Joint Report Fact Finding Mission Along the EWEC and SEC
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1 Joint Report Fact Finding Mission Along the EWEC and SEC NESDB & AMEICC Secretariat Arkhom TERMPITTAYAPAISITH, Secretary-General, NESDB Masatsugu YOSHIOKA, AMEICC Secretariat May 29, 2014
2 Mission Program Organized by NESDB Team leader: Arkhom Termpittayapaisith, SG of NESDB Members: AMEICC Secretariat, ADB, JETRO Bangkok, Japanese Embassy in Bangkok, Kitakyushu City, Toyota January 2014 Cambodia Aryanyaprathet, Sakaeo - Poipet, Banteay Border Meanchey, Trat- Koh Kong Border (Southern Corridor) March 2014 Lao PDR, Vietnam Mukdahan-Savannakhet-Lao Bao-Hue, Danang (East side of West East Corridor) Nakhon Panom - Khammouane May 2014 Myanmar Mae Sot, Tak-Myawaddy, Hpa-an - Mawlamyine- Yangon (West side of West East Corridor) 2
3 Objectives To monitor work progress of road improvement along the corridors To explore problems at the cross-border check points To study the special border economic development zones along the corridors and the industrial development of supply chains 3
4 CAMBODIA: Aranyaprathet- Poipet Border Bangkok-Poipet 260km 3h 20min VISIT COMPANIES (1) Hi-Tech Aparrel Garment, Thai owned - Manufacturing of garment, NIKE, Tommy Filfiger etc. Dawei Ayutthaya Poipet (2) SC Wado Component owned by NIDEC Electronics - Parts for hard disc - Investment: 3 bn yen - Employee: 5000 (2014) Bangkok Laem Chabang Port Phnom Penh Hồ Chí Minh 4
5 CAMBODIA: Koh Kong SEZ (Sourthern Corridor) Bangkok-Koh Kong 420km 5h FIVE companies are already established. Cambodians in KohKong can speak Thai. VISIT COMPANIES - Yazaki Products(open Dec 2012) Electric wires in vehicle, 500workers - Mikasa Sports (test plant 2013) Volley ball - KKN Apparel Thai owned, 300 workers Automobile factrories Bangkok Laem Chabang Port Koh Kong 5
6 ISSUES : Aranyaprathet Poipet 1. ROAD CONDITION 3. TRAFFIC JAM at BORDER GATE Access Road to SEZ : Expansion 2. UNEXPLODED BOMB Ban Pa Rai Border Area 6
7 ISSUES : Trat-Koh Kong Trat Koh Kong SEZ 1. MEETING WITH DSG of Council for the Development of Cambodia, H.E. Chea Vuthy at Koh Kong SEZ 2. RAISED ISSUE from MIKASA, concerning Rule of Origin (ROO). President of Mikasa, Mr. Tokuno was on TV show on February 2014 Problem of ROO Volley ball is exported via Laem Chambang, Thailand. In order to utilize GSP of Cambodia, they need to put seal on the package, but sometimes, it was broken at the customof Kohkong. This TV program broadcasted interview of Mikasa SEZ office 7
8 Laos: East-West Corridor (Savannakhet) Bangkok-Savannakhet 650km 10h SAVAN SENO SEZ (Toyota Boshoku start operation in April 21, 2014) VISITED COMPANIES (1) KP Beau lao Cosmetic products, Lao-Japan JV Myawaddy Mae Sot Nakhom Panom (2) Aeroworks (Lao) Interior parts for airplane, Dutch Mawlamyaing Savannakhet Ayutthaya Da Nang (3) Nikon Lao (Established 2013 Mar) Camera Unit / Parts imported from Thailand and assemby in Laos. "Quality of Labor is the same as Thai" (4)Mitr Lao Sugar Factory 8
9 Vietnam: East-West Corridor (Lao Bao and Danang) Myawaddy Mae Sot Mawlamyaing Bangkok Laem Chabang Port Bangkok-Savannakhet 650km 10h LAO No.9 ROAD LAO BAO SEZ Da Nang Existing Factory Lao National Road No.9 - connects Mukdahan-Savannakhet and Lao Bao--East West corridor Lao Bao SEZ Vietnam owns land of SEZ Vietnam Companies 57 Thai Companies 2 Visited Companies (1) Chaicharoen Vietnam Thailand Thai company, Energy Drink (2) Camel Rubber Vietnam Thai company, Tire. shipment from Danang 9
10 ISSUES - EWEC in Thailand and Lao PDR. 1. ROAD CONDITION 2. OTHER Infrastructure The 2 nd Mekong Bridge 1. ROAD CONDITION (1) Bumpy/Rehabilitation (2) Only one small road station 2. Cross Border Transportation One car cannot cross from T to V THA LAO 1. CUSTOM SERVICE at Mukdahan and Savannaket (1) 6:00-22:00 (not 24 hour-operation at Lao checkpoint) (2) Not yet single window/single stop inspection (3) E-customs, VAT can pay here 10
11 ISSUES - EWEC in VIETNAM 1. ROAD CONDITION 2. DANANG SEA PORT (EAST END) Lao Bao Hai Van Tunnel Mountainous route : Lao Bao to Danang LENGTH OF BERTH 965 m DEPTH OF BERTH m CONTAINER SHIP UP TO 200 TEU under upgrading construction (2015) 500m, 13-14m, up to 3000TEU Danang City 11
