Asian development bank, ta 7356-Reg, developing cross-border economic zones between the Prc and viet nam

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Asian development bank, ta 7356-Reg, developing
cross-border economic zones between the Prc and
viet nam

• Cross Border Economic Zones
• Institutional Development and Capacity Building
• Hekou, Yunnan, PRC-Lao Cai, Viet Nam
• Pingxiang, Guangxi, PRC-Lang Son,Viet Nam

• Technical Assistance Inception Meeting, Nanning,
  Guangxi, PRC
• November 25-26, 2010
• Robert L. Wallack, Institutional Development and
  Capacity Building Specialist, Unites States of
  America, robert.wallack_at_rlw-international.com

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Contents

• I. Background
• II. Purpose
• III.Work Plan
• IV. International Examples
• V. Conclusion

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Border Trade Increasing Pingxiang,
PRC-Lang Son, Viet Nam US 840 million
(2007) Hekou, PRC-Lao Cai, Viet Nam US
477 million (2006)estimate US 800
million (2015)ADB --------------------------------
-------------- US 1 billion Langbang-Cao Bang
(2007)
Dongxing-Mong Cai -------------------------
------------------ Total Enterprises Lang
Son-697 Lao Cai-802 (Vietnam Statistics Office,
2009) Contributing to Trade CAFTA1.9
b. peopleUS 4.5 trillion Nanning-Singapore
Econ. Corridor Guangxi Beibu Gulf Economic Zone
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Background

• ADB Ministerial Meeting North-South Economic
  Corridor (NSEC) by Developing
• Cross-Border Economic Zones (CBEZ)
• Hekou, Yunnan, PRC-Lao Cai, Viet Nam
• Pingxiang, Guangxi, PRC-Lang Song, Viet Nam

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background

• Borders are the Weakest Link along Corridors
• Institutional and Infrastructure Constraints
• Cross-Border Transport Agreement (CBTA)
• Coordination and Capacity Among Agencies
• Private Sector Participation and Investments
• Facilities, Equipment, Modern IT C Systems
• Uneven Development Across Borders
• Dry Ports CAFTA Pingxiang Logistics Park

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purpose

• Institutional Development Capacity Building
• Build Effective and Functioning CBEZs by
• Establishing PRC-Viet Nam Joint Committees
• Organize Training, Study Tours, Workshops
• Main Topics Planning, Design, Management,
  Operations, Awareness of ADB Programs,other
  international organizations, and Concepts
  (marketing, investment promotion, supply chain)

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Purpose

• Joint Commission/Committee/Subcommittees for
  Collaboration, Coordination and Interfaces by
  regular meetings and by electronically involving
  all public and private stakeholders for CBEZs
• -Clearly defined roles responsibilities to
  implement the CBTA and CBEZ (centrallocal)
• -transport, trade, commerce, finance, ports,
  logistics environment,Customs, inspections,phytosa
  nitary, private sector, financial companies,
  banks, international organizations- so that all
  are on the same page

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purpose

• Our Joint CBEZ Institution is building on the
• Economic Corridors Forum, GMS Ministers, 2008
• NSEC Enhanced Organizational Effectiveness for
• Developing Economic Corridors which is to
• Serve as a venue for networking and sharing of
  information and views among central and local
  officials, business people and international
  agencies on strategies, approaches, programs and
  projects to accelerate economic corridor
  development
• Only meets yearly Joint Committees of CBEZ to
  confer regularly

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Purpose

• Joint CBEZ Institution 4 Layers of Main Issues
• 1.) Intergovernmental Agreements
• Hekou-Lao Cai and Pingxiang-Lang Son CBTA
• 2.) Institutional
• Customs, Inspections, Land, Envir., Investment
• 3.) Infrastructure
• Roads, yards, facilities, utilities
• 4.) Operational
• Processes, material handling,WWW, performance
  measurements (ADB, World Bank)

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Work Plan
Activities November 2010 December January 2011 February March April
Inception Meeting 25-26 Nanning
Borders Capitals 27-30 PRC 1-8 PRC/VN
Best Practices Research/Write Research/Write
Design Institution Research/Write Implement Implement
Assess Capacities Meet Officials
Design Training Workshop/materials Workshop/materials
Final Report Submit with comments
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International examples

• North America U.S.A.-Canada 5,552 miles of
  cross-border trade 1 million of good/services
  cross the border each minute (1.5 billion/day
  over 500 billion/year (2003)-128 border crossing
• Cross-Border and Corridor Cooperation
• International Mobility Trade Corridor Project
• CAN/AM Border Trade Alliance
• Ports to Plains Trade Corridor
• North Americas Corridor Coalition (NASCO)
• economic development organization

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International Examples

• U.S.A.-Mexico 2,000 miles of cross-border trade
• -Cooperation between developed-developing
• San Diego-Tijuana-San Diego Free Trade
  Zone-maquiladora/TVs/power plant/LNG-California
• McAllen Foreign Trade Zone-30 years/F. 500s
• -Reynosa, Mexico to marketsC. and South America
• CANAMEX Trade Corridor 1,700 miles-US funds
• US 1 billion produce/1,200 truckloads of
  crops/yr.
• Investment U.S FDI-Canada 273.7 billion (2006)

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International Mobility Trade Corridor Project
Suggested Institutional Framework
Funding Sources 1999-2009 (38 million) US
Federal Highway-7.1 million-50 Transport
Canada-2.6 million-19 B.C. Province 2.4
million-17 WA State-1.3 million-10 Local B.C.
WA-180,429-! Other 375,000-3
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International examples

• Private Sector Participation at Border Crossing
• Federal Express Corporation at U.S.-Mexico
• FedEx Transborder Distribution Service
• El Paso,Texas-Ciudad Juarez, Mexico Border Cross
• Supply Chain Solution to simplify transportation,
  distribution and brokerage for traders at borders
• FedEx on line tools/automation consolidate
  invoices cargo from maquila to U.S. in 1-5 days

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International examples

• Lessons Learned in Establishing Institutions
• - One single organization with clear mandate to
  regulate the CBEZ operations
• Autonomous and independent decision-making in
  setting policy for quick implementation
• Close relationship with other national agencies
  with mechanisms for coordination
• Close relationship with the private sector
• Promotional rather than regulatory mindset
• (USAID Report on Assessing FTZ Program,2004)

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International examples

• Inner Mongolia Highway and Trade Corridor
• Russia-Manzhouli-Hailar Cargo Transfer Terminal
• Baotou, Inner Mongolia Inland Container Depot
• Operational Difficulties for Lack of Marketing
  Plan Strategy (Advertising-Pricing of Services)
• China-Kazakhstan Horgos International Border
  Cooperation Center-mutual exchange in planning,
  design, construction, management and operations
• 2012 to 2018 528 hectares (185 KAZ-343 PRC)

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conclusion

• I. Cross-Border Trade is Increasing
• Pingxiang-Lang Son and Hekou-Lao Cai
  Markets
• II. CBEZ initiative by ADB GMS NSEC development
• Constraints at the border-crossing are overcome
  by better organization of the public and private
  sectors
• The Work Plan for TA 7356-RETA public and
  private sectors determine best practices to apply
  to the situation
• V. Establish /Implement Institutions with
  Targeted Training

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Thank You Question Answers with
Discussion Asian Development Bank, TA
7356-REG Robert L. Wallack, Institutional
Development and Capacity Building
Specialist, United States of America,
robert.wallack_at_rlw-international.com