prasarn trairatvorakul : the asean economic community ’ s impact on the greater mekong subregion ’ s economies keynote address by dr prasarn trairatvorakul, governor of the bank of thailand, at the euromoney conference “ the greater mekong investment forum ”, bangkok, 12 june 2014. * * * excellencies, honorable speakers, distinguished guests, ladies and gentlemen, 1. it is an honor for me to be back here at the euromoney greater mekong subregion investment forum. let me thank the organizers for inviting me to speak at such a distinguished forum once again. this conference takes place at an important juncture as we are on the eve of the asean economic community which will be launched at the end of next year. my remarks today will focus on how the aec will have meaningful impacts on the gms economies. also, i will share with you some thoughts on how we can overcome challenges to capitalize on the region ’ s growth and prosperity. 2. the gms has become one of the most vibrant regions in the world, transforming itself into a new investment frontier. the global attention on this region is reflected in the large inflows of foreign direct investment, which have increased dramatically in the past two decades. according to world bank statistics, the fdi inflows to the clmv countries over this period increased forty - fold to around 13 billion dollars in 2012. 1 this wealth of investment opportunity has been underpinned by the smooth transition to market - based economies, the rich and diverse resources as well as the improvement of intra - regional logistics. 3. most importantly, we are in an exciting time for the gms when the aec draws closer. as most gms countries are members of the aec, the gms will significantly benefit from the growth opportunities of the aec in the coming years. 4. with integrated markets being forged under the aec, this will greatly benefit the gms through a more interconnected production base. let me give you three key examples where i see this will materialize : 5. first, on the tariff reductions. much has already been completed here, with the group of asean - 6 countries, 2 including thailand, having already removed tariffs for almost all of our products since 2010. the plan according to the aec blueprint, will see clmv countries ’ tariffs being removed by 2015. the benefits will of course multiply throughout production

- india - great - transformation ) bis central bankers ’ speeches adb. 4 to match this huge demand for funds, asean along with china, japan and korea have put in place several initiatives : two key projects include the asean infrastructure fund, which pools regional saving into funds for investment in infrastructure projects and the asian bond markets initiative, which develops and deepens regional bond markets so as to tap regional savings. 15. to conclude, there are great opportunities in store ahead. at the end of the day, the benefits of trade liberalization and infrastructure development will extend to all of us if we work collectively to overcome the challenges. the aec will be a springboard to benefit the whole region, particularly for the gms. this is because the whole region will be more closely knitted, not only in terms of physical connectivity but also in terms of shared production networks. i believe that this conference today will be an excellent platform for us to come together and share our ideas towards realizing long - lasting prosperity in the gms region. thank you. adb website ( 2009 ) ( http : / / www. adbi. org / files / 2009. 08. 31. book. infrastructure. seamless. asia. pdf ) bis central bankers ’ speeches