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Date 30/05/2016-10:21:00 AM
FORECASTS ON DEVELOPMENT OF MAJOR SECTORS AND INDUSTRIES OF THE LOCALITIES IN THE DEVELOPMENT TRIANGLE
In order to achieve the above-mentioned overall objectives, in the coming years a number of projects should be jointly implemented by the provinces in the Triangle to create a momentum for them to overcome the present state of underdevelopment, gradually improving the life of their people, and stabilising their social safety. Cooperative projects must be identified and developed based on a consensus by all the three countries and priority will be given to projects on socio-economic infrastructure, agricultural and forestry development, tourism, trade, education and training that are highly feasible.
The Development Triangle enjoys certain advantages for development but most of them are potential ones. The main obstacles to its development include poor infrastructure, shortage of capital and low intellectual level of the people. Given its difficult transport conditions and fairly isolated position, the Triangle’s access to outside markets, scientific and technological progress is clearly limited. The Development Triangle is home to ethnic minority groups whose practice of forest burning-based for cultivation land and inconsiderate forest exploitation has rapidly decreased the forest area, consequently having serious negative impacts on the ecological environment.
The economy of the Development Triangle is strongly characterised by purely agricultural and forestry activities. The level of economic development varies fairly greatly among different provinces in the area but generally remains low. Although the provinces in Vietnam’s Central Highlands have achieved a higher level of development than other provinces in the Triangle, the share of agriculture, forestry and fisheries in their GDP in the year 2002 remained high at approximately 63.5%, and per capita GDP is just above US$ 215. Experience of the past few years shows that the provinces in the Development Triangle can only develop with external assistance. To create a momentum for development, this assistance should be continuous and big enough to enable the provinces in the Triangle to bring their internal strengths into full play and to take their own initiative in cooperating with one another to develop together.
In the future, there would be two possible scenarios for the development of the Triangle that characterise two development trends, i.e. progressive development and development with sudden mutations. The progressive development trend corresponds with the assumption that the provinces in the Development Triangle will depend mainly on their respective national policies and internal strengths. Along this trend, the gross domestic products of the three Central Highlands provinces will continue making up a large share in the total GDP of the Triangle for another long period, determining the average growth rate of the entire Triangle which is preliminarily estimated at over 8% per annum.
Under the assumption that the cooperation policies of the three countries are realised to create factors of sudden mutation, the average growth rate of the entire Development Triangle would be higher, particularly when the starting point is low. However, during the first years of the coming period, this rate will not be likely to exceed too far from the level of 9%.
1. Development Scenarios and Economic Structural Transformation
The future of the Development Triangle depends on many factors of which the efforts of each of the localities in the Triangle and their dynamism in development cooperation should be taken into consideration. In order to come up with quantitative assessments of the economic growth and structural transformation of the Triangle’s localities, the following groups of factors are considered in building development scenarios for the Triangle:
External factors: These include foreign investments and resources (from international donors, foreign investors) and the sources of capital provided to the Development Triangle by the governments of the three countries of Cambodia, Laos and Vietnam; policies and mechanisms of the three countries that aim to enhance and push up the exploitation of resources, such as investment and credit policies, policies regarding the conditions for cross-border movement, etc.
Internal factors: These include development potentials, comparative advantages of the Triangle’s provinces and the status of their natural resources, labour and capital.
The basis for quantifying internal and external factors is drawn from the following documents:
-For North-eastern provinces of Cambodia:
Documents provided by Mondulkiri, Rattanakiri and Stung Treng provinces, and ministries and line agencies of the Kingdom of Cambodia; and data producedby international organisations.
- For the Southern provinces of Laos:
Socio-economic Development Master Plan for Laos PDR for the Period up to 2020; Development Master Plans for Attapeu and Sekong provinces; and the documents provided by the Laotian side.
- For the Central Highlands provinces of Vietnam:
Development directions mentioned in the document of the ninth Congress of the Communist Party of Vietnam (the 2001-1010 Socio-economic Development Strategy); development objectives approved at Party Congress of the Party Committees of the provinces of Dak Lak, Dak Nong, Gia Lai and Kon Tum; Socio-economic Development Project for the Central Highlands for the Period up to 2010; Socio-economic Development Master Plans (having been added and reviewed) for the provinces of Dak Lak, Dak Nong, Gia Lai and Kon Tum; and actual status of socio-economic development of the Central Highlands in recent years.
Scenario I:
- In addition to their own domestic resources, the provinces of the Triangle (mainly Cambodian and Laotian provinces) can attract external funds for their infrastructure development investment during the period up to 2010.
- The provinces in the Triangle implement successfully their development master plans as well as the directions proposed in the documents. The cooperation among the provinces is spontaneous.
Scenario II:
- The assumptions for external factors are similar to those under scenario I.
- The assumptions for internal factors are similar to those under scenario I. However, the level of development cooperation among the provinces is higher in processing industries, establishment of material areas, mining and agricultural production, trade and services.
According to these two scenarios the trends for growth and structural transformation in the localities in the Triangle areas follows:
Growth
Unit: %/year
Scenario I
Scenario II
2003-2005
2006-2010
2003-2010
2003-2005
2006-2010
2003-2010
Cambodian provinces
6.7
8.0
7.4
7.4
8.7
8.1
Laotian provinces
7.0
7.5
7.3
8.0
8.5
8.3
Vietnamese provinces
8.0
8.5
8.3
8.5
9.4
9.0
Development Triangle
7.9
8.3
8.1
8.4
9.4
9.0
Transformation of economic structure
Unit: %
Scenario I
Scenario II
2002
2010
2002
2010
Cambodian provinces
100
100
100
100
- Agriculture, forestry and fisheries
68.6
55.6
68.6
53.6
- Industry, construction
17.3
27.1
17.3
29.0
- Services
14.1
17.3
14.1
17.4
Laotian provinces
100
100
100
100
- Agriculture, forestry and fisheries
67.2
53.9
67.2
50.6
- Industry, construction
19.8
30.0
19.8
31.6
- Services
13.1
16.1
13.1
17.8
Vietnamese provinces
100
100
100
100
- Agriculture, forestry and fisheries
63.5
51.9
63.5
49.5
- Industry, construction
13.4
23.1
13.4
24.2
- Services
23.1
25.0
23.1
26.3
2-Directions for Infrastructure Development
Efforts will be concentrated on developing the network of infrastructure works that connect the localities in the Development Triangle’s border area together and link the Development Triangle to the outside areas.
2.1- Development of transport network
Efforts will be focused on developing the system of major roads that link the Development Triangle to the economic and political centres of each country. These include for example:
- The axis lines connecting the Development Triangle to the economic and political centres of each country and other countries in the region such as National Roads No. 13S and 18B (Laos); National Road No. 7 (Cambodia); and National Roads No. 14 and 1A (Vietnam).
- The axis lines linking the Development Triangle and the Vietnamese seaports like National Road No. 78 that connects to National Road No. 19 to lead to Quy Nhon port, National Road No. 25 that leads to Vung Ro port; National Road No. 18 that connects to National Road No. 40, the Ho Chi Minh route, National Roads No. 14B and 24 to lead to Da Nang and Dung Quat seaports.
- The axis lines linking other localities of the Development Triangle together and connecting the major transport axes to economic and urban population development centres of the region.
- The network of rural roads and people-made roads will be developed.
(a)- For Cambodian provinces:
Road No. 78 starts from O Pong Maon three-way crossroad in Stung Treng province via Ban Ban Lung (in Rattanakiri province) to the Cambodia – Vietnam border area. It is 198 km long. The section from BanBan Lung to the Cambodia – Vietnam border which is 70 km long will be built under the financial support of the Vietnamese government.A request has been made to ADB and World Bank to improve the remaining section of 128 Km long from Ban Lung to O Pong Morn.
Road No. 7 which starts from Kratie via Stung Treng to the Cambodia – Laos border and is 198 km long has been designated as ASEAN highway AH11 and will be upgraded later on by P.R China.This road will go onward to Phnom Penh and connect to the Trans-Asian road that leads to Bangkok (Thailand).