12 ISSUES Nakhon Phanom - Khammouane 1. Cross Border Facilitation 2. Specific Economic Zone Thakhek Specific Economic Zone Thailand-Lao PDR-Malaysia investment (hospital) Chevrolet automobile SEZ Area : 6,470 rai Facilitate Cross Border Trade and Transport To include Nakhon Phanom- Khammouane in the CBTA. (Thailand and Lao PDR) Mountainous Area : Lao Bao to Danang 12
13 Myanmmar: East-West Corridor Bangkok-Mae sot 490km Bangkok-Hpa-an 578km Mae Sot, Tak VISITED FACTORIES (1)T.K. Garment 1600 workers, Thai company Myawaddy Mae Sot (2)Mae Sot Ceramic limited Producing Yangon Mawlamyaing Bangkok 13
14 Myanmmar - East West Corridor Payag yi Bago To Mandalay,India MYANMAR THAILAND TA from ADB Eindu-Kawkariek Improvement 70 km Yangon Thaton Hpa-an Eindu Kyagalay Mae Sot Mawlamyine Kawkareik Shortcut 26 km (Kyagalay-Za Tha Byin) proposed for Japan ODA (road) and Thai Assistance (bridges) Za Tha Byin Mawlamyine Kawkareik New Road from Myawaddy to Kawkareik from Thai Assistance Bangkok-Hpa-an 578km Visited UMH Co Ltd. at Hpa-an SEZ Myammar (100%) company, export 100% to Japan It wishes to produce Air Bag for TOYOTA "Japan is demanding market. If clear JP market, world market is easy." 14
15 Myanmmar Trade Zone /Industrial Park/Seaport 1. Myawaddy Trade Zone 11 km-far from Thai/Myanmar border 180 hectares Distribution center and loading area 2. Mingaladon Industrial Park Industrial zone 90 hectares Manufacturing for products to Asia and Europe 3. Myanmar Integrated Port Limited 4. Asia World Port Terminal Handling general cargo 150,000 sq m 200-m wharf with 10m draft Under expansion and joint venture with Malaysian enterprise Handling container cargo Area acres 4 Wharf Water depth 9.5 m Storage capacity 7,633 TEU 15
16 ISSUES - East West Corridor in Myanmar 1. Myanmar- Thailand Border Rehabilitation of The 1 st Thai-Myanmar bridge was completed(thai assistance). TRAFFIC JAM between the two gate Custom Office Hour 6:30am-6:30pm 5:30am-8:30pm (3hours extension) The 2 nd Thai-Myanmar bridge F/S and D/D are underway (completion within last Quarter of 2014) Mae Sot SEZ study is in process. 16
17 ISSUES - East West Corridor in Myanmar 2. ROAD CONDITION NEW ROAD CONSTRUCTION PLAN Existing Road construction site of a new alignment information center 17
18 ISSUES - East West Corridor in Myanmar 3. Power Plant in Mawlyamine 4. Thilawa SEZ Power Plant 220MW provide Hpa-an SEZ Natural gas provided by government Production cost 3.5 cents/day Energy Effective Rate 30% Kitakyushu Executive Adviser Mr. Ohue: New tech can improve effective rate. H.E. Set Aung and SG Mr.Arkhom Commercial operation in 2015 Letter of Intent 38 companies Port depth 9m Natural gas pipeline, 50MW power plant 18
19 ISSUES - East West Corridor in Myanmar 5. Eco-friendly Factory T.K. Garment Waste Management elaborate what it is doing Ceramic Limited Partnership Enery Saving elaborate what it is doing - Factory should be eco-friendly. Thai companies are already pursuing. - Kitakyushu City, Eco-Town of Japan, may wish to provide its hard time experiences. 19
20 SUMMARY* 1. EAST WEST CORRIDOR : Need to upgrade or improve National Road No.9 in Lao (JP assist, completion in 2015) Danang Sea port in Vietnam (in 2015 completion) Thai-Myanmar traffic Jam Myawaddy-Kawkareik new road (Thai assist in 2015 completion) Eindu-Kawkareik road improvement (TA from ADB) Power generator in Mawlamyine Nakhon Phanom Khammouane to be included in the CBTA 2. Thai-Cambodia Border Road upgrading in Poipet SEZ New border point selection in Aryanyaprathet and Poipet Border checkpoint and facility improvement at Trat-Koh Kong 3. SOFT INFRASTRUCTURE Customs service office hour ROO GREEN LANE/ RED LANE Literacy Rate Improvement Lao-Thai Border (Mukdahan-Savannakhet) 6:00am-10:00pm Myanmar -Thai Border (Mae Sot-Myawaddy) 5:30am-8:30pm (Thai time) Cambodia-Thai Border (Aranyaprathet-Poipet) 6.00am-10:00pm * Summary of key issues from the Fact Finding Mission is in line with the Mekong Development Roadmap 20
21 Mekong - Japan Cooperation Towards Green and Prosperity of the Mekong Region Thank you 21
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