United we stand, Prayut tells Acmecs
Private sector ‘must beat protectionism’
Prime Minister Prayut Chan-o-cha yesterday invited businessmen and the private sector from mainland Southeast Asia to play a bigger role in linking businesses and investment in the region amid the trend of protectionism.
The premier was speaking at the opening of the Acmecs CEO Forum held in Bangkok, ahead of the 8th Ayeyawady-Chao PhrayaMekong Economic Cooperation Strategy (Acmecs) Summit today.
He highlighted the average economic growth of Acmecs members — Cambodia, Laos, Myanmar, Vietnam and Thailand (CLMVT) — at 6-8% annually, as well as citing the rapid changes in the global and Asian economies as factors behind the urgent call to work more closely together.
“I truly believe the Acmecs private sector can link its businesses together with ease. Creating this economic linkage with nonCLMVT countries seems to become harder and harder at a time of escalating trade protectionism in the global economy,” he said.
Besides working with the public sector through Public-Private Partnerships (PPPs) in promoting trade and investment in the sub-region, Gen Prayut called on the private sector to identify targets for human resources development and information.
Today the five Acmecs leaders are expected to adopt the first Acmecs Master Plan, to be effective from 2019-2023. It will mainly enhance seamless connectivity as well as smart and sustainable cooperation.
Thailand is ready to promote cross-border trade in the CLMVT countries which is increasing at a rapid clip. Financial regulations will be changed to facilitate this, he said.
Meanwhile, the private sector needs to keep up with digital advancement and technology, and help promote an atmosphere of trust as well as security and stability, he said.
Thailand is ready to cooperate with other countries and share knowledge pertaining to the late King Rama IX’s sufficiency economy philosophy, he said.
The prime minister also asked all five Acmecs members to work together to promote tourism in the sub-region while asking investors to consider the Eastern Economic Corridor (EEC) and Special Economic Zones along the border.
He said the Thai government welcomes migrant labourers who come to work legally and promised to protect their rights and ensure their fair treatment while urging the private sector to stop abusive practices.
Cambodian Prime Minister Hun Sen said the proposed Master Plan 2019-2023 to be endorsed today is in line with what Cambodia has been implementing.
“Cambodia has increased its focus on promoting digital connectivity, trade facilitation, investment as well as capacity building in the business sector such as SMEs in order to reduce the developmental gap and accelerate better connectivity between Acmecs countries,” Hun Sen said.
In line with the master plan, the Cambodian government is preparing a logistics master plan including digital connectivity, development of infrastructure such as expanding national roads to four lanes, and upgrading a deep-sea port in Sihanoukeville to a depth of 14 metres, which is set to be completed soon.
To promote international trade and investment, he said Cambodia has been implementing a national single window to simplify and reduce international customs procedures, adding the government is amending laws on investment and special economic zones as well as its taxation system.
He said from next year the electricity tariff will be gradually lowered while stability and quality of the utility will be improved.
Gen Prayut yesterday asked his Cambodian counterpart to speed up the opening of a new border checkpoint connecting Ban Nong Ian in Sa Kaeo’s Aranyaprathet district with Stung Bot in Cambodia during bilateral talks.
Development projects along shared borders were among the issues raised during the Acmecs meeting and Gen Prayut took this opportunity to discuss them with the Cambodian prime minister on the sidelines of the meeting yesterday ahead of today’s sub-regional economic cooperation summit.
The Nong Ian-Stung Bot checkpoint is among the projects Gen Prayut wants to carry out to make border areas “lands of peace and joint development”, Thai deputy government spokesman Werachon Sukondhapatipak said after the talks.
Last year, Gen Prayut prompted both countries to speed up construction of a friendship bridge connecting Ban Nong Ian in the East with Stung Bot in Banteay Meancheay province.
Hun Sen agreed with the idea of jointly developing transport links.
