Minites the second meeting of the joint coordination committee on the Cambodia - Laos - Vietnam development triangle

1. The 2^nd Meeting of the Joint Coordination Committee on the Cambodia- Laos-Vietnam Development Triangle (herein-after referred to as the CLV Joint Coordination Committee) was held on 19 February 2008 in Sihanoukville, Cambodia. The Meeting was co-chaired by H.E. Dr. Cham Prasidh, Senior Minister, Minister of Commerce of the Kingdom of Cambodia, Chairman of the Coordination Committee for Cambodia; H.E. Mr. Soulivong Daravong, Minister of Planning and Investment of the Lao People's Democratic Republic, Chairman of the Coordination Committee for Laos; and H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment of the Socialist Republic of Vietnam, Chairman of the Coordination Committee for Vietnam.

The lists of delegates of Cambodia, Laos and Vietnam appear as Annex 1, 2, 3 respectively.

2. H.E. Dr. Cham Prasidh, Senior Minister, Minister of Commerce of the Kingdom of Cambodia welcomed the delegation of Lao PDR and Vietnam SR through providing the opening remarks. H.E. Mr. Soulivong Daravong, Minister of Planning and Investment of the Lao PDR and H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment of Vietnam provided remarks, which appear as Annex 4, 5 and 6 respectively.

3. The Ministers discussed the following issues: (i) the joint progress report of Sub-Committees; (ii) the preparation for the formulation of the special preferential incentives and policies for the Development Triangle Area; (iii) the recommendations of the 2^nd Trade and Investment Conference held on 16-17 February 2008 in Sihanoukville, Cambodia; (iv) the result of 2^nd CLV Plus Japan Working Level Meeting and the result of the Meeting of the Japan-Mekong Foreign Ministers held on 16 January 2008 in Japan; (v) the preparation for the 3^rd CLV Plus Japan Working Level Meeting; and (vi) the preparation for the 5^th CLV Summit on Development Triangle. The Meeting agenda appears as Annex 7.

4. The Ministers reiterated the appreciation of the inherent and traditional friendship and multi-faceted cooperation among the people of the CLV countries, which serve as an important foundation for stability and development of each country, as well as for implementing the decision of the three Prime Ministers of Cambodia, Laos and Vietnam at the 4^th Summit held on 4-5 December 2006 in Da Lat, Vietnam, in accelerating the establishment of the Development Triangle.

5. The Ministers expressed appreciation on the progress made by the Economic Sub-Committee and Social & Environmental Sub-Committee in cooperation the areas of economics, investment, trade facilitation, road connection, environment, education and health of which joint report of the Sub-Committees of the three countries appears as Annex 8.

6. The Ministers appreciated the work done on preparation of special preferential policies for the Triangle Development Area. The Ministers agreed that the Joint Technical Team should convene its meetings as soon as possible to finalize the special preferential policies for facilitating trade and investment activities in the Triangle Area of the three countries and the arrangement must be submitted to the next JCC meeting. The joint report on the preparation of special preferential incentives and policies appears as Annex 9.

7. The Ministers emphasized the need for development of the Triangle Area by giving the priority to:

(i) mobilize internal resources of each country and to attract investment into the Development Triangle Area;

(ii) formulate special preferential policies for the Development Triangle Area;

(iii) simplify procedures to facilitate the flows of goods and people in the Development Triangle Area.

8. The Ministers expressed the need to expedite the concretization of the Master Plan on the Development Triangle Area into annual and periodical plans and programs. The Ministers welcome the coordinating role of Vietnam to host the meeting in Vietnam in 2008, to concretize and review the implementation of the Master Plan.

9. The Ministers welcomed the outcome of the 2^nd Trade and Investment Conference, held from 16-17 February 2008 in Sihanoukville, Cambodia and endorsed the recommendations of the Conference on jointly organizing roadshows to call for ODA and FDI in the Development Triangle Area. The Ministers gave the priority to the organization of such roadshows in Japan, Republic of Korea and other countries.

10. The Ministers discussed the joint report on the outcome of 2^nd CLV plus Japan Meeting and the Japan-Mekong Foreign Ministerial Meeting and expressed their appreciation to the Japanese Assistance for funding CLV projects worth US$ 20 million, which will be implemented in 2008. The Ministers encouraged each country to coordinate with Japan and expedite the internal procedures to get funding and to prepare the new projects for the 3^rd CLV plus Japan Working Level Meeting. The Ministers have also exchanged views and experiences on the mechanism for project implementation. The Ministers agreed that each country shall keep regular consultation and exchange of information on the progress in execution of the programs and the results of project implementation. The joint report on the outcome of the 2^nd CLV plus Japan Working Level Meeting and the Japan-Mekong Foreign Ministerial Meeting appears as Annex 10.

11. The Ministers agreed that the Lao PDR will be the host country for the next JCC, Sub-Committees and CLV plus Japan Working Level and the Joint Technical Team meetings. The date and venue will be coordinated through diplomatic channels. In this regard, the Lao PDR will play the significant role to collaborate and coordinate with CLV countries as well as development partners.

12. Chairmen of the Coordination Committees of Laos and Vietnam expressed their sincere thanks and high appreciation to the Kingdom of Cambodia and the Coordination Committee of Cambodia for the warm hospitality and excellent arrangements of the 2^nd Joint Coordination Committee Meeting held in Sihanoukville, Cambodia.

13. Done in three original copies in English, on 19 February 2008, in Sihanoukville, Cambodia.

Chairman of the Coordination Committee of the Kingdom of Cambodia Cham Prasidh Senior Minister Minister of Commerce

Chairman of the Coordination Committee of the Lao People's Democratic Republic Soulivong Daravong Minister of Planning and Investment

Chairman of the Coordination Committee of the Socialist Republic of Vietnam Vo Hong Phuc Minister of Planning and Investment Source: Foreign Economic Relations Department

Source: clv-triangle.vn

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Minites the first meeting of the joint coordination committee on the Cambodia - Laos - Vietnam development triangle

1. The 1^st Meeting of the Joint Coordination Committee on the Cambodia- Laos- Vietnam Development Triangle (herein-after referred to as the Joint Coordination Committee) was held from 17- 18th May 2007 in Pleiku, Gia Lai province, Vietnam. The Meeting was co-chaired by H.E. Mr. CHAM Prasidh, Senior Minister, Minister of Commerce of the Kingdom of Cambodia, Chairman of Coordination Committee of Cambodia; H.E. Mr. Soulivong Daravong, Chairman of the Planning and Investment Committee of the Lao People's Democratic Republic, Chairman of the Coordination Committee of Laos; and H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment of the Socialist Republic of Vietnam, Chairman of the Coordination Committee of Vietnam.

