Transport and Trade Facilitation

Countries of the Greater Mekong Subregion are working to make the movement of goods and services across borders faster, easier, cheaper, more compliant, and more inclusive.

Over the past decade, the Greater Mekong Subregion’s (GMS) road network has expanded by almost 200,000 kilometers, and overland road freight has almost doubled. Yet despite these advances, remaining barriers to trade and transport continue to inhibit the subregion’s full economic potential and the cost of cross-border land transport remains high.

With much of the hard infrastructure in place, there has been a greater focus in recent years on the rules, regulations, agreements, and other “software” to make the movement of goods and services across borders in the GMS faster, easier, cheaper, more compliant, and more inclusive.

The GMS Economic Cooperation Program Strategic Framework 2030 (GMS-2030) focus on trade facilitation will modernize customs and establish sanitary and phytosanitary regulations. It will also strengthen links to the private sector. GMS-2030 will support the development of e-commerce platforms in the subregion. By facilitating investment, the strategy will ease or eliminate investment flow constraints and create an integrated investment market. GMS-2030 was endorsed and adopted at the 7th GMS Summit of Leaders in September 2021. It aims to provide a new setting for the development of this subregion for the next decade.

The GMS Transport and Trade Facilitation Action Program is working to overcome existing barriers in order to link the subregion to the ASEAN Economic Community’s single market and production base, as well as other regional cooperation initiatives.

The program is helping to expand transport and traffic rights along the GMS Cross Border Transport Facilitation Agreement (CBTA). route network; simplify and modernize customs procedures and border management; and strengthen the capacity of sanitary and phytosanitary agencies in the subregion.

To facilitate progressive implementation of the CBTA, the GMS Transport Ministers as members of the CBTA Joint Committee agreed to an “Early Harvest” memorandum of understanding to allow the issuance and mutual recognition of GMS Road Transport Permits along the CBTA Protocol 1 route network and the border crossing points along these routes starting August 2018. This initiative was suspended with the closure of international borders during the Covid-19 health pandemic, but reinstated by the Ministers for a further three-year period at the Eighth CBTA Joint Committee meeting in December 2023.

Related

‘Early Harvest’ Implementation of the Cross-Border Transport Facilitation Agreement

Joint Committee for the CBTA

Statement of the Seventh Meeting of the Joint Committee for the CBTA (13 March 2019)


Focal Persons at the Asian Development Bank

    Trade Facilitation 

  • Asadullah Sumbal
    Regional Cooperation and Integration Unit Southeast Asia Department

  • Dorothea Lazaro 
    Regional Cooperation and Integration Unit
    Central and West Asia Department

Transport Facilitation 

  • Mohammad Nazrul Islam  
    Transport Sector Office
    Sectors Group

Other Concerned Staff & Consultants

  • Antonio Ressano 
    Regional Cooperation and Integration Unit
    Southeast Asia Department

  • Lucia Martin Casanueva
    Regional Cooperation and Integration Unit
    Southeast Asia Department/GMS Secretariat 

Send inquiries to GMS Secretariat

Keeping the Goods Moving to Beat the COVID-19 Pandemic

Mr. Steven Beck of the Asian Development Bank (ADB) wrote in a blog post that “the COVID-19 pandemic underscores the need to support trade to not only move medical supplies but also to bolster economies.” His post asked (i) how we can maintain trade flows at a time when everyone’s attention seems to be focused on tightening borders, and (ii) how we can keep goods moving when the financial systems that companies rely on are under stress. 


Cambodia Plans Improvement of Thailand and Viet Nam Border Gate Facilities

A press release from the Royal Government of Cambodia’s Ministry of Economy and Finance announced plans to improve facilities at border gates with Thailand and Viet Nam.   

Cambodia’s border crossing points with Thailand and Vietnam are crowded with traffic of cross-border transport and tourists. The country wants to develop the necessary infrastructure to manage this traffic flow to ease cross-border transport and boost trade activities.

The Economic and Financial Policy Committee, chaired by Deputy Prime Minister Aun Pornmoniroth, approved the proposal. 


Lao PDR and Myanmar to Work on a New Cooperation Master Plan

The Lao People’s Democratic Republic (PDR) and Myanmar will explore opportunities to enhance tourism cooperation through bilateral and multilateral frameworks. This was agreed by the two countries at the 12th Meeting of Myanmar-Laos Joint Commission for Bilateral Cooperation held in Vientiane, Lao PDR on 6 March 2020. 

Lao PDR and Myanmar aim to create a new cooperation master plan. Tourism could help promote each other’s rich culture and heritage and bring their people together.  


Car usage is on the rise in Yangon causing much traffic congestion in the city. Photo: ADB

Improving Connectivity of Myanmar’s Yangon Region along the East-West Economic Corridor

Plans are underway to connect Yangon in Myanmar with the Bago Region and Mon State through new expressways along the Greater Mekong Subregion’s (GMS) East-West Economic Corridor. The Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) will provide financing assistance to build more efficient highways that will promote safer movement of goods and people. 


Mekong Institute’s Capacity Building Activities Continue to Expand Knowledge in the GMS

In 2019, the Mekong Institute conducted 112 capacity building activities that benefitted 3,270 participants from the Greater Mekong Subregion (GMS) countries in the areas of agricultural commercialization, trade and investment facilitation, and innovation technology and communication. Furthermore, Mekong Institute alumni held 155 trainings and workshops, expanding knowledge sharing to an additional 9,031 beneficiaries across Cambodia, People’s Republic of China (PRC), Lao People’s Democratic Republic (PDR), Myanmar, Thailand, and Vietnam.


Border gate between Lao PDR and Viet Nam in Lao Bao (ADB Photo)

Lao PDR, Viet Nam Plan to Open New International Borders

Lao People’s Democratic Republic (PDR) and Viet Nam plan to upgrade two local border crossing points to international border crossings this year. The plan was announced during the 29th annual border meeting of the two neighboring countries on 26 December 2019 in Ha Noi, Viet Nam. 

The Dak Ta-Ok (Lao PDR)–Nam Giang (Viet Nam) between Xekong (Lao PDR) and Quang Nam (Viet Nam) provinces will be the first international crossing point in Xekong. The neighboring countries plan to open this upgraded international border crossing in the first quarter of 2020.


Motorcycle tires being manufactured inside the Camel Rubber Vietnam Co. Ltd factory at the Lao Bao Commercial Area in Huong Hoa District, Quang Tri, Viet Nam. The tires produced by the company are sold locally and are also exported to Lao PDR, Cambodia, Thailand, European and South American countries, as well as to other countries in the ASEAN region. Photo by the Asian Development Bank.

ADB Promotes Trade and Cross-border Investment between SMEs in the GMS and India

The Asian Development Bank (ADB) approved a $3,000,000 technical assistance to support the implementation of initiatives to accelerate trade and cross-border investment between small and medium-sized enterprises (SMEs) of Cambodia, Thailand, Viet Nam—member countries of the Greater Mekong Subregion (GMS) program—and India. This ADB-administered technical assistance is financed by the United Kingdom Fund for Asia Regional Trade and Connectivity under the Regional Cooperation and Integration Financing Partnership Facility.