Publications

Written by Mekong Institute

The Mekong Institute (MI) in cooperation with the provincial government of KhonKaen province successfully organized an “International Seminar Cum Business Matching on Silk Development” on September 12-13, 2014, Centara Hotel and Convention Center, KhonKaen. The event aimed at enhancing the capability and fulfilling the potential of silk businesses in the Greater Mekong Sub-region (GMS), while sharing points of view on global trends of silk products. The seminar also incorporated a business matching activity aiming at strengthening and expanding the network among silk entrepreneurs and businesses in some Northeastern provinces of Thailand, India and other countries in the Greater Mekong Sub-region namely Cambodia, Lao PDR, Myanmar, Vietnam and China. The ultimate goal of this event was to equip participating companies and communities with tools and knowledge to compete better in both ASEAN and the world market.

The International Seminar Cum Business Matching yields a satisfactory result reflected by the high-scored evaluation and successful business matching. The following parts are evaluation results, session summaries, and measurable results of the business matching activity.

The International Seminar Cum Business Matching attracted a total of 212 participants, including major silk brand owners and manufacturers, SME silk production groups, exporters and importers, intermediaries of silk products, leaders from silk-related government and international agencies, academia and other entrepreneurs from provinces such as Roi-et, KhonKaen, Mahasarakham, Kalasin, NakornRatchasima, Petchaboon, Chiang Mai, Mukdahan, Pitsanulok and Bangkok. The event aimed at gaining insight into needs and support required to furthering development of silk producers and exporters. Moreover, facilitating business networks and long-term cooperation among silk business owners in the ASEAN countries and beyond was one of the key objectives. The organizer of the event also wished to develop a database of silk business owners for business networking, to further enhance the competitiveness of silk business owners in ASEAN.

Written by Mekong Institute

The overall purpose of the research is to document and assess the information collected that can give us an indication of the LED framework, policies and practices and, most importantly to understand the needs for capacity development for a more inclusive and equitable growth of Greater Mekong Sub-region (GMS) with the goal in contributing to rapid local economic development and inclusive growth along East-West Economic Corridor (EWEC)of the GMS.

The research work is being conducted through desk review of available sources of information. Interviews of LED and related stakeholders were being conducted to obtain their perceptions on LED framework, policies and practices. In order to obtain the current LED results, a Compass Workshop was conducted with relevant stakeholders from the government departments, private enterprises, and NGOs which are contributing to the local economic development.

To assess LED capacities among officials involved in Kayin Sate LED process, an institutional analysis and LED Actor Mapping was conducted using individual interviews and the Compass Workshop. In assessing current knowledge, skill, and attitude of LED officials individual analysis and a CDNA Survey was conducted. In order to identify capacity needs of these officials internal assessment was also conducted.

After receiving the Training on LED Research Framework and Methodology which was conducted at Mekong Institute from January 14 to 18, the National Consultant developed research work plan and the activities involved desk review, conduct of individual interviews as per research matrix, CDNA Survey and Compass Workshop in Hpa-an, capital of Kayin State, Myanmar. Work began on 20 January 2014 and ended on 19 March 2014.

After years of conflict the economy of Kayin State has been very weak, particularly the agriculture sector, and there is a severe lack of motivation in the agriculture sector. In addition to the problems of conflict, the State has been encountering frequent floods in the rainy season and scarcity of water for its agriculture in the dry season.

Maize has market potential for farmers and there is high demand for the product from animal feed factories in Thailand. Other crops such as green gram, sesame and groundnut could easily find market if quality product and value change devel opment is assured.

About 93 percent of respondents in the CDNA survey say they are involved in LED processes with 60 percent in the implementation process and 50 percent in the sensitization process. The majority of those who are directly involved are government officials.

Fiscal decentralization has improved things better as local government is able to have some opportunity of making decision and things move faster, and grassroots community benefit from such progress. However, decision making power final responsibility is still with the national level authority. There is a relevant national LED strategy and programs for sub-national territories. But sub national level needs both financial and technical support from the national level. Government departments at state level like DOA, Department of Trade Promotion, especially Chief Minister's office, Myanmar banks, and other organizations like KSD, NGO, INGO, CCI are the institutional drivers. It is found that local stakeholders shared vision, understanding and participation in development of LED.

