Issan Regional DevelopmentPosted by Tawan , Reader : 529 , 14:50:08
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The time for Issan Regional Development and planning has arrived. Once again the government needs to reevaluate our spending and budget resources. The majority of mega-project spending is still being spent on Bangkok resulting in a more congested lower quality of life in Bangkok. This goes against all major mega-center trends in Asia. Japan, China and Korea are investing in regional mega-centers that are decentralized resulting in higher standards of living and better quality of life for the nation.
Bangkok is already a mega-center more development will increase a lower quality of life through never ending traffic congestion and pollution. Bangkok already ranks in the top 40 mega-centers of the world. Tokyo is ranked number one.
Already, because of skewed investment favoring Bangkok, its economic output $USD 100 billion out of total $USD 208 billion of Thailand’s economic output. Thailand has a slightly better ranking of worldwide patents ranked 38 in the world so there is no shortage of talent in Thailand to accomplish the goal of regional development.
Japan’s number one rank of global patent activity spikes way above the rest of the world and as the number one investor in Thailand has extensive experience in developing regional mega-centers for Thailand to draw upon. Although, as the graph shows Japan’s rank among citing patent authors is not so high it is mainly due to more papers are produced in Japanese language and thus not cited worldwide a huge loss to the world’s scientific research.
China also is following the global trend of regional mega-center development. China is in the middle of its regional mega-center development with most development along the eastern coast Beijing, Nanjing, Wuhan, Guangzhou, Shenzhen, and Shanghai but China has at least begun its regional development.
At the moment Thailand’s regional development of the Northeastern, North, Central and Southern regions could more closely resemble Korea’s development plans and needs. Korea will be moving 49 government institutions, 12 ministries, 4 Agencies and 2 administrative bodies to the new city of Sejong.
The relocation is critical to encourage decentralized provincial development to relieve congestion in the Capitol area to achieve balanced regional development with decentralization being the focus. Korea has long been developing the Seoul area resulting in severe housing shortage, traffic jams and environmental damage. Seoul will be reborn as the center knowledge base city giving its citizens a better quality of life.
This trend is not only in Asia but also in Europe and the US. Income disparity will continue unless a nation decentralizes economic development. We can learn hard lessons from the US rustbelt experience. Higher standards of living was achieved when GM ruled the world, a drastic reduction in living standards happened when GM fell from the largest US employer and gave rise to the new largest US employer Wal Mart. As anyone can tell you in the rustbelt there is no future in a Wal Mart dominated economic model. Issan’s great leap from agriculture to the industrial age came by the kindness of Bangkok’s vision of OTOP (One Product One Tambon). As anyone can tell you that an industrial age dominated by OTOP is not going to decrease income disparity. It only increase brain drain to America.
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comment 15
Tawan date : 03/04/2008 time : 18.28
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Trade between China and the upland Southeast Asian countries Cambodia, Laos, Myanmar, Thailand and Vietnam had risen impressively, to US$53 billion last year from slightly more than US$1 billion a decade ago.
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comment 14
Tawan date : 03/04/2008 time : 09.51
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ip : 124.157.228.9
Ohiyo gozaimasu wch San. KK University is excellent sourse and the Thai forums very active on shopping trends. We also have good news this week on quality of life improvement in the DA's Office.
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comment 13
wch date : 03/04/2008 time : 09.25
ip : 192.168.0.122/58.8.70.185
Tawan,
I believe you have profound understanding about Udon and its human strata and the culture.
I believe a regional development must have good coordination with external interest.
Therefore knowing them will be important.
Some people of China, Hongkong, Japan, Korea, Singapore and Taiwan may be interested in Udon and Isan culture, that brew any form of investment.
Therefore, Udon province can plan advertisement system in those potential countries and receive them to guide.
Personally I may inform you that a certain amount of study reports about Isan may be available from Khonkaen University and in there is Mekhong Basin Commission office also stocks some data.
PhD degree would be open in the university too in this academic area.
Singapore, Taiwan, Japan, Korea and China
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comment 12
Tawan date : 02/04/2008 time : 14.00
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ip : 124.157.228.237
Wch San You have the same observations that I do.