The lists of delegates of Cambodia, Laos and Vietnam appear as Annex 1, 2, 3 respectively.

1. The 1st Meeting of the Joint Coordination Committee on the Cambodia- Laos- Vietnam Development Triangle (herein-after referred to as the Joint Coordination Committee) was held from 17- 18th May 2007 in Pleiku, Gia Lai province, Vietnam. The Meeting was co-chaired by H.E. Mr. CHAM Prasidh, Senior Minister, Minister of Commerce of the Kingdom of Cambodia, Chairman of Coordination Committee of Cambodia; H.E. Mr. Soulivong Daravong, Chairman of the Planning and Investment Committee of the Lao People's Democratic Republic, Chairman of the Coordination Committee of Laos; and H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment of the Socialist Republic of Vietnam, Chairman of the Coordination Committee of Vietnam. The lists of delegates of Cambodia, Laos and Vietnam appear as Annex 1, 2, 3 respectively. 2. The Meeting discussed on: (i) the coordination among the CLV countries in implementation of the Joint Statement of the 4th CLV Summit held in Da Lat, Vietnam, in December 2006; (ii) the preferential policies for the Development Triangle Area; (iii) the cooperation between the CLV countries and Japan in mobilization of resources for the Development Triangle Area. The Agenda of the Meeting appears as Annex 4. 3. The Meeting appreciated and emphasized further strengthening of the inherent and traditional friendship and consolidation and multi-faceted cooperation among the people of the CLV countries, which serve as a crucial foundation for stability and development of each country. The Meeting affirmed that the Joint Coordination Committee of the CLV countries shall make their best effort to accelerate the establishment of the Development Triangle which is in line with the instructions of the Prime Ministers of the CLV countries at the 4th CLV Summit in Da Lat, Vietnam, in December 2006 and in accordance with the Vientiane Declaration on the Development Triangle Area. 4. The Meeting recognized the importance of the concretization of the Master Plan on the Development Triangle Area into annual and periodical plans and programs for implementation. The Meeting tasked the Economic Sub-Committee, in collaboration with other Sub-Committees, to formulate and coordinate programs and action plans for realizing the implementation of the Development Triangle Master Plan and submit them to the Joint Coordination Committee for perusal, consideration and adoption at the second JCC Meeting. 5. The Meeting agreed that the Coordination Committee of each country shall keep regular consultation and exchange of information on the progress in execution of programs, projects as specified in the Master Plan. The Meeting agreed to nominate an appropriate institutionof each country as the focal point in sharing information on implementation of projects and programs in the Development Triangle Area. 6. The Meeting highlighted the important roles of the relevant provinces in participating and facilitating of the implementation of programs and projects in the Development Triangle Area. 7. The Meeting recommended that the Sub-Committees shall be convened their meetings on rotation basis. The first meeting of the subcommittees will be held in on 3 June 2007 in Phnom Penh, Cambodia. 8. The Meeting agreed that the Coordination Committee of each country shall inform the Joint Coordination Committee of the outcome of bilateral cooperation in the Development Triangle Area, among the CLV countries, on the implementation progress and support needs. 9. The Meeting agreed to task Sub-Committees to finalize the draft of preferential policies for the Development Triangle and to submit them to the Joint Coordination Committee by the end of September 2007for consideration and adoption. 10. The Meeting welcomed the outcome of the Conference on Investment Promotion, held from 19-21 April 2007 in Kon Tum, Vietnam, for the Development Triangle Area with the participation of businesses of the CLV countries and of other countries, including Japan. The Meeting shared views that the Conference provided good opportunities for investment, trade and tourism cooperation to strengthen friendship among localities, to disseminate available potentials, to complement advantages and to attract investment into the Development Triangle Area. The Meeting considered the proposal on setting up common website for the Development Triangle Area. The Second Conference on Investment promotion will be held in Ban Lung, Ratanak Kiri Province, Cambodia on the 1st or 2nd week of December 2007. 11. The Meeting highly appreciated further assistance of USD 20 million committed by Japan to the Development Triangle Area and took note of the progress made after the first CLV+ Japan Working Level Meeting on the Development Triangle Area. The Meeting agreed: - To call upon Japan to consider assistance to the 12 flagship projects in socio-economic infrastructure in the Development Triangle Area, which were handed over to Japan at the first CLV + Japan Summit in Vientiane, November 2004. The Meeting tasked the Economic Sub-Committee, in coordination with the Security and Foreign Affairs Sub-Committee, to sort out these projects into priority order and select the most viable projects for Japan to consider for giving assistance in the immediate time, of which projects those of Cambodia and Laos are given priority. The Meeting agreed to task Sub-Committees to revise the 12 flagship projects in order to meet the funding requirements. - Regarding small-scaled projects, the CLV countries shall continue proposing viable projects and through different channels calling upon Japan for assistance on the bilateral basis. - To work with Japan to clarify the USD 20 million assistance in order to bring this assistance as soon as possible into implementation. The Meeting also tasked the Sub-Committees to propose viable projects in order to discuss with Japan for assistance at the 2nd CLV + Japan Working Level Meeting on 4 June 2007 in Cambodia. 12. The Chairmen of the Coordination Committees of Cambodia and Laos expressed their sincere thanks and high appreciation to the Coordination Committee of Vietnam for the excellent arrangements of the first Joint Coordination Committee Meeting held in Pleiku as well as her hospitality extended to the Cambodian and Lao delegations. The Meeting agreed that the 2nd Joint Coordination Committee Meeting will be held in Preah Sihanouk Ville, Cambodia on 20-21 February 2008. Done in three original copies in English, on the 18th May 2007, in Pleiku, Gia Lai Province, Vietnam. Chairman of the Coordination Committee of the Kingdom of Cambodia CHAM Prasidh Senior Minister Minister of Commerce Chairman of the Coordination Committee of the Lao People's Democratic Republic Soulivong DARAVONG Chairman of Planning and Investment Committee Chairman of the Coordination Committee of the Socialist Republic of Vietnam Vo Hong Phuc Minister of Planning and Investment Source: Foreign Economic Relations Department

Source:clv-triangle.vn

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Market Demand Forecasts

FORECASTS ON MARKET DEMAND FOR SOME REGION’S MAIN AGRO-PRODUCTS

Assessment of consumption market demands is the foremost important factor for working out development directions, production structure transformation thus bringing about high and stable economic efficiency. Market demands for the region’s agro-products that have high value and potential for development are as follows:

1. Coffee: In the late months of 2002, coffee price in the world shows a recovery. That is a good signal for producers and exporters. At present, the world coffee output exceeds demand. The common trend is that, the consumption of Robusta coffee may decline or slowly increase. On the contrary, the average annual Arabica coffee consumption growth rate will be 3 - 3,5% in the coming years. It is forecasted that the world coffee consumption demand will rise up at an average rate by 1 – 1.3% per annum. However, coffee market has been developed in a complicated manner with unstable price. As a result, the accession to the Association for Coffee Planting Countries (ACPC) and formulation of long-term coffee development strategy are very necessary.