This is done through discussions and sharing experiences and information in weekly and monthly meetings. Stakeholders have been sensitized and awareness has already been raised. Thus local stakeholders take ownership of the LED process, as they initiated the activities themselves and implemented the activities themselves.

The private sector is taking increasing role and initiative in LED (e.g. it is involved in the set up of industrial zone and infrastructure development). But some feel that members of the private sector are working on individual basis, and needs to be more mobilized and organized to participate in LED.

Currently there are initiatives to improve local tourisms in Kayin State. Value factors include better services for tourists through hotel services, transportation services, guide services, entertainment services and so forth. However, Kayin State still lacks the technology to refine its goods and value chain development, hence needs further greater efforts and external help.

There are attempts to do LED in an eco-friendly way. For example, when a company is to enter into an agreement with the State Government, it needs to do the social and environmental impact assessment. Only after the clearance is received, the State Government would let the companies to work in the local area.

There are measures taken for local people to be sensitized in order to increase participation. For local officials and those who are direct stakeholders, the Chief Minister exhorted them to participate in LED initiatives in official meetings, and for the public the CM in his rounds of field visits to townships and villages informed the people about the importance of people participation in LED activities. For both the government officials and the people a committee called Planning and Implementation Committee lead the sensitization initiatives. LED activities design includes agriculture, livestock, fisheries, trade promotion, and infrastructure development including capacity development. The focus area is griculture.

Under the leadership of the CM's office, relevant stakeholders come together to work together. At its annual planning sessions or at appointed meetings LED stakeholders come together to discuss their respective plan and how they could find synergies between LED activities. LED actors, specifically among the government officials do have to some extent understanding of LED. Non - government LED actors could have a lesser understanding.

It is generally perceived that there is no gender discrimination issue in Myanmar society, It is however necessary to improve LED actors' capacity on mainstreaming gender to keep abreast of the changing world and gender issues.

Major difficulties and constraints that affect the results of LED mentioned include 1) Peace an d stability, 2) Shortage of manual labour , 3) Shortage of agricultural inputs, 4) Lack of technology know-how, 5) Lack of investment, 6) Inadequate infrastructure (transportation, communication, electricity services), 7) Loan takers unable to repay loans, 8) Unstable agricultural harvest prices, 9) Poor land quality, 10) Due to more income gained as migrant workers, people do not want to work in local areas and in traditional livelihoods such as agriculture and livestock.

Appropriate measures for controlling floods in the rainy season and provision of adequate water for crops cultivation in summer should be developed and addressed by the government with the assistance of external help. There is an urgent need to improve its infrastructure if local economic development is to be achieved.

State Parliamentarians should lobby for further fiscal decentralization so as local government will be able to have increased opportunity of decision-making. Kayin State has a considerable natural resources and a potential for improving its economy through agricultural, livestock and trade promotions.

If State level actors have increased decision making power in LED, and its resources in both skill and financial are adequate, then it could perform effectively and efficiently in its LED initiative processes. The State Government should enlarge its institutional drivers outside its sphere of authority to include members from non-government organization for increased participation and inclusiveness in LED initiative process.

Untimely rains and floods in rainy season are the main constraints and difficulties in maize farming. Appropriate measures for controlling floods in the rainy season and provision of adequate water for crops cultivation in summer should be developed and addressed by the State Government with the assistance of external help.

Additionally, Local KED actors need to constantly upgrade their understanding of their economic reality and of LED through the cooperation with international capacity building organizations.

To spur the increasing role of private sector in LED process, the government needs to devise the strategy to mobilize them as well as to enable them to be better organized in LED participation process. Kayin State LED stakeholders should continue to cooperate with other states and regions to increase its effectiveness and impact. Myanmar has now opened up for cooperation with the outside world, and both the Myanmar Government and the international organizations should take this opportunity to work together for a ‘Win Win' approach thereby advancing the development of Myanmar, particularly the Kayin State which is recognized for having immeasurable potential economic growth in the near future.

