Overview
The Greater Mekong Subregion is diverse and its partner nations are in varying stages of economic development and integration. Transport and Trade Facilitation initiatives aim to improve connectivity, level the playing field, and raise the standards of living in the GMS.
Background
The Greater Mekong Subregion (GMS) is made up of six countries, Cambodia, Lao PDR, Myanmar, People’s Republic of China, Thailand, and Viet Nam, all of which share an increasingly interdependent network of transport, trade and tourism. GMS nations have improved infrastructure (from a large-scale hardware investment of around $14 billion) and border-clearance processes with support from governments and development partners. The newly improved network of roadways, bridges and border crossings link the people of the GMS and provide opportunities for a more prosperous future.
Key Achievements
1. Legal basis for sustainable implementation
- Ratification of main agreement, with most countries having ratified its 20 annexes/protocols.
2. Institutional mechanisms put firmly in place
- National Transport Facilitation Committees established in the six GMS countries.
- Ministerial-level Joint Committee established for monitoring TTF initiatives.
- Sub-committees established to address transport, customs immigration and quarantine.
3. Additional border crossings opened
A. Initial Implementation of Tripartite MOU for the EWEC
- Pilot Implementation of the Tripartite MOU between Lao PDR, Thailand and Viet Nam held on June 2009.
- Lao-Bao – Dansavagn and Savannakhet – Mukdahan border crossing points along the EWEC.
B. Cambodia – Thailand Exchange of Traffic Rights.
- Opening Ceremony held at the Aranyaprathet – Poipet Border on June 2012.
- Initial permit quota: 40 permits, which will be increased according to market demand:
- Cambodia: trucks-10, buses-30.
- Thailand: trucks-30, buses-10.
- Route: Bangkok-Phnom Penh
- Agreement on scheduled passenger transport service between Cambodia and Thailand:
- Bangkok-Aranyaprathet – Poipet – Siem Reap
- Bangkok – Aranyaprathet – Poipet – Phnom Penh.
C. Cambodia – Viet Nam Traffic Rights Exchange
- Bavet – Moc Bai Border.
- Five (out seven that were agreed in principle) border entry/exit border crossing points officially opened between Cambodia and Viet Nam, including a route from Ho Chi Minh City to Phnom Penh;
- Permit Quota: Initially 40, increased to 150, then increased to 300 and recently increased to 500, for goods, vehicles and passengers.
4. Transport routes expanded
A. Viet Nam – PRC Road Transport Agreement
- Wider coverage and more routes. • Key routes: Kunming – Hao Cai – Hanoi – Haiphon, and Hanoi – Langson – Nanning – Shenzhen.
- Permit quota (15,100+500/country/year) for buses and trucks for “point-to-point” transportation could operate from “border area” to “inland area” along the agreed routes without trans-shipment.
5. Facilitated key border crossing formalities
- Single-Stop Inspection and Single Window Inspection.
A. Expansion of the Operational Route of the EWEC
- Thailand, Lao PDR, and Viet Nam signed an MOU to extend the EWEC route on Feb 2013, which covers:
- Three GMS capitals: Bangkok, Hanoi, Vientiane.
- Two deep-sea ports: Haiphong in Viet Nam and Laem Chabang in Thailand.
B. Viet Nam – Lao PDR Single-Stop Customs Inspection
- Single-Stop Customs Inspection (SSI) at the Lao-Bao – Dansavagn border.
- Common Control Area (CCA) completed.
- Meeting between Viet Nam and Lao PDR held to accelerate the implementation of SSI.
- Lao PDR and Viet Nam customs officials conducting joint inspections of cargo trucks under the CBTA Single-Stop Customs Inspection modality at the Lao-Bao border in Viet Nam.
6. Close cooperation with the private sector in implementing the CBTA
- Transport associations have signed MOUs with customs authorities to fast-track customs clearance times at borders.
- The regional association of transport associations (GMS Freight Forwarders Association) was established.
7. Analysis of trade flows and routes
- Detailed assessment of geography of trade flows and assessment of transport sector’s link to trade flows in the GMS.
Milestones
1999-2003
CBTA Framework Agreement – Signed & Ratified
Signing of the CBTA
- Lao PDR – November 1999
- Thailand – November 1999
- Viet Nam – November 1999
- Cambodia – November 2001
- China PRC – November 2002
- Myanmar – September 2003
Ratification of the CBTA