Road No. 78A, which commences from Ban Ban Lung - Voeun Sai – border with Laos and then aligns with the Road No. 1J of Laos, is 93 km long. At present, research is being conducted regarding the upgrading this road in combination with the protection of forests in this area.
Road No. 76 which goes from Ban Ban Lung to the provincial town of Mondulkiri and is195 km long. The request for improvement of this road has been made to the World Bank.
Road No. 76A starts from Ban Lung to Ta Veng, and then Phum Chang to Ocheng to connect to Cambodia- Laos - Vietnam border three-way cross-road, and is 160 km long. At present, there are 40 km of earth roads (Ban Lung - Ta Veng). The remaining section is composed of trails.
A new airport is planned to be built in Rattanakiri, in a location in "KaLay" on the National Road No. 78A which is 14 km from the North of BanBan Lung town or another location in "O Chong" which is 14 km from the South of Ban Ban Lung town.The existing Rattanakiri and Stung Treng Airports are being upgraded under ADB financing. These projects will be completed by 2008.
(b)- For Laotian provinces
Efforts will be focused on completing Roads No. 13 and 18B in accordance with the standards set for Grade III plain roads and Grade IV mountainous roads. The construction work of Road 18B began on November 27th, 2002 and is expected to complete in 2005.
Road 18A goesthrough the two provinces of Attapeu and Champasak. The section from Phia Phay (NR No. 13) in Champasak province via Sanamsai to Attapeu provincial town to connect to the Road No. 18B and the Road No. 1I is 118 km long. The financing for the construction of this road line has been put into the financial assistance plan of the Government of Japan.
Road No. 16 is 179 Km long (section 1: Chongmek-Se Kong) goes through the two provinces of Champask and Se Kong and links the provincial towns of Champasak and Se Kong together.
Road No. 16A goes through Champasak and Se Kong provinces. It starts from Pakxong-Senamnoi, which is 64 Km long.
Road No. 16B (Section 2: Se Kong -Dak Chung-Vietnam border) goes from Se Kong to Vietnam’s border area. The section from Se Kong provincial town via Dac Trung to the Laos - Vietnam border area (the border checkpoint in Quang Nam province) is 119 km long.
The section ofRoad No. 13 in Champaksak province. The section from Pakse to the border between Champasak province (Laos) and Stung Treng province (Cambodia) which is 160 km long will connect to the Road No. 7 in Stung Treng and Kratie provinces (Cambodia).
Road No. 1J from Muong May to the Cambodian border area (Rattanakiri) is 90 km long.
(c)- For Vietnamese provinces
Vietnamis now concentrating its efforts on the development of the axis lines and gradually developing the roads leading to remote, isolated and border areas. The most important project is the North – South Ho Chi Minh route and the secondary roads, the roads leading to the Southern Central coastal provinces, and the secondary roads connecting the major axes to population residence locations and production areas that aim to create favourable conditions for development in disadvantages areas, areas which were used to be war resistance bases and the areas of vital strategic position.
In the coming few years, the Phase I of the Ho Chi Minh route construction (the section going through the West of the Central Highlands) will be conducted. The National Roads No. 20, 24 and 25 will be upgraded. The entire National Road No. 14C and the National Road No. 40 that meets the criteria for Grade III mountainous roads (completed in 2003) will be cleared for transport in both seasons to connect to the National Road No. 18B of Laos, etc. Provincial roads will be upgraded: the target is to ensure that 80% of the surface of provincial roads is paved with asphalt in accordance with the standards of Grade V mountainous roads and 100% of bridges and drains over and on provincial roads will be made permanent. 70% of the inter-district roads will be paved with asphalt in accordance with the standards of Grade IV mountainous roads. Inter-commune roads will be developed in accordance with the standards of Grade A rural roads, of which 30% will be paved with asphalt and 70% will be made of mixed soil and macadam. The target is to ensure that car accessible roads leading to commune cluster centres are found in 100% of communes by the end of 2005. Plei Ku and Ban Me Thuot airports will be upgraded to meet the demand for transport of the Triangle.
2.2- Post and telecommunications development
The development of post and telecommunications of all provinces in the Development Triangle will be accelerated, using modern technologies like digitalisation, automation, computerisation, utilisation of cable and optical digital technique to enable large capacity and high-speed telecommunication. At the same time, new technologies that are being rapidly developed will be introduced.
The post and telecommunication systems from provincial towns to districts will be developed to ensure thorough and smooth communication between provinces, districts and villages. Post network will be established in all districts of each of the Development Triangle provinces and availability of communication channels from districts to communes will be ensured. The telephone subscriber system will be expanded to communes; and the mobile phone network on the entire territory of the three Vietnamese provinces and that of the Cambodian and Laotian provinces’ urban areas will be developed.
·Post
Enhance the development of the network of high quality post departments, agents and post – cultural sites across the provinces in the Development Triangle. Build and expand post departments in the Triangle’s districts, and upgrade commune post sites to be capable of providing more services. Install additional autonomous post equipment and machinery, and conduct automation of the post network to district level with network connection. Acquire supplementary transport equipment so as to professionalise the Grade II and III mailing channel. Expand the issue of newspapers in all manners: coverage, list of newspapers and volume issued, and ensure quickest delivery of newspapers. Introduce new services, such as post finance (post cheque, post insurance, shopping through post offices, etc.), and post-based payment (telecommunication services, cable television, etc.).
·Telecommunication
Develop and modernise the telecommunication network: Continue making investments in expanding and modernising the telecommunication network, raise the quality of transmission and circuit switching, ensure through communication to serve well the socio-economic sectors and to meet the people’s demand for communication. Provide a wide range of high quality services of international standards in all areas/sectors that demand, and universalise Internet connection service. Develop other telecommunication services: Increase the coverage of mobile phone to the surrounding areas of the cities; expand the coverage of the existing network to cover the entire Triangle; receive, manage, exploit the satellite information network (VINASAT) in service of telecommunication, broadcasting, television, and hydro meteorological work in the entire Development Triangle.
2.3- Power Industry and Power Network Development
Conduct a feasibility study on the development of a medium voltage power grid from the Vietnamese border area to Ban Lung in Rattanakiri province and from the Laotian border are to Stung Treng province. Cooperate to develop medium voltage power grid connecting three countries.
Conduct surveys, studies and construction of small- and medium-sized hydroelectric power plants in the Development Triangle provinces (2006-2010). Conduct a feasibility study on an energy, power and hydropower cooperation programme in the Se San River basin, encourage the Se San River Management Committee to continue studying the length and width of the river and guide the study on environmental impact assessment (EIA) for the lower basin of the river in Cambodia (2004-2005). Conduct basic geological and mineral investigations with a view to make geological and mineral maps for border areas in the Development Triangle (2004-2005).Reform the reservoir of the O Chum hydropower plant in Rattanakiri province (2004-2005).
Build the Nam Kong hydropower dam No. 1 with a capacity of 240 MW to meet the internal demand of the province where it is located and to export power to Vietnam and Cambodia.Build the Sekhaman 3 hydropower plant with the capacity of 240 MW; the Sekong 5 hydropower plant with the capacity of 253 MW; and the Sekong 4 hydropower plant with the capacity of 440 MW.
Construct the following hydropower plants: 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 and the system of small- and medium-sized hydropower plants, such as Sa Thay, Dak Akoi, Mang But, Dak Ne... (in Kon Tum province);Ry Ninh II8,100 KW hydropower plant; Se San 3 273 MW hydropower plant; Se San 3A 100 MW hydropower plant; Se San 4 hydropower plant with an installation capacity of 330 MW; Iadrang I with a capacity of 600 KW; H'chan with a capacity of 10 MW; middle Ayunpa with a capacity of 3.600 KW (in Gia Lai province) that unfold the prospect for connecting the power network with those of Laos, Cambodia and Thailand through their cooperation in developing a master plan for the Me Kong River Hydropower Plant.