2. Rubber: As many other agro-products, rubber supply surplus in the market resulted in a slump in the price of this strategic export. Rubber export and import in the world market are presently at the balance (from 4,500 – 4,800 thousand tones/year). The biggest rubber market in the region is China. The fact that Malaysia, a large rubber exporter in the region, has the strategy to expand its rubber-growing area will result in a fiercer competition in rubber export. In general, the export price of Vietnam’s and Cambodia’s rubber is about 7 - 8% lower than the same category of rubber by Thailand and Malaysia due to limited quantity, product structure and customers. However, the Triangle has the advantage in price thanks to its favourable land conditions and cheaper labour costs. The important factors for developing rubber are to establish stable markets, maintain and expand existing markets and proceed with re-penetration into the previously established markets in Russia and Eastern European countries.

3. Cashew nut: Vietnam’s main cashew nut markets at present are North America, Europe, Asia, Australia and especially almost all China’s market. Vietnam is one of 50 countries that have a large cashew nut output. Vietnam’s cashew nut bean has been rated of good quality and preferred by the markets. It has been of high competitiveness thanks to its low investments in planting and exploiting and its processing technology that is of higher efficiency than African countries and India. With its land potential and climate suitable to cashew nut as well as market potential and competitiveness, cashew-nut trees in the Triangle have favourable conditions for developing. However, it requires investment plans for grown area expansion to supply more materials to the existing and newly established processing establishments in the concentrated material areas like Rattanakiri and others.

4. Pepper: Over the past time, pepper has enjoyed a good price, and therefore people in the Central Highlands have spontaneously planted pepper in a large area. However, assessments indicate that the world pepper demand is limited at about 210 - 220 thousand tones. As a result, pepper market in the future would still be available but it is necessary to develop production in a rational manner so as to avoid the situation that surplus products find no consuming market.

5. Cocoa: Supply shortage is prevailing in the world cocoa market (demand surpasses supply). ICCO’s forecast indicates that the annual average cocoa consumption demand growth rate is about 5 - 7%. The Development Triangle has potential for developing cocoa to a cash crop. However, it is necessary to have stable and firm strategy to gradually grasp the markets.

6. Cotton: Vietnam’s cotton output currently can meet only about 10% of the textile industry’s demand. Its annual average growth rate is about 14% and therefore fine-cotton market is still very large and stable in the long term. In addition, cotton demand in other countries in the region remains relatively great, especially in China and some other Southeast Asian countries.

In summary, the Triangle possesses a large number of agro-products of high economic value and competitiveness in the markets like rubber, cashew nut, coffee, and pepper. With the current international economic integration tendency, development of agro-exports is the Triangle’s right and proper trend. However, continuously looking for and expanding markets, improving product quality and lowering production costs to raise competitiveness as well as identifying product structure, product categories and formulating proper development plan are of great necessity for territorial areas in each nation of the region.

Source: clv-triangle.vn

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Development - Cooperation Views and Orientation

1. Development and Cooperation Objectives

The development and cooperation objectives for the Development Triangle in the border area of Cambodia, Laos and Vietnam include:

i. To coordinate the infrastructure development plans of the three countries with an aim to supporting the requirements of key economic activities in the Development Triangle, such as development of agriculture and processing industries, power industry, tourism and trade;

ii. To exploit the agricultural, forestry and tourism potentials in service of the growth of the entire Development Triangle right from the beginning;

iii. To build human resources for the most potential economic sectors in the Development Triangle like agriculture, tourism service and the related supporting industries and small and handicraft industries;

iv. Facilitate cross-border flows of goods, people and investment capital within the territory of the Development Triangle through a close coordination and combination of customs and entry procedures, removal of obstacles to the movement of the people, such as visa requirement, and ensure a consistent application of legal documents and trade regulations.

Immediate objectives: Cooperate in developing a number of important transport axes connecting provinces in the Development Triangle so as to stimulate and enable the development cooperation in other sectors and industries; efficiently implement a number of bilateral cooperative projects on a small scale in the fields of tourism, trade, investment, agriculture, education - training, healthcare, etc. to create prerequisites and draw experience for subsequent cooperative projects.

Major types of activities to be carried out in the Development Triangle include:

Investment promotion: Make efforts to attract domestic and foreign investment to the Development Triangle through marketing complementary natural resources in the area, the flows of production factors across the border and the possibility to establish special economic zones eligible for many preferential and incentive polices. Possible activities to be carried out for a development triangle include: establishment of border markets, coordinating marketing strategies; raising the institutional capacity for local investment organisations; and inter-agency cooperative measures at the central and local levels.

Trade facilitation: Approaches should be considered so as to improve the efficiency and effectiveness of trading procedures, documents and data exchange within the Development Triangle. Possible activities to be carried out include: Harmonise the customs procedures – inspection and document requirements, develop a consistent products classification; trade-related information systems; joint efforts in trade promotion activities; acceleration of the realisation of AFTA commitments; establishment of export quality standards for agricultural products.

Cooperation with enterprises: Introduce the cooperation mechanism into business industries in the Development Triangle to support other activities and create a sustainable momentum for economic activities. Possible activities to be carried out include: establishment of a business forum in the Development Triangle, organisation of interlinked meetings, particularly in tourism and agriculture sectors, and exchange of information on local business.

Industrial master plan: Coordinate industrial master plans among the members based on the complements to the potential resources. Promote the ASEAN Industrial Cooperation Plan (AICO) among the companies in the Development Triangle to take advantage of tariff and non-tariff preferential treatments which would encourage trans-national production.

