The 5 Mekong countries, Cambodia, Laos, Myanmar, Vietnam and Thailand have passed a 5 year partnership master plan at the 2018 Bangkok ACMECS Summit, to improve infrastructure and network connectivity between the countries to become one integrated region. Under the partnership, the countries will be able to integrate with larger regional and global economic corridors. A co-managed fund was proposed at the summit by Thailand, asking to be launched early next year, to minimize the region’s reliance on China and other leading Asia economies.

Thailand, Cambodia, Laos, Myanmar and Vietnam participated in the ACMECS conference in mid-June to emplace the 2019 to 2023 partnership plan. This will be the first collaborative project by the 5 countries together.

The 5-year development plan will link the Mekong countries with the Eastern Economic Corridor (EEC) connected by 6 roads beginning in Vietnam’s Da Nang, through Laos and Thailand before finally reaching Myanmar’s Mawlamyine. The other, the Southern Economic Corridor (SEC), made up of 4 major roads, will begin in Vietnam’s Vung Tau through Cambodia, Thailand and reach Myanmar’s Tavoy.

The two economic corridors will link container ports along the South China Sea to the Andaman Seas and will provide a new route for container ships besides the current V-shaped route available.

The countries will further settle agreements for trades and taxes policies in order to synchronize the trades industry across borders. Another major target of the EEC is to shorten the time for transporting goods from the current 5 days, down to 30 hours.

Thailand proposed to establish a co-managed sub-regional developmental fund to operate early next year, to increase self-sufficiency and launch synchronized projects to minimize the region’s dependence on China and other Asian economies, including Japan and Korea.

Thai Prime Minister General Prayut Chan-o-cha says, the ministers of other countries have come to the same agreement and have agreed to set out the details of the master plan and the co-managed fund during the second half this year. As the fund is set up, they wish to invite Asia Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) and international corporates to provide consultation and guidance.

Prayut adds that the developmental plan will increase the connectivity of the 5 countries and regions across Southeast Asia and is key to improve the economic development in the region. “It will help promote trades and logistics services, the movement of investments and place our economy into the global chain.”

Source: Hong Kong Economic Times