2.4-Directions for Irrigation Development
The South-eastern Cambodian provinces: Compared to other provinces in the Triangle, the irrigation status in the two South-eastern Cambodian provinces is very poor at present. A majority of cultivated area depends completely on natural rain and therefore crop productivity (especially wet rice) is very low and instable. In view of this, developing irrigation and ensuring stable watering should be an issue of first priority so as to push up agricultural development and meet the demand for water, flood control, etc. of various socio-economic sectors. The directions for irrigation development from now to 2010 include: concentrate efforts on restoring the existing irrigation works in order to put into efficient use (most of the existing works are no longer waterable); implement the work of basic research and investigation on water resources and preparation of irrigation development master plan for the two provinces to serve as the inputs for the development of investment plans for subsequent years; support and encourage households and villages to make their own investment in developing the system of small irrigation works (especially in mountainous, remote and isolated areas); concentrate investments in a number of key irrigation works (following the preparation and approval of irrigation master plans) to expand the area under watering in order to apply intensive farming and increase the number of crops that result in higher market-oriented food output to supply to areas under food shortage; and increase and provide guidance on measures to exploit underground water with an aim to supplying additional water for watering cash crops, especially in Rattanakiri plateau.
TheSouthern Laotian provinces: Investment in irrigation development is of decisive significance to the expansion of cultivated area, application of intensive farming and increase of the number of crops so as to ensure food security and to create production locations in service of permanent cultivation and settlement that stabilise the lives of the upland people. However, proper investment in irrigation has not been made. Consequently, the area under watering remains limited and the capacity utilisation of irrigation works is low. Particularly, no basic investigation on water resources and irrigation development potential has been conducted for Sekong province to provide input to investment plans.
As for Attapeu province alone, according to the 1998 Irrigation Master Plan(prepared by Vietnam Irrigation Planning Institute), the total irrigation works as planned are 38 works, including 28 pumping machines, 6 spill-over dams and 4 reservoirs. In addition, it is planned that 3,218 drilled wells will be made to meet the demand for living water and partial watering for dry plants.
The Central Highlands provinces: In the coming years, priority should be shifted to develop irrigation works in service of cash crops, particularly coffee and pepper. The existing irrigation works will be improved so as to raise their utilisation capacity from 50% at present to 70 - 80% of the design capacity, save water and expand the coverage of irrigation. Good technical preparations will be made for a number of irrigation works in the disadvantaged areas to serve the activities of both the local people and those moving to these three provinces from other provinces under the programme on stabilisation of the people developing new economic areas. Studies will be conducted to exploit underground water resources to serve the people’s living and the crop and animal transformation programme. In parallel with the development of direct watering irrigation works, water saving modes and solutions like humid or spray watering should be applied to mitigate the impacts of natural calamities like drought. The degraded irrigation works, especially the systems of Grade I and II canals and ditches, will be upgraded and improved. The consolidation of canals and ditches will be enhanced so as to reduce water losses; this should be regarded as an important measure since canal water losses are quite considerable during the dry seasons in the basaltic land areas. The master plan for irrigation development in the three Central Highlands provinces cover 478 projects, including 327 reservoirs, 120 spill-over dams and 31 pumping stations. The total design watering capacity is 400 thousand hectares.
3. Directions for Education and Training Sector Development
Each country’s resources for education and training development for the purpose of raising the intellectual level of the people living in the Development Triangle will be increased. Since the provinces in the Development Triangle have been defined as the poor and underdeveloped ones of each country, priority in State budget expenditure should be given to them.
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.
Socialisation of education will be conducted in a selective manner. The directions in this regards include: to bring into play the education tradition, efficiently use the available physical foundations and contingent of teachers and 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 village and hamlet levels will be expanded and their quality will 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.
The building of schools/classes will be combined with the implementation of infrastructure development projects at the commune level (for Vietnamese provinces) and at village and hamlet levels (or at the village/hamlet cluster level) (for Cambodian and Laotian provinces).
In the coming years, the general direction for all provinces in the Development Triangle is to focus efforts on training of technical workers to serve agro-forestry development and agro-forestry processing industry development. Given fairly similar crop and animal composition of the provinces in the Triangle, in addition to the kind of training that uses traditional types and methods of each locality, there are great opportunities for cooperation among the provinces based on their own available potentialities. The objective of the training is to equip 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 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.
4. Directions for Agricultural and Fishery Development
4.1 Development directions
(1). Agriculture will be developed along the line of ensuring its stability and firmness based on efficient exploitation of natural conditions, natural resources and socio-economic conditions in close link with ecological environment protection. First of all, food security will be ensured so as to encourage permanent cultivation and fixed settlement and to improve the people’s living standard.
(2). Agricultural development will be seen in an inter-regional relationship in which different countries assist one another, and both common interests of the territories of the three countries and their individual interests are ensured. Efforts will be focused on exploiting the potentials of the most advantageous sub-regions (driving force areas) and the products that can have a fairly firm stand in the market so as to assist other areas and other products to develop and expand.
(3). Agricultural development will move towards market-oriented commodity production with a view to bringing into full play the comparative advantages of each area and towards combining agricultural production with processing industry with an aim to creating efficient, quality and high value-added marketable products.
(a)-The North-eastern Cambodian provinces:The focus of agricultural development will be improving and ensuring food security. Agricultural production will be developed along the line of intensive farming, especially for food production. Specialised cash crop cultivated areas in combination with processing industry will be established and developed in order to sufficiently meet local consumption and export demands. Proper exploitation of natural resources (natural fishery resources, forest resources…) will be combined with forest preservation and development, and natural resources and ecological environment protection.
The task of theanimal husbandryin the coming time is to unceasingly improve both its quantity and quality (especially for cow raising) with a view to meeting local consumption and export demands, expand semi-intensive farming, efficiently exploit and expand cow raising, and push up pig and poultry raising, thereby step by step making animal husbandry become a key production sub-sector in agriculture..
(b)- The Southern Laotian provinces:Agriculture will be developed with a focus on implementing six priority programmes developed by the State of Laos regarding agricultural and rural sectors, i.e. sufficient food production, production of market-oriented products, practice of permanent cultivation and fixed settlement to prevent burning of forest to get land for cultivation, irrigation development, conduct of agricultural research, and human resource development. In the immediate future, priority will be attached to addressing basically the issue of food security, particularly in mountainous districts, in order to prevent the burning of forest to get land for cultivation. Proper exploitation of forest products will be combined with the work of forest protection and reforestation, particularly watershed forests, to protect the ecological environment. Market-oriented commodity production, especially cash crops, will be strongly developed; commodity production will be combined with development of agro-forestry farms, and agro-forestry production and processing industry will be linked together with an aim to producing import-substitution commodities to meet the demands for local consumption and export.
(c)- The Vietnamese Central Highlands Provinces:Agriculture will be developed mainly along the line of practising intensive farming, especially for export cash crops (coffee, rubber, cashew, pepper…); expanding cattle raising; and growing and protecting forests, pharmaceutical plants and specialty plants. A fast growing and sustainable marker-oriented commodity producing agriculture in which agriculture is combined with processing industry will be developed. Agriculture will be step by step industrialized and modernised to meet the demand of local consumption and export with high efficiency, thereby contributing to improving and raising the living standards of the ethnic minority communities.
(1)-Food crops
The North-eastern provinces of Cambodia: Efforts will be concentrated on practicing intensive farming on available areas. Cultivation activities on milpa will be limited and shifted to cultivating cash crops with high coverage rate, and combined agro-forestry production mode will be introduced to protect the ecological environment (the mountainous areas in Rattanakiri province in particular).
The cultivated area of hybrid corn will be expanded to partially meet the demand for food and to push up animal husbandry.
Per capita paddy is expected to reach 300 kg 2005 and increase to 377 kg in 2010.
The Southern provinces of Laos: Efforts will be focused on expanding rice cultivated area, practising intensive farming of rice and corn to raise their yields, and shifting cropping timing to avoid the situation of flooded and waterlogged crops in the Attapeu Delta with an aim to sufficiently meeting food demand within the province and taking part in the coordination of market-oriented food for the national food security programme. In mountainous districts, development of wet rice in irrigable areas will be given priority in order to partially meet local food demand.