First some background, I have only been researching at the macro-level for the past 6 months on Issan development in particular Udon Thani. Does not matter which language you search by only a macro-trend study can be performed by internet. Detailed micros not reach there yet for mega-project management time analysis. I have not found a subject or project that has not been studied or is currently in progress. It is like being a kid in a candy store.
First reason, Thailand has fallen behind in e-government development after making considerable gains before the political instability. Recently open source software development has been given the green light again from Bangkok as shown by Udon Thani chosen as being the first in Thailand outside Bangkok to distribute the new International License and also providing IT and software support to Laos. Outside influencing factors that has made this possible comes from Laos, Vietnam and Yunan. Because of Udon Thani’s unique location serves as a natural International-Hub connecting these three countries. Cross-border trade between these three countries and Thailand must be conducted by passing through Udon Thani or Issan.
Historically, Udon Thani’s development first wave came from the Vietnam War boom and the resulting Air Force base in Udon Thani and future close relationship with Vietnam came as Udon helped to hide Ho Chi Minh in Udon from the Americans building a trusting relationship that is beneficial today. Immigration control of Lao people and Vietnamese during this time allowed them to travel only as far as Udon Thani this growth stop after the war. Immigration control contributed to the Vietnamese developing the local food and clothing business as disposable income was zero after the war. The Vietnamese concentrated on the basic Maslow Hierarchy of Needs in providing food and clothing and Thais providing Shelter. This continued from the 1970’s to 2005 the second wave of development. This period allowed Lao people and Vietnamese to marry and become landowners and with capital built up over the years from food, shelter and clothing allowed the Vietnamese to eventually to send their children to Bangkok to become Chinese Thai. Now their children are coming back to Udon Thani to act as liaison for business ventures and tourism between Vietnam and Thailand. This is the third wave of development.
Third wave of development from Bangkok main reason of course is economic opportunity and also lack of opportunity in Bangkok which after decades of adhoc, retrofitting a never ending sprawl of growth similar to Houston Texas has never defined a clear goal and mission statement for the City of Bangkok. Unlike other regional-mega centers like Seoul Korea that has defined its mission statement as the knowledge base and cultural center of Korea and is moving all other sectors out to their regional-mega centers for a more balance economic growth.
Around 2000 it was recognized the potential of Udon Thani natural position as an International-Hub. Infrastructure connecting Udon Thani to Vientiane, Dadang Vietnam and Kunming Yunan is finished. Although, the Udon Thani International Airport lost Tiger Air, the Governor is working to reestablish and expand. During this time Australian and Chinese investment in Gold and other mining and hydro-electric power has made the economic growth from Laos possible. Udon Thani. The city collects fees and 7% VAT from 160,000 Lao people shopping in Udon Thani every month. There are endless trucks carrying goods across the border in Nong Khai. It is estimated over the next 5 years that with only a population of 6 million people in Laos money from mining operations in Laos will continue to contribute to a higher disposable income for a larger portion of the population and with Immigration control still in place a large portion will be spent in Udon Thani. Local Udon Thani businessmen working in Laos describe it at the moment as the Wild West where anything is possible, never-the-less Lao people will soon have economic power and Bangkok will have to look elsewhere perhaps Myanmar for their maids.
Growth from the International-Hub will continue as overseas investment in Vietnam grows and the high demand for Chinese products continue from Yunan helped a lot by the convenience of the annual Chinese Trade Fair in Kunming and already well established Indo-China markets..
Quality of life over Bangkok has contributed to over 30,000 Westerners moving to Udon Thani to escape the sex tourist. This group contributes economically especially in the retail sector. This group are family orientated, highly educated, internationally experience and diverse with a middle class disposable income. Not to mention the ease of having several meeting per day and accomplishing several task per day as opposed to completing one meeting per day in the Bangkok sprawl.
This international diversity is contributing to major private investment in Udon Thani in addition to government funding that is now flowing with political stability. This international diversity is attracting major mega-projects from private investment which both private and government funding is required to develop a mega-regional center.
Korat, Koen Kaen continues to attract retail investment from the Central group. Udon Thani attracts mega-project investment from the Central Group with its Central shopping, Hotel, entertainment and Convention Center downtown Udon Thani. This is a mega-project downtown private investment including UD Center when finished will be the size of Ramkumhaeng district in Bangkok. Ring Road development is for 5-Star Hotels which are in high demand to serve tourist from Bangkok, Laos, and Vietnam and to some degree China. Hyper-Market Chains such as the new Index living Mall (Grand Opening Ceremony attended by I Weir my favorite Issan Idol) the largest in Asia, Global, Home Pro and Lotus.
