New World Hotel Saigon, Ho Chi Minh City, Vietnam
March 27, 2006

Output of the EWEC Conference: The Conference agreed that the East-West Economic Corridor constitutes an important linkage between Southeast Asia and PRC and India. The road transportation network among EWEC countries is not yet completed. Therefore, the cost of moving goods along the network remains high.

Given the fact that most of 90% of enterprises in EWEC countries are SMEs, the development of EWEC transportation network will help greatly facilitate their growth. The necessity to build Inland Container Depots/Inland Clearance Depots (ICDs) in the Corridor was stressed. As regard maritime transportation, the Conference noted that seaports in the EWEC countries, especially Da Nang Port (Vietnam) should have higher capacity to accommodate increasing logistic demand and economic growth of regional countries, and to reduce costs. It was also emphasized that in order to induce the cargoes to the Corridor, EWEC countries should provide incentives for income tax, relaxed rule on stay permit and labour permit, develop industrial parks, attract service providers, and improve custom procedures. EWEC logistics advantage is also reflected in the fact that all industries in the region are now linked through the road network. The importance of streamlining customs procedure was stressed. So was the importance of road safety. A planned caravan tour in November 2006 by the ACMECS Business Council along the EWEC was announced.

Output of the EWEC Conference: The Conference emphasized the need for the EWEC countries to join the Global Value Chain through developing transportation linkage within Southeast Asia, with North East Asia and South Asia; integrating regional markets; improving infrastructure and the investment climate. It was noted that Khon Kaen (North East of Thailand) aimed to develop an ICD (regional logistical hub) and links with the North South Economic Corridor. The importance of the availability of financial services in the development of production and expansion of trade was highlighted. 
 
Section 3: Infrastructure Development along EWEC

Output of the EWEC Conference: The session focused on the application of information and communication technology (ICT) in regional logistics development. Some specific applications were mentioned, including satellite imaginary, for real time logistic tracking systems; integrated custom duty and tax system, InfoPath as a smart client Unedocs and Web servers, and consignment tracking and electronic clearance using RFID for trade facilitation, Tourism Development Enabler – Portal, Environmental impact moderation. High-technology solutions such as the Component Business Model (CBM) was introduced to the Conference. The need for the EWEC countries to upgrade skills in order to sustainably attract FDI was noted. Progress in developing the infrastructure in the EWEC was acknowledged, including upgrading of Da Nang Port. However, it was emphasized that more was needed.

Output of the EWEC Conference: The session discussed the implementation of the EWEC projects and agreements, especially in logistics and customs to facilitate the movement of goods and people. The Lao PDR highlighted the importance of the single-window and single-stop inspection mechanism, transport infrastructure development (rehabilitation of Road 9, 2nd Mekong bridge and shared use of Savannakhet airport). Major challenges for Lao PDR and other EWEC countries are capital shortage for infrastructure and freight logistics and lack of computerized systems. Thailand emphasized the importance of Road Transport operation and Authorized Transhipment Operator and mentioned the E-Dtransit by Road which is implemented at Sa Dao gate and Bangkok warehouse and using RFID technology. Customs cooperation in the EWEC was underlined by Viet Nam with the implementation of the single-window and single-stop customs inspection mechanism at Lao Bao (Viet Nam) – Dansavanh (Lao PDR) border check points since June 2005. Da Nang Port of Vietnam introduced an example for logistics streamlining. The Conference recognized the importance of further investment in transport infrastructure development and the harmonization of documentation, construction of freight distribution centers, and capacity building. In order to ensure the EWEC is fully successful, it was recommended that the EWEC countries work to reduce/eliminate border delays and simplify transit procedures. It was also noted that higher volume of trade will result in the reduction of transport costs.
 
Section 5: Asia as a trade transport Zone – the function of EWEC

Output of the EWEC Conference: The session was briefed by the Japanese Chamber of Commerce on the potential of the EWEC to further attract Japanese FDI. A more tailor made approach was suggested. To attract FDI into the Corridor, the EWEC countries were encouraged to organize more investment seminars for Japanese business investors.

Output of the EWEC Conference: The session briefed the Conference on progress in the achievement of key infrastructure development along the EWEC, including those assisted by the Government of Japan and other donors. The Conference highly appreciated the Japanese Government’s approach to the Mekong regional development with aim to promote regional stability and integration. JBIC reviewed the implementation of the GMS flagship programme and assistance programme to the EWEC, including major projects in Viet Nam, Lao PDR and Cambodia. The acceleration of trade and investment, increasing collaboration among different stakeholders, and policy and institution improvement were recognized by the Conference as prominent outcomes of the EWEC cooperation. A proposal was made to further develop the EWEC, by: (i) Further promotion of private sector in EWEC, (ii) Reexamination of the progress of the 2001 Pre-investment Study for EWEC, (iii) Assessment of the impact of EWEC development, (iv) Monitoring of the Biodiversity Corridors Initiative in the EWEC. AMEICC informed the Conference on its studies on the establishment of Efficient Distribution Routes in the Mekong region.

The Conference concluded that EWEC possesses huge logistics advantages and the development of EWEC facilitates poverty reduction, attracts FDI, promotes economic development, and improves people’s living standards.

EWEC countries can cooperate in various areas, including human resource development, capital market development, streamlining of government regulations and simplification of border control and custom procedures etc.

However, EWEC countries have to face many challenges such as lack of financial and human resources, legal frameworks and corruption. Therefore, it was considered crucial to proactively engage the private sector and donors in the future develop the EWEC to bring costs down and thereby encourage greater use of the EWEC.

The next step of EWEC cooperation should be to promote investment; apply new technology solutions to increase competitiveness of EWEC SMEs; propose government to streamline regulations, harmonize procedures and facilitate the flow of goods and people.

The Conference expressed appreciation to the GMS Business Forum for bringing together all EWEC stake holders, and particularly the private sector at the Conference.  It was agreed this approach had proved highly successful and should be continued in the future.