Per capita food production (paddy alone) is expected to reach 380 kg in 2005 and 587 kg in 2010 (780 kg in Attapeu, and 334 kg in Sekong).
The Central Highlands provinces: Food production will be kept at a level that ensures food security with the two major food crops being rice and corn. The area of wet rice will be expanded only in locations where irrigation capacity is sufficient; a portion of rice land without irrigation will be shifted to cultivate other crops and the area of milpa will be reduced; and intensive rice farming will be practiced on irrigated areas and on those where other crops are uncultivable.
The area of sloppy land used for auxiliary food crops cultivation will be limited and shifted to be used for planting cash crops with high coverage rate. New crop varieties (rice, hybrid corn, cash crops...) will be quickly introduced, plant protection and proper use of fertiliser will be practiced to improve crop yield and protect the ecological environment.
Grain food production will be kept at the level that ensures food security (per capita food production of 307 kg, 168 kg for paddy alone).
(2)-Short-term cash crops
The North-eastern provinces of Cambodia: Alluvial plains along rivers and the Rattanakiri plateau will be exploited for cultivating short-term cash crops with a focus on soybean, sugar cane, and groundnut. In the immediate future, production of these crops should sufficiently meet the demand for local consumption and for inputs to small-scale processing units within the area and partially meet the demand for inputs of other areas (areas having border with the Central Highlands in particular). Specialised short-term cash crop cultivated areas are expected to be widely established after 2010.
The Southern provinces of Laos: Short-term cash crops that are required for local consumption and by small-scale processing units like sugar cane, soybean and groundnut will be developed and expanded. At the same time, importance will be attached to developing cotton to supply inputs to the traditional weaving industry of the ethnic minority people. Specialised short-term cash crop cultivated areas in service of supplying inputs to the processing industry are expected to be established after 2010.
The Central Highlands provinces: Importance will be attached to developing cotton, sugar cane, groundnut and soybean to supply sufficient inputs to the processing industry. A portion of area where low and instable yield rice and auxiliary food crops are currently cultivated will be shifted to cultivating short-term cash crops like groundnut and soybean.
(3)- Perennial crops
The North-eastern provinces of Cambodia: Projected key perennial cash crops are rubber and cashew. The area of some other perennial cash crops that have potential for development such as pepper and cocoa, etc. will be expanded step by step in appropriate locations (in Rattanakiri plateau in particular).
The Southern provinces of Laos: Given the absence of the people’s market-oriented production practice, and low level of cultivation techniques, in the immediate future importance should be attached to a number of crops for which favourable conditions for development are available and a market share has been obtained (coffee, bastard cardamom). Projected key perennial cash crops and key market-oriented medical plants of these provinces include coffee, bastard cardamom, cashew and pepper.
The Central Highlands provinces: The total area of perennial cash crops is planned to reach some 488 thousand hectares in 2010, key crops include rubber - 157 thousand hectares, coffee – the area of coffee is kept stable at 260 thousand hectares, cashew - 47 thousand hectares, pepper – 12.8 thousand hectares...
The North-eastern provinces of Cambodia: Efforts will be made to ensure sufficient supply of vegetables and legumes for local consumption and for consumption by tourists. The cultivated area of fruit trees will be gradually expanded to serve local consumption and consumption by tourists, and to supply inputs to the vegetable and fruit processing industry. Importance will be attached to developing some promising fruit trees like durian, longan, pineapple, banana, and mango, etc.
The Southern provinces of Laos: Vegetables and legumes will be developed to mainly meet the demand for local consumption and partially meet the demand of urban areas in the Southern region of Laos (vegetable area in the Boloven plateau). Fruit trees will be developed first of all to meet the demand for local consumption.
The Central Highlands provinces: In this area vegetables production will be conducted to mainly meet the demand for local consumption. Fruit trees for which a market is available, and sub-regional land and climatic conditions are appropriate will be developed. Fruit gardens, such as avocado, banana and durian gardens, will be established along the line of reforming mixed and low-value gardens located in areas surrounding cities and provincial towns, along national roads into high-value fruit trees combined with populated areas in the coming period.
(1)-Livestock
The Cambodian North-eastern Provinces: The potentials and strengths of the mountainous, hilly and highland areas will be brought into full play in order to push up cow and buffalo raising, especially meat cow raising to supply big cities, notably Phnom Penh. Pig and poultry raising will be developed step by step in an appropriate manner, particularly in areas with favourable conditions for food production. With regard to animal husbandry, the issue of primary importance is to improve the breeds of cattle and poultry and upgrade the raising technique of the people. The work of selecting and improving local breeds will be enhanced, and new cattle and poultry breeds that are able to gain weight quickly and are suitable to the local conditions will be introduced into the area.
The Southern Laotian Provinces: Develop and expand cattle (cow and buffalo) raising which is an advantage and a long tradition of the people in this areas. For mountainous areas which meet difficulties in food production, cow and buffalo raising is the most efficient measure at present to raise household income and improve their food security. Meat buffalo raising will be developed and expanded to sufficiently meet local consumption (as a customs, the people in this area prefers buffalo meat to beef) and to partly supply draught buffaloes in service of production (in food production areas). Market-oriented meat cow raising will be pushed up to supply urban areas in the South of Laos and serve export. On the other hand, importance should be attached to pig and poultry raising in focal areas for food production to make good use of by-products and to supply dung for production. A majority of the existing cattle and poultry breeds are local; although they are adaptable to local ecological conditions and suitable for local people’s animal husbandry practices, their ability to gain weight is low and so is their farm gate weight. As a result, in the coming time, selection of promising local breeds should be made in combination with import of new cattle and poultry breeds, particularly cow breeds that are suitable to local conditions for breeding and development, Agricultural extension and disease control and protection will be pushed up. Particularly, village veterinary cabinets should be established, shed animal raising should be encouraged, and animal husbandry models that are suitable to the particular conditions and customs of each area should be established for the local people to learn and follow.
The Vietnamese Central Highlands Provinces: The Central Highlands area enjoys favourable conditions for cattle development, especially meat and dairy cow raising. The directions for animal husbandry include: Implement high quality meat cow raising projects in Dak Lak to supply beef to urban areas and industrial zones; raise the capacity to supply hybrid male cows and establish a breeding network; introduce by-product preservation technique to supply animal feed during the dry season; allocate land to establish raising fields; develop two to three areas capable of producing breeds and having sufficient physical and technical foundations for fattening raising and processing. As regards pig farming, each province needs set up its own breed production and supply network, and a supply system of protein rich animal feed to supplement to pig feed. Raising pigs with high ratio of lean meat will be developed in peripheral urban areas. In remote and isolated areas, shed pig farming and disease control and prevention should be encouraged.
(2)- Fish farming
As regards fishery farming,the general direction for fishery development in the coming time is to appropriately utilise water surfaces for semi-intensive fishery farming for high yield fishery breeds, and exploit natural fish resources to sufficiently meet the local consumption.
The North-eastern Cambodian Provinces: Located in the lower stream of major rivers where many natural lakes are found and fairly abundant water resources are available, fishery development is one of the strengths of the area at present as well as in the future, contributing an important part to improving the life of local people. In the coming time, efficient, reasonable and sustainable use of natural fish resources should be combined with fishery development under various forms, such as fishery farming in ponds and natural lakes, cage fish farming, etc. with a view to taking full advantage of the area along the line of sustainable development as well as preservation of valuable and rare fish species.
The Southern Laotian Provinces: Fish is a favourite food item that makes up an important part in food ration of most people in the area. The main development direction is to give priority to producing and farming fish in small natural lakes; to expand fish farming in areas where water resources are available in combination with reasonable use of natural fish resources, and to practice cage fish farming in Se Kong, Sekaman, Se Xu rivers.
The Central Highlands Provinces: Although the potential for fishery development is yet to be regarded as great, fishery expansion is of great significance to the area’s socio-economic development. Therefore, the fishery development master plan should be completed and in conformity with socio-economic programmes; at the same time, priority policies should be adopted by the State to highly feasible fishery projects with large number of beneficiaries.