This area also is attracting logistics, transportation, cold storage Warehousing. Plenty of Rai available for the Retail, Hotel and Logistics private investment as opposed to Koen Kaen limited area. KK major development is the University. This has been a major disadvantage to Udon Thani in the past. The new 2000 Rai development extension of Udon’s Rajaphat University will serve the needs of private investors in the agricultural, logistics, transportation and communication needs of current and future investors.
Private investment in Issan will depend a lot on the restructuring of SET as a regional stock exchange to allow investors to raise capital issuing IPO’s since most have recovered from hard currency based loans. Local financial instruments are being developed and introduces by BOT but caution in the credit markets will slow down implementation throughout 2008.
Mine development problems with bidding process have included picking lowest bidder with no experience or financial resources to guarantee environmental safety the main concern from student protestors. The Canadian firm would result in an environmental disaster due to their lack of experience and financial resources. Value added bids from the Japanese or Australians which have a proven track record in safety should be more highly valued than the lowest bidder. There is no such highest quality at lowest price only result in inferior results.
Agriculture development the actual producers being small rai producers need more investment in local storage to better serve supply and demand and to protect future contracts through local nearby coops to develop economies of scale. This will provide stability. Also further work is being done to connect actual local producer coops with the actual importer eliminating middlemen on a product that already suffers from low margins.
Traffic studies in retail the best resource is the project prospectus from major retailers and given to their trade partners are easy to get. They also go beyond the usual macro analysis and have very detailed localized marketing data gathered by a lot of leg work in the local market. One word of caution when using these studies be very careful in reading short term and long term future analysis assumptions that the data is tied to. If the future assumptions prove to be incorrect by unforeseen outside events it will be a very bad investment as seen in such projects as Future Island in Minburi Bangkok.
With the macro being said, the micro is a different story which requires a lot of leg work among the private sector. The private sector has detail studies made on any project on any sector. The private sector knows information is gold and does not share information. E-Government research studies including University research clings to intellectual property rights protection including International Agencies.
Contraire to the opinion of many Bangkok PhD’s opinion that rural Thais are ignorant, I have not found this to be the case. Regional leaders are much better prepared with local knowledge that Bangkok does not have and also posses regional and international knowledge Issan’s exported workforce also updates people at the grassroots level of international trends.
Every International Agency, Government Body and Private Bodies in Thailand has on-going up-to-date detailed sector project analysis. Your access to the micro-level depends on narrowing down to one sector or project you are interested in and then a lot of leg work the information is there.
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comment 11
wch date : 02/04/2008 time : 08.55
ip : 192.168.0.122/58.8.75.148
Tawan,
This doesn't mean discouraging your brainchild - "Udon Transportation Hub" but I like to add some fundamental questions to be it, to investigate further.
1. To survey the traffic incoming and outgoing, and for what the people come and go from to Udon.
2. To survey what kind of future activities will enhance the traffic.
3. What can Udon offer incoming people.
4. What economic activities are suitable to Udon,
5. What are the supporting HUB's to intertwine Udon Hub.
In my past experience about Udon, the biggest mistake was the refusal of Somboon potash mine development, and further coal and gas exploration.
Mineral industry can motivate its traffic hub of industry, retail, tourism and international relations.
Agro-related industry and its service industries are very much potential in Udon, and Nhong Kai through air, road and river, say" Udon Nhongkai special economic zone" that makes up or contend the Vientiene industrial zone and further the southern China.
Especially chemical fertilizer industry is one of pivotal industry to the region and neighboring countries. For instance, Ammonia can be developed in the region, or imported via future pipeline from Thai natural gas center of Rayong or Nam phong, Khonkaen or potential wells.
Potash is running short globally (Russia and Canada). Udon is undoubtedly important east Asian potentials to feed China, Asean.
In the region, an international airport is needed, and is Udon better than Khonkaen ?.
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comment 10
Tawan date : 01/04/2008 time : 13.29
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ip : 124.157.228.237
Artist drawing UD Centre Udon Thani
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comment 9
Tawan date : 01/04/2008 time : 13.13
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Udon Thani's retail sector is highly developed.
