P. 1
Trade and Trade Facilitation in the Greater Mekong Subregion

Trade and Trade Facilitation in the Greater Mekong Subregion

|Views: 175|Likes:
This book brings together studies highlighting deeper, structural challenges to trade facilitation in the Greater Mekong Subregion, including need for governance and bureaucratic reforms, trade competitiveness, and improved alignment of the regional corridors to trade flows.
This book brings together studies highlighting deeper, structural challenges to trade facilitation in the Greater Mekong Subregion, including need for governance and bureaucratic reforms, trade competitiveness, and improved alignment of the regional corridors to trade flows.

More info:

Published by: Asian Development Bank on Sep 18, 2012
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

02/11/2013

pdf

text

original

Cambodia

PRC

Lao PDR

Exports to

GMS5

Exports to

PRC

Exports to

ROW

Exports to

GMS5

Exports to

ROW

Exports to

GMS5

Exports to

PRC

Exports to

ROW

Export Items

200020092000200920002009

2000200920002009

200020092000200920002009

Food, beverages,

vegetable oil, etc.

11.939.2

1.8

1.1

1.3

1.0

4.5

3.4

5.5

2.9

3.3

9.124.2

6.012.013.1

agricultural raw

materials

67.542.511.846.0

2.1

0.3

1.9

0.6

1.1

0.4

53.321.073.913.6

7.5

3.3

Fuel

0.1

0.0

0.0

0.0

0.0

0.0

4.6

5.4

3.1

1.6

0.814.3

0.0

0.4

0.0

0.0

Ores, metals, and gold8.5

8.0

0.0

0.5

0.4

9.1

2.4

2.4

1.8

1.1

2.748.9

0.577.8

0.0

7.0

Chemicals

0.2

0.5

0.0

0.1

0.1

0.8

10.910.6

4.7

4.9

0.1

0.5

0.0

0.9

0.4

7.6

Machinery and

transport

6.0

4.4

0.2

2.8

0.6

2.0

45.147.932.849.3

34.8

4.2

0.0

0.1

0.4

2.2

Leather and rubber,

incl. footwear

0.2

0.2

0.0

0.9

7.8

7.9

1.6

1.5

4.9

3.3

0.1

0.1

0.0

0.0

2.3

3.5

textiles, apparel,

and travel goods

0.6

1.7

4.228.986.378.0

13.210.122.815.2

0.0

0.4

0.0

0.275.960.1

Cork, wood, and

paper manufactures0.7

1.181.6

2.0

0.5

0.1

0.6

1.4

3.1

3.8

1.0

0.6

1.4

0.2

1.0

1.2

Nonmetallic minerals,

iron and steel

0.4

1.3

0.0

0.0

0.1

0.3

9.710.2

7.1

7.1

0.2

0.1

0.0

0.0

0.0

0.3

Misc. items

3.9

1.1

0.417.6

0.7

0.7

5.7

6.313.010.3

3.8

0.8

0.0

0.9

0.4

1.6

continued on next page

Chapter 2: GMS Trade—Trends and Patterns37

Myanmar

Thailand

Viet Nam

Exports to

GMS5

Exports to

PRC

Exports to

ROW

Exports to

GMS5

Exports to

PRC

Exports to

ROW

Exports to

GMS5

Exports to

PRC

Exports to

ROW

Export Items

200020092000200920002009

200020092000200920002009

200020092000200920002009

Food, beverages,

vegetable oil, etc.

