Greater Mekong Subregion

	Table of Contents
p. 107 of 115 BACK | NEXT Ninth Ministerial Conference on Subregional Cooperation Eighth Ministerial Conference on Subregional Cooperation Sixth Meeting of the Subregional Transport Forum Fifth Meeting of the Subregional Transport Forum Fourth Meeting of the Subregional Transport Forum Seventh Meeting of the Subregional Electric Power Forum Sixth Meeting of the Subregional Electric Power Forum Fifth Meeting of the Subregional Electric Power Forum Fifth Meeting of the Experts Group on Power Interconnection and Trade Fourth Meeting of the Experts Group on Power Interconnection and Trade Third Meeting of the Experts Group on Power Interconnection and Trade Second Meeting of the Experts Group on Power Interconnection and Trade Fifth Meeting of the Subregional Telecommunications Forum Steering Committee Meeting for the Regional Technical Assistance on the Establishment of the Backbone Telecommunications Project for the Greater Mekong Subregion - Phase 1 (RETA 5915) Fourth Meeting of the Subregional Telecommunications Forum Sixth Meeting of the Working Group on Environment Fifth Meeting of the Working Group on Environment Fourth Meeting of the Working Group on Environment Third Meeting of the Working Group on Human Resource Development Second Meeting of the Working Group on Human Resource Development Twelfth Meeting of the Subregional Working Group on Tourism Eleventh Meeting of the Subregional Working Group on Tourism Tenth Meeting of the Subregional Working Group on Tourism Ninth Meeting of the Subregional Working Group on Tourism Eighth Meeting of the Subregional Working Group on Tourism Workshop on Customs Facilitation in the GMS Meeting of the Ad Hoc Group on Customs Matters Inception Meeting of Trade Facilitation Working Group Third Meeting of the Subregional Investment Working Group Inception Meeting of the GMS Business Forum (Core Group) Appendix 1 Second Meeting of the Subregional Investment Working Group GMS Mid-Term Review cum Senior Officials Meeting Workshop on the Preinvestment Study for the Greater Mekong Subregion: East-West Economic Corridor

Inception Meeting of the GMS Business Forum, Core Group Meeting

Opening Session

Mr. Chanpeng Bhounnaphol, the Chairperson of the GMS Business Forum (GMS-BF) and President, Lao National Chamber of Commerce and Industry opened the Meeting and welcomed the participants to the Inception Meeting of the GMS Business Forum. He cited that the launching of the GMS-BF represents the realization of the decisions of the Fifth and Seventh GMS Ministerial Meetings to create the GMS Business Forum. He expressed appreciation to the Thailand Chamber of Commerce, ESCAP and the ADB for their cooperation in launching the Inception Meeting of the GMS Business Forum.

In his opening remarks, Mr. Ravi Sawhney, Director, International Trade and Economic Cooperation Division, ESCAP cited the considerable groundwork done in Vientiane to prepare for the First Meeting of the GMS-BF. The Inception Meeting of the GMS-BF is particularly important because of its evolution and its present context. The transition economies of Cambodia, Lao PDR, Myanmar, and Viet Nam are now at a stage where they can foster a strong public-private sector partnership. Regional integration within the ASEAN framework, and globalization are also highlighting the need for stronger cooperation. The GMS Business Forum brings into convergence the past and ongoing initiatives under the GMS Economic Cooperation Program and the Framework for the Comprehensive Development of Indochina where the GMS chambers have actively taken part, in collaboration with ESCAP and the ADB. He stressed the need for the Core Group to come to an agreement on the Terms of Reference of the GMS-BF, and the work program which would be shared with the wider audience the following day.

Mr. Toru Tatara, Head, GMS Unit, ADB stated that the GMS Business Forum Meeting is a long-awaited one. Citing the background to the Forum, he recalled that the GMS Ministers, as early as 1995, already expressed interest to involve the private sector in the GMS Program. The idea of the GMS Business Forum was endorsed at the Seventh GMS Ministerial Meeting but was sidetracked by the economic crisis. Early this year, the GMS Ministers once again reminded to expedite the establishment of the Forum to take advantage of the economic recovery process. Mr. Tatara cited three objectives of the Forum from the perspective of the ADB. These are: (i) to establish networking for enhancing business opportunities; (ii) to promote cross-border facilitation through partnerships with the governments and local chambers; and (iii) to effectively market the region to potential foreign investors by working with the governments in creative a conducive investment environment. He assured the Meeting of the ADB's support to the GMS Business Forum.

