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Urban Development in the Greater Mekong Subregion URBAN DEVELOPMENT IN THE GREATER MEKONG SUBREGION ASIAN DEVELOPMENT BANK URBAN DEVELOPMENT IN THE GREATER MEKONG SUBREGION Edited by Florian Steinberg and Januar Hakim ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2016 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org; openaccess.adb.org Some rights reserved. Published in 2016. Printed in the Philippines. ISBN 978-92-9254-983-1 (Print), 978-92-9254-984-8 (e-ISBN) Publication Stock No. BKK146799 Cataloging-In-Publication Data Asian Development Bank. Urban development in the Greater Mekong Subregion. Mandaluyong City, Philippines: Asian Development Bank, 2016. 1. Urban development. 2. Regional development. 3. Greater Mekong Subregion. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of said license as well as the Terms of Use of the ADB Open Access Repository at openaccess.adb.org/termsofuse This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Attribution—In acknowledging ADB as the source, please be sure to include all of the following information: Author. Year of publication. Title of the material. © Asian Development Bank [and/or Publisher]. https://openaccess.adb.org. Available under a CC BY 3.0 IGO license. Translations—Any translations you create should carry the following disclaimer: Originally published by the Asian Development Bank in English under the title [title] © [Year of publication] Asian Development Bank. All rights reserved. The quality of this translation and its coherence with the original text is the sole responsibility of the [translator]. The English original of this work is the only official version. Adaptations—Any adaptations you create should carry the following disclaimer: This is an adaptation of an original Work © Asian Development Bank [Year]. The views expressed here are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent. ADB does not endorse this work or guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Please contact [email protected] or [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Notes: In this publication, “$” refers to US dollars. ADB recognizes “China” as the People’s Republic of China, “Korea” as the Republic of Korea, and “Vietnam” as Viet Nam. Printed on recycled paper Contents Tables and Figures vii Foreword xi Urban Development and Urbanization in the Greater Mekong Subregion Preface xiv Knowledge Sharing on Urban Development in the Greater Mekong Subregion Acknowledgments xvi Contributors xvii Abbreviations xix Chapter 1: Evolution of Towns and Cities in the Greater Mekong Subregion 1 Januar Hakim Spatial and Socioeconomic Development 1 Urban Development Experiences 12 Cambodia 12 Lao People’s Democratic Republic 15 Myanmar 16 Thailand 18 Viet Nam 19 Yunnan Province, People’s Republic of China 21 Guangxi Zhuang Autonomous Region, People’s Republic of China 24 Drivers of Change 25 Government Policies and Strategies 26 Regional Cooperation 27 Transport and Trade Facilitation 29 Foreign Investment 31 Rural–Urban Migration 32 Patterns and Emergent Trends in Urbanization 34 Dominance of Primary Cities 35 Development of Small and Medium-Sized Towns and Cities 37 Rural–Urban Linkages 38 Emerging Urban Growth Centers 39 ivContents Issues in Urban Development 46 Urban Planning and Land Management 47 Financing for Urban Infrastructure 48 Climate Change and Environmental Management 49 Urban Institutions and Management Growth 51 Private Sector Involvement 51 Conclusion 52 Chapter 2: The Role of Cities and Connectivity in Promoting Regional Integration and Competitiveness 55 Douglas Webster and Andrew Gulbrandson Introduction 55 Spatial and Economic Trends in the Greater Mekong Subregion 58 Urban Systems and Spatial Patterns 58 Trends in Economic Development and Value Chains 72 Trends in Greater Mekong Subregion Trade and Traffic Flows 82 National Urban Systems and Development Strategies 89 The Role and Potential of Urban Modules in the