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

Contents
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

2. Regional Economic Cooperation of Thailand

2.1 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

Gross Regional Product Per Capita (1981-2009)

12,000 Unit : US$ 10,000

8,000

6,000

4,000

2,000

0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Bangkok and vicinities Southern

Central Northern

Western Northeastern

Eastern Whole kingdom

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 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 Thailand 2.4 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

2.2 Economic Cooperation with Neighboring countries (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

2.3 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 neighbouring countries 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