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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 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                             Central                                           Western                                           Eastern
                Southern                                           Northern                                          Northeastern                                      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

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Experience Exchange Meeting of Thailand

  • 1. 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
  • 2. 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
  • 3. 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
  • 4. 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 Central Western Eastern Southern Northern Northeastern Whole kingdom Source: Office of the National Economic and Social Development Board
  • 5. 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
  • 6. 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.
  • 7. 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
  • 8. 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
  • 9. 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.
  • 10. 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
  • 11. 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.
  • 12. 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
  • 13. 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.
  • 14. 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.