Private investments such as UD Center and Central Group new expansion.
Growth as a hub also brings in revenue as seen by the 160,000 visitors from Laos per month.
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comment 8
Tawan date : 01/04/2008 time : 13.07
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The railroad linkage had an interesting article on the decision to keep the narrow tracks or wider tracks for higher speed trains.
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comment 7
Tawan date : 31/03/2008 time : 15.30
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Subway station stops in Tokyo has scalable living built within a few minutes of walking Department Stores, Housing, Shops, Entertainment and Schools.
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comment 6
Tawan date : 31/03/2008 time : 15.16
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Quote - A major factor is a good public transport concept that grows with the city and is scalable - not retrofitting at maximum cost as has been the case with Bangkok.
Scalable is the key word like in Tokyo the city must be built around the transportation infrastructure, Retrofitting the case in Bangkok does not have to be done in Issan.
Udon Thani has just agian received the Award for best infrastructure planning and implementation. PM Samak was just here this weekend on his way to Laos. Do not know if had any discusion on Udon Thani's transportation Hub needs.
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comment 5
wch date : 31/03/2008 time : 10.56
ip : 192.168.0.113/58.8.72.73
This subject reminds me of my past forum about Bangkok metro traffic system and its linkage to Isan.
The routings of various lines, red, purple, yellow --- must be planned in concept of 'Dispersion of urban saturation" and "Linkage with 4 regions for the integrity of economy, culture and to provide broad living radius of urban and rural people".
Bangkok is not the isolated island but closely related to the regions, especially to Esan highland.
Without Isan's economic population, virtually Bangkok operation is stopped.
12 million Isan people are always on road, Then, it is more than clear what the government must do.
Bangkok metro system, planned is 'INWARD" system, that cultivates more isolation of Bangkok people, promotes more discrimination among regions.
One fast double train line or if possible, a BULLET train must run into Isan region deeply. If Bangkok metro line is rationalized, they can lay a line at least to the junction of Saraburi, from where the Korat, and direct Khonkaen line can be laid.
If "one day round travel" is possible between Khonkaen and Bangkok, Isan will be quickly developed.
Only education in long term, and the fast transportation (redistribution of wealth) in short term, can errode the stone-hard poverty.
Japan did same, "One day round travel between Tokyo- Osaka". Korea did same between Seoul to Busan via many double autobans and bullet trains
(Korea is TGV ?).
Both got rid of the hardcore, rural regions themselves, as many blamed the wealth gab between the rural and the urban.
Remove the rural region out of map, then all problem will be gone at once.
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comment 4
MaxHeadroom date : 31/03/2008 time : 10.27
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Decentralization is almost a must but has to lead away from Bangkok Metropolis AND adjacent industrial zones (Samut Prakarn, Eastern Seaboard, Ayutthaya) as they all contribute to the infrastructure being overwhelmed.
Much budget is needed to develop infrastructure for fast growing cities in Isan like Khon Kaen or Korat. Isan is quickly urbanizing and mistakes made in urban development in the past in Bangkok and surrounding provinces should not be repeated there.
Imagine in a few years cities like Khon Kaen will have over a million people actually living within Muang district.
A major factor is a good public transport concept that grows with the city and is scalable - not retrofitting at maximum cost as has been the case with Bangkok.
Technically, in Isan we won't get these huge funds like BKK - so we will have to do better than Bangkok with much less money.
First corridors have to be linked by high-performance railway links like between Korat - Khon Kaen, Udon Thani.
The later also serve cargo transports.
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comment 3
Tawan date : 31/03/2008 time : 07.36
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ip : 124.157.228.56
Thank you for your help PasaNINJA
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comment 2
PasaNINJA2499 date : 31/03/2008 time : 00.08
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Keep walking forward. Don't give up. Don't fed up.
ip : 124.120.219.182
your vision over Isaan and economy sounds nice.^^ development needs money and knowledge as well. local and thier intellectual shoud be seriously praised and and practically distributed.
p.s.Tanwan, picture uploaded to the Nation weblog should not be larger than 60 KBs, about 40-5o is fitted
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comment 1
Tawan date : 30/03/2008 time : 20.04
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ip : 124.157.228.56
I apologize some graphs got cut off. I am still having page formate problems with graphs, pictures and video.