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Home , Attapeu, Central Vietnam, Chong Mek, Pakxan, Sekong, Thakhek

Institute of Developing Economies, JETRO

People-to-People Connectivity between Central , Lao PDR and

Masami Ishida Institute of Developing Economies Japan External Trade Organization

1 Institute of Developing Economies, JETRO Today’s Topic

I. Exchange through Tourism

II. Cooperation in Education

III. Sister – City Relations

IV. Background of Deepened Relations

2 Institute of Developing Economies, JETRO

I. Exchange through Tourism

3 Institute of Developing Economies, JETRO Thai Tourists Visit Central Vietnam Hue 1st 3rd

From 2004 or 2005 Thai tourists who visit Central Vietnam Had 2nd Increased.

3 Nights 4 Days Khon Kaen Trip Hoi An

Ubon Ratchathani Institute of Developing Economies, JETRO Arrivals to by Vietnamese and Thai

100,000 20,000 80,000 15,000 Tay Trang – Pang Hok 10,000 Huay Xai – 60,000 5,000 0 2009 2010 2011 2012 2013 2014 2015 40,000 2.7 – 4.8% Chiang Kohn 2.8 – 8.5% 20,000 300,000 0 250,000 200,000 Na Meo – Nam Xoi 2009 2010 2011 2012 2013 2014 2015 150,000

100,000

50,000

0 100,000 2009 2010 2011 2012 2013 2014 2015 0.2 – 1.8% 80,000 40,000 60,000 35,000 Nam Ngeun – 30,000 25,000 Nam Can – Nam Khan 40,000 20,000 15,000 20,000 10,000 Huay Kon 0.8 – 1.7% 5,000 0 0.2 – 2.1% 0 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015

100,000 Cau Treo – Nam Phao 1.1 – 7.4%

80,000 Nam Heuang – 300,000 60,000 Nong Phur 0.8 – 9.0% 40,000 250,000 20,000 200,000 0 2009 2010 2011 2012 2013 2014 2015 150,000 – 8.4 – 20.4% 100,000 50,000 1,000,000 0 2009 2010 2011 2012 2013 2014 2015 800,000 Cha Lo – Naphao 0.9 – 7.0% 200,000

600,000 150,000

100,000 400,000 50,000

0 200,000 2009 2010 2011 2012 2013 2014 2015 Lao Bao – Den 0 Bo Y – Phou Keua Savanh 8.6 – 27.3% 2009 2010 2011 2012 2013 2014 2015 – Mukdahan 3.3 – 4.5% 0.5 – 5.0% 300,000 30,000 250,000 25,000 200,000 20,000 – 15,000 1,000,000 10,000 200,000 5,000 150,000 0 5.6 – 13.5% 2009 2010 2011 2012 2013 2014 2015 150,000 100,000 800,000 100,000 200,000 50,000 50,000 – 150,000 0 0 600,000 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 100,000 300,000 50,000 400,000 16.2 – 35.6% 250,000 Vang Tao – Chong 0 200,000 2009 2010 2011 2012 2013 2014 2015 Mek 1.7 – 3.1% 200,000 150,000 : Entry by Thai people. 100,000 5 0 50,000 2009 2010 2011 2012 2013 2014 2015 0 : Entry by . 2009 2010 2011 2012 2013 2014 2015 Institute of Developing Economies, JETRO

Thai tourists created Tourist Arrivals at Den Savanh Border the new trend of people-to- people 280,772 291,825 300,000 connectivity. But the 236,984 250,000 190,876 number of Thai tourist 200,000 161,717 145,126 show sluggish Trend 150,000 recently. 80,568 100,000 1. Thai government 30,179 31,669 22,489 25,099 33,576 26,499 31,749 50,000 regulation to 0 government 2009 2010 2011 2012 2013 2014 2015 officials business tour has become Savannakhet + Den Savanh Border tight.

1,000,000 2. Competition 800,000 between LCC and bus tour has 600,000 become tough. 400,000 3. Thai tourists do 200,000 not repeat visits to the same spot 0 Central Vietnam. 2005 2010 2015 : Entry by Thai people. 6 Source: Statistical Report on Tourism in Laos. : Entry by Vietnamese people. Institute of Developing Economies, JETRO

Tourist Arrivals at 3rd Bridge & Thakhek

200,000 November 11, 2011 Completion of Third Mekong Bridge 150,000 132,456 103,120 90,236 100,000 58,963 49,800 56,040 59,709 57,048 40,537 50,000 25,230 29,134 11,377 9,635 13,683 0 2009 2010 2011 2012 2013 2014 2015 Vietnamese people who moves from Nong Khai to Vientiane and Tourist Arrivals at 1st Mekong Bridge (near Vientiane) from Nakhon Phanom to Thakhek have 1,000,000 925,043 increased. 900,000 767,382 789,390 800,000 709,946 700,000 600,000 513,870 517,300 500,000 442,168 400,000 300,000 201,790 200,000 152,548 115,157 129,090 129,112 91,629 100,000 40,496 0 7 2009 2010 2011 2012 2013 2014 2015 Institute of Developing Economies, JETRO Vietnamese Tourists Visit Thailand & Laos Vientiane 1st

