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Synergizing HRD and Capacity Building Initiatives within the GMS & AEC Framework

Synergizing HRD and Capacity Building Initiatives within the GMS & AEC Framework. Meeting the Challenges in Narrowing Development Gaps among GMS Community. Presentation Overview. GMS Economic Cooperation and development potentials The need to integrate into AEC

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Synergizing HRD and Capacity Building Initiatives within the GMS & AEC Framework

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  1. Synergizing HRD and Capacity Building Initiatives within the GMS & AEC Framework Meeting the Challenges in Narrowing Development Gaps among GMS Community

  2. Presentation Overview GMS Economic Cooperation and development potentials The need to integrate into AEC Liberalization of Trade and Investment and Integration in East Asiaand their implications HRD Issues in realization of AEC

  3. The GMS Economic Cooperation People’s Republic of China Land area: 633 thou sq km Population: 97.3 M GDP per capita: US$1,135 (figures for Yunnan and Guangxi only) Myanmar Land area: 677 thou sq km Population: 54.8 M GDP per capita: US$255 (2005) Viet Nam Land area: 332 thou sq km Population: 84.1 M GDP per capita: US$724 Thailand Land area: 513 thou sq km Population: 65.8 M GDP per capita: US$3,133 Lao PDR Land area: 237 thou sq km Population: 5.7 M GDP per capita: US$601 The GMS in 2006 Land area: 2.6 M sq km Population: 323 M GDP per capita: US$1,453* * excludes Myanmar Cambodia Land area: 181 thou sq km Population: 14.1 M GDP per capita: US$510

  4. GMS Regional Development Outlook Strategic Location Trade & Investment Openness Enhanced Connectivity & Efficient Logistics Competitive Economy Building Economic Partnership within the Region

  5. Interdependent of GMS Countries • Resources: Available: Tin, Fisheries, Products Needs: Manganese, Iron Available: Coper, Lead, Zinc, Tin, Iron Needs: Powdered Ores, Timber, Fisheries Products Available: CruideOil, Gas, Coal, Apatite Needs: Steel, Refined Oil Available: Gas, Teak, Gemstone Needs: Refined Oil Available:Timber. Hydropower, Tin Needs: Fuel Available: Tin, Rubber, Natural Gas Needs: Fuel Available: Timber, Fisheries, Product, Gemstone Needs: Fuel

  6. From GMS to ASEAN 600 million people become a trade hub of Asia. –

  7. Source: AEC Chartbook 2010

  8. AEC and Liberalization of Trade and Investment in East Asia AFTA ACFTA AJCEP AKFTA AANZFTA AIFTA A single market and production base A highly competitive economic region Equitable economic development Fully integrated into the global economy

  9. AEC and FTA Challengesfor CLMV Limited public human resource capacities to develop and implement trade and investment policy and regulatory framework. Limited SMEs’ ability to integrate into ASEAN and global value chains. Limited absorptive capacity and adjustment of Agriculture Policies and Practices to a bigger and more competitive economy. Limited Good Agricultural Practices.

  10. ASEAN Competitive Advantage Spaghetti bowl effect EU ACD ASEM GMS ACMECS NAFTA ASEAN Community (APSC, AEC, ASCC) APEC BIMSTEC WTO IMT- GT Korea Japan PRC India FTAs e.g. Japan, China, Australia, New Zealand, Bahrain, Peru, India, USA, BIMSTEC etc…

  11. Mega-competition in industry

  12. Replacement, reallocation, repositioning, geographical realignment and reorganization of industry.

  13. Contract Farming and Big Agri. Land Concession will displace small land holders

  14. Lack of Good Postharvest Practices.

  15. Office of SME Promotion Vision: K - ASEAN SME Regional Gateway – the desired destination for production and marketing base of Small and Medium Sized Enterprises in Southeast Asia. Strategic Plan for SME Promotion and Development Office of Lao PDR/Myanmar/ or Vietnam 2012 - 2017

  16. SMEs Definition Enterprise Size Manufacturing Wholesales Retails Services SE Employment (persons) ≤ 50 ≤ 25 ≤ 15 ≤ 50 Fixed Asset (mln. baht) ≤ 50 ≤ 50 ≤ 30 ≤ 50 ME Employment (persons) 51 - 200 26 - 50 16 - 30 51 - 200 Fixed Asset (mln. baht) Over 50 ≤ 200 Over 50 ≤ 100 Over 30 ≤ 60 Over 50 ≤ 200 Sectors Exchange Rate at 33.00 Baht : 1 US Dollar

  17. II. Roles & Duties • Formulating SMEs Master and Action Planand SMEs related laws and regulations • Taking chargeof SMEs promotional activities that • have yet to be implementedby other offices • Establishing international network and serving as SMEs advocacy in both local and international arena • Providing support facilities for SMEs such as financial support, innovation and technology support, mentoring, incubation, etc… • Managing and monitoring special SMEs promotional projects under the government’s policies i.e. OTOP 17

  18. Direction and Target of SMEs Promotion Direction of SMEs Promotion KPI of SMEs Promotion Target of 2007 -2011 • Strengthening entrepreneurs to use skill, productivity, innovation and knowledge as growth mechanism. • Restructuring SMEs sectors from low-end to medium and high-end products & services ; from OEM to ODM and OBM • Creating of business ethic with CSR • Facilitating common infrastructures for innovation and productivity upgrading • GDP share of SMEs is 42% in 2011 • 2. Labour productivity and TFP in target sectors increase no less than 5 percent/yr. • 3. SMEs export growth is at the same rate as total export growth • Expansion in GDP of SMEs • 2. Growth of labor productivity and total factor productivity of SMEs • 3. Growth of SMEs export 18

  19. Strategies of SMEs Promotion Plan 2 (2007-2011) Intellectual Infrastructure Vision: SMEs to Grow withSustainability, Strength and Balance Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneurs Strategy 4: Promote the Capability on Value Creation in Services Sector Strategy 5: Promote SMEs in Regional and Local Areas Network & Alliance Strategy 2: Upgrade Manufacturing SMEs Productivity Strategy 3: Increase the efficiency and reduce impediment in trading sectors Strategy 6 : Create business environment and enabling factors Competitiveness 19

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  21. Siam M. Handicraft Activities : • Bangkok International Gift at Muang thong thani, • Bangkok Thailand every year. • Foire de lyon France,2005 • Bangkok International Gift at Muang thong thani, • Bangkok Thailand 2008. • Foire de lyon France,2005 21

  22. Light Industry

  23. PACKING 23

  24. Cheap labor

  25. Luang Reap Hoi Province Vision Toward economic prosperous, socially just, and environmentally sound Luang Reap Hoi, the Regional Gateway to Cultural and World Heritage Tourism of the GMS.

  26. Mission of Provincial Government To promote and coordinate sustainable tourism development for inclusive economic growth and cultural and environmental conservations by implementing integrated provincial development programs and providing business development services and policy advices

  27. Bagan - the Regional Gateway to Cultural and World Heritage Tourism of the GMS

  28. Luang Pabang – the regional gateway of cultural and world heritage tourism of the GMS

  29. Hue – the regional gateway of historical and world heritage tourism of the GMS

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