WB Efforts in Trade & Transport Facilitation (TTF), all in Support of GMS Program on TTF Kazi Matin & Baher El-Hifnawi Workshop on World Bank’s Regional Strategy Paper

Coverage of Presentation Country level Bank work on TTF in region Analytical work on regional TTF issues, on contract farming for exports, on finance etc Workshops to develop consensus on what more needed to be done to improve TTF Work with ADB to support TTF jointly, if needed

TTF is critical to regional integration Why is TTF important? World Bank’s (WB) focused efforts at the country level as a first step to effective sub-regional intervention due to –The Large share of GMS countries’ trade outside the sub-region –the need to develop and strengthen national trade facilitation institutions and national coordination of trade and transport activities, before doing it at a regional level …so WB’s strategy has been to engage national governments to establish and strengthen trade facilitation institutions and transport infrastructure.

What is Trade & Transport Facilitation ?

World Bank’s Efforts at the Country Level (Analysis & Projects) Analytical work on trade issues, including facilitation in each of the Mekong countries The Cambodia Trade Facilitation and Competitiveness Project that (approved June 2005). Customs Modernization project in Vietnam (approved October 2005). The Mekong Transport Infrastructure Development Project in Vietnam is expected to improve connectivity and access from the Mekong Delta to the main ports in Vietnam as well as to facilitate cross-border movements from Phnom Penh port through to Vietnam (to be approved May 2006). Lao PDR Trade Facilitation & Standards Project (Board in late 2007)

Completed transport corridors makes support to sub-regional TTF timely ADB invited WB to join ongoing GMS’ TTF program by carrying out analytical work, & support in other ways Thailand asked WB’s support for its ACMEC’s initiative: analytical work and possibly co-financing of infrastructure and other projects. In response, the WB: –Carry out some analytical studies in several areas, –participate in GMS Transportation forum, & GMS working groups –Work closely with NESDB, ACMECS Business Council, & Thai chamber of Commerce, & potential Thai investors

Interactions with Thai Chamber of Commerce Lao Border-area Thai Chambers to discuss investment option in Lao PDR in late 2003 Lao Border-area Thai Chambers to discuss investment option in Lao PDR in late 2003 Met Cambodia Border-area Thai Chambers to discuss investment options in Cambodia in early 2005 Discussed with GMS & ACMECS Business Council on TTF issues 2006

Interactions with Interested Donors Work with ADB & its GMS Working gps Work with UNESCAP Work with EU’s support to ASEAN on TTF Work with Thai NEDA & TICA

Road Corridors linking Mekong Already Constructed Under GMS Source: ADB

Reduce Cost (time & financial) of Cross-Border Movement of Exports NS, EW & Southern road Corridors have reduced cost in non-border areas close to Corridors in Lao, Cambodia, Vietnam & Myanmar; Further cost-reductions for Lao, Cambodia, Myanmar exports if TTF can be improved i.e. border crossing times lowered & made predictable & financial cost of movement lowered Additional cost reductions possible for Lao, Myanmar & Cambodia, only if TTF improvements raise traffic volume between Vietnam & Thailand as well as between Thailand & China

Supporting sub regional TTF through the GMS, ACMECS and other business councils is now a World Bank Priority WB will continue with its analytical work bringing succesful experiences from other parts of the world. WB will analyze the different levels of interest in trade facilitation both across and within countries and work towards raising the awareness of the value of integration. WB will work to raise awareness about actions needed to reduce TTF costs, as well to help mobilize the private sector to discuss such actions with their respective Governments. The WB, through the IFC, will work to catalyze private investments in the region.

World Bank ready to Co-finance a TTF project with ADB, if needed There maybe need for resources to implement: --GMS Cross Border Transport Agreements --Develop/ implement customs transit system --Implement regionally, & include Thailand

Thank You !