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NEDA Dawei Phase 2: Progress Meeting with Secretariat Team

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Regional Integration through Dawei Development Project Presentation by Mr. Arkhom Termpittayapaisith Deputy Minister of Transport and Secretary – General of the National Economic and Social Development Board of Thailand to the Mekong – Five Economic Forum as part of the 7th Mekong Japan Summit Tokyo, July 3, 2015 Topics of today's presentation 1 Overview of Dawei Special Economic Zone 2 Dawei SEZ as a Regional Gateway 3 Reinforcement through Thai Special Economic Zone Development 4 Cooperation between Thailand and Myanmar on Dawei SEZ 5 Current Status of Dawei SEZ 2 1 Overview of Dawei SEZ Dawei SEZ is located in Tanintharyi Region of Myanmar, adjacent to the Andaman Sea and ~130 km from the Thai border Dawei SEZ - Introduction OVERVIEW > 196.5 km2 Size > One of the largest SEZs in Asia Myanmar > Located in Southeastern Myanmar, the Laos Capital of Tanintharyi Region, which has 1.4 m population in 2014 Location > Strategically located adjacent to the Andaman Sea and near the Gulf of Thailand Thailand Andaman Sea > Distance (km.) from DSEZ to: Dawei 132 km 132 Thai-Myanmar border (Ban Phu Nam Ron) Kanchanaburi Distance to 300 Bangkok (TH) Tanintharyi Cambodia key 450 Eastern Seaboard (TH) locations 600 Yangon (MM) Gulf of Thailand 1,050 Vung Tao (VN) 1,200 Chennai (IN) Source: Dawei SEZ , NESDB, Ministry of Immigration and Population; Roland Berger 3 2 Dawei SEZ as a Regional Gateway Dawei SEZ opens a new gateway to the West, linking India, Europe, Africa and Middle East with ASEAN & East Asia Dawei SEZ strategic location: new gateway to the West New gateway to the West Key highlights > Strategic location: New gateway to the West connecting Indian Kunming and Pacific Oceans Nanning China – Linking between Southeast Asia and South Asia, the Middle East, Europe and Africa – Providing alternative trade route to the Strait of Malacca – with time and cost savings on logistics Vietnam China, India Dawei Bangkok Japan, – Shortening the distance by approximately 50% or 2,000 km Thailand Taiwan, Korea ESB Cambodia and reducing 3 days of the shipment time from Bangkok to Chennai, India1) > Connecting GMS Southern Economic Corridor markets to Singapore the West: ~USD 120 bn total trade flow of Thailand, Cambodia, Europe, Africa & Vietnam to the Western markets Middle East > MIEC2) linkage: complete linkage to India via Chennai – Dawei's deep sea port > Dawei SEZ will support Myanmar's regional development throughout the southern area as there are no big cities in the Traditional sea route Potential land-based routes vie Dawei southern area except Dawei and Myeik 1) from 4,500 km via the Malacca Strait vs 2,500 km via Dawei's deep sea port; 2) Mekong-India Economic Corridor Source: Globalasia, NESDB, Roland Berger 4 2 Dawei SEZ as a Regional Gateway Dawei SEZ completes GMS Southern Economic Corridor, connecting regional supply chain linkage through Thailand's Eastern Seaboard Dawei SEZ completes the GMS Southern Economic Corridor GMS Southern Economic Corridor Key highlights > Complete GMS Southern Economic Myanmar Corridor: Dawei SEZ establishes regional connectivity and creates land bridge from DSEZ – Bangkok – ESB – Phnom Penh – Quy Nhon Ho Chi Minh Kanchanaburi Dawei Bangkok Sisophon > Supply chain linkage with Thailand's 132 km Eastern Seaboard (ESB): co-manufacturing Siem Reap Southern 300 km Eastern Economic linkages with the ESB and inducing the Seaboard Corridor 450 km economic activities along the corridor Phnom Penh Ho Chi Minh City > Strong economic and political linkage to ASEAN Vung Tau > Economic and social development: job creation, enhanced livelihood and basic infrastructure improvement Source: NESDB 5 3 Reinforcement through Development of Thai SEZ Dawei SEZ will be reinforced by the development of Special Economic Zones in Thailand, along the GMS Economic Corridors Target Areas for Thai SEZ Development Key highlights Northern North-South st nd corridor corridor > 10 target areas under the 1 and 2 phase SEZ development are located along the GMS Economic Corridors Central corridor > Factors for determining target areas: Eastern Western corridor corridor – Potential and Competitiveness East – West – Opportunities corridor – Infrastructure availability – Production factors in areas Southern corridor – Border trade value Southern Coastal – Development policies of the neighboring countries corridor – Problems/Constraints Target SEZ in Thailand Source: NESDB 6 3 Reinforcement through Development of Thai SEZ Thailand's SEZ will be supported by incentives and privileges, one- stop-service centre and infrastructure Thailand SEZ development framework Enhance regional economic integration + Lower disparities + Strengthen National Security Special Economic Zones The 