Small and Medium Enterprises Development: Contribute resources and experience to special SME programmes in the Development Triangle. These may include special package aids to the SMEs in the area, joint training and marketing efforts, connection to selected export locations and foreign firms that need suppliers (i.e. intermediation).

Human resources development: Participate in cross-border human resource development programmes targeting farmers, workers and business people.

Rural Development: Study modes of rural developments along the line of integration. Since most areas in the Development Triangle are rural areas that are in shortage of basic infrastructures like power, water, transport network, sanitary, education and healthcare systems, applying the lessons drawn from the ADB-funded Greater Mekong Sub-region (GMS) cooperation programme, implementing multilateral coordination and assistance strategies in rural development, and facilitating economic activities.

2. Development and Cooperation Approaches

(a) To take full advantage of the positive aspects of the external economic policies, and the atmosphere of peace, friendship, equality, mutual respect and mutual benefit to the three countries; to unleash and bring into full play the potentialities and strengths of the Development Triangle; to actively push up economic cooperation and exchange; and to develop a long-term and stable cooperation strategy. A match between individual plans of three countries and development plans for the entire Development Triangle and the development of the related regions should be ensured.

(b) To bring into play the advantage of Vietnam as a gateway to the sea in order to create its attractiveness conducive to economic exchanges; to actively push up economic cooperation and alignment and development cooperation among the provinces in the Triangle with an aim to enabling them to mutually assist, complement and coordinate with one another for a better development of and a guarantee of security and development for the entire area; actively promote economic cooperation and alignment between the Vietnamese provinces and those of Cambodia and Laos within the framework of cash crop development programme, forestry exploitation and processing, tourism, social development and some other programmes. Adopt policies that are suitable to the particular conditions of each of the three countries.

(c) To dig and bring into full play the potentialities, strengths and internal resources of each province in the Triangle for the development of the market-oriented commodity producing economy; to bring into play and efficiently use (in the immediate and long-term future) all potentials and human resources available for the sake of rapid and sustainable growth of the Development Triangle. Investment interests within the Triangle should be ensured.

(d) To strengthen economic linkages within the Development Triangle through development cooperation programmes of the provinces in the area, jointly cooperate to expand and improve the efficiency of external economic relations, and implement the policy on attraction of external resources on a consistent and permanent basis. At the same time, to make the Development Triangle closely linked to the surrounding areas in the process of development of each country with a view to transforming its economic structure along the line of raising the efficiency of each industry/sector and each province in the area. Environmental protection and living conditions of the people in the Triangle in the future should be guaranteed.

(e) To transform the economic composition along the line of improving efficiency of each sector/industry and each province of the Development Triangle; to develop in a selective and synchronous manner the area’s infrastructure; to attach importance to steady development of agriculture, forestry and fisheries and rural areas; basically establish a “socio-economic belt” along the border area; and form “border checkpoint economic areas”.

(f) Development cooperation among different localities in the Triangle is regarded as a measure of primary importance for the efficient development of the Triangle, taking into consideration the attraction of the participation of a third country in the development process of the Triangle.

(g) Socio-economic development should take into consideration ecological environment protection, especially the watershed ecological area.

(h) Strengthen the implementation of the existing economic cooperation agreements.

(i) Create an appropriate legal framework and policies, including the agreement on goods in transit for Development Triangle, simplification, streamlining and harmonisation of customs-trade and investment documentations and procedures for the Development Triangle.

(j) Set up an operational and management mechanism for facilitating implementation of the Master Plan.

Source:clv-triangle.vn

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International Context

INTERNATIONAL CONTEXT AND ISSUES RAISED IN DEVELOPMENT COOPERATION

AMONG THE THREE COUNTRIES

1- International context

Over the past decades, the world has experienced very swift and unforeseeable changes that have great impacts on socio-economic development cause in developing countries. All countries are seeking for the benefits in conformity with their own conditions. The struggle for new technologies including that for markets by economic powers has taken place with great tension. The combination of competition and cooperation to protect interests for a group of countries and for each country has been carried out worldwide. The trend of international integration brings about both great opportunities and challenges to economic development in the region. Southeast Asia, after getting out of the financial and monetary crisis, has been entering the recovery stage with a relatively good development thanks to economic structure transformation and gradually improved competitiveness. This is one of the factors to put pressures on economies that remain weak.

Although in some regions of the world there still exist racial conflicts as well as trade and economic disputes, the trend of cooperation for development in each region, among regions and countries with different political regimes is growing and become a common tendency for all nations.

The impacts of scientific and technological progress, particularly information technology, serve as one of the significant factors that bring about economic and international relations changes. This is also one of the factors that enable the provinces in the Development Triangle whose infrastructure remains poor to access to the outside world in a rapid and inexpensive manner.

The new scientific, technical and technological revolution has had the impacts on all aspects of the social life. Countries in different regions have established alliances for international cooperation and competition. In the future, the Asia - Europe relationship will be further developed. Asia needs to absorb advanced technological achievements by the EU and the EU wants to have markets to sell their products and import goods from Asia. The cooperation of the two blocks will ensure the region’s stability and security.

Before 2010 the Association of Southeast Asian Nations with 11 member countries will become the ASEAN Free Trade Area (AFTA) with an aim of promoting economic development cooperation, securing peace and stability in the Southeast Asian region and at the same time expanding trade cooperation with other great potential countries in Asia like China, Japan and Korea. ASEAN countries have been giving much attention to the development of the area comprising South of Laos, Northeast of Cambodia and the Central of Vietnam with the construction of the West - East corridor.

International financial and banking institutions have made positive commitments to provide financial support for the infrastructure development in the less developed countries. This policy is relatively suitable to the border area of the three countries whose infrastructure remains poor and underdeveloped.

The market in general has been affected by many economic and political factors and requires increasingly better quality and categories of products. This in turn has strongly affected export-producing countries. For the Triangle, exports mainly are agro-products with unstable price in the world market. Under such a context, the Triangle not only has the advantage and potential for expanding cooperation with and integration into the world for creating a highly developed area, but also faces great challenges in the process of integrating into the region and the world market.

1.1- Global trends

Globalisation, interdependence and trade liberalisation: Globalisation of production process and financial markets combined with progresses recorded in transport and telecommunication technology has lead to the changes in the nature of business activities, resulting in increased interdependence by economies in the world. Trade liberalisation process has also attained considerable achievements as reflected in the agreements on accession to WTO and AFTA.

