This will provide unprecedented opportunities for cross-border trade and investment, officials said.
In a statement issued at the conference, the ministers noted the importance of economic corridors in the subregion’s development, and emphasised “the need to transform the GMS economic corridors into logistics hubs to support cross-border trade, investment, tourism, and stronger cooperation”.
The ministers endorsed 107 projects under a new regional investment framework implementation plan valued at $32.6 billion. They examined ways to enhance competitiveness and accelerate inclusive development in the GMS, and reviewed the long-term strategic framework for the subregion’s economic and social development.
The ministers also highlighted new trade and transport measures that will take effect in 2017. These include implementation of the GMS Cross-Border Transport Agreement, the expansion of single-stop customs inspections at key border crossing points to reduce processing time, and the introduction of a GMS road transport permit that would further facilitate the cross-border movement of vehicles, people, and goods.
Myanmar’s capital, Nay Pyi Taw, the country’s two largest cities – Yangon and Mandalay – and the country’s main port in Yangon will all become part of the GMS economic corridor network for the first time.
Vientiane will also be incorporated in the network, forging stronger links between the landlocked nation and neighbouring Thailand, Vietnam, and China.
“Today’s agreement to enhance connectivity between Mekong capitals, major economic centres and important maritime gateways establishes a firm foundation for a more prosperous and inclusive subregion,” said Asian Development Bank (ADB) vice president Stephen Groff.
Mekong nations have been pursuing the “economic corridor” system for more than two decades. Economic corridors are investment areas, usually running along major highways, which connect centres of economic activity. In the GMS, these corridors have provided jobs, increased access to goods and services for millions of people, and contributed to a 15-fold growth in intra-GMS trade over the past 15 years.
The ADB has supported the establishment of the east-west, north-south, and southern GMS economic corridors since their inception to promote the subregion’s economic growth and integration.
The subregion’s rapid growth and the opening up of the Myanmar economy have highlighted the need to further expand these corridors, according to officials attending yesterday’s meeting.
The GMS groups Cambodia, China (specifically Yunnan province and the Guangxi Zhuang autonomous region), Laos, Myanmar, Thailand, and Vietnam. Under the GMS programme, investment projects worth almost $18 billion have been undertaken since 1992.
The Manila-based ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, this month the ADB will mark 50 years of development partnership in the region.
It is owned by 67 members – 48 of whom are from the region. In 2015, ADB’s assistance totalled $27.2 billion, including $10.7 billion co-financing.