5. Direction of Forestry Development
For the border areas of the three countries, forestry development serves as an important direction to create an impulse for their socio-economic development, focussing on forest sustainable exploitation, especially in ethnic minority areas. The general direction for forestry development is to shift from mere forest exploitation to sustainable afforestation. Importance will be attached to protecting and developing forest funds in combination with reasonable and efficient forestry resources exploitation.
The existing area of forest will be protected in combination with zone-based reforestation and forest restoration and forestation, particularly in watershed forest protection areas, protection areas for hydropower projects, irrigation works. The policy to close forest gates will be well followed; exploitation of material forests will be reduced while their growing is increased; and the technology for processing wood and forestry products in service of export and the people’s consumption will be renovated.
The North-eastern Provinces of Cambodia: The rapidly decreasing area of forest in recent years has created many reverse impacts on the ecological environment as well as the lives of the people in the area. Therefore, the direction for forestry development in the coming years is to primarily take measures to prevent deforestation and careless forest exploitation strictly protect the existing area of forests in combination with enhanced protection of natural forest regeneration, especially protected watershed forest areas, and grow additional forests. Efforts will be made to increase the area of forests to approximately 2.63 million ha in 2010 (forest coverage is to reach 70%).
The Southern Laotian Provinces: Forestry resource protection and development is of special significance to the area’s socio-economic development. The direction for forestry development in the coming time is to concentrate efforts on protecting the existing area of forest in combination with naturally regenerated forest protection and forestation enhancement, particularly for watershed forest protection areas with an aim to increasing the area of forest to about 2.15 million ha in 2010, and the forest coverage to some 75%. The existing national protected areas should be strictly managed and respected. The new areas that need to be strictly protected should be shifted to natural preserved areas for easy management.
The Vietnamese Central Highlands Provinces: The existing area of forest will be protected, using forest generation, forestation and agriculture and forestry combination measures with an aim to ensure that the combined forest area of the three Central Highlands provinces will be approximately 2.9 million ha in 2010, thereby increasing their average forest coverage to about 65%.
6. Directions for Industrial Development
The general direction for industrial development in the Development Triangle is to give priority to developing agro-forestry processing industry which occupies an important position in pushing up market-oriented commodity production and improving production efficiency. The development of agro-forestry processing industry should be based on agro-forestry production potentials and closely combined with enhanced transformation of crops and animals in agriculture, thus creating a close relationship between industry and agro-forestry.
Develop industry on small and medium scales; invest in renovation of equipment and technologies so as to create high value-added products that are competitive in both domestic and foreign markets. Develop processing industry in a way that it can be either located in a scattered manner or in concentrated industrial areas, and also in different localities with appropriate sizes.
(a)- The Cambodian Provinces:Small industries and handicrafts that produce simple mechanical tools in service of agricultural and forestry production will be developed. Agro- and forestry processing industry will be developed step by step in close combination with programmes to invest in agricultural and forestry development along the line of establishing concentrated material areas in service of the processing plants with an aim to supplying processed products to markets within and outside the Triangle, especially wood and paper industries. The energy (hydropower) sector will be developed on the basis of strengthening cooperation and seeking and expanding outlets (external outlets) for energy to ensure stable markets for energy with an aim to attracting investment in medium- and large-sized hydropower projects to meet the energy demand for economic development in the Triangle and to supply energy to outside markets.A number of building materials industries will be developed to meet the demand for economic and social infrastructure development in the Triangle.
Conditions for the development of the mining industry and capital goods manufacturing industries in service of the development of other economic sectors in the Triangle will be prepared.
The direction for developing agro-forestry processing industry is to concentrate efforts on developing processing establishments for key traditional market-oriented commodities of the area, such as rubber, cashew nut, fish, forestry products.... along the lines of diversifying the types of products and step by step improving the quality while reducing the final costs of the products so as to make them competitive enough in the market. For areas where conditions for the development of concentrated specialised material plants cultivated area (like the Rattanakiri plateau),synchronous investment should be made in which the management board is responsible for both the processing plant and the material production to supply inputs to the plant (as the model of the Sai Sinh rubber company) to ensure stable supply of materials to the processing plant and purchase of materials produced by individual households in a scattered manner.
First of all, investment should be made to upgrade and renovate technological lines so as to expand the production scale of the existing processing establishments and plants, such as the Sai Sinh rubber company (in Lung village, Rattanakiri), fish, wood and forestry processing establishments... As for a number of products like cashew nut, peanut, soybean, forestry products, etc. while processing establishments are not yet available for them, purchase of these products and trade promotion with an aim to supplying them to outside processing establishments, especially to those in the Central Highlands, is needed. The processing establishments to be developed include: A cassava and corn starch processing establishment with an annual capacity of 5-10 thousand tons in Stung Treng (Phiepimex company); two cashew nut processing plants with a combined annual capacity of 4-6 thousand tons in Rattanakiri; a micro-organic fertilizer with an annual capacity of 50 thousand tons in Stung Treng; animal feed processing plants with a combined annual capacity of 4-5 thousand tons in both provinces; export forestry products (rattan, bamboo...) processing plants in both provinces; vegetable and fruit (fruit juice, canned corn, baby cucumber…) processing plants in both provinces; vegetable oil pressing plantswith an annual capacity of 1,500-2,000 tons in both provinces; a sugar (sugar cane) mill in Stung Treng and the capacity of this plant will increase to 1,000-2,000 tons of sugar cane per day when the material area is expanded after the year 2010.
The development of household scale processing, especially fish (dry fish, salted fish, fish sauce,…), dry meat, sugar (from sugar cane), rice cakes, rice noodle… processing, should be enhanced. In addition, assistance and technical guidance regarding product semi-processing and preserving measures should be provided to producers to ensure good quality of products to supply to processing establishments.
The development of the agro-industry should be aimed at achieving food security and export, but not detrimental to diversified natural resources.
(b)- The Laotian Provinces
The processing industry in the two provinces of Laos is almost undeveloped. In the immediate future, efforts should be focused on developing, upgrading and completing the existing agro-forestry processing establishments so as to improve the quality and increase the quantity of processed products for local consumption and export. The supply of raw materials to processing establishment inside and outside areas should be organized.
It is planned that a number of processing establishments and plants will be developed as follows: Exploitation of the coal mine in Ka Leum district; completion of the micro-organic fertilizer in Attapeu (with an annual capacity of 50 thousand tons); an animal feed processing mill in the two provinces with a combined capacity of 4,000 tons per annum; a coffee processing plant with an annual capacity of 5,000 tons in Se Kong province; a plant producingwooden furniture, crafts and forestry products (rattan, bamboo...etc.) for export ain the two provinces; a cashew nut processing plant in both provinces with a combined annual capacity of 2,000-3,000 tons; a vegetable (peanut, soybean, sesame,... ) oil pressing establishment in both provinces with a combined capacity of 1,500-2,000 tons per annum; a cassava and corn starch processing plant in both provinces with a combined capacity of 5-10 thousand tons per annum; construct a paper pulp mill in both provinces with a combined annual capacity of 20-30 thousand tons; and vegetable and fruit processing plant (fruit juice, canned corn, baby cucumber, etc.
In addition, household scale semi-processing and preservation of products should be encouraged and guided to ensure good quality of products (e.g. coffee, pepper, cashew nut,...) to supply to processing establishments and for export. At the same time, small-scale and household scale processing units will be developed to meet the area’s demand for products like sugar (made of sugar cane), dry rice noodle, dry fish and meat, salted fish.
Clay processing in Tha Hinh village of Samakhisay district will be encouraged; the handicraft fabric weaving association in Samakhisay and Sanamsay districts and the handicraft rattan and bamboo weaved products association in Saysetha and Sanamsay districts will be established; the handicraft and weaving trades in three districts of La Man, Ca Lum and Dak Trung will be expanded; fabric weaving and natural dying (using natural ingredients) will be developed in these three districts; production of households utensils and bamboo and thornless long-sectioned bamboo utensils will be developed; and a wood processing enterprise will be established.