Similar to the results by globalisation, interdependence and trade liberalisation brought about both economic and political risks. This can be seen in the Asia’ financial and economic crisis in 1997: the interdependence of the economies could create a chain of effects. Sound economic management and policy coordination have become vitally important.

Investment trends: During 2000-2003, FDI flows were subject to a strong decline with an annual average rate of 23.4%. FDI inflows to developing countries currently account for only less than 20% of total world investment as compared to 40% in the mid of the 90s. Competing to attract FDI, the three countries of Cambodia, Laos and Vietnam shall have to adapt to new investment determinants, to technological advances in transport, post-telecommunication and information technology. Abundant natural resources and cheap labour costs are no longer efficient conditions. FDI attraction will depend on the extent that the three countries can provide additional resources, satisfactory infrastructures and excellent suppliers as well as make use of technology in an efficient manner. In the long run, it is forecasted that FDI inflows will increase and have the trend to strongly shift from production toward services. Indirect investment flow will have the tendency to rebound.

Global supply, production and distribution network: Another trend is the increased linkages via trans-national corporations (TNC) as part of the global supply, production and distribution network.

Production and technology: Two out of the most important production and technology trends are the shortening of product life and rapid advances in information technology (IT).

1.2- Regional trends

The future establishment of ASEAN Free Trade Areas with China, Japan, Korea, India, Australia and New Zealand will basically redefine the role of ASEAN and bring both opportunities and challenges to ASEAN members, especially to Cambodia, Laos and Vietnam. The three countries should formulate special development and cooperation programmes by sharing capitals, experiences, technology and balanced resources in order to benefit from ASEAN economic cooperation with dialogue partners. The reduction of tariff and non-tariff barriers to trade is considered as an important factor to promote intra three countries trade and to respond to the competition requirements.

ASEAN expansion: The expansion of ASEAN membership creates opportunities and challenges for Greater Mekong Sub-region (GMS) countries, especially for new ASEAN members (Cambodia, Laos, Myanmar and Vietnam). The possibility of ASEAN plus three (Korea, Japan and China) might basically redefine the role of ASEAN, bringing about important suggestions for Cambodia, Laos and Vietnam development cooperation programme. The three countries must have the capacity to take advantage of this expansion such as economy of scale, shared resources and other initiatives to improve productivity and product quality. The reduction of tangible and non-tangible barriers to trade and shared resources are important to respond to competition requirements.

WTO membership and increasingly important role of China in the region: The three countries of Cambodia, Laos and Vietnam need to improve their competitiveness and conduct researches for supplementing their linkages with domestic and foreign companies currently operating in China. China’s economy has played an increasingly important role in the region.

Newly emerging markets in South Asia, especially India, have important advantages, including advantages in advanced technology and a large number of labour forces having university degree. In the near future, the three countries of Cambodia, Laos and Vietnam will act as a bridge between China, Southeast Asia and South Asia.

2. Problems and challenges

Following are the five big problems and challenges that should be taken into consideration in developing the strategic framework for economic cooperation within the Development Triangle.

Creation of a conductive environment for trade, investment and development of the private sector. Institutional reforms should be continued and sped up, including consolidation of the financial market, equitisation of state-owned enterprises, trade liberalisation and reform of investment regimes. Barriers to cross-border trade must be removed, notably ineffective customs licensing procedures, absence of transparent regulations and processes and improper infrastructure.

Acceleration of regional integration. In order to early realise the contents of cooperation within the Development Triangle, efforts should be concentrated on taking practical measures at local level, including upgrading of transport - telecommunications infrastructure and implementation of cross-border agreements with an aim to facilitating the flow of people and goods.

Human resource development. Developing the skills and upgrading the education level of the workforce in general is an extremely important task to be fulfilled so as to achieve poverty reduction and to turn the potentials of the Development Triangle into reality. Initiatives of individual countries will be predominant means to this end and economic cooperation in the Development Triangle, in addition, would likely make important contributions to other sectors. The education – training network should be strengthened to facilitate technology transfer. Common healthcare issues such as community health care, should also be mentioned.

Environmental protection and equitable development. In order to provide the Development Triangle with sustainable development, Social and Environmental Impact Assessment Reports of the proposed investment projects should be produced in order to ensure that greatest efforts be made to alleviate undesirable effects and impacts. A pro-poor sustainable economic growth requires a broad environmental strategy that is fully integrated into the development process and involves all strata of the population into the decision making process. A pro-poor sustainable economic growth also requires that those who are affected most by investment decisions must be fully respected.

Resource mobilisation. Mechanisms for mobilizing resources should be in place. Greater involvement of the private sector is needed for it to play a role in providing resources as well as attracting financial resources.

3. Impacts of each of the nations on socio-economic development of the Development Triangle

3.1- Cambodia: In recent years, Cambodian socio-economic development has been stable. Many economic sectors have regained their high rate of growth, typically tourism and foreign investment. The country has been assisted and supported by a number of foreign organisations in its transition to a market-oriented economy. The Government of Cambodia has undertaken many reforms in the country’s financial sector. A typical example is the promulgation of the Tax Law in February 1997 which has had positive impacts on the development of Cambodia in general and that of its two border provinces in particular.

3.2- Lao PDR have already developed a national socio-economic master plan for the period up to 2020. In recent years, the economy of Laos has been confronted with hyperinflation (the inflation rate reached 140% per annum), creating difficulties for the implementation of the formulated economic development plans. Following the Government of Laos’ adoption of many resolute solutions to contain the hyperinflation, the country’s inflation is now kept under control and tends to decrease, favouring the development in the country itself and that of the two border provinces of Se Kong and Attapeu. Laos’ external and internal lines clearly make its people and both domestic and foreign investors confident about its development direction and its cause of making the country prosper.

3.3- Vietnam: Having adopted the policies of multilateralisation and diversification of external relations, the international relations of Vietnam have been expanded. Following its official accession to ASEAN (in July 1995) and the ASEAN Free Trade Area (AFTA), Vietnam’s official membership in APEC approved at the Summit Meeting in November 1998 held in Malaysia marked a new step in its international integration, manifesting the country’s increasingly enhanced role and position in the regional and international arena.

Vietnam is also improving its management mechanism and renovating its economic management mechanism. Many measures have been adopted to accelerate the process of creating linkages among the provinces and to step by step promote the link between specialised cultivation areas and the market. Many policies regarding economic development of the Central Highlands have been approved by the Government and investments are being made to develop this area.