7.7

4.114.925.222.454.2

12.113.9

6.3

6.015.016.3

11.2

7.4

4.513.427.422.0

agricultural

raw materials

31.7

3.867.334.117.616.7

0.9

2.013.2

8.1

2.7

3.1

2.5

0.5

6.8

5.9

1.6

2.6

Fuel

45.390.0

0.0

8.9

0.0

0.0

14.814.5

8.7

4.7

2.5

4.6

28.132.976.334.122.712.2

Ores, metals, and gold10.7

0.9

8.816.9

1.7

3.2

1.5

1.9

1.1

0.8

1.2

5.8

0.4

1.1

1.8

4.6

0.4

2.0

Chemicals

0.0

0.0

0.0

0.2

0.2

0.1

17.614.218.113.8

4.7

6.5

1.4

5.8

2.8

2.6

0.8

2.0

Machinery

and transport

0.3

0.5

1.8

0.9

1.4

0.8

24.927.038.957.344.538.0

42.428.5

1.416.8

7.911.9

Leather and rubber,

incl. footwear

0.0

0.0

0.2

0.1

1.0

3.2

3.4

3.7

1.7

4.3

2.8

3.0

0.6

2.4

0.5

5.611.5

8.9

textiles, apparel,

and travel goods

0.0

0.1

0.0

0.251.318.9

6.8

4.7

2.2

1.3

9.6

5.2

6.3

6.6

1.9

6.017.321.5

Cork, wood, and

paper manufactures2.2

0.5

0.2

0.3

2.3

0.8

2.0

3.4

3.8

0.5

2.8

2.1

0.4

1.5

0.2

1.2

2.9

5.7

Nonmetallic minerals,

iron and steel

0.5

0.0

6.711.5

1.1

0.8

11.912.1

4.3

1.4

5.1

6.9

4.0

7.5

0.4

1.5

1.9

3.5

Misc. items

1.7

0.0

0.1

1.7

1.0

1.3

4.0

2.5

1.5

1.8

9.1

8.4

2.7

5.8

3.5

8.3

5.6

7.9

prC = people’s republic of China; GMS = Greater Mekong Subregion; GMS5 = Cambodia, the Lao pDr, Myanmar, thailand, and Viet Nam;

the Lao pDr = Lao people’s Democratic republic; rOW = rest of the world excluding the prC and GMS5.

Source: UN Comtrade and authors’ estimates.

appendix table a2.2 continued

39

Chapter 3

Facilitating trade along
the Southern economic Corridor

Christian Ksoll and Peter Brimble

3.1 Introduction

The Asian Development Bank (ADB) has joined other donors in upgrading
and expanding the Greater Mekong Subregion (GMS) transport
infrastructure in order to improve market access and connectivity for
people along GMS transport networks. The goal is to spur inclusive
economic growth and development (ADB 2010). By the end of June 2012,
ADB had mobilized $15 billion for 57 projects, of which most were in
transport infrastructure. ADB has also supported various initiatives to
improve trade and transport facilitation (TTF) along the GMS corridors.
Despite these efforts to improve regional connectivity, inefficiencies in
export and import processes continue to delay the movement of goods
along the GMS corridors and increase the costs.

Using the Southern Economic Corridor (SEC) as a case study, this chapter
identifies factors that contribute to higher costs and delays in cross-
border trade. The focus is particularly on the Cambodian section of the
Central Sub-corridor (a major cargo route) from Bangkok via Phnom Penh
to Ho Chi Minh City (see Figure 3.1 for a map of the SEC).1

While recent improvements in infrastructure have been achieved in
Cambodia, logistics costs remain high compared with those in other

1

The SEC comprises the following three sub-corridors and an inter-corridor link connecting
the three SEC corridors with the East–West Economic Corridor: (i) Central Sub-corridor
(Bangkok–Phnom Penh–Ho Chi Minh City–Vung Tau sub-corridor); (ii) Northern
Sub-corridor (Bangkok–Siem Reap–Stung Treng–Rathanakini–O Yadov–Pleiku–Quy Nhon
sub-corridor); (iii) Southern Coastal Sub-corridor (Bangkok–Trat–Koh Kong–Kampot–
Ha Tien–Ca Mau City–Nam Can sub-corridor); and (iv) Inter-corridor Link (Krong Preah
Sihanouk [formerly known as Sihanoukville]–Phnom Penh–Kratie–Stung Treng–Dong
Kralor (Tra Pang Kriel)–Pakse–Kaysone Phomvihane [formerly known as Savannakhet]).

trade and trade Facilitation in the Greater Mekong Subregion

40

countries in the region and the world (Banomyong 2008, n. d.; Banomyong
and Sopadang 2010; Ksoll 2009; Ksoll et. al. 2010). Logistics improvements
are therefore critical for Cambodia to develop the country as an Asian
production center and to integrate itself into regional production networks
and supply chains. Over the last 2 decades, logistics sector improvements
have revolutionized production and distribution processes. Logistics firms
are now a vital part of highly developed production networks and value
chains. State-of-the-art logistics services are also an important factor in
determining whether small-scale farmers can compete in selling their
products on the world market.