Written by Mekong Institute

Many countries have recognized that FDI is an important source of economic growth of a country. Myanmar also highly appreciates FDI as a key solution for the reduction of the country's development gap towards leading ASEAN countries. Thus, it is important to investigate the factors that help attracting FDI into the country. Vietnam, which is compared to Myanmar economically in a similar situation has altered its economy from a centralized system to a market-oriented one in the mid- 1980s.

Both countries have favorable investment environments, offering abundant cheap labor, natural resources and investment-friendly policies. This paper intends to analyze how both countries strive to attract FDI, and which variables determine the inflow of FDI into Myanmar and Vietnam during the period 1989 to 2012 by using linear regression analyses.

According to our analysis for Myanmar, the growth rate of GDP, the labor force, the inflation rate and the exchange rate affect the inflow of FDI. For Vietnam, only openness of the trade is statistically significant at the percent level implying that Vietnam's FDI policies have a positive effect in attracting FDI.

Written by Mekong Institute

Lao PDR is a resource-rich country, with many natural resources, including forestry, agricultural land, hydropower and minerals. After a robust economic upward trend with an average 8 percent growth which was experienced over the past decade, Lao's economy is still expanding. Lao's economy has greatly benefited from high-profile capital flows to the country in terms of foreign direct investments, public and private investments among others. In addition, during the fiscal year of 2012, the total official development assistance (ODA) increased from USD 392.48 million in the year 2011 to USD 408.92 million in the following year 2012 (Official Development Assistant Data, 2012).

Essentially, the issues affecting the economic development, especially in Lao PDR, which is still one of the least developed countries, are characterized by being a small economy with a high poverty rate and had small budgets to support and build up the areas of economic and social development. Thus, the official development assistance has played an important role in the socio-economic development of Lao PDR, especially in the sectors depending on public investment. Official statements acknowledge that sound official development assistance has played a crucial role in fostering the government's goals of high economic growth rates of the country. In fact, many least developed countries have not achieved sustainable economic growth, despite the fact that they attracted more of both internal and external sources for supporting economic development progress.

In this context, the question still remains whether financial assistance, especially external sources in terms of ODA, do always promote economic growth in Lao PDR or not. Quite a number of studies have discussed the relationship between foreign assistance and economic growth, and the majority of those studies have focused on the link between Official Development Assistance on Economic growth in Lao PDR. This study has examined the impact of foreign assistance in the form of official development assistance on economic growth in Lao PDR by using time series data over the period 1985-2012. This study showed that the official development assistance has a positive effect on economic growth in Lao PDR. Thus, it can be concluded that ODA has contributed to economic growth in Lao PDR.

Written by Mekong Institute

The research finding describes the existing maize cropping system in Leuk Daek District of Kandal Province, Cambodia. In-depth interviews were conducted with key actors: maize farmers, maize collectors and processors. It is an information mapping flow showing the maize management system. Also, constraints and problems facing maize production and its marketing were analyzed to find out its marketing system. In order to reach the goal, some research tools were employed namely in-depth interview, focus group discussion (FGD), key informant interview and cost and return analysis. In total, 110 samples including, 5 government agencies, 5 input supplies, 3 collectors, 1 processor and 96 maize farmers, were selected for interview base on the Yamane Taro function and purposive sampling in difference actors along the chain.

The finding shown that, there were many actors involved in the maize value chain, including downstream input suppliers as well as upstream collectors and processors. Leuk Daek district contributed nearly 39% of cultivated area out of Kandal province. Maize farmers tend to practice mono cropping of maize production. Only 29% of maize farmers conducted mixed crop and crop rotation practice with mungbean, sesame and rice with the water source from digging wells and Mekong River. Farmers relied mainly on chemical shops in terms of input supplies. Seeds and chemical pesticides were directly recommended by chemical shop dealer seasonally. Approximately 80% of the farmers received information on application of pesticides and varieties of maize from the chemical shop dealer while 8% get such services from agricultural company and 12% get these from fellow farmers and provincial and district agriculture extension.

