SOMKID URGES 6 NATIONS TO JOINTLY SET ECONOMIC STRATEGIES

Adam Schwarz, Director of Communication, Asia, at McKinsey, has proposed a 3-phase approach to assist ASEAN members benefit from economic cooperation - in particular the new, less developed, members such as Vietnam and Cambodia.

In the first phase, Mr Schwarz recommended that each ASEAN 6 (Vietnam, Cambodia, China, Thailand, Laos and Burma) member reduces its direct costs by improving the entire customs process and reducing the relevant burdens. This will take around 3 years.

In the second phase, he said ASEAN should emphasize increasing productivity to improve its competitiveness. This would take 2 to 5 years.

And in the third phase, Mr Schwarz suggested ASEAN should strengthen its cooperation in various aspects, i.e. R&D and technological revolution. This would take more than 5 years.

Regarding the study on 'Impacts of the ASEAN Economic Cooperation' proposed to GMS (Greater Mekong Subregion), Mr Schwarz noted that although the ASEAN 6 have been in economic cooperation for a certain period of time, they still receive only minimal benefit – especially when compared to NAFTA and the EU.

He said the major obstacles to benefit are large differences in prices and intense competition among the ASEAN countries.