1st phase SEZs are located in the border areas Infrastructure & Designated Incentive & Migrant Agricultural OSS Customs Area Privilege Labor produce Center Checkpoint Source: NESDB 7 3 Reinforcement through Development of Thai SEZ Border SEZ is one of the potential economic areas development in Thailand 2 Inland Area 1 Border SEZs Border SEZs 2.1 Industrial Cluster • Have Potential for trade and investment Important Production Base • Strengthen Connectivity with neighboring countries • Distinguish area / major production base of the country • Utilize AEC e.g. IT Industry • Locate near Port and export channel • Improve livelihood of people • Most of them are industrial estate or service industry. • Focus on potential local economic activities + labor e.g. Nakhon Ratchasima, ESB intensive industries and logistics e.g. Mae Sot, Sakaeo, Mukdahan Business uses high technology to support national industrial restructuring and has less benefits than border SEZ (but more advantage in Infrastructure) 2.3 Innovation 2.2 Tourism / Free Zone Provincial Cluster Areas/ Tourism Provincial Cluster Areas for Specific Purpose Activities • Unique Areas e.g. island, world heritage sites • Granting benefit for special attractive business investment • Good transport system e.g. airport, train, port • Potential business e.g. Science Park, Research and Development • Service business e.g. hotel, shopping center Center, Duty Free, IHQ (International Headquarter) • Opportunities to develop for convention & exhibition business Source: NESDB 8 3 Reinforcement through Development of Thai SEZ Thailand's SEZ will be complementary with the development of Dawei SEZ st nd > Thailand's SEZ are targeted to be Thailand SEZ : 1 and 2 phase development complementary with Dawei SEZ, focusing Chiang Rai on industries and services that would be Laos mutually reinforcing with Dawei SEZ, Nong Khai namely : Nakhon Phanom • Agro-industry, fishery industries • Ceramic products manufacturing Tak Mukdahan • Textile and garment industries, and manufacture of leather products Thailand • Manufacture of furniture or parts Kanchanaburi • Manufacture of gems and jewelry or parts Sa Kaeo • Manufacture of medical devices or parts Cambodia • Manufacture of engine and vehicle parts, and manufacture of machinery, equipment, and parts Trat • Electronics and electrical appliances industries • Manufacture of plastic products • Manufacture of Medicine • Logistics • Industrial zones / industrial estates • Tourism promotion service Songkhla > Boosting value chain integration along the Narathiwat GMS corridors Source: NESDB 9 4 Cooperation between Thailand and Myanmar on Dawei SEZ The Thai government has been fully supporting the development of Dawei SEZ, in close collaboration with the Myanmar government Myanmar – Thailand collaboration structure for Dawei SEZ Policy-level Prime Minister President Joint High-Level Committee (JHC) Deputy Prime Minister Vice President Coordination-level Joint Coordinating Committee (JCC) Minister Minister Implementation-level Joint Sub-Committee (JSC) Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Thai Thai Thai Thai Thai Thai Deputy Deputy Deputy Deputy Deputy Deputy Minister Minister Minister Minister Minister Minister Minister Minister Minister Minister Minister Minister 1. Infrastructure & 2. Focuses Industry & 3. Power & Energy 4. Community Development 5. Rules & Regulation 6. Finance Construction Business Development & Relocation Source: NESDB 10 5 Current Status of Dawei SEZ Thai and Myanmar governments have been working together on the Initial Phase development as well as the Full Phase Master Plan Infrastructure overview – Initial Phase vs. Full-phase Ambition II Full-phase – Illustration Factories & more Chemical Steel and fertilizer Deep sea port Crude oil refinery industrial estate factories plants I Initial-phase – illustration Expanded/new Recreation Resort power plant complex Initial industrial Small port 2 lane road LNG terminal estate Small power Small water Commercial Service industry & More residential Initial township Telecom landline Tourism plant(s) reservoir development Commercial firms housing Initial projects to materialize launch … ... that will lead to much bigger projects in Time the future Source: Roland Berger 11 5 Current Status of Dawei SEZ For example, the Thai government has submitted a soft loan proposal for the 2-lane road between Thailand and Dawei SEZ Dawei SEZ – Current status Initial Phase Full Phase master plan Status > Negotiations with selected developer have > Long-term master plan has been been finalized, including initial industrial developed, including: estate of 27 km2, power plant, water supply, telecom landline, LNG terminal, initial – Target industries township, 2-lane road, small port – Required infrastructure > Signature expected by July – August
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