Foreign Minister Don Pramudwinai has stressed the importance of the AyeyawadyChao Phraya-Mekong Economic Cooperation Strategy (Acmecs) which will greatly benefit the livelihoods of the more than 230 million people living in the five member countries. Mr Don said the Acmecs initiative was initiated by Thailand. Acmecs was founded in 2003 with a vision to reduce the economic gap and promote sustainable development in the five countries of the Mekong sub-region, namely Cambodia, Laos, Myanmar, Thailand and Vietnam.
After 15 years, Thailand this year has the honour of hosting the 8th Acmecs Summit under the theme “Towards an Integrated and Connected Mekong Community” from the 15-16 June 2018.
Acmecs has made notable progress since its inception, Mr Don was quoted as saying.
The region has been blessed with abundant national resources and a vast market of over 230 million people making it one of the fastest growing sub-regions in the world with an impressive average annual growth rate of 7%.
In addition, new opportunities have arisen in Acmecs, thanks to its strategic location enabling it to serve as a land-bridge linking economies between the Indian and Pacific oceans.
However, Acmecs has no intention of resting on its laurels.
Acmecs is facing new emerging challenges such as an ageing society, rapid urbanisation, trade protectionism, anti-globalisation trends, and climate change. Each country has acknowledged the need to recalibrate, reform and rebrand itself to address these challenges.
Taking into account these emerging challenges and opportunities, Mr Don added that Thailand has put forward a draft of an Acmecs Master Plan 20192023 under the vision of “Building Acmecs CONNECT by 2023”. The draft is expected to be adopted by Acmecs leaders at this summit.
The master plan, the first for the sub-region, will serve as a guideline for Acmecs countries on how to tackle new challenges so that they can capitalise on the sub-region’s economic potential.
The master plan’s main objective is to create a sub-region with transport, digital and energy connectivity in order to facilitate movement of people, goods and services, and boost trade and investment. The plan is to create a sub-region with synchronised rules and regulations in order to enhance investment and a population which possesses adequate knowledge of modern technology and environmental sustainability.
Cooperation with the private sector and external partners is integral to the effective execution of the master plan.
Acmec countries are firmly committed to continuing their close cooperation and forging partnerships with all stakeholders, including the business sector, financial institutions and development partners.
Input from these stakeholders was shared at the Acmecs CEO forum held for the first time yesterday. It brought together leading CEOs from across Asia to discuss the private sector’s role in enhancing Acmecs cooperation.
“It is my conviction that our people will benefit from a seamless, synchronised, and smart and sustainable Acmecs,” Mr Don said.
“It will help enhance the movement of goods and services, promote intra-regional trade, and attract foreign investments to our region. In turn, this will open up employment opportunities, lessen income disparities amongst member countries and foster sustainable growth and development,” Mr Don stressed.
Through human resource development, “Smart Farmers” and Small and Medium Enterprises (SMEs) will be able to apply new skills and modern technology in their trade to increase efficiency and competitiveness.
“Moreover, our people will live in ‘Smart Cities’ which will enrich their livelihood, increase access to transport, and provide the required digital and energy infrastructure so that they can pursue their dreams and aspirations. Our people will enjoy transportation that is faster and safer than ever before through the East-West Economic Corridor (Ewec) and Southern Economic Corridor (SEC), Mr Don said.
At the regional and global level, the master plan will turn the sub-region into a regional and global powerhouse and thus ensure prosperity and sustainability in the Mekong sub-region.
It will also create a community within a community, bring Asean people closer together, and increase the likelihood of achieving the United Nations 2030 Sustainable Development Goals (SDGs).
This will ensure that Acmecs becomes a “brand” that is reflective of growth driving the regional and global economy and as a responsible and constructive player in the international community.
Thailand, as the chair of Acmecs during 2017-2018 and the host of the 8th Acmecs Summit, is committed to growing stronger with its neighbouring countries under the Thailand Plus One strategy, Mr Don said.
The foreign minister added that the imminent Acmecs Master Plan will ensure a coherent pathway towards an integrated and connected Mekong community that leaves no one behind.
The 8th Acmecs Summit is thus another monumental milestone, he said.
Our people will live in ‘Smart Cities’ which will enrich their livelihood... so that they can pursue their dreams. DON PRAMUDWINAI FOREIGN MINISTER