Nakhon Phanom 2nd

Vinh

Udon Thani

2 Nights 3 Days Tour Shopping Institute of Developing Economies, JETRO

II. Cooperation in Education

9 Institute of Developing Economies, JETRO Foreign Students Enroll in Central Vietnam Nghe An Educational Vinh Univ. (Foreign) 100 500 College (Lao) Lao 80 400 Chinese 60 300 Thai 40 200 20 0 100 2005 2010 2015 0 Hue Educational Ha Tinh Univ. (Lao) 2005 2010 2015 Quang Binh Univ. Dong Hoi College (Lao) (Lao) College (Lao) 2000 Hue Univ. (Foreign) 500 100 Under 1500 400 80 Graduate 60 Vinh 300 Language 1000 40 200 20 500 100 0 2005 2010 2015 0 0 Dong Hoi 2005 2010 2015 2005 2010 2015 Quang Tri Education Da Nang Foreign Dong Ha College (Lao) Hue Medical College (Lao) Language Univ. 100 Da Nang （Foreign) 80 Hue Da Nang 100 60 Education College 80 40 Da Nang 60 20 Under Graduate (Lao) 40 0 Graduate (Lao) 2005 2010 2015 Tam Ky 20 0 2005 2010 2015 Quang Ngai Pham Van Dong Univ. (Lao) Quang Nam Univ. (Lao)

100 100

80 80

60 60 40 Source: Graphs are based on data collected by Vietnam Institute of Economics 40 20 10 from Ministry of . 20 0 0 2005 2010 2015 2005 2010 2015 Institute of Developing Economies, JETRO The Number of Lao Students in Vietnam

Students do not have to use air plane. They can move to the cities from their home towns by bus. This is an effect of cross-border road infrastructure development

Vinh Univ. 642 Students Ha Tinh Univ. 1900 Students Quang Binh Univ. 140 Students (2015)

Hue Univ. 310 Students Da Nang Univ. 517 Students Qaung Nam Univ. 179 Students

Source: Interviews with the universities conducted in October 2016 and in December 2015. Institute of Developing Economies, JETRO Other Examples of Exchange of Students  Increase in the number of foreign students at Khon Kaen Univ. 2013 2014 2015 2016 Science & Technology 177 202 236 213 Many of them are from CLMV countries Health 182 219 250 225 including Laos Humanities & Society 364 435 401 480 Total 723 856 977 918 Source: Survey conducted by Khon Kaen Univ.

 Another case study 1 or 2 students Vietnamese Mukdahan study tourism Industrial College as of 2015 Hue Chaophraya Industrial College University 12 trainees of business experience as of 2015 12 Source: Survey conducted by Khon Kaen Univ and Vietnamese Institute of Economics. Institute of Developing Economies, JETRO

III. Sister-City Relations

13 Institute of Developing Economies, JETRO MOUs between Neighboring Provinces

Xieng Khouang

Nghe An

Bolikhamxay Ha Tinh

Quang Binh Khammouane Quang Tri Thua Thien Hue Mukdahan Savannakhet Da Nang Quang Ubon Ratchathani Nam

Champasak

Bangkok Preah Vihear

Source: Interview at People’s Committees : A Sister – City Relation between neighboring provinces. and DPI of Vietnamese provinces and 14 commercial department of Ubon : Cooperative relations based on Emerald Triangle. Ratchathani province in 2015 and : Cooperative relations based on MOUs on education and tourism. 2016. Institute of Developing Economies, JETRO Sister City Relations and MOU in General

Xieng Khouang

Nghe An

Bolikhamxay Ha Tinh

Quang Binh Khammouane Quang Tri Thua Thien Mukdahan Savannakhet Hue Da Nang Salavan Quang Ubon Sekong Ratchathani Nam

Champasak Attapeu

Bangkok

Source: Interview at DPI in Thua Thien Hue Province and Department of Foreign Affairs of Da Nang City in December 2015, and at DPI of Quang Tri Province in October 2016. 15 Institute of Developing Economies, JETRO MOUs between Vietnam and Lao PDR

Thua Thien Hue Province and Da Nang Concluded MOU with 6 Provinces in Lao PDR

Khammouane Thua Thien Savannakhet Hue Da Nang Salavan Sekong

Champasak Attapeu

Source: Interview at DPI in Thua Thien Hue Province and Department of Foreign Affairs of Da Nang City in December 2015. 16 Institute of Developing Economies, JETRO Nine Provinces’ Cooperative Relations

1996 Plan of Vietnam – Thailand Friendship Village was started in Nakhon Phanom Nghe An 1996 Sister – city relation of Bolikhamxay 2 Lao Provinces, 3 Bueng Ha Tinh Vietnamese provinces Nong Khai Kan Khammouane Quang and Nakhon Phanom Sakon Nakhon Binh 2011 The third Mekong NakhonPhanom Friendship Bridge was completed  3 Thai provinces added Meeting twice in a year Promoting trade, tourism and road development 17 Source: Interviews at People’s Committee of Ha Tinh Province and DPI of Nghe An Province in October 2016. Institute of Developing Economies, JETRO EWEC Business Database Project