Source: clv-triangle.vn

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Development Investment Projects

PROPOSED DEVELOPMENT PROGRAMMES AND PROJECTS FOR THE LOCALITIES

IN THE DEVELOPMENT TRIANGLE

1. Programmes to develop and link different infrastructure projects

1.1 Transport Network Development

(a)- Programme to develop the axis lines connecting three countries together and connect the Development Triangle to the capital and major economic centres of each country

· National Road No. 13 linking the Development Triangle and Vientiane, the capital of Laos

· National Road No. 7 linking the Development Triangle and Phnom Penh, the capital of Cambodia

· Ho Chi Minh route and National Road No. 1A linking the Development Triangle and Hanoi capital and Ho Chi Minh City of Vietnam.

· Attapeu - Laos - Vietnam border - Dung Quat port line:

Road No. 18B (of Laos) is now under construction and planned to be cleared for transport in 2005, the section from km 37^th to the border with Vietnam is 76 km long will be built based on low standards, i.e. the width of the road base is 7m and that of the road surface is 6m; this section will be renovated and upgraded in 2020 to meet the actual requirements for transport on this road.

NR No. 40 (Vietnam) is 20 km long, presently built on the BOT basis in Kon Tum province, and will be renovated and upgraded in 2015.

NR No. 24, which is presently a single-lane road, will be expanded to a double-lane road in 2005.

NR No. 40A (the new road): If it is soon built, the length of transport will be shortened by 103 km, civil works are expected to be done during the 2006 – 2010 period.

· The O Pong Maon (in Stung Treng province) – Cambodia – Vietnam line border leading to Quy Nhon port.

The O Pong Maon – Ban Lung section of the road No. 78 which is presently a gravelled road is planned for construction in the 2005 – 2010 period.

The section of the road No. 78 from Ban Lung to Cambodia – Vietnam border is planned for construction in the 2004 – 2006 period. Credit will be provided to Cambodia by Vietnam, using the same mechanism as applied to the construction of Road No. 18B of Laos.

The Vietnam - Cambodia border – Quy Nhon section of the NR No. 19 that has been invested is the best line linking the Central highlands and the National Road No. 1. Many parts of this section are already two-lane. The whole line is planned for upgradation during the 2011 – 2015 period.

· Se Kong – Laos – Vietnam border line leading to Da Nang:

The Road No. 16B from Se Kong to the Laos – Vietnam border (on the territory of Quang Nam province) which is 119 km long is planned to be upgraded to a proper standard in the near future.

The NR No. 14B from Vietnam – Laos border to Thanh My of Quang Nam province which is 75 km long and presently a gravelled road will be renovated and upgraded to a double-lane road during the 2003 – 2005 period.

· Se Kong – Laos – Vietnam border line leading to Chan May port

The Road No. 49A (Laos) from Se Kong to Laos – Vietnam border (on the territory of A Luoi district of Thua Thien Hue province (Vietnam) is 187 km and presently composed of 50 km of earth road. It is expected that the construction of some 87 km of the road will be complete by 2005 and the remaining 100 km will be built during the 2006 – 2010 period.

The NR No. 49 from Vietnam – Laos border to Hue which is 82 km long and presently mainly one-lane will be renovated and expanded to a fully double-lane road during 2003 – 2005.

(b)- Axis lines connecting to major transport network of the Development Triangle:

· Road No. 16 (Laos): This road which links the two provincial towns of Attapeu and Se Kong and is 76 km long is being built with ADB funds and expected to be fully cleared for transport in 2005. It is planned for expansion during the 2016 – 2020 period.

· Road No. 16A (Laos): This road links Se Kong and Pakse, is 139 km long, and will lead to Vientiane capital and U Bon (Thailand). This line will be divided into two sections:

- The 56 km-long section which is now a gravelled road will be renovated and upgraded during the 2006 – 2010 period.

- The 83 km-long section which is presently bituminous will be upgraded during 2011 – 2015 period.

· Road No. 18A (Laos): This road links Attapeu province and Phia Phay (Cham Pa Sak province) and connects to the NR No. 13 (Laos). It is presently a gravelled road and will be built in the near future.

- The National Road No. 13S (Laos): This road links Pakse and the Laos – Cambodia border, is 160 km long and presently in good condition. The road was upgraded with ADB loan. This road has been opened for traffic since 1999.

· Road 1J (Laos): This road which links the road No. 18B in Muong May and the Laos – Cambodia border (on the territory of Ratanakiri province) and is presently composed of 20 km of earthen road will be built during the 2006 – 2010 period.

· Road No. 7 (Cambodia): This road goes from the border with Laos via Stung Treng provincial town to Kratie provincial town, is 198 km long and presently remains an earthen and gravel road. The improvement of this road section has started in May 2004 with financial support from P.R. China. It is expected to complete in 2006.

· Roads No. 78a and 78e (Cambodia): The construction of these roads which go from Ban Lung to the Cambodia – Laos border and connect to the road No. 1J of Laos and are presently composed of 40 km of earthen road will be implemented during the 2006 – 2010 period.

· Road No. 76 (Cambodia): This road which goes from Ban Lung to Keng San and is 75 km long will lead to Mondulkiri provincial town. It is presently an earthen and gravel road. Its construction is expected to be made during the 2006 – 2010 period.

· National Road No. 14 (Vietnam): This road starts from Thanh My, connects to the NR No. 14D and NR. No. 14B, goes through the provinces of Quang Ngai, Kon Tum and Gia Lai to reach Buon Me Thuot of Dak Lak province. It is part of the Ho Chi Minh road for which a master plan for road construction has been made. The road is divided into two sections as follows:

- The section from Thanh My to Ngoc Hoi which is 164 km long will be built in 2003 – 2005.

- The Ngoc Hoi – Buon Me Thuot section which is 280 km long will be built in 2006 – 2010.

1.2 Programmes on Post and Telecommunications Development

- A post and telecommunication network is to be established at the three border checkpoints of the three countries to allow post exchange among the post offices of the provinces in the Triangle and direct television and telephone communication among the border checkpoints and between the border checkpoints and the central post offices of each country.

- Programme on desk phone network development

- Programme on mobile phone network development

- Programme on post department network development

2. Power and power network development programme

- Programme on development of large-scale hydropower projects over the major river basins of the Triangle to link the power supply grids of the three countries. Conduct a feasibility study on an energy, power and hydropower cooperation programme in the Se San River basin; construct Nam Kong hydropower dam; Sekhaman 3 hydropower plant; Sekong 5 hydropower plant; Sekong 4 hydropower plant; Houay Lam Phan Nhay hydropower plant; and other hydropower projects: XD’ray H’ling II, Dak R’Tih, Ea Sup, Buon Kop Chu Pong Krong, Sre Pork III... (Dak Lak); Plei Krong, Kon Tum upper stream; Ry Ninh II; Se San 3; Se San 3A; Se San 4; Iadrang I; H'chan...

