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Asian Trade and Investment Integration and Implications for Thailand

Welcome Remarks By
Jean-Pierre Verbiest
Country Director, Thailand Resident Mission
Asian Development Bank

At the ADB-ITD Seminar

9 June 2008
Bangkok, Thailand

Permanent Secretary, Distinguished Guests, Ladies and Gentlemen

I would like to welcome all of you to this important seminar, jointly hosted by ADB and ITD. The impressive cast of speakers and panelists for today's seminar include the Permanent Secretary of the Ministry of Foreign Affairs, senior Thai policy makers from key ministries, academic experts, a leading private sector representative and ADB staff. We greatly appreciate you taking time out from your busy schedules to participate in this event. I would also like to thank our co-host, ITD, for their valuable support.

The description of this seminar - Asian Trade and Investment Integration and Implications for Thailand - alludes to the dramatic transformation that has changed the Asian economic landscape over the past two decades and especially since the Asian financial crisis 10 years ago. For example, the spread of vertically-integrated production systems, improved physical connectivity, the emergence of the giant PRC and Indian economies, and the spread of free trade agreements has made Asia more inter-dependent than ever before. The private sector has been at the forefront of the integration process in Asia. Partly in response to the rapid "contagion" of the Asian financial crisis, authorities realized how important economic cooperation is-and the need to institutionalize interdependence. Indeed, working together, markets and governments can broaden the process of regional cooperation and integration in Asia.

But when we speak about the future of Asian economic integration, we may note that subregions within Asia are at different stages of regional integration. East Asia has been at it the longest, and has thus made the most progress-especially the ASEAN+3 countries. Together, these countries are now working on initiatives to deepen integration not only in trade and investment, but they have also started the process for monetary and financial cooperation. Within East Asia itself, the Greater Mekong Subregion, which ADB has worked with since 1992, focuses primarily on enhancing connectivity, improving competitiveness, and building a sense of community. This evolving market-friendly, multi-track, an multi-speed approach to integration in Asia offers a new platform for economic development - that is good for individual countries, good for Asia and good for the world.

Building on our operational experience in subregional programs over the past 15 years, ADB has now formally adopted a Regional Cooperation and Integration Strategy. This is designed to support economic integration in four key areas: (i) cross-border infrastructure and related services; (ii) cooperation in trade and investment; (iii) monetary and financial cooperation and integration; and (iv) cooperation in the provision of regional public goods. ADB has also developed a framework for mobilizing the requisite resources to implement the Strategy-the Regional Cooperation and Integration Financing Partnership Facility.

Thailand, along with other ASEAN members, has driven rapid economic expansion in Asia. Thailand is emerging as the regional auto hub in Asia and is being viewed by leading multinationals as the "Detroit of Asia". Strongly integrated in East Asia, Thailand is also increasing its trade with PRC and deepening its integration within the Greater Mekong Subregion. By implementing an early harvest scheme with India for a bilateral FTA, Thailand is cementing regional ties between East Asia and South Asia. Further strengthening Thailand's role in the Asia will help to achieve its full economic potential and sustain regional economic dynamism. These goals can be best achieved by developing and implementing effective strategies to deal with the challenges of the emerging Asian regionalism. It is hoped that today's seminar will make a modest contribution to the very active on-going discussions in Thailand.

But enough said from my end. Now it is time to hear from our speakers and audience. Thank you once again for joining us to contribute this important discussion.

Thank you.