Phit Tak Sanulok Quang Tri Karen Mukdahan Khon Kalasin Thua Thien Savannakhet Hue Kaen Mon Da Nang

Source: Based on my experience of working for Mekong Institute as a consultant in 2012. 18 Institute of Developing Economies, JETRO

IV. Background of Deepened Relation

19 Institute of Developing Economies, JETRO Overseas Vietnamese in Thailand First Generation (18 – 19 century) 1) Vietnamese who accompanied with Nguyen Phuc Anh (later called as Gia Long, the First Emperor of Nguyen Dynasty) when escaped to Bangkok in 1783 and continued to live in Thailand. 2) Vietnamese Christians who escaped to Thailand from oppression under the Nguyen dynasty since Emperor Ming Mang rejected French missionaries in 1825 Second Generation (1890s – 1930s) Vietnamese nationalists who utilized Thailand as a safe place to escape from French police from the end of 19 century to 1930s. The leaders of pro-independence movement such as Mr. Phan Boi Chau and Mr. Ho Chi Minh also visited Thailand. Third Generation (1975 – 80) People called as “boat people” who escaped from Southern and Central part of Vietnam. 20 Institute of Developing Economies, JETRO Overseas Vietnamese in Thailand and Laos

Vinh

Bolikhamxay Ha Tinh Nong Khai Nakhon Udon Phanom Quang Binh Thani Sakhon Khammouane Nakhon Dong Ha Khon Savannakhet Hue Kaen Mukdahan Phichit Da Nang

Ubon Quang Ratchathani Nam

Bangkok

: Cities where Association of Vietnamese People exists. : Cities where Mr. Ho Chi Minh stayed between 1928-31. 21 Source : Takahashi (2012) and Foreign Language Publishing House (1962). Institute of Developing Economies, JETRO Tourist Spots as Connector

World Cultural Phong Nha Ke Bang National Park Nguyen Dynasty Palace at Hue, 11 Apr. 2010. and Natural Heritages of UNESCO

Japan Bridge at Hoi An, 13 Apr. 2110. My Son Sanctuary, 9 Sep. 2009.

Ho Chi Minh’s House at Nakhon Anousavary Patuxay at Vientiane, Phanom, 22 Jul.. 2015. 22 18 Jul. 2013. Institute of Developing Economies, JETRO Before & After 2nd Friendship Bridge

December 26 2006 Completion of 2nd Mekong Bridge between Mukdahan－Savannakhet （1,600m）

27 August 2006

23 July 2015 5 September 2016 Institute of Developing Economies, JETRO Before & After 3rd Friendship Bridge November 11, 2011 Completion of 3rd Mekong Bridge between Mukdahan－Savannakhet （780m）

Ferry before the completion December 19, 2012

Opening Ceremony on November 11, 2011 Third Mekong Friendship Bridge on July 22, 2015 Institute of Developing Economies, JETRO Short Distance (Highway No. 9, 8, 12)

485km 470km Pang Hok – Ha Noi Tay Trang Chiang Khong – 284km Houayxai 690km 388km Nam Suoy – Na Meo Huaykon – 258km Nam Ngeun 505km Nam Phao – Vinh Cau Treo 94km 700km Vung An (Ky Anh) Vientiane Border to HW 89km Nong Khai – 218km No.1 in Vietnam Note: The distance is Thanaleng Na Pao – Cha Lo measured when I Nong Phur – Nakhon Phanom – passed road 160km Den Savanh – Lao Bao From border Nam Heuan Thakhek 82km (except roads to Na Bridge Dong Ha to border in Meo – Nam Suoy, Mukdahan – Huaykon – Nam Hue Laos Noeun, Nong Phur Khon Kaen Savannakhet 246km 103km Lalay – La Lay – Nam Heuan From Ubon Bridge and Lalay – 274km Lalay). These 92km Ratchathani secdions’ distances to border in – are measured by Phou Keua – Bo Y maps sold at book Vang Tao 350km Thailand shops. 282km 25 Source : Created by Quy Nhon presenter. Institute of Developing Economies, JETRO Conclusions People-to-people connectivity between Central Vietnam, Laos and Northeastern Thailand have been deepened: 1) in tourism (started with Thai tourists’ visits and the number of Vietnamese tourists’ visits to Thailand and Laos) 2) in education (Lao students who study in Central Vietnam and in Thailand have increased) 3) in sister – city relations and MOUs between local governments Backgrounds of the deepened connectivity are: 1) Overseas Vietnamese people who live in Central Laos and in Northeastern Thailand as a connector 2) Tourist’s spots as a connector 3) Infrastructure development including bridges over Mekong River 4) Especially short distance between borders with Thailand and with Vietnam in Laos (Highway No. 9, Highway 12 and Highway 8)

26 Institute of Developing Economies, JETRO

Thank you !

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