Mr. Pramon Sutivong, Member of the Executive Board of the Thai Chamber of Commerce expressed optimism that since GMS cooperation has weathered the economic crisis, it can now move to a new level that would involve partnership with the private sector. Subregional cooperation projects such as the development of the East West Corridor are creating new opportunities for business. The participation of five GMS countries in ASEAN, particularly in the ASEAN Free Trade Area and the ASEAN Investment Area will reinforce business opportunities in the East West Corridor. The Thai Chamber of Commerce is cooperating both the GMS chambers and the local chambers to promote business at the borders in the areas of trade promotion and facilitation. In addition, the Thai Chamber of Commerce is also assisting human resources development in the other GMS countries through non-obligatory scholarship grants.

Proposed Terms of Reference of the GMS-BF

Mr. Hans-Peter W. Brunner, Senior Project Economist, ADB presented the highlights of the draft TOR of the GMS Business Forum as discussed in the Preparatory Meeting in Vientiane. The key issues discussed included: the main objectives of the GMS-BF, chair and chair rotation, the secretariat set-up and rotation, membership categories, financing, the creation of task forces and ad hoc groups.

In discussing the draft TOR, it was agreed to expand the Background of the TOR, to include the endorsement of the Bangkok Blueprint endorsed by the GMS Chambers and the decision of the Ninth Ministerial Meeting to expedite the inception of the GMS-BF. On Membership it was clarified that the core group members would be the national chambers of commerce and industry in the GMS countries and the associate members would include foreign chambers or similar organizations in the participating GMS countries, as well as those outside the GMS. After reflecting these proposals on the drafts, the Meeting adopted the Terms of Reference of the GMS-BF incorporating these views as it appears in Appendix 1.

Financing of the GMS BF

Mr. Khamsinthavong, Board Member and Deputy Secretary-General of the Lao NCCI presented the proposed TOR and financing of the Interim Secretariat. The proposed activities of the Secretariat would consist of conference arrangements, membership management, financial management, secretariat support to the Chair, information dissemination including IT development, technical assistance activities, and regular reporting. The proposed budget for the Interim Secretariat is $117,300.

Mr. Phairush Burapachaisiri of the TCC also presented a discussion paper on Financial Projections for the GMS-BF. The financing of the Secretariat would consist of start-up costs, to be supported by ESCAP or ADB; and annual operating costs, to be supported by contributions. The budget proposed is $8,100 for start-up costs, and $21,100 for the annual operating cost.

In discussing the proposed TOR of the Secretariat, most core members expressed the view that the TOR should be focused on core activities. They observed that some of the activities proposed (e.g. GMS-BF website) would require technical assistance from ESCAP or ADB. The core activities of the Secretariat should include: (i) coordination of GMS BF activities, including follow up activities in the work plan; (ii) providing logistical and operational support to the Chair; (iii) initiation of GMS activities such as organization of meetings, in cooperation with the chambers in the host country; and (iv) regular reporting to the core members and liaison with associate members and external organizations, including international agencies. There should be a distinction between coordination activities and substantive activities, with the Secretariat focusing on the first category. Reporting should be not only to the GMS Ministerial Conference, but also to the core and associate members.

The core members agreed that the Interim Secretariat should be attached to an existing Chamber in the country chair rather than exist as a separate legal entity. This would significantly reduce the operating costs. It would also add weight to the representations made by the Interim Secretariat to the Governments.

There was a general view that the level of contributions should be kept at a reasonable level and that it should be sustainable over time. From experience, members were cautioned that despite an agreed level of contributions, the actual payments of dues could be difficult. The host chamber should therefore be prepared to absorb a large part of the burden of the operating cost.

