Synergizing HRD and Capacity Building Initiatives within the

GMS & AEC Framework

Synergizing HRD and Capacity Building Initiatives within the

GMS & AEC FrameworkMeeting the Challenges in

Narrowing Development Gaps among GMS Community

Presentation OverviewPresentation Overview

GMS Economic Cooperation and development potentials

The need to integrate into AECLiberalization of Trade and Investment

and Integration in East Asia and their implications

HRD Issues in realization of AEC

Thailand

Land area: 513 thou sq km

Population: 65.8 M

GDP per capita: US$3,133

Cambodia

Land area: 181 thou sq km

Population: 14.1 M

GDP per capita: US$510

Myanmar

Land area: 677 thou sq km

Population: 54.8 M

GDP per capita: US$255 (2005)

People’s Republic of China

Land area: 633 thou sq km

Population: 97.3 M

GDP per capita: US$1,135

(figures for Yunnan and Guangxi only)

Viet Nam

Land area: 332 thou sq km

Population: 84.1 M

GDP per capita: US$724

Lao PDR

Land area: 237 thou sq km

Population: 5.7 M

GDP per capita: US$601The GMS in 2006

Land area: 2.6 M sq km

Population: 323 M

GDP per capita: US$1,453*

* excludes Myanmar

The GMS Economic CooperationThe GMS Economic Cooperation

Building Economic Partnership within the RegionBuilding Economic Partnership within the RegionGMS Regional Development OutlookGMS Regional Development Outlook

Strategic Location Strategic Location

Trade & Investment Openness

Trade & Investment Openness

Competitive EconomyCompetitive Economy

Enhanced Connectivity & Efficient Logistics

Enhanced Connectivity & Efficient Logistics

•Resources:

Available: Gas, Teak, Gemstone Needs: Refined Oil

Available: Tin, Rubber, Natural GasNeeds: Fuel

Available: Timber, Fisheries, Product, GemstoneNeeds: Fuel

Available: Coper, Lead, Zinc, Tin, IronNeeds: Powdered Ores, Timber, Fisheries Products

Available:Timber. Hydropower, TinNeeds: Fuel

Available: CruideOil, Gas, Coal, ApatiteNeeds: Steel, Refined Oil

Available: Tin, Fisheries, ProductsNeeds: Manganese, Iron

Interdependent of GMS Countries

From GMS to

ASEAN 600

million people

become a trade hub of Asia.

Source: AEC Chartbook 2010

AEC and Liberalization of Trade and Investment in East Asia

AEC and Liberalization of Trade and Investment in East Asia

AFTA ACFTA AJCEP AKFTA AANZFTA AIFTA

A single market and production base

A highly competitive economic region

Equitable economic development

Fully integrated into the global economy

AEC and FTA Challengesfor CLMV

AEC and FTA Challengesfor CLMV

Limited public human resource capacities to develop and implement trade and investment policy and regulatory framework.

Limited SMEs’ ability to integrate into ASEAN and global value chains.

Limited absorptive capacity and adjustment of Agriculture Policies and Practices to a bigger and more competitive economy.

Limited Good Agricultural Practices.

ASEAN Community(APSC, AEC, ASCC)ASEAN Community(APSC, AEC, ASCC)

ASEAN Competitive Advantage

IMT- GTIMT- GT

GMSGMS ACMECSACMECS

GMSGMS ACMECSACMECS

BIMSTECBIMSTEC

NAFTA

APEC

EUEUASEM

WTOWTOWTOWTO

KoreaKoreaJapanJapanPRCPRC

ACDACD

FTAs FTAs e.g. Japan, China, Australia, New Zealand, Bahrain, Peru, India, USA, BIMSTEC etc…

IndiaIndia

Spaghetti bowl effect

Mega-competition in

industry

Replacement, reallocation, repositioning, geographical realignment and reorganization of industry.

Contract Farming and Big Agri. Land Concession will displace small land holders

Lack of Good Postharvest Practices.

Lack of Good Postharvest Practices.

Office of SME PromotionOffice of SME Promotion

Vision: K - ASEAN SME Regional Gateway – the desired destination for production and marketing base of Small and Medium Sized Enterprises in Southeast Asia.

