East West Economic Corridor: The Opening of the Third Lao-Thai Friendship Bridge Dr. Bounthavy Sysouphanthong Deputy Minister Ministry of Planning and Investment Lao P.D.R.

Lao P.D.R in GMS Joins: North-South Economic Corridor East-West Economic corridor

LAO PDR  Laos is at the centre of the GMS, consisting of Cambodia, Myanmar, Thailand, Vietnam, and Yunnan province of China. ◦ It is the only country bordering all the other countries in the sub- region. ◦ More than 70% of international trade in Laos - except air freight - is cross-border trade ◦ 50% of the Lao population lives in border districts.

Lao P.D.R in GMS Not only for enhancing external cooperation in sub-region but realizing the Lao Government overall objectives, including promoting sustainable economic growth, equality and poverty reduction, through –Promoting Economic Integration –Enhancing Connectivity in the region

Economic Integration Promoting Sustained Private Sector–Led Growth: Bilateral and sub-regional: –Trade, Investment, and Tourism –Cross-Border Trade –Investment and Special Economic Zones –Sustainable Tourism

Land- Locked Land- Linked By developing Infrastructure: Transportation system and ICT/ Road Transport Enhancing Connectivity

The bridge links Thailand’s Nakhon Phanom and Laos’ Thakaek City in Khammouane Province, with the length of 1,423-meter The bridge is an important link in promoting overland tourism as part of the Asian Development Bank’s East-West Corridor project that envisions a road link from Myanmar through Thailand and Laos to Vietnam’s central region. Once across the Mekong, a service road links with Laos Route 13 north of Thakaek. The Third Lao-Thai Friendship Bridge-the Road Transportation linking Lao-Thai border over Mekong River

Khammuoan Province Khammouane province is at the heart of a dynamic Mekong region, endowed with rich natural resources and considerable opportunities for social economic development driven by many factors: Geographically advantageous position Global and regional trade liberalization Completion of National Road 12 to Vietnam NamTheun 2 hydropower project “The Third friendship bridge”

Province’s capital “Thakek district” Thakek is a commercial center of the province, situated in the bank of Mekong river opposite Nakhone Phanom in Thailand. From here people from both countries trading goods with each others daily. Due to such potential Thakek became the top priority district for the government to develop the utilities and infrastructure in order to maximize the benefit from the rapidly growth of economics in the area.

Business development opportunities in Thakek The government has prepare many mega project in order to make Thakek becoming another the business centre of the country. 1.The third friendship bridge: 2.Phu khio City Specific economic zone(Phu khio City ) 3.Plan to develop the “Thakek Dankham Special Economic Zone” These mega projects will become the main factor in driven the economic of the province. And create many opportunities for business development.

Potential of Each Project  The third friendship bridge: Will enhance the economic development opportunities in many Areas such as: Trade Tourism Transportation logistic(Export-Import) -The bridge will increase the effectiveness of trading process between two countries and move the economic forward.

 Phu khio Specific Economic Zone -With the objective to drive the economics in the province, by establishing the new city call “Phu khio city”, which will include the development of all the utilities, and infrastructure. -The project will provide various facilities, privileges including tax incentives for domestic and foreign investment.  Phu khio Specific Economic Zone invites investors/developers to Invest in: 1.Tourism and services 2.Education and Agriculture 3.Trade 4.Industrial 5.Health care 6.Social institution 7.Sport

 Develop Thakek Damkham Special Economic Zone (Planned): Located around the third friendship bridge, with the goals to stimulate the economics, according with the improvement of many infrastructure, which will attract the investment from both domestic and foreign. Thakek Dankham will be the base for any kind of business activities that will come in due to the opening of the third friendship bridge. Each zones in Thakek Dankham: -Administrative Office zone- Green zone -Education and healthcare zone- Hotel and restaurant -Industrial zone- Convention hall -Business and Shopping center- Logistic zone -Residence zone -Transportation

-From above we can see that Thakek Dankham is one of the most attractive project for the investor, to come and take the advantage that provided in the project. Including with: Strategic Geographical advantage Tax incentive,(Export – Import tax exemtion) Transportation and logistic Rapidly growth of the market size

Summary The third friendship bridge is another opportunities and potential for business development, and it led to many meaningful projects in Khammuoane province, as well as the closer relationship of the two countries Laos - ThaiLand, and further cooperation.

Integration / Connectivity Role of capital-GMS PPP develop (small business) Prioritized sectors of development (Agri- Industry-Service)

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