(c)- The Vietnamese Provinces:
The general direction for the development of the processing industry is to push up the processing of coffee, rubber, cashew nut, cotton, wood and forestry products, etc. using modern equipment, with appropriate capacity in combination with material areas to improve their quality and reduce their final costs so as to meet both domestic and foreign demands. In parallel with the development of hydropower industry, mineral resources exploitation and processing, agro-forestry processing (paper pulp, ply board, cotton processing, yarn weaving, and rubber and coffee processing, etc.), importance should also be attached to the development of small industries and handicrafts, and traditional trades and professions (producing household utensils, production tools, brocade products, etc.) with an aim to meeting the local demand for consumption and raising the income of the ethnic minority people.
State investments will be concentrated on important industrial projects and key infrastructure projects in order to create a position and power to attract the overall development and enable the economy to rapidly develop.
Mining industry:During the 2005 – 2006 period, bauxite exploitation and processing and aluminium processing industries will be established in Dak Nong.
The localities in the Development Triangle should plan for the development of infrastructure in preparation for the establishment of a number of industrial zones like the Tam Thang Industrial Zone (in Dak Lak), Tra Da Industrial Zone (in Gia Lai) and Hoa Binh Industrial Zone (in Kon Tum). However, in the immediate future, industrial clusters should be established first, and industrial zones should be developed only when conditions permit and the demand for them is available.
Export coffee processing plants with a capacity of 40-50 thousand tons per year, coffee milling plants (with an annual capacity of 2.000 tons) and packaged coffee plants with a capacity of 500 tons per year will be established. Fine coffee products such as instant coffee and canned liquid coffee, etc. will be step by step diversified.
Investment will be made to upgrade the existing 11 rubber processing plants (with a combined capacity of 71.5 thousand tons per annum). Three rubber processing plants (annual capacity of 100-150 thousand tons of latex) will be built. During the period from now to the year 2020, four export cashew nut processing plants (with a combined capacity of 20 thousand tons per annum) will be developed once material supply is sufficient. When material supply is sufficient, a cocoa processing plant (annual capacity of 3.000 ton) will be built in Dak Lak. Three tapioca and maize starch processing plant with a capacity of 25 thousand tons per year will be developed in Dak Lak. The capacity of the animal feed processing mill in Dak Lak will be expanded to reach 20 thousand tons per annum.
At present the total capacity of all cotton ginning plants in Vietnam is merely 32 thousand tons per annum which is only equal to 22% and 10% of the required capacity in 5 and 10 years from now respectively. To meet the demand for cotton ginning, investment should be made in establishing additional cotton ginning plants in accordance with the criteria that one 20 thousand ton annual capacity plant is required for 10 thousand hectares of cotton. It is planned that two cotton ginning plants will be built, namely the Tam Thang (Dak Lak II) plant with an annual capacity of 15 thousand tons which will be located in Cu Jut district, and the Dak Lak III plant with an annual capacity of 15 thousand tons which will be built in Buon Ma Thuot (after 2005).In Gia Lai, two coarse cotton processing clusters will be developed in Chu Se and An Khe with respective annual capacity of 12 thousand and 6 thousand tons. In addition, complete investment will be made in developing the Dak Lak cotton oil extract plant with an annual capacity of 40 thousand tons in Buon Ma Thuot.
Vegetables and fruits processing: A vegetable and fruit processing plant (mainly pineapple juice processing) will be developed in Plei Ku (Gia Lai province) based on a material area of 5.000 hectares. A fruit processing plant with an annual capacity of 1.500 tons will be developed in Dak Ha district town (in Kon Tum provincial town) and its capacity will be doubled in 2010.
Wood and forestry product processing industry: The construction of an MDF plywood plant with a capacity of 54 thousand m3per annum in Gia Lai was completed in June 2002. Three wood processing mills with a combined annual capacity of 30-120 thousand m3will be developed in three Vietnamese Central Highlands provinces. Two sugar-cane bagasse processing plants with an annual capacity 2,000 m3per plant will be built in Kon Tum and Dak Lak. Two shaving plywood processing plants with an annual capacity 30,000 m3per plant and two artificial wood processing workshops with an annual capacity 10,000 m3per plant will be developed in Dak Lak and Kon Tum.
Textile and garment industry: During the 2006 – 2010 period, investment will be made to expand five sewing lines in the Kon Tum Garment Enterprise to increase its capacity to 1 million pieces per annum.
Leather ware and shoe making industry: During the 2006 – 2010 period, investment will be made to develop a canvas shoe enterprise with an annual capacity of 1 million pairs of shoes for local consumption and export.
Alcohol, beer and beverages industry: A mineral water processing plant with a capacity of 1.5 million litre per year will be developed in Dak To.
Fertilizer industry: During the 2001-2005 period, the first phase construction of a high grade NPK fertilizer processing mill with an annual capacity of 30 thousand tons in Kon Tum will be conducted, and a micro-organic fertilizer production line with an annual capacity of 5,000 tons will be developed. During the next five-year period from 2006 to 2010, the second phase construction of the Kon Tum NPK fertilizer mill will be conducted and its capacity will be expanded to 50 thousand tons per year; the capacity of the micro-organic fertilizer production line will be upgraded to 10,000 tons per year. It is planned that when the Bo Y – Giang Gion border checkpoint is put into operation, the capacity of the Kon Tum fertilizer can be upgraded further to 100 thousand tons per annum to meet the demand for fertilizer of the two Southern provinces of Laos.
Directions for development of concentrated industrial zones: The Hoa Binh (in Kon Tum province) and the Tra Da (in Gia Lai province) industrial zones will be developed.
Traditional trades and professions like brocade, rattan and bamboo weaving will be encouraged with an aim to restore the culture and national identity of the ethnic minority people, first of all in the villages adjacent to urban areas, commune centres and district towns.
7. Rural Development
The border areas of the three countries are home to many ethnic minority people. Their life is in general difficult, their production customs and practices remain backward, and shifting cultivation occurs in many areas. Therefore, rural development should focus on economic development, improvement of essential infrastructure, and stabilisation of inhabitants, thereby contributing to protecting ecological environment.
-Transformation of rural economic structure: The rural economy is composed of agro-forestry economy, processing industry, small and handicraft industries, and production and livelihood services. At present, the rural economy is mainly contributed by agro-forestry sector which makes up as much as 70 - 90% of the total rural gross products. Although large market-oriented production areas have been established in a number of provinces in the Triangle (especially the Central Highlands, the Rattanakiri plateau, and the Boloven plateau), the products are mainly raw and of low export value. The slow growth of the agro-forestry processing industry has restrained the development of services and other trades and professions in rural areas. The objective of rural economic structural transformation to the year 2010 is to see respective shares of agriculture, rural processing industry and services of 50-60%, 20-30% and 20-30%. Processing industry and services will be rapidly developed, first of all in combination with concentrated production areas, such as coffee, rubber, cashew, pepper, wood processing, forestry products... These are the driving force industries for economic structural transformation. At the same time, as experienced by Japan and Thailand, the community development concept or model on “One Village One Product” should be introduced where appropriate. The development and expansion of traditional trades and professions in rural areas like brocade weaving, rattan and bamboo weaving, handicrafts and fine arts... should be encouraged and assistance should be provided.
-Economic development in combination with rural development: Focal economic programmes of the provinces in the Triangle include food production and market-oriented commodity production. Increased investment in agro-forestry production will create favourable conditions for raising income of farm households who can make financial contributions to improving and expanding rural infrastructure, such as transport, electricity, and welfare projects like schools, health stations... with an aim to building developed rural areas and driving force areas. Since the remote and isolated areas are sparsely populated areas, economic programme should be combined with agro-forestry development and hunger eradication and poverty reduction, such as development programmes for hilly and forest garden economy, cattle raising, material forest growing... with a view to providing poor areas and poor households with opportunities to take part in economic development and building of new rural areas.
-Permanent cultivation and fixed settlement:Production areas should be rapidly zoned and locations for permanent cultivation and fixed settlement should be identified to complete this task with a view to stabilising the life of the ethnic minority people. Essential infrastructure will be completely developed, land and forest will be assigned to farm households and technical guidance will be provided to them to make them feel assured of their production.