Strategic Plan for SME Promotion and Development Office of Lao PDR/Myanmar/ or Vietnam 2012 - 2017

SMEs DefinitionSMEs Definition

ME

SE≤ 15

Over 30 ≤ 60

16 - 30

≤ 30

Retails

Over 50 ≤ 200

Over 50 ≤ 100

Over 50 ≤ 200

Fixed Asset (mln. baht)

51 - 200

26 - 5051 - 200

Employment (persons)

≤ 50≤ 50≤ 50Fixed Asset

(mln. baht)

≤ 50≤ 25≤ 50 Employment

(persons)

Services

Wholesales

Manufacturing

Enterprise Size

Exchange Rate at 33.00 Baht : 1 US Dollar

Sectors

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II. Roles & Duties II. Roles & Duties

1. Formulating SMEs Master and Action Plan and SMEs

related laws and regulations

2. Taking charge of SMEs promotional activities that

have yet to be implemented by other offices

3. Establishing international network and serving as

SMEs advocacy in both local and international arena

4. Providing support facilities for SMEs such as financial

support, innovation and technology support,

mentoring, incubation, etc…

5. Managing and monitoring special SMEs promotional

projects under the government’s policies i.e. OTOP

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Direction and Target of SMEs PromotionTarget of 2007 -2011Direction of SMEs

PromotionKPI of SMEs Promotion

•Strengthening entrepreneurs to use skill, productivity, innovation and knowledge as growth mechanism.

•Restructuring SMEs sectors from low-end to medium and high-end products & services ; from OEM to ODM and OBM

•Creating of business ethic with CSR

•Facilitating common infrastructures for innovation and productivity upgrading

1. Expansion in GDP of SMEs

2. Growth of labor productivity and total factor productivity of SMEs

3. Growth of SMEs export

1. GDP share of SMEs is 42% in 2011

2. Labour productivity and TFP in target sectors increase no less than 5 percent/yr.

3. SMEs export growth is

at the same rate as

total export growth

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Strategies of SMEs Promotion Plan 2 (2007-2011)

Vision: SMEs to Grow with Sustainability, Strengthand Balance

Intellectual

Infrastructure

Network&

Alliance

Productivity

Competitiveness

Strategy 1: Create new entrepreneur and develop the capability of existing entrepreneurs

Strategy 2: Upgrade Manufacturing SMEsStrategy 3: Increase the efficiency and reduce impediment in trading sectors

Strategy 4: Promote the Capability on Value Creation in Services Sector Strategy 5: Promote SMEs in Regional and Local AreasStrategy 6 : Create business environment and enabling factors

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Summary of OSMEP’s SME Promotion Infrastructure

Skills & Competency

building

Capacity Building

Financing Market Accessibility

■ Incubation

■ Mentorship

■Consultancy

■ Business Coaching & Training

■ SME University

■ iSMEs

■ Machine Fund

■Internationalization Fund

■ Intellectual Property Fund

■ Consultancy Fund

■ Venture Capital

Fund

■ Business Matching

Siam M. Handicraft Activities : Siam M. Handicraft Activities :

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Bangkok International Gift at Muang thong thani, Bangkok Thailand every year.

Foire de lyon France,2005

Foire de lyon France,2005

Bangkok International Gift at Muang thong thani, Bangkok Thailand 2008.

Light IndustryLight Industry

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Cheap laborCheap labor

Luang Reap Hoi ProvinceLuang Reap Hoi Province

VisionToward economic prosperous,

socially just, and environmentally sound Luang Reap Hoi, the Regional Gateway to Cultural and World Heritage Tourism of the GMS.

Mission of Provincial Government

Mission of Provincial Government

To promote and coordinate sustainable tourism development

for inclusive economic growth and cultural and

environmental conservations by implementing integrated provincial

development programs and providing business development services and policy advices

Bagan - the Regional Gateway to Cultural and World Heritage

Tourism of the GMS

Luang Pabang – the regional gateway of cultural and world heritage tourism of the GMS

Hue – the regional gateway of historical and world heritage tourism of the GMS