverty Alleviation, Counter-Terrorism and

Transnational Crime, Environment and Natural

Disaster Management, Culture, People to People

contact

2.2 Economic Cooperation with Neighboring countries

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.

2.4 Prospects of Regional Economic Cooperation of Thailand

• Expand cross-border trade with neighbouringcountries and intra-regional trade: ASEAN and ASEAN trading partners, Asian and developing countries markets.

• Foster cross-border production and infrastructure linkages with neighbouring countries.

• Promote full utilization of signed free trade agreements.

• Extend possible development assistances to neighbouring and developing countries.

Thank you