By Dr. Chulaporn Kobjaiklang
National Institute Development Administration
China Roles in Thailand:
Infrastructure Investment Context
• Thailand Infrastructure Policies in Development Connectivity
ASEAN+6 Countries Challenges from World Trade and Investments
Affected Thailand
• China Role in Economic Expansion under OBOR project, AIIB
Establishment and Silk Road Fund to ASEAN Countries
• Eastern Economic Corridor: EEC Project, A Strategic Plan under
Thailand 4.0 Development Zone which Sprung from Eastern Seaboard
Success. The Readiness to Connect to ASEAN+6 Countries,
Transportation networks: Land, Water and Air. Trade, Investments,
Tourism, Manufacturing and Service Sectors Expansions.
• Challenging Problem and Must Study Promptly to Find Policy
Guidelines for Good Planning Process, Leading to Cooperation Target
for Optimum Benefits.
Problem Statement
• To Study Infrastructure Competitiveness: Road, Waters and Air for
the Past Five (5) years to the Current from Global Competitiveness
Index Report 2012-2017 (WEF)
• To Study Problems and Vital Barriers on Effectiveness of Thailand
Transportation and Logistics Systems Concerning Relevant
Infrastructure of Transportation System: Road, Waters and Air
• To Study China Roles for Thailand
• To Study Beneficial Gains Thailand will Obtain from Connectivity
Strategies between Thailand with ASEAN Countries and China
• To Gain Recommendations and Guidelines for Enhancing Relations
between Thailand and China
Objectives
Result 1. Global Competitiveness Index Report 2012-2017 (WEF)
0
10
20
30
40
50
60
70
80
1. Quality of
Overall
Infrastructure
2. Quality of
Roads
3. Quality of
Railroad
Infrastructure
4. Quality of Port
Infrastructure
5. Quality of Air
Transport
Infrastructure
49
39
65
56
33
61
42
72
56
34
76
50
74
54
37
71
51
78
52
38
72
60
77
65
42
Thailand Infrastructure GCI 2012-2017 (WEF)
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
Source: The Global Competitiveness Report 2012 – 2017 (World Economic Forum)
Result 2:China Roles in Thailand
• To Study Problems and Vital Barriers on Effectiveness of Thailand Transportation
and Logistics Systems Concerning Relevant Infrastructure of Transportation
System: Road, Waters and Air
1. Road Barriers in Thailand
- Lacks Integration of Transport Networks and Logistics
Management System
- Ineffective Management of Passenger Terminals and
Poorly Managed Public Transport
- Traffic System Facing Problem of the Consciousness of
Road Users. Discipline and Compliance
- City Planning Law Not Strong and Lack of Rigor in
the Past Practice. "Department of Town and Country
Planning"
- Winding Road System is not Linear, Resulting in
Additional Costs and Resulting in an Accident
- Policy Unclear by Encouraging People to Buy a Car
(First Car Policy)
- Build an “Investment Road" Rather than Building a
Road for Transportation
- Cost of Public Transport Quite High Still Legal
Problem
Thailand's Solution
- City Plan should be Revised Every 5-7
Years
- Vision and strategy of Government in
Future Development
- Focus on Providing Logistics Knowledge
to People should Develop a Motorway
Road than General Road
- Encourage People to Share in Traveling
Together
- Including the Promotion and Support of
Public Transport such as Electric Buses
- Government must Stimulate Interest to
Foreign Investors by Increasing
Incentives on Taxes, Lowering Fees and
Not Throwing at the Expense of People
Result 2:China Roles in Thailand
• 2. The Problems of Rail Transport and High-speed Trains of Thailand .
Problems of Rail Transport and High-Speed
Trains of Thailand - Thailand's Train Network the Width of the not Western
Standard, Resulting in Delays in the Traffic
- Suffers from Inadequate Locomotive Problems, has been
Used for a Long Time and Cannot Make High Speed Make
it Unpopular
- Cross Cut and Road Shortcuts are Problematic also a
Chance of Accident
- Missing Link and Cost the Good Principle
- Employees were Longtime Implanted of a State Enterprise,
Even though it Carried a Loss. But Employees Still
Receiving Salaries and Government Support
- Currently, Thai Railways State Enterprises that are in a
State of Loss, Must be Financed by Public Sectors
- Fares are Set by Government Policy, Results Must be
Shared with the Public Sector
- Non-revenue Service Issues Organizational Problems are
Large Lots of Staff High Cost and No Capital to Borrow
Money to Invest
- A Lot of Land Assets but Cannot be Commercially
Exploited
Thailand's Solution - Focus on Improving Management
Efficiency
- Establish Distribution Centers in Key
Areas
- The link between Modes is Good Enough
and Focuses on Connecting the Transport
System from the Truck to the Train
Station
- Should be Working in Partnership with
the Private Sector, Major Driving Force
to Stop and the Country Gets the Most
Benefit
- Thai Railways Must Start with Internal
Reforms. By Paying Attention to
Employees Because Lack Understanding
of Business Operations , Business Process
Including Strategic Thinking,
- Property Management is a Lot of Land
Can be Used Commercially
Result 2:China Roles in Thailand
3. The Problem of Water Transport and Coastal Navigation in Thailand
Problem of Water Transport and Coastal Navigation in Thailand - Lack of Development to Enrich the Resources of the Country and Still Investment in Large Commercial Vessels
- No Ocean Liner there is Only a Small Cargo Ship
- Still Attached to Maritime Law , Result has to Hire Foreign Companies to Carry out Both Import and Export Operations
- "Navy" and "Harbor Department" of Thailand Still Inefficient
- Water Transport and Coastal Navigation Thailand's Main Port is Not on the Main Route of World
- International Shipping or Coastal Navigation Shipping Companies are Usually Foreign Rather than Thai operators
- Mekong River between Thai-Laos also a Rocky Island, Obstructing Barriers to Transportation
- Domestic Transportation Only a Heavy Cargo Transport, such as sand, Timber
- The Expansion of Service Areas of Domestic Ports Along the Banks of the Chao Phraya and Pa Sak Rivers. The Community
may Need to be Dismantled, so it's a Problem Surrounding the Community and May be Followed by the Opposition.
