Regional Agenda

World Economic Forum on the Mekong Region Overview Hanoi, Vietnam 25 October 2016

Making the Mekong Mighty: Investing in Fixed Capital, Human Capital, and Network Capital The five countries that make up the Mekong region – Cambodia, Laos, Myanmar, Thailand and Vietnam – are blessed with abundant natural resources, a large and growing population of 238 million and economic growth that is consistently more than double the world average. Until recently, large parts of the Mekong region were closed off from global and regional interaction. Only Thailand had truly embraced the benefits of globalization and enjoyed strong growth and development as a result. Today, however, the other Mekong countries are rapidly opening up, embracing reform and reaping the benefits of cross-border trade and investment. The establishment of the ASEAN Economic Community to the south and the rapid rise of China to the north-east and of India to the north-west have put the Mekong countries in an enviable geostrategic position. Although the potential to become an economic powerhouse is undeniable, the Mekong region faces tough challenges in capturing its unfolding opportunities. For example, while the Mekong is becoming more integrated with the wider world, it has barely integrated with its immediate neighbours. The result is that these countries tend to operate as individual economies alongside one another, rather than as a much bigger integrated bloc, thereby squandering opportunities for developing regional value chains and regional markets with size and scale. Just as important are a host of other issues: Infrastructure and industrial investment need upgrading; education and skills remain underdeveloped, hurting productivity and competitiveness; and economic inclusion is a concern, particularly for the region’s large rural populations stuck in low-productivity agriculture, but also for the development gaps that exist between these neighbouring nations.

Meeting Objectives

Participants

The World Economic Forum on the Mekong Region brings together business, government and other parties to think deeply about the ideas, policies and initiatives that can best help the region attain its true potential. The programme will consider three foundational pillars that are critical to improving the region’s competitiveness, connectivity and economic inclusivity.

The meeting will bring together 150 participants. Cambodia, Laos, Myanmar, Thailand and Vietnam will all send their head of government as well as senior ministerial delegations. Joining these government representatives will be more than 100 chief executive officers and chairs from both global multinational companies and large regional companies from across ASEAN and the Asia Pacific. Important voices from academia and civil society will also take part in the meeting.

Building Human Capital The Mekong countries are in the midst of a powerful demographic shift, and the size of its working-age population will continue to grow for the next 30 years. This will act as a strong economic engine as more workers join the workforce, not only earning and spending more, but also saving their income and recycling those savings into productive investments. But for this dividend to be truly transformative, the region’s human capital must possess the right education and skills. Given the dramatic innovations in technology, understanding how to educate workers for the future of work is crucial. Just as critical for the demographic dividend to play out are policies tied to gender equality and getting women into the workforce, improving health systems and developing institutional quality in areas such as judicial independence so that the young believe in their future and trust in their opportunity. Building Fixed Capital In a very literal sense, infrastructure, industrial investment and urban development are the foundations for economic growth. While progress in these areas in recent years has been impressive, the Mekong region continues to suffer from underinvestment. Infrastructure gaps are substantial, and industrial ecosystems remain underdeveloped. Industrial policy and regulation are often not agile enough to keep up with the pace of change as the Fourth Industrial Revolution takes hold, and this limits the appetite of companies to make big capital commitments. Just as important is financial market reform so that savings can be channelled to the most promising new opportunities as efficiently as possible. Building Network Capital The countries of the Mekong region are embracing globalization, but they have yet to embrace regionalization. Only 7.4% of Mekong exports go to other Mekong countries – a proportion that is incredibly low given that most countries in the world tend to trade most with their immediate neighbours. Poor infrastructure is partly responsible, but so too are unreliable logistics services and complicated trade rules and processes. This situation prevents regional value chains from forming that would promote complementarities across the Mekong by connecting different skills, cost levels and resources. Equally, it prevents the emergence of markets with regional scale.

Programme at a Glance Tuesday 25 October 09.00 - 19.00 Registration 12.00 - 13.15 Welcome Lunch 13.30 - 14.30 Opening Plenary 14.45 - 16.15 Interactive Sessions in Parallel 16.15 - 16.45 Community Break 16.45 - 17.45 Closing Plenary 18.30 - 20.30 Cultural Soirée

FAQ

Where will the meeting take place? The meeting will take place at the National Convention Center (the “NCC”) Gate No.1, Thang Long Avenue, Me Tri Ward, South Tu Liem District, Hanoi, Vietnam http://www.ncc.gov.vn/ Where will I stay? No block hotel reservation has been made, you are kindly asked to arrange your own accommodation. We recommend the following hotel (immediately next to the NCC) JW Marriott Hotel Hanoi No 8 Do Duc Duc Road, Me Tri Ward, South Tu Liem District Hanoi, Vietnam http://www.marriott.com/hotels/travel/hanjw-jw-marriotthotel-hanoi/ What does registration include? Registration covers all of the meeting’s activities and documentation but does not include travel or accommodation. What is the working language of the meeting? The official language of the meeting is English. Simultaneous interpretation will also be provided. By when do I need to register? As space is limited, we recommend that you register before 30 September 2016. Do I need a visa? Please check with the Vietnamese embassy or consulate nearest you for visa requirements. The World Economic Forum is not responsible for providing visas.

Where do I find additional information about the programme? When you register, you will receive access to TopLink, the Forum’s online collaboration and interaction platform, where you will find the latest information about the programme. Who do I contact for more information? Participant Services Team Tel.: +41 (0)22 869 1209 Fax: +41 (0)22 594 8119 Email: [email protected]

The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.

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