-Development of human resources and traditional culture, provision of training in rural trades and professions: Importance should be attached to training local technicians. Rural training and vocational training should be in the fields of agro-forestry processing and rural industry; training of excellent farmers should be conducted; market-oriented agricultural production will be encouraged and the level of organisation and production technique of farmers will be raised. As regards the building of rural social organisations, importance should be attached to preserving and bringing into full play the cultural identities of ethnic groups.
8. Directions for Tourism, Trade and Services Development
8.1- Tourism
The Cambodia - Laos - Vietnam Development Triangle possesses a potential for an ecologically diverse tourism development and attractive natural landscapes on a wide area with more than 20 national parks and natural preserved areas characterised by an animal and plant system that is among the most abundant ones in the Indochina and over 40 nationalities and ethnic minority groups living in remote and isolated villages. These are favourable factors for tourism development of the Triangle, thereby contributing to the increase in revenue of the local budget and to hunger eradication and poverty alleviation and so on.
TheCambodian provincespossess great potential for tourism development given the ability of many cultural heritages, abundant forests, beautiful rivers, and many nice landscapes that are attractive to tourists and researchers. Their cultural, historical and natural (ecological) tourist destinations include: Preah Kor Temple and Pramboun Lveng Temple in Thalabariwat district; Preah Theat Temple in Stung Treng; the historical well in Se San district; Preah Ang Thom Pagoda in Stung Streng; Sras Keo Monivann Pagoda in Thalabariwat district; Mekong River basin with dolphins in Stung Treng district; Orpongman in Stung Treng; Veal Rumpe lake in Se San district; waterlogged forest of the Mekong River in Ramsar area; Phamith or “Khorn” waterfall in Thalabariwat district; Bat valley in Thalabariwat district; and Virakchey national park in Siem pang district.
TheLaotian provincesare those having long historical tradition and good customs and practices of the ethnic minority people, forest resources, rivers, waterfalls and many famous tourism destinations, such as Nong Fa, Nong Kai Ok, Se Pong Lay, Nam Pa, Pha Phong, Phec, Hua Khon, May Hia,Luong, Tat Lo, Keng Kou waterfalls; the Xepien, Xesap, DongAmphan national biodiversity conservation areas,Xa Khe village, Say Set Tha and Phu Pha Nom pagodas; Nang Lao Cave, Ong Keo cave (which was the base of Eastern provincial party committee during the war time); unique lifestyleand architecture, traditional handicraft, cultural festivals of the ethnic minoritypeople; coffee plantation and wild cardamom(in Tha Teng and Lao Ngam district).
TheCentral Highlands provinces of Vietnamare pursuing a policy to strongly develop tourism business. Efforts will be concentrated on the establishment of new tourism centres in Buon Ho. Yok Don National Parks related tourism activities will be continued to be expanded. Investment will be made in tourism focal points in Lak, Buon Don, Draysap - Gia Long – Trinh Nu tourism cluster (in Dak Lak). Eco-tourism in 11 natural preserved areas, such as Chu Mom Ray and Ngoc Linh, and travel tours across the Duc Co and Bo Y border checkpoints will be developed. Tourism line over Yaly riverbed, Dakbla tourism destination, the Duc To – Tan Canh evidence observation tourism destination and the Ho Chi Minh trail tourism line (in Kon Tum) will be established. Eco-tourism in Kon Ka King and Kon Cha Rang, and the Bien Ho tourism location will be developed in combination with the development of tourism in Yaly (Gia Lai).
In addition to the above-mentioned directions, efforts should also be concentrated on exploiting tourism potentials in valuable historical and cultural heritage areas, such as the Buon Me Thuot Church, Bishop’s Office, the Hoa Binh Female King monastery (in Dak Lak), the Khai Doan Pagoda (in Buon Me Thuot), ancient Cham towers in Cheo Reo and Phu Tuc, the Laotian King tomb in Don village and other historical relics related to Vietnam’s war of resistance against the US like the Kon Tum and the Buon Me Thuot prisons.
In the coming years, initial foundations for tourism development will be established in combination with the development of the technical infrastructure and that of other industries and sectors; conditions will be made available for the acceleration of tourism development towards the goal of “Three Countries – One Destination” in the next period.
In case more favourable conditions are available for tourism development, the Central Highlands provinces of Vietnam can accelerate their tourism growth rate in order to attract other provinces to be involved in tourism development and gradually move towards strengthening the cooperation in tourism development in the future.
Development Directions:From now to 2010, the tourism sector in the area will be developed along the following directions:
·Attaching importance to the development of the types of ecological tourism in combination with the development of forestry and natural resources exploiting industries such as hydropower industry and combining exploitation and preservation of landscapes and protection of natural environment;
·Making investment to develop cultural tourist destinations in combination with the restoration and development of the cultural traditions of the ethnic groups living in the area and to restore and protect historical heritages and beautiful landscapes;
·Preparing the conditions for and moving towards the establishment of tourism lines from inside to the outside locations of the area and inter-nation tourism lines, and combining the Vietnamese sea and cultural tourism with Laotian and Cambodian ecological and cultural tourism, etc.;
·Making investment in recreational service establishments and establishments for temporary residence of tourists to facilitate the improvement of income generated from tourism and ensure the efficiency of tourism business;
·Focusing efforts on and coordinating in the development of human resources for tourism activities;
·Promoting investment to develop the tourism industry (e.g infrastructure and services like hotels, restaurants, souvenir shops, etc.);
·Organizing package tours of the Development Triangle to other tourist destinations of the three countries like the “legendary road”, “heritage road”, etc.;
·Increasing the number of flights to the Development Triangle and the means of transport in service of passenger transportation.
Orientations for Tourism Products and Markets of the Development Triangle
Market
Type of Product
The Vietnamese provinces
The Cambodian provinces
The Laotian provinces
Tourism and trade
**
*
*
Nature and landscape
***
***
***
Wide animals
**
**
***
Tourism on rivers, lakes and water falls
**
**
**
History and cultural heritage
**
**
**
Mixed sight-seeing tour
**
**
**
Convalesce in high mountains
***
***
***
Tropical forest ecology
**
***
***
Strong sensation sports
**
**
**
Community life style
***
***
***
Folk arts
***
***
***
Drinking and eating, enjoyment of specialties
*
*
*
Fine arts and craft villages
**
**
**
Note:very abundant* * *, abundant* * and potential*
8.2- Trade – Services
8.2.1 – General Development Directions
Cambodian provinces: The export of a number of products, such as coffee, cashew nuts, rubber and pepper and the import of building materials, foodstuff, etc. will be expanded. Border markets will be established and the trading system in service of remote and isolated areas will be developed.
Efforts should be made so that the export turnover between Cambodia and Vietnam reaches US$ 438 million by 2005 and US$ 880 million by 2010, or the average annual growth rate of export turnover is 10% during the 2003-2005 and 15% during the 2006-2010. The value of commodities exported through the Road No. 19 – An Dong Pech border checkpoint and Buprang – Oriang border checkpoint accounts for 10% of the total value of imports and exports between Cambodia and Vietnam.
Laotian provinces: The export of such products as coffee, wood, handicrafts, pharmaceutical plants, etc. will be pushed up. The trading network in provincial towns will be expanded. Border markets will be established. Transport capacity, especially international transport, will be strengthened.
Efforts should be made so that the export turnover between Laos and Vietnam reaches US$ 140 million by 2005 and US$ 385 million by 2010, or the average annual growth rate of export turnover is 10% during the 2003-2005 and 22% during the 2006-2010. The value of commodities imported and exported through the Bo Y – Giang Gion border checkpoint accounts for 10% of the total value of imports and exports between Laos and Vietnam.
Vietnamese provinces:All possible measures will be used to ensure product distribution for the Central Highlands provinces, and commercial organisations will be linked to production establishments. The border markets, trade network and concentrated big trade centres in urban areas will be established to facilitate goods exchange within each province and within the Triangle and that between them and the external provinces and to supply goods for export. The market network, particularly that of rural and border markets, will be developed. The trading system in service of people in remote, isolated areas and areas which are home to ethnic minority people will be consolidated. The development of trade in services across national border checkpoints of Bo Y (Kon Tum), Duc Co (Gia Lai), and Dac Po (Dak Nong) will be pushed up.