In the last few years, the Government of Cambodia has taken several
steps to improve the logistics sector in the country. These steps include
trade facilitation measures such as expedited document processing
services for the garment industry, and more recently for the rice
sector, and the rolling out of the Automated System for Customs Data
(ASYCUDA) after its pilot testing in five key locations (Phnom Penh
International Airport, Sihanoukville Autonomous Port, and three inland
container depots). However, a number of shortcomings in the trade and
transport facilitation processes remain to be addressed, as was evidenced
during interviews conducted with users of the SEC for the purposes of
this study.

The goal of this study is to provide prioritized policy recommendations
that will enable easier, cheaper, and faster transport of goods across
borders into and from Cambodia. Improved TTF will thus help strengthen
Cambodia’s connectivity and improve its competitiveness.2

The selection of the policy measures was guided by three key criteria:
(i) magnitude of impact on improving logistics;3

(ii) ease of implementation;
and (iii) capability of being acted on within 2 years. To underscore the need
for certain policy recommendations, the study also provides a detailed
analysis of the transport costs and times from Bangkok via Phnom Penh to
Ho Chi Minh City along the SEC’s Central Sub-corridor.

2

This chapter draws from a more detailed manuscript, ADB (forthcoming), “The Blue
Book on Transport and Trade Facilitation along the Greater Mekong Subregion Southern
Economic Corridor in Cambodia,” referred to from here on as “the Blue Book.” The Blue
Book provides more details on the rationale and the country context of the proposed
policy measures, an action plan, and key performance indicators for tracking the
implementation of the various policy measures.

3

Logistics in this chapter refers to the transport of the goods and the processes, procedures,
and documents involved in exporting and importing.

Chapter 3: Facilitating trade along the Southern economic Corridor41

The proposed policy measures are intended to (i) increase the availability of
information about agreements, laws, rules and regulations; (ii) harmonize
axle road regulations, including their strict enforcement; (iii) eradicate
checkpoints along the SEC; (iv) extend the opening hours of border
points and logistics services; (v) strengthen cooperation and coordination
between the public and private sectors; (vi) expedite border procedures
by enhancing risk assessment; (vii) establish “service-level agreements”
(SLAs) to decrease uncertainty in documentation processes; (viii) expedite
the issuance of certificates of origin; and (ix) allow the use of e-mail and
facsimiles in trade procedures and remove the need for approval by the
local customs office.4

4

Partly on the basis of the initial findings of the Blue Book in early 2011, the General Department
of Customs and Excise (GDCE) of Cambodia issued a directive on 30 June 2011 approving the
acceptance of a fax or an e-mail message with scans of required documents and eliminating
the requirement to have the local customs branch office approve documents that had already
been approved by the GDCE head office in Phnom Penh (RGC 2011).

Figure 3.1: the GMS Southern economic Corridor

GMS = Greater Mekong Subregion.
Source: ADB.

Inter-corridor

Link

Northern

Sub-corridor

Central

Sub-corridor

Southern Coastal

Sub-corridor

Tonle Sap

Gulf of Thailand

ANDAMAN SEA

Gulf of

Martaban

Pathein

Yangon

Myaingalay

Mawlamyine

Mae Sot

Dawei

Ye

Nong Khai

Udon Thani

Nakhon Phanom

Mukdahan

Denchai

Nakhon

Ratchasima

Nakhon

Sawan

Phitsanulok

Ayutthaya

Chon Buri

Sattahip

Myeik

Prachuap Khiri Khan

Trat

Khemarak Phoumin

Siem Reap

Aranyaprathet

Poipet

Kampong Cham

Moc Bai

Chbar Mon

Kampot

Bavet

Ha Tien

Nam Can

Ca Mau

Can Tho

Krong Preah Sihanouk

Ho Chi Minh City

Vung Tau

Da Lat

Dieu Tri

Pleiku

Quy Nhon

Surat Thani

Chumphon

Ranong

Phuket

Songkhla

Narathiwat

Yala

Hat Yai

Trang

Thakhek

Kaysone

Phomvihane

Dong Ha

Hue

Dung Quat

Samakhixay

Pakse

Saravan

Stung Treng

Da Nang

BANGKOK

PHNOM PENH

VIENTIANE

Khon Kaen

Tak

Kawthoung

Kanchanaburi

M Y A N M A R

V I E T N A M

LAO PEOPLE'S

DEMOCRATIC

REPUBLIC

T H A I L A N D

C A M B O D I A

National Capital

City/Town

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->