On average, maize cultivation land is 1.50 ha in dry season, but it decreases to 1.37 ha in the rainy season. Farmers can access credits for their maize cultivation from banks, micro finance institutions, chemical shops (in term of inputs), and others institutions with the percentages of 18%, 11%, 67% and 4% respectively. Most of the high income farmers access credits from the banks or micro finance institutions while the lower income farmers generally rely on chemical shops.

Farmers sell maize directly to middlemen, where payment will be done within 3-7 days later. The maize collector distributes 80% of the maize to Vietnam and 20% of which to domestic factories. The price of maize is set by the collectors with a net profit of 50% if they sell the grain to the domestic factory, CP Cambodia, and which accepts only the good quality product that meet their requirements. The lower quality will be export to Vietnam with lower price. Farmers can get a profit of approximately 294 Riels (0.074 USD) per kilogram of maize while collectors would earn 41 Riels (0.010 USD) per kilogram.

Furthermore, some challenges were attended in the production stage. They are issues related to seed quality, high prices of inputs in-kind loan with chemical shop, corn borer outbreaks, flooding, fluctuation of maize prices in the market, lack of marketing information access and the limitation of government and extension service provision. In order to solve such challenges, some recommendations would be appeared. The effective group should be established to manage the market system and reduce cost of inputs. Also the government agency services should be improved and extended into the village levels. The services of micro providers should be improved for easier access with lower interest rate.

Written by Mekong Institute

With support from the Mekong-Republic of Korea Cooperation Fund, Mekong Institute (MI) is implementing a three-year project on ‘Certified Logistics Master’. MI has completed the first phase of the project from July 2015 to September 2015.The phase I of the project comprised of four components for capacity development purpose; including setting the Greater Mekong Sub-region (GMS) logistical service standard, curriculum development, modular training and certification, and localization of core training. 

The overall objective of the project is to improve cross-border and transshipment logistics services through capacity development and accreditation of local Logistics Service Providers (LSPs) in the GMS economic corridors. The project also intended to decrease cross border logistics cost, improve quality and timely services of local logistics service providers, and integrate local logistics providers into the sub-regional, regional and global logistics chains. As per the activity, all the scheduled activities have been successfully implemented. 

Written by Mekong Institute

With support from the ASEAN China Cooperation Fund, the Mekong Institute implemented the one-year project on ”Enhancing Provincial and Local Chambers of Commerce Capacities in Trade and Investment Facilitation along the GMS North-South Economic Corridor (R3A & R3B)” from July 2014 to June 2015. The project comprised of three components with series of capacity development activities, which included two modular trainings on ‘Business Research and Information Management’ and ‘Trade and Events Promotion’, and one ‘structured learning visit cum business matching’. A synthesis and evaluation workshop was conducted in May 2015 to evaluate the project results and to assess possibility of another phase of the NSEC project. 
The aim of the project is to promote business linkage and information network among members of provincial and local Chambers of Commerce and Industries (CCI) and Business Associations (BAs) along the North-South Economic Corridor – Route 3A and 3B (NSEC R3A&B). The NSEC connects four Mekong countries namely Yunnan Province of P.R. China, Myanmar, Lao PDR and Thailand. The ultimate goal of this project is to support inclusive and more equitable development on the NSEC. With regard to performance against the annual plan, all scheduled activities from July 2014- June 2015 have been implemented and the objective has been achieved. 