- Programme on construction of small- and medium-sized hydropower plants in the provinces of the Triangle (namely Attapeu, Gia Lai, Kon Tum, Ratanakiri, Se Kong, Stung Treng, etc.).For the Cambodian and Laotian provinces, in the immediate future, the demand for power supply to meet production and livelihood requirements is expected to be huge while the existing supply capacity is very limited. Therefore, new power plants should be developed (possibly in the form of BOT) or power should be purchased from neighbouring countries.

- Programme on establishment of a common power network for the entire Development Triangle: establish a power transmission grid that connects the three countries along the national roads linking the border provinces, namely the axis of the road No. 78 of Cambodia, the road No. 18 of Laos and the road No. 40 of Vietnam.

3. Industrial Development Programme

· Mondulkiri, Rattanakiri and Stung Treng provinces of Cambodia

Cashew nut, rubber processing industries, etc.

Mechanical engineering industry

Building material industry

· Attapeu, Saravan and Se Kong provinces of Laos

Agro-forestry processing industry: coffee processing in Se Kong, wood and cashew nut processing in both provinces, and animal feed and wheat flour processing industry.

Paper pulp, paper and packing paper industry

Mechanical engineering industry.

Building materials industry

· The Central Highlands provinces of Vietnam:

Bauxite exploitation industry in Dak Nong and gold mining in Kon Tum.

Wood processing industry: The development cooperation projects include: MDF plywood plant with a capacity of 54 thousand m³ per annum; shavings plywood plants with a capacity of 3,000 m³ per annum in Dak Lak, Dal Nong and Kon Tum; sugar-cane bagasse and shaving plywood plants in Gia Lai and Kon Tum with a capacity of 2,000 m³ per annum per plant; Kon Tum Paper Pulp Mill with a capacity of 130 thousand tons per annum and some other paper packing paper mills, etc.

Programme on coffee bean and packed coffee processing industry development in all the three provinces in the Central Highlands to enable them to be capable of processing all coffee produced within the Development Triangle

Programme on rubber latex processing industry development in the three Central Highlands provinces with a combined capacity of about 120 thousand tons per annum

Tapioca starch and animal feed processing industry will be strongly developed in Dak Lak and Dak Nong.

Beverages and foodstuff industry: mineral water (Gia Lai and Kon Tum), pineapple juice (Dak Lak, Dak Nong, Gia Lai and Kon Tum), cocoa powder processing (Dak Lak), cashew nut processing (Dak Lak, Dak Nong and Gia Lai).

Cotton and yarn processing (Dak Lak, Dak Nong and Gia Lai), leather and clothing industries will be developed in all the three countries.

Mechanical engineering industry in service of ago-forestry production and transport mechanical engineering

Plastic and chemicals industry.

4. Programmes on agricultural - forestry - fishery development in combination with processing industry for the localities in the Development Triangle

- Programme on the investigation of the ability to expand the area of agricultural land and the directions of its exploitation and use by the Cambodian and Laotian provinces: The objective of the programme isto define the land fund for each area and the directions for its exploitation and use in order to plan for people’s permanent settlement to ensure that they can have access to land for production and stable settlement.

- Irrigation Development Programme for Cambodian and Laotian Provinces: The objective of the programme is to formulate a master plan and an development investment plan for irrigation works for the period up to 2010 to serve agricultural production and socio-economic development of the provinces of Cambodia and Laos in the Triangle.

- Cattle Raising Development Programme: The objective of the programme is to import parents cows and buffaloes, reform the local cow and buffalo herd and establish some effective cattle raising models to serve as the basis for pushing up livestock development with an aim to meeting the market demand and protecting the ecological environment.

- Programme on development of the set of crop and animal varieties with an aim to transforming crop composition of the Development Triangle: The objective of the programme is to identify the set of appropriate market-oriented crops that can be developed in the provinces of the Triangle, and to transfer production technology in order to push up the expansion of the promising market-oriented crops which in turn improve the producers’ income and protect the ecological environment.

- Short-term Training Programme for Agricultural and Forestry Technical Workers: The objective of the programme is to provide short-term agricultural and forestry training to about 10 - 20 people per province per annum (with priority given to the people from mountainous districts).

- Forestation and Forest Protection Programme: The objective of the programme is to increase the forest coverage in the provinces in the Triangle and strengthen the capacity of the management apparatus responsible for the protection of natural preserved areas and forests.

- Combined programme on population stabilisation and development of agricultural and forest production for ethnic minority areas: The objective of the programme is to identify the land reserve that can be potentially exploited for agricultural and forestry development and the directions for its use in order to plan for population distribution along the line of permanent cultivation and fixed settlement to serve as the foundation for guiding the production development and expansion with an aim to stabilising the lives of the ethnic minority people.

- Programme on Development of Some Mainstay Cash Crops in the Development Triangle (coffee, rubber, cocoa, cashew, etc.) in Service of Crop Composition Transformation: The objective of the programme is to survey and review the planting of coffee, rubber, cocoa, cashew and pepper in the seven provinces to serve as the foundation for the formulation of an overall programme and policy mechanism for the development and expansion of these crops in all the seven provinces of the Development Triangle.

- Programmes and projects on development of agro-processing network in individual localities and within the Development Triangle: The objective is of these is to generate higher value added of agricultural products, facilitate the creation of linkages in terms of material areas, technology, market, and human resource training.

5. Development Programmes and Projects for Trade and Services Sectors

- Programme on border area trade and services development based on pairs of border checkpoint in the Development Triangle

Formulate a project on development of trading relations between Laos and Vietnam across the Bo Y border checkpoint: establishment of border checkpoint economic zones, and Laos - Vietnam border markets.

Formulate a project on development of trading relations between Cambodia and Vietnam across the Duc Co and Bu Prang border checkpoints (Vietnam): establish border checkpoint economic zones, and Cambodia - Vietnam border markets.

The possibility of establishing warehouses, export processing units, border markets… for which liberal customs procedures are applied at the area of border checkpoints will be studied.