Socioeconomic Development of the Greater Mekong Subregion 109 Context 109 Cross-Border Arbitrage Activities 110 Along Corridor Activities 112 Ports 114 Industrial Clusters and Manufacturing 117 Tourism 118 Implications for Greater Mekong Subregion Development 119 Context 119 Key Corridors and Urban Centers 120 Investment Recommendations and Implications 128 Accelerating the Greater Mekong Subregion Development Process: Innovative Measures 128 Comprehensive Urban Database and Spatial Framework for the Region 128 Transport and Seamless Borders 130 Multimodal Corridors 131 Intermediate-Sized Cities 132 Green Cities 135 Urban Economic Functions, Structure, and Dynamics 136 Greater Mekong Subregion Urban Forum 136 Private Sector Involvement in Greater Mekong Subregion Cities 137 Contentsv Agriculture and Logistics Consideration in Corridor Development 137 Priority Corridors 138 Tourism and Amenity as a Major Driver of Greater Mekong Subregion Development 138 ADB Greater Mekong Subregion Urban Facilitation 139 Chapter 3: Greater Mekong Subregion Corridor Towns Development Projects: The First Generation 141 Florian Steinberg and Aldrin Plaza Rationale for the Focus on Greater Mekong Subregion Corridor Towns 141 Strategic Economic Development 142 Economic Characterization of the Towns at the Southern Economic Corridor 145 Economic Characterization of Project Towns at the East–West Economic Corridor 150 Implementing the First Greater Mekong Subregion Corridor Towns Development Projects 168 Economic and Financial Viability Analysis of the Project Investments 168 Environmental and Social Impacts 169 Operation and Maintenance of the Urban Infrastructure 170 Implementation Issues and Risks 171 Expected Long-Term Impacts and Outcomes 171 Appendix: List of Subprojects 175 Chapter 4: Bangkok to Ho Chi Minh City: Competitiveness along the Southern Economic Corridor 183 Alain Maulion and Florian Steinberg Introduction 183 Urban and Economic Profile of Cities or Towns 184 Bangkok, Thailand 184 Poipet, Cambodia 185 Battambang, Cambodia 185 Phnom Penh, Cambodia 186 Bavet, Cambodia 187 Moc Bai, Viet Nam 188 Ho Chi Minh City, Viet Nam 189 Highlights of the City Competitiveness Study 190 Bangkok 192 Poipet 194 viContents Battambang 196 Phnom Penh 197 Bavet 199 Moc Bai 201 Ho Chi Minh City 203 Institutional Capabilities for Entrepreneurial Services 205 Cambodia 205 Thailand 206 Viet Nam 207 Inter-Institutional Relationships for Business Support 208 Cambodia 208 Thailand 209 Viet Nam 210 Evolution of Capabilities and Policies 211 Cambodia 211 Thailand 211 Viet Nam 212 Assessment of Regulatory Instruments 213 Cambodia 213 Thailand 215 Viet Nam 216 Conclusion 219 Appendix: Competitiveness Drivers in Southern Economic Corridor Towns and Cities 221 Chapter 5: Promoting and Scaling Up Cooperative Urban Development: A Perspective from the People’s Republic of China via Yunnan Province 227 Xiangming Chen Introduction 227 Reassessing Regional Urban Development 228 Two International Cases and Their Implications for the Greater Mekong Subregion 231 Urban Development in the Greater Mekong Subregion: Constraints and Opportunities 236 Development and Cooperation across the Greater Mekong Subregion Cities 244 Index 251 Tables and Figures Tables 1.1 Percentage of Urban Population in Selected Countries, 1950–2050 6 1.2 Socioeconomic Indicators in the Greater Mekong Subregion 7 1.3 Primacy of Cities in the Greater Mekong Subregion 11 1.4 Greater Mekong Subregion Trade Statistics: Manufacturing Exports, 2005–2013 ($ million) 30 1.5 Foreign Direct Investment to the Greater Mekong Subregion, 2005–2013 ($ million) 32 1.6 International Tourist Arrivals to the Greater Mekong Subregion, 2005–2013 (in person) 42 1.7 Annual Receipts from Tourism in the Greater Mekong Subregion, 2005–2013 43 2.1 Number of Cities and Urban Areas in the Greater Mekong Subregion by Class and Country 59 2.2 Urban Population of Cities and Urban Areas in the Greater Mekong Subregion by Class
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