Written by Mekong Institute

P. R. China, Lao PDR, Myanmar and Thailand are signatories to the 2000 Agreement for Coordinated Operation and Development of International Navigation on the Lancang-Mekong River and are all members of the Joint Committee on Coordination of Commercial Navigation on the Mekong-Lancang River (JCCCN), set up under the 2000 agreement. English is the adopted common language for communication in international navigation and commerce on the Lancang-Mekong, which borders all four agreement countries and also runs through two of them. Up to the present, the names Romanisation has not followed any standard, resulting in a variety of spelling and pronunciation of geographic names in English text or speech. This can give rise to uncertainty in communication involving Romanised geographic names, and present challenges in two types of situations: i) where swift action is required, such as a coordinated response to an urgent threat to life or property in navigation, or ii) where, in international trade in goods or services and related financing, effective and efficient decision making needs to be made on the basis of presented documents. The project to create a standard system of Romanised geographic names on the Lancang-Mekong is expected to reduce the uncertainty in communication and facilitate i) development of cross-border transport of goods and passengers; ii) related trade, tourism and financing; and iii) a cooperative development of commercial navigation on the Upper Mekong, all of which make up the core objectives of JCCCN.

Written by Mekong Institute

Myanmar's emergence from decades of isolation provides an opportunity to learn from the experiences of its neighbours to guide its economic transition and achieve strong and inclusive growth. The development of small and medium-sized enterprises (SMEs) is an effective mechanism in achieving socioeconomic growth, but Myanmar poses a list of challenges that need to be overcome first, including poor infrastructure and limited market access. This paper proposes policy recommendations under seven key issues: business enabling environment, entrepreneurship development, access to financing, business development services, innovation and technology, market access, and cluster development. These recommendations are based on existing reviews of the Myanmar business community and the SME policy frameworks of various countries and combine to form a comprehensive policy framework. This policy framework will provide the government of Myanmar an opportunity to facilitate SME development, and with that the development of the country.

Written by Mekong Institute

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Mekong Institute (MI) agreed to collaborate on a specific project to develop partnership and promote cooperation between the two parties. The six-day Structured Learning Visit (SLV) on "Agricultural Planning and Investments in Thailand" was conducted from 20 to 25 January 2014 for 16 government officials from the Ministry of Agriculture and Forestry and the Ministry of Planning and Investment in Vientiane Capital, Attapeu, Luang Nam Tha and Sayabouli provinces, as well as GIZ Local and International Advisor. The SLV aimed to provide participants with first-hand information and expose them to new ideas on planning and investment in agriculture sector in Thailand.

Two MI facilitators were involved in organizing the program, translating, facilitating discussions, and sharing experiences with the participants. Dr. Apichart Pongsrihadulchai the Advisor to the Minister of Agriculture and Cooperatives (MOAC), was invited to share his knowledge and experiences on agriculture planning systems in Thailand to participants before the field visit. The participants visited six places in four provinces of the Northeastern and Central Thailand namely; Region 4 Office of Agricultural Extension and Development in Khon Kaen province, concerned government offices, Thayang Agricultural Cooperative and a banana farm in Phetchaburi province, Chedi Hak Community Rice Seeds Promotion and Production Center in Ratchaburi province and Taniyama Siam Company and a asparagus farm in Nakhon Pathom province. At the end of the SLV, the participants from each province presented their reflections on what they learned and which practices can be applied upon their return. The participants appreciated most the knowledge gained on crop prioritization and agricultural land zoning systems, which involved many organizations and the use of several analytical tools. They also appreciated and would like to apply the knowledge gained from contract farming and formation and management of cooperatives. They learned how different stakeholders work together to support farmers through cooperatives and contract farming. However, participants also knew that not all knowledge gained from this SLV can be applied in Lao PDR directly due to differences in cultural context and administrative systems. The results of the evaluation conducted throughout the program showed that this SLV was successful both in attaining the program objectives and meeting the participants' expectations. The participants also mentioned that the program was relevant to their work. Most of the participants were fully satisfied with the program as shown in the average rating of "4.81" on the overall satisfaction to the program, using a scale of 1 to 5. However, there were some suggestions for improvement such as extending the duration of the program to 7 days, selecting new sites to reduce traveling time, and allocating more time for open discussion.

The participants also indicated that this SLV enhanced their knowledge and skills, hence would like similar activities on participatory planning system, promotion of safe agriculture, marketing and promotion of products, contract farming system, gender mainstreaming strategy for the government sector, operational system of Thai government, and strategic planning system to enhance GMS and ASEAN connectivity