Catalog

Highway Unites Past and Present

By Omana Nair ( onair@adb.org )
External Relations Officer

The countries of the Greater Mekong Subregion - GMS - have had a turbulent past.

In modern times, and until the last decade, traveling between them was difficult and sometimes dangerous. Yet for centuries before, trade and travel along a route between Cambodia and Viet Nam had brought economic benefits.

Now the two nations will benefit again as they prepare for the completion in 2004 of the Phnom Penh-Ho Chi Minh City Highway Project. Trade and traffic are steadily increasing between Cambodia and Viet Nam. The Highway is the first joint project between the nations and marks a milestone in the GMS Program to promote economic cooperation in a formerly conflict-torn area.

The project is part of a longer corridor between Bangkok, Thailand, and the southern Vietnamese port city of Vung Tau. A phased approach was adopted with priority given to the section connecting Phnom Penh and Ho Chi Minh City. The 240-kilometer road, with 160 km in Cambodia and 80 km in Viet Nam, is being reconstructed to meet the expected increase in traffic flow. Once the road is rehabilitated, traffic is expected to grow at around 7% annually as trade between the two countries increases.

An all-weather road journey between the two major GMS cities of Bangkok and Ho Chi Minh will be a reality by about 2006 when remaining portions of this southern corridor are completed.

The Highway crosses the flat floodplains of the eastern Mekong delta and, in Cambodia, it becomes part of National Route 1, running parallel with the Mekong from Phnom Penh to the ferry crossing of Neak Loeung, and onto a flood-prone embankment of the rice-rich province of Svay Rieng to the Vietnamese border at Bavet.

In Viet Nam, 22 km of Highway 1 is being reconstructed between Thu Duc and An Suong, which also serves as an outer ring road to the north of Ho Chi Minh City, as is 58 km of Highway 22 between An Suong and the Cambodian border at Moc Bai. In 1999, ADB provided a $40 million loan for the Cambodian portion, and a $100 million loan for the Viet Nam section.

Roads alone, however, are not enough to facilitate the flow of people and goods. Urooj Malik, ADB Country Director, Cambodia Resident Mission, says priority must also be given to software issues, such as customs procedures and practices, which will be necessary to allow for a smooth flow of trade and services.

Before the project, difficulties resulting from cumbersome rules and regulations at the border served as a disincentive to prospective travelers, as did the potholed condition of the previously two—sometimes one—lane road between the two cities.

“With improved physical and security conditions and easier border crossings, tourists, traders, and other travelers will be encouraged to use the road link instead of flying or using the Mekong River,” says Do Ngoc Dzung, Vice Director-General of Viet Nam’s Ministry of Transport.

The improved roads will promote closer economic linkages between Cambodia and Viet Nam, particularly in agriculture and agro-industry. The additional traffic generated will promote growth in the service industry, in turn generating employment.

“The development of GMS transport infrastructure and streamlining of cross-border regulations will also strengthen linkages between the GMS countries and the rest of Southeast Asia and the People’s Republic of China,” says John Samy, ADB Country Director, Viet Nam Resident Mission.

Vietnamese trucks carrying fruit and other products are increasingly using the highway, while Cambodian trucks with agricultural products are supplying markets in Ho Chi Minh City.

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Increased traffic is already benefiting small businesses in both countries, with transport cost savings being passed on. Fruit vendors and restaurant owners along the Highway from Phnom Penh to the Vietnamese border say business has improved because of the increase in traffic — including tour coaches plying the route — and access to cheaper supplies from Viet Nam.

“My business is better because of the increase in traffic volume, and I’m able to access the market quicker as road conditions have improved,” says Sum Phally, a fruit vendor at Kok Andet market, about 90 km south of Phnom Penh.

Another vendor says she now has access to cheaper products from Viet Nam as a result of reduced transport costs.

In the town of Svay Rieng, through which the road passes, businesses are already benefiting from increased traffic flows.

“My earnings have doubled due to the increase in the number of tourists crossing the border, and I expect this to improve further once the road is fully completed,” says restaurant owner Keo Chea.

The Government of Viet Nam views the development as key to economic regeneration.

“The Highway will help build an effective, harmonized, and advanced transport network between ASEAN member countries,” says Dang Thi Hoc, Deputy Director, International Relations Department, Ministry of Transport.

She believes the Highway will also improve economic links to the rural population, enhance transport reliability, help raise agriculture productivity, and improve income opportunities.

Vietnamese residents whose homes are located near the road project are also looking forward to the opportunities that will come with its completion. More than 5,000 households had to be relocated to make way for the construction.

Many of them are pleased with the compensation they received, using it to build better homes and even new businesses.

One of the recipients is Le Van Dan, who lives in Ho Chi Minh City’s Tan Xuan Ward commune. Mr. Le, who runs a motorcycle workshop along the Highway, says he will benefit from the increased traffic and business. He adds that he has constructed “two nice buildings” with his compensation funds.

Mr. Le is one of the new generation of businesspeople who look forward to a brighter future as a highway built on the foundations of the past brings commerce to his door.

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