The introduction of preferential and transparent policies was urged by the 9th Meeting of the Joint Co-ordination Committee (JCC) on the Cambodia-Laos-Vietnam Development Triangle Area (CLV DTA), as the major tool to draw investments from the public and private sectors, as well as official development assistance funds to the region.

Last week’s meeting in the Cambodian city of Siem Reap was co-chaired by Bui Quang Vinh, Vietnam’s Minister of Planning and Investment, Chairman of the JCC for Vietnam; Sun Chanthol, Cambodia’s Senior Minister of Commerce, Chairman of the JCC for Cambodia, and Somdy Douangdy, Laos’ Minister of Planning and Investment, Chairman of the JCC for Laos.

The draft of the agreement was expected to be submitted for approval at the 10th JCC meeting, scheduled to open in Laos in 2015.

Speaking for the JCC, Vinh said the current socio-economic growth in the CLV DTA and investment results in the sub-region had not truly reflected the triangle’s potential, strength and traditional relationships of CLV.

“This is largely due to underdeveloped infrastructure and shortages of investment incentives for the DTA provinces, especially to draw and realise foreign-investment projects related to rubber plantations and processing for direct exporting to the international market – the triangle’s biggest potential advantage,” Vinh said.

The CLV DTA was established in 2004 and covers 13 provinces. These include Cambodia’s Ratanakiri, Stung Treng, Mondulkiri and Kratie, Laos’ Attapu, Salavan, Xekong and Champasak, and Vietnam’s Kon Tum, Gia Lai, Dak Lak, Dak Nong and Binh Phuoc.

According to the JCC’s Economic Sub-Committee figures reported at the meeting, the average GDP growth of the DTA reached 10 per cent per annum in 2011-2013 with Cambodia’s four provinces achieving an average growth rate of 10 per cent, Laos’ four provinces 14 per cent growth and Vietnam’s five provinces 9 per cent growth.

In term of direct investment, according to the report, by the end of last year, Vietnam had 37 direct investment projects capitalised at $2.02 billion in Cambodia’s DTA provinces, accounting for 29.4 per cent of the total projects and 68 per cent of the total investment capital that Vietnam registered to invest in Cambodia. Sixty direct investment projects registered by Vietnamese investors in Laos’ DTA provinces were valued at $2.15 billion, making up for 26 per cent of the total projects and 47.6 per cent of Vietnam’s total registered investment capital in Laos. Most of Vietnam’s investment projects in Cambodia and Laos’ DTA provinces are focused on rubber plantations, rubber latex processing, hydropower plants and mining.

With an aim to raising awareness and mobilising aid from international donors for the CLV DTA, Vietnam took the lead in hosting a development partner forum in partnership with the Asian Development Bank (ADB) in the Central Highlands province of Dak Lak in April this year. Such forums were agreed by three chairmen of the 9th JCC meeting rotate every two years among CLV countries in the coming years.