Based on the foregoing discussions, the Meeting agreed on the following:

a. On the TOR of the Interim Secretariat, the following core functions were agreed upon:

i. Coordination of GMS-BF activities, including follow up of activities in the work plan.
ii. Provision of logistical and operational support to the Chair;
iii. Initiation of GMS-BF activities such as organization of meetings, in cooperation with the chambers in the host country; and
iv. Regular reporting to core members and liaison with associate members and external organizations, including international agencies.

b. On the budget, the meeting agreed that the initial budget should be kept to a minimum, with start-up costs not exceeding $10,000 and annual operating costs at $30,000. Start -up costs would include 2 PCs with printers, facsimile machine, photocopy machine, office furniture, telephones, etc. Annual operating costs would include 2 staff, office supplies, utilities, communications, and Internet subscription, among others.

c. To finance the budget of the Interim Secretariat, the Meeting agreed to request for ADB and ESCAP support for the start-up costs. The annual operating costs would be supported by contributions from the core and associate members. The schedule of contributions proposed were $1,000 and $2,000 for core and associate members, respectively. The Meeting agreed to designate a marketing team, led by the Thai Chamber of Commerce, who will approach interested and potential associate members to discuss the benefits and expectations from the Forum in relation to the proposed fees. The specific tasks of the team would include: identification of potential associate members; survey of expected benefits/services from the GMS-BF; survey of acceptable level of contributions; survey of interests and possibilities for participation in work plan activities; promotion of GMS and GMS-BF activities.

Work Plan of the GMS BF

Representatives from ADB and ESCAP presented their respective components of the work plan. There are five components of the work plan, namely: (i) trade facilitation; (ii) investment facilitation and promotion; (iii) assistance in managerial and skills training; (iv) business association development; and (v) the operationalization of a Business Support Center. The first two would be supported by ADB, and the last three would be supported by ESCAP.

In presenting ADB's proposed activities, Mr. Brunner cited two thrusts that the GMS-BF would need to address: (i) strengthening the GMS business sector competitiveness; and (ii) strengthening GMS business export-led growth. The first thrust would involve improvements in the investment policy framework, investment facilitation to fast track investment proposals; investment information dissemination, and capacity building (including skills training and workshops for language skills, negotiations skills, webpage design and maintenance, etc.). With regard to the second thrust, the activities involved would include trade and customs facilitation, assistance to small and medium enterprises, improvements in trade information systems, and capacity building. ADB assistance in these areas will be undertaken through the trade facilitation and investment working groups under the GMS Program.

Mr. Masato Abe explained that ESCAP's thrust in the GMS is focused on the software areas, among others, the legal and regulatory framework, investment promotion, trade facilitation and information technology, strengthening of business associations, work force development/training, and the GMS Business Support Center. The last three areas will be the focus of ESCAP's contribution to the GMS-BF. He informed the Meeting of detailed activities sponsored by ESCAP in these three areas.

The Brooker Group, consultants for ESCAP, presented the elements involved in the GMS Support Center which will be launched in November 2000. Critical partners of Center are the management schools, GMS Chambers of Commerce, private sector companies, and government agencies. The Center will host a website which will feature the GMS story, ESCAP plans and programs (Forum for the Comprehensive Development of Indochina, HI-FI plan, etc.); the GMS Chambers of Commerce (basic information on the Chambers, announcements, membership registration, information services, sales facilitation); the GMS Handbook (doing business in the GMS, facilitate existing businesses, firm profiles, country economic information, GMS firms, foreign firms and institutions); and the GMS inquiry (e-mail inquiry, e-mail search requests, e-mail document request, web search, customized information). The GMS Business Support Center offers fund-raising possibilities for the GMS-BF Secretariat which should be explored in the future.

With regard to the GMS Business Support Center, participants discussed questions on maintenance, ownership, revenue sources, and linkages with websites of individual GMS Chambers. It was explained that although ESCAP is initially supporting the Business Support Center, the maintenance and ownership could eventually reside with the GMS private sector through the GMS BF. Revenue sources of the website would include fees for business matching services, value-added services, and e-commerce. The Business Support Center will be linked with the websites of the GMS Chambers.

Summary

At the request of the Chair, Mr. Brunner summarized the results of the Core Group meeting as having adopted the Terms of Reference and the Work Plan. As regards the schedule of membership fees, the proposed rates are $1,000 for the Core Group members and $2,000 for the associate members. A marketing team, led by the Thai Chamber of Commerce, will approach interested and potential associate members to discuss the benefits and expectations from the Forum in relation to the proposed fees. The first phase of the work plan would incorporate the five components proposed by ADB and ESCAP for implementation possibly within a three-year time frame. It was agreed to present this at the ensuring meeting of the GMS-BF Plus.

Mr. Bhounnaphol expressed his thanks and appreciation to the GMS Chambers and to ADB and ESCAP for their cooperation and support for the Inception Meeting of the GMS BF.

Back Appendix 3	Next Appendix 1