- Dredging of Canals and Rivers is Still Lacking in the Overall Picture of the Country
- Facing a Shortage of Budget
- Expansion of Ports It may be Necessary to Use a Suitable Source of Funding Without being too Burdensome on Debt in the
Future.
- Lack of Standard and Adequate Public Transport
- Coastal and Riverbank Erosion Problems Including Shallow Embankment Problems. Dredging Must be Carried Out in
Order to Allow the Ship to Carry a Large Amount of Cargo and Continue Along the Route
Thailand's Solution - Domestic Water Transportation Systems should be Prepared to Dredge to Broaden the Route to Accommodate
Larger Boats or Vehicles to Meet the Greater Mekong Sub-region (GMS), the Ayeyawady-Chao Phraya-Mekong River
Region (GMS). Need to Discuss Concrete
- The Port is not Focused on Driving the Country's Water-intensive Strategy. It also Works in the Same Way without
Re-adjusting their Roles
- Therefore, it is Necessary to Accelerate the Implementation of the New Strategic Plan. Which Must Look at the
Overall Picture of the Country. (Do not Look at the Original Image Lacking Development and Long-lasting)
Result 2:China Roles in Thailand
4. Thai Air Transport Problems and Obstacles
Thai Air Transport Problems and Obstacles
- Currently, Transports Network Systems are Still Cannot be Connected
- Problems and Limits of the Airport Link also are Still Cannot be Connected
- Passenger Circulation Airport Cannot Undertake Number of Flights and Passengers Especially Fast
Increasing Low-cost Airlines, Effectively
- Thailand has not Fully-optimized Regional Airports, Suitably (Most Operation of Airport Constructions are
Invested at the Location that Local Politicians Support)
- Lack of Supportive Measures to Create Business, Activities and Services in the Airport
- Thailand Faces Competitiveness Problem in Producing Limited Human Resource Including Lacks of
Promoting R&D for Effective Air Transportation Business
- Currently, Thailand Stuck with Aviation Problem from The Department of Aviation Warning from
International Civil Aviation Organization (ICAO)
- The Congestion of the Airport
Thailand's Solution - Ministry of Transport Lacks strategies in Air Transport Development and Must Make Master Plan in Thai Air
Transportation Using it as Guidelines in Planning of Infrastructure and Management to Undertake Changing
Situations of all Units to be in One/Same Direction
- Thailand must have Master Plan Immediately by Having Aviation Safety Standard Measure with Strictness and
Organized
Result 3:China Roles in Thailand
1. China's Role in Expanding Economic Space from Southern of China to Thailand
Strategies
1. Economic Framework Strategies of Greater Mekong Sub region: GMS Consisting 6 Countries;
Thailand, Myanmar, Laos, China (Yunnan & Guangxi), Vietnam and Cambodia
Positive Factors (+) 1. Creating Relation Connection and Continuous Mutual Development
2. Most Thai Manufacturing Sectors must Depend on Buying Power from China which has Lots of
Population
3. Thailand can Buy Goods from China with Cheap Price as Port Transportation through Mekong
4. High Speed Train between Thailand – China Creates Cooperation Opportunities for High -speed
Train Technology
5. Port Transportation through Mekong is Good and Beneficial as it Saves lot of Transportation Cost
Against Thailand (-) 1. China AIIB for Thailand is not clear in interest rate.
2. Manufacturing Sector may be Affected as Chinese Goods Lower Price than Thai Goods.
3. Risk in Agricultural Price Chinese Middleman has Influence Over Price Setting and Dumping
Price.
4. Connectivity for Mekong Route must be on the Basis of Negotiation for all Relevant Parties/Sides.
Result 3:China Roles in Thailand
1. Positive Factors for China (+) to Expand the Economic Area from South China to Thailand
1. Strategic Development of Economic Areas in the Greater Mekong Sub-region
Cooperation Framework. There are 6 countries: Thailand, Myanmar, Laos, China
(Yunnan and Guangxi), Vietnam and Cambodia.
