By Umi Hani Sharani and Nor Baizura Basri
BERNAMA
KUALA LUMPUR, Aug 25 (Bernama) -- Cambodia, Laos, Myanmar and Vietnam might be the poor cousins of their counterparts in Asean, but that should not stop them from claiming a piece of the prosperity in Southeast Asia.
Of utmost importance is that they need investments to develop their economies so that they too can contribute meaningfully to regional integration.
But given the vagaries in the international marketplace, investments are not going to fall on their laps. They have to make it happen.
If some of them need convincing, they just have to look at Vietnam, easily the most developed among the four.
Hanoi undertook a massive plan to liberalise its economies, trade picked up, investments poured in and its pace of development took off. Now, it is seeking WTO membership by end-2006.
Of course, this is easier said than done, but they have to work at it rather than just depending on aid.
There is a long road ahead.
Hence, while the advanced regional economies rush to meet the deadline for Asean Economic Community (AEC) by 2015, the case is not so for its less developed siblings.
CLMV countries have understandably been accorded flexibilities.
Again, the antidote to join up by the deadline would be more foreign direct investments (FDIs).
Only then, would their economies accelerate and be at par with the others comprising Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
By while they grapple with complexities towards regional integration, there is now fear CLMV countries might be eclipsed by economic giants, no thanks to a proposed free trade area covering 16 economies.
The East Asia Free Trade Area (EAFTA) is supposed to include Asean, China, Japan, South Korea, New Zealand, Australia and India, a proposal which is nothing less than too ambitious especially for CLMV.
But as members of a grouping, they have no choice but do what is necessary to make their markets attractive.
Therefore, FDIs are crucial in helping CLMV economies and tune them via capacity building to achieve competitiveness.
Laos has publicly stated its inability to meet the deadline with the rest of the region, but is optimistic of joining the community in 2018.
Having been out of the economic mainstream for quite sometime, these countries still require assistance, financially and technically.
While aid has been given for capacity building from developed countries, it is far from adequate.
CLMV countries actually require more than that.
As the other Asean countries and the United States have put it, CLMV countries must demonstrate greater commitment in opening their markets.
Meanwhile, Japan has pledged to help CLMV in the rubber sector and assist in setting up special economic zones in respective economies to further attract FDIs.
CLMV countries now also count on China for continued investments, thanks to their strong historical links.
But at the end of the day, CLMV would have to fend for themselves.
They must possess the political will to dismantle non-tariff barriers, erase bureaucratic procedures and provide incentives to lure foreign investments.
If they don't do this, they not only face the danger of being left out of the Asean economic community, they would fail to share in whatever prosperity that arises out of integration.
Of utmost importance is that they need investments to develop their economies so that they too can contribute meaningfully to regional integration.
But given the vagaries in the international marketplace, investments are not going to fall on their laps. They have to make it happen.
If some of them need convincing, they just have to look at Vietnam, easily the most developed among the four.
Hanoi undertook a massive plan to liberalise its economies, trade picked up, investments poured in and its pace of development took off. Now, it is seeking WTO membership by end-2006.
Of course, this is easier said than done, but they have to work at it rather than just depending on aid.
There is a long road ahead.
Hence, while the advanced regional economies rush to meet the deadline for Asean Economic Community (AEC) by 2015, the case is not so for its less developed siblings.
CLMV countries have understandably been accorded flexibilities.
Again, the antidote to join up by the deadline would be more foreign direct investments (FDIs).
Only then, would their economies accelerate and be at par with the others comprising Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
By while they grapple with complexities towards regional integration, there is now fear CLMV countries might be eclipsed by economic giants, no thanks to a proposed free trade area covering 16 economies.
The East Asia Free Trade Area (EAFTA) is supposed to include Asean, China, Japan, South Korea, New Zealand, Australia and India, a proposal which is nothing less than too ambitious especially for CLMV.
But as members of a grouping, they have no choice but do what is necessary to make their markets attractive.
Therefore, FDIs are crucial in helping CLMV economies and tune them via capacity building to achieve competitiveness.
Laos has publicly stated its inability to meet the deadline with the rest of the region, but is optimistic of joining the community in 2018.
Having been out of the economic mainstream for quite sometime, these countries still require assistance, financially and technically.
While aid has been given for capacity building from developed countries, it is far from adequate.
CLMV countries actually require more than that.
As the other Asean countries and the United States have put it, CLMV countries must demonstrate greater commitment in opening their markets.
Meanwhile, Japan has pledged to help CLMV in the rubber sector and assist in setting up special economic zones in respective economies to further attract FDIs.
CLMV countries now also count on China for continued investments, thanks to their strong historical links.
But at the end of the day, CLMV would have to fend for themselves.
They must possess the political will to dismantle non-tariff barriers, erase bureaucratic procedures and provide incentives to lure foreign investments.
If they don't do this, they not only face the danger of being left out of the Asean economic community, they would fail to share in whatever prosperity that arises out of integration.
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