- Trade promotion programme within the Development Triangle:

The provinces of Cambodia: Export items will include: bottled mineral water and coffee produced in Stung Treng; coffee which will be exported to other countries via Laos; rubber and pepper; agricultural products via Vietnamese sea ports. Import items will include: building materials, gasoline, food items from Vietnam.

The provinces of Laos: Export of forestry products (wood, bastard cardamom, lotus seed) and coffee produced in Sekong; establishment of border markets in two border districts having common boundaries with Vietnam; cooperation with the third country in merchandise transport; training of trade staff; expansion of the trading network (with a focus on wooden products and food items) in Attapeu; and holding of a conference to reach an agreement on the regulation on trading activities at borderline areas.

The Central Highlands of Vietnam: Establishment of concentrated trading centres in cities, provincial towns and district towns; development of the market network (particularly that of rural and border markets); development of the trading system in service of people in remote, isolated and ethnic minority areas; and development of border checkpoint economy and border checkpoint trading areas.

6. Tourism Development Programme

- Development of a master plan for the Development Triangle’s tourism development

- Programme on tourism development towards the goal of “three nations, one destination”. Development of tours for eco-tourism, cultural and festival tourism, and other types like "“legendary road”, “heritage road”, etc. to connect with available tours in each country; and exchange of tourism information.

- Projects to exploit tourist locations of each country:

The provinces of Cambodia: Projects to exploit natural tourism locations like the O Pong Moan tourism area development, tourism area development in Thalapri Voat district, tourism area development in “Cow’s Tail Island ” in Stung Treng; projects to exploit tourism locations along the roads No. 303A and 303B in Rattanakiri; projects to exploit natural forest ecological tourism locations in Rattanakiri; projects on restoration and development of traditional culture of Cambodian ethnic groups in service of tourism development; projects to make investment in technical and physical foundations like restaurants, hotels, recreational locations; projects on organisation and management of tourism development.

The Provinces of Laos: Projects to exploit natural tourism locations like Houa Khone waterfall, Nong Fa Lake; project on restoration and organisation of tourism for the purpose of learning about the history of Ho Chi Minh trail; projects to exploit eco-tourism locations in Attapeu like Pha Phong waterfall, etc.; projects on restoration and development of traditional culture of Laotian ethnic groups in service of tourism development; projects to make investment in technical and physical foundations like restaurants, hotels, recreational locations; projects on organisation and management of tourism development.

The Central Highlands Provinces of Vietnam: Lak lake project in Dak Lak province; Plei Ku Reservoir project in Gia Lai province; tourism project in the areas of Yaly hydropower plant’s reservoir; eco-tourism projects in the three provinces; projects on restoration and development of cultural tourism in these provinces; projects to make investment in physical facilities such as restaurants, hotels, recreational establishments in the provinces; projects on organisation of tourism activities in the provinces, etc.

7. Programme on Human Resource Development and Training and Social and Cultural Affairs

- Programme on training of technical workers in service of agro-forestry and agro-forestry processing industry development

The objective of the training is to equip the trainees with the knowledge of intensive farming and to transfer to them intensive farming technology, thereby enabling them to combine agricultural and forestry activities together by using their obtained knowledge and skills with regard to the processing of products of perennial cash crops like coffee, rubber, cashew, and pharmaceutical trees (e.g. bastard cardamom), as well as short-term cash crops such as cotton, sugar cane, etc. and processing forestry products (household furniture processing, planting of material trees for and production of paper pulp, etc). Trainees will be trained, coached and transferred with technology and skills in how to develop and expand poultry and cattle raising, etc. mainly on a household scale with an aim to producing the materials like meat and leather for the processing industry. In the industry, construction and services sectors, the objective of training is primarily to enable the Cambodian and Laotian people and the Vietnamese ethnic minority people to familiarise with and adapt to the market economy and market-oriented commodity production. At the same time, the establishments for training technical workers and technicians in building materials industry, mechanical repair of agricultural and forestry capital goods, transport and civil electric industry will be gradually set up and this type of training will be step by step expanded. Small industries and handicraft trades (like brocade weaving) in both urban and rural areas will be expanded. Importance will be attached to expanding the training in construction, transport, irrigation, hydropower, civil industries, etc. Labour for trade, tourism and private and community services sectors will be rapidly increased and their training will be swiftly expanded.

- Programme on increasing Government resources for education and training development.

The scale of teacher’s training, first of all primary school teachers, will be expanded and preparations will be made for the necessary number of junior secondary school teachers. Preferential policies should be applied to the staff and teachers who accept to work in remote, isolated and ethnic minority areas. The directions to be followed include: bring into play the education tradition, efficiently use the available physical foundations and the contingent of teachers and to facilitate and provide more opportunities for the people to go to school, and support and encourage pagodas in Cambodia and Laos to open schools/classes to teach students scripts and ethics. Importance will be attached to education for ethnic groups; the system of provincial/district ethnic boarding schools and various types of semi-boarding schools in which the people are responsible for feeding the pupils at the village and hamlet level will be expanded and their quality be improved with a view to maintaining the existing pupils from poor families and ethnic groups in school and attracting new ones in order to create resources for cadre training at higher levels. Proper preferential policies (in terms of scholarship) should be adopted to attract pupils from ethnic groups to go to vocational training schools, secondary professional schools, colleges and universities.

- Programme on development of physical and technical foundations in service of education and training

The building of schools/classes will be combined with the implementation of infrastructure development projects at the commune level (for Vietnamese provinces) and at the village and hamlet levels (or at the village/hamlet cluster level) (for Cambodian and Laotian provinces).

- Programme on development of health care and community health care

- Programme on broadcasting and television development

- Programme on development and preservation of ethnic cultures

8. Ecological Environment Protection Programme

The objective of the programme is to ensure the sustainable development of the Development Triangle.

The ten provinces in the Vietnam – Laos – Cambodia Development Triangle constitute an area with high forest coverage and serve as the climate lung for the three countries. This area is also the upstream of many rivers. Therefore, permanent attention should be paid to the environmental aspects of socio-economic development programmes to ensure that those programmes will not damage the ecological environment, especially the watershed forest, natural preserved areas.

Proper management of common natural resources and joint actions to address trans-national environmental problems are needed steps to be taken to achieve the above-mentioned objective. Environmental impact assessment should be taken into first consideration in all decision making processes for development projects. While central an local governments assume main responsibilities for environmental protection, cooperation with neighbouring countries is extremely important for addressing externalities and ensuring sustainable utilisation of natural resources.

Source: clv-triangle.vn

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