1. Road, Rail and Water Transport are Great Importance and More Convenient for China to
Distribute its Products to Thailand and Other Countries in ASEAN.
2. China has Low Production Costs. Products and Outputs are Moved to GMS Countries by Moving
along the Mekong River.
3. Mekong River Flow rom China to Thailand and Sub-regional Countries of the Rivers and Streams
Flowing Down as a Result, China has the Advantage of Moving Goods and Products into the Southern
Countries Conveniently and at Low Cost
4. Can Increase the Volume of Goods from China to Thailand and Countries in ASEAN Region
Considering China's export figures to ASEAN
5. Shipping on the Mekong River is Easy and Straight Forward for China.
6. China's Chances of Releasing AIIB Bank Loan. To Provide Opportunities for Countries to Invest in
Infrastructure Development in the Country who Lack the Budget to Implementation
Thailand's Approach to
Negotiations
• China must Sincerely in the Implementation of (Greater
Mekong Sub region: GMS) Countries that China Wants to
Expand to Develop the Connectivity as China Intended.
Want to Win-Win Situation, as Well as China to Take
Care of Security for the Country
China's Engagement with Thailand in the
Context of Infrastructure Investment
• 1. China's Contribution to Financial Support
• 2. China's Role in Supporting Innovation and Technology
• 3. China's Participation Role in Supporting Technology
Transfer and Academia
China's Engagement with Thailand in the
Context of Infrastructure Investment
• 1. China's Contribution to Financial Support
• China must Consider Lowering Interest Rates Fairly with
Thailand and Must be the Same Standard in Every Country
• AIIB (The Asian Infrastructure Investment Bank) to Ensure the
Interest of China
• China should have come in as The "State Counterpart" and the
Rules for Joint Investment Should be General Trading
China's Engagement with Thailand in the
Context of Infrastructure Investment
• 2. China's Role in Supporting Innovation and
Technology
• China Expert in High-speed Train Construction, Benefit for
Thai Rails Development as Thailand can Depend on “High
Tech Low Cost” Technology and Process
• High-speed Train is a Must as it is for Public and Balances
for other Transport Competition. Especially with Air
Transport
China's Engagement with Thailand in the
Context of Infrastructure Investment
• 3. China's Participation Role in Supporting Technology
Transfer and Academia • China has Sophisticated Technology and Continuous Development
• China must emphasize aspects: Service, Human Resources Development, Building
and Maintaining Network and Locomotive Including being a Manufacturing Parts
and Spare Parts Hub
• Exchange and Technology Transfer are Necessary. The Exchange of Innovations and
Technologies, as well as the Transfer of Technology
• China Supports Human Resources Development must be Planned and Developed
Together to Lead to the Development of Thailand as the Regional Logistics Base
• Thailand's Ability to Negotiate with China Focus on Negotiation skills.
(Negotiation) As a Country that has a Long Lasting Relationship
4. Benefit of Thailand from Connectivity Strategy
Benefit in Economic, Social and Culture and
Political follow:
• Economic Benefit. Transportation and Logistics System Development
will Chance Trade, Investment, Tourism, and Hospitality Sections Making
Incensement Average of National Income
• Social and Cultural Benefits Utilities for Development of
Infrastructure and Facilities the Distribution of Urban Development Along
the Economic Corridor that will Enhance the Well-being of the People in the
Region, Especially the Greater Mekong and Border Areas, Include
Opportunities in Terms of Human Resource Development, Education,
Training and Sports
• Political and Security Benefits Promote Political Cooperation both
National and Local Decentralization and Spread of Prosperity to the Region
and the Country Direction of Cooperation Must Take into Account the Win-
Win and the Relationship between the People of each Country is Important
To Gain Recommendations and Guidelines for
Enhancing Relations between Thailand and China
Key Factors in China Cooperation
• Thai Government and Chinese Governance, Entrepreneurs Private and
Public Sectors of Both Countries Need to Focus on Mutual Benefits
• Equitable and Mutual Benefits Sincerely
• Thailand - China has a Good Relationship for a Long Time must Continue to
Develop Relationships Economic, Social, Political, and Military Security
• China Emphasizes “China's Go to South Policy” Main China has to Rely on
Transportation and Communication is Safe. China Needs to Focus on Safety
and Security
• “One Belt One Road Policy”, Basic Structure Infrastructure in China is
Expected in the 13th Five-Year Plan for National Economic and Social, where
China Cannot Look only for Short-term Benefits to Realize the Benefits in
the Long Run
Key Factors in Thai Cooperation
• Thailand Key Factor to Build Understanding with Civil Society in
Order to Gain Support for Large-scale Collaborative Projects
• Thailand Needs Long-term Development Strategies Focus on
Continuity of Long Term Policy
• Must be a Quality Working Group, Information is Well-informed, to
Negotiate and Maximize the Benefits of Both Parties
• Being Aware of the Benefits of the People is Important Focusing on
Partnership Rather than Ordinary Commodity Trading
• Thailand should Reform the Domestic System, Economy, Society,
Politics and Way of Life Ready to Accept Changes in high
Technology Imports from Abroad