8.2.2- Planned development directions for Cambodia - Laos - Vietnam border checkpoints up to the year 2010
(a)- The Bo Y - Ngoc Hoi Border Checkpoint Economic Zone (in Kon Tum)
The planned area of the Bo Y - Ngoc Hoi Border checkpoint Economic Zone in 2020 is 68,570 hectares, covering five communes, namely Saloong, Bo Y, Dak Su, Dak Nong, Dak Duc communes and Plei Kan district town. According to the formulated master plan, the centre of this border checkpoint economic zone covers an area of 400 ha and is divided into three areas:
- Functional area: This area covers an area of some 100 ha and is located about 1 km from the Vietnam – Laos border.
- Industrial area: This area covers an area of some 40 ha and is located along NR No. 40, about 2.5 km from the Vietnam – Laos border.
- Area for management, representative offices, living units, welfare utilities, etc. covering an area of approximately 260 ha.
(b)- Road No. 19 Border Checkpoint Economic Zone (in Gia Lai)
The Road No. 19 Economic Zone in Gia Lai province covers the territory of four communes, namely Ia Kla, Ia Nan, Ia Dom communes and Chu Ty district town of Duc Co district.
At present, a plan for physical and technical infrastructure for trade and services in Road No. 19 border checkpoint area is being developed.The Cambodian side meets with many difficulties like low population density, low people’s income, weak purchasing power, and disadvantaged transport networks that have considerable negative impacts on the development of its border checkpoint economy.
8.2.3- Planned System of Trading Centres
Trading centre is a place where different types of trading activities and services are collected to serve all commercial activities, import and export activities in particular. To make trading centres operate efficiently, in the immediate future these centres should be established in border checkpoint areas with large merchandise import and export value, namely Bo Y – Giang Gion, Road No. 19- An Dong Pech and Bu Prang-Oraing border checkpoints.
(a)- Bo Y (Kon Tum) – Giang Gion Border Checkpoint Trading Centre
The planned floor area of the Bo Y - Ngoc Hoi Border Checkpoint Trading Centre is 8.000 m2, of which 3.000m2will be constructed during the first phase of the construction (2003-2006) and the remaining 5.000m2will be developed during the second phase (2007- 2010). The estimated total cost of construction is VND 32 billion, VND 12 billion for the first phase and VND 20 billion for the second phase. The Prime Minister of the Government of Vietnam issued Decision No. 1369/QD-TTg on the overall master plan for the construction of the Bo Y border checkpoint economic area in Ngoc Hoi district, Kon Tum province for the period up to 2020. Its planned area is 68,570 hectares, covering five communes, namely Saloong, Bo Y, Dak Su, Dak Nong, Dak Duc communes and Plei Kan district town.
(b)- Road No. 19 Border checkpoint Trading Centre (Gia Lai)
It is planned that from now to the year 2010 the centre will be developed on a floor area of about 5,000 m2and its estimated cost of construction is approximately VND 20 billion.The Prime Minister of the Government of Vietnam issued Decision No. 1369/QD-TTg on the adoption of the policy on Road No. 19 Border Checkpoint Economic Area (in Gia Lai province). The Road No. 19 border checkpoint economic area in An Dong Pech, Duc Co district, Gia Lai province covers the territory of four communes, namely Ia Kla, Ia Nan, Ia Dom communes and Chu Ty district town of Duc Co district.
- Bu Prang Border Checkpoint Trading Centre (Dak Nong).The planned floor area of the Bu Prang Border checkpoint Trading Centre is 5,000 m2and its estimated total cost of construction is VND 20 billion.
8.2.4- Planned warehouses and grounds
(a)- Bonded warehouse system
To serve export and import activities it is necessary to build bonded warehouses within the border checkpoint area. Given the increasing trend of container commodity shipping, the grounds for containers and some kinds of big commodities like log, sawn timber, iron, and steel… will be built in the bonded warehouses.
Based on the forecasts of export turnover and volume of commodities exported through the border checkpoints in the Development Triangle, the following bonded warehouses are planned to be built in the border checkpoints of the Vietnam – Laos – Cambodia Development Triangle during the period from now to the year 2010:
- At the Bo Y – Giang Gion border checkpoint, an 8,000 m2bonded warehouse and a 2,000 m2ground for commodity storage will be built. Estimated cost of construction is VND 12 billion, (from 2004 to 2006 about VND 7 billion will be spent and the remaining VND 5 billion will be spent during the 2007-2010 period).
- At the Road No. 19 border checkpoint (in Gia Lai province): A 5,000 m2bonded warehouse and a 2,000 m2ground for commodity storage. Estimated construction cost: about VND 8 billion (from 2004 to 2006 about VND 5 will be spent and the remaining VND 3 billion will be spent during the 2007 –2010 period).
- At the Bu Prang border checkpoint (in Dak Nong province): a 4,000 m2bonded warehouse and a 1,000 m2ground for commodity storage. Estimated construction cost: VND 6 billion (about VND 4 billion will be spent during the 2005-2006 period and the remaining VND 2 billion will be spent from 2007 to 2010).
(b)- System of Depots for Goods Inspection and Reception and Delivery.The goods inspection depot at the border checkpoint is a place for customs’ inspection of goods before permitted for export, import or transit. In case of Cambodia, the inspection of goods is jointly conducted by Customs and Excise Department of the Ministry of Economy and Finance and the Cambodia Import and Export Inspection and Fraud Repression (Camcontrol) Department of the Ministry of Commerce. To save construction area and efficiently use its physical and technical foundations, goods inspection depots and goods reception and delivery depots will be built in the same location; at the same time, offices for functional officers and a warehouse for goods preservation will be built in this place.
Given the estimated construction cost of about VND 3 billion per border checkpoint, the construction of a goods inspection ground and an export and import goods reception and delivery ground with an area of 3,000-4,000 m2and a 500 m2warehouse for goods preservation at all the above-mentioned three border checkpoints in the Development Triangle would cost VND 9 billion in total during the 2004 –2010 period..
8.2.5- Planned System of Trading Stores
During the period from 2004 to 2006, duty free shops will be established in Bo Y and Road No. 19 (in Gia Lai) border checkpoint areas. In addition, a number of department stores will be developed, depending on actual market demand, with importance given to serving inhabitants in remote and isolated areas.
8.2.6- Planned Border Checkpoint Markets and Border Markets
The development of markets at the areas must be suitable to particular conditions of each area. From now to 2006, investments will be made to develop one large-scale central market in each of the border checkpoint urban areas of the border checkpoint economic area; this market will be equipped with modern physical and technical foundations so as to meet the requirements for goods exchange and the consumption demands of the people. The business area of each market ranges from 1,500 to 3,000 m2, and the estimated construction cost is between VND 3 to 5 billion. In addition, new markets will be built and the existing markets in district towns and centres of commune clusters in the border checkpoint area will be reformed and upgraded. In border communes, depending on particular conditions of each commune, border markets can be developed to attract people living in both sides of the border area to come the those markets for commodity buying, selling and exchange.
However, since the provinces in the Development Triangle are all the poorest provinces in their respective countries both in terms of physical foundation and human resources, and life of the people remain greatly difficult, to create a motive for attracting investments and joint-venture efforts from domestic and foreign institutions, first of all the State must seek fund to finance a number of focal projects, such as development of border markets, border checkpoint markets, trading centres, offices of technical inspection stops at the border checkpoint area, infrastructure. This will certainly help change the face of the border checkpoint economy in the Development Triangle and thereby attracting investors to contribute funds to cooperation and joint-venture projects in the Triangle.
From 2005 to 2006 priority should be given to the establishment of border markets and border checkpoints along the borders of the provinces within the Development Triangle Area. The specification of these projects will be identified and discussed under the agreement of the three countries.
During the 2007 - 2010 period, additional investments will be made to expand the trading centres, bonded warehouses, and grounds for goods inspection and to upgrade and reform other markets at the border gate area of the Cambodia – Laos – Vietnam Development Triangle.

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