e: asean.southaustralia@gmail.

com
m: +61 420 880 689
South Australias Strategic Engagement with South
East Asia


2
Executive Summary
The ASEAN Alliance is pleased to be contributing to the strategic direction of the South
Australian South East Asia Strategy. There is ample time and opportunity to explore this
growing region, each at different stages and each with their unique and distinct
characteristics. We have tried to provide specific local knowledge of our own region or
provinces, which we believe have the potential to develop fruitful and meaningful
engagement with South Australia. We now provide a summary of our recommendations:
Recommendation 1: Activate a holistic approach to pursue meaningful opportunities
aligned with common core values
Recommendation 2: Develop small-scale projects, using the Japanese type model
Recommendation 3: Initiate State to Province dialogue model where South Australia
liaises directly with ASEAN countries where comparative advantages can be leveraged
Recommendation 4: Launch a scoping study into relevant provinces in which to engage
Recommendation 5: Build on social capital existing within South Australian ASEAN
communities to develop information partnerships
Country specific recommendations:
Recommendation 6 - Cambodia
6.1 Target growth tourism destinations to promote South Australian wine and
produce.
6.2 Create small to medium sized projects using South Australian contractors to
work with Agricultural industries, in partnership with NGO to improve human
capabilities in knowledge based farming.
6.3 Expansion of Health and Education training partnerships with local
government.


S

6.4 Engage with local government to develop transport infrastructure projects
connecting to tourist destinations
Recommendation 7 - Indonesia
7.1 Gauge interest of small-scale projects that can be applied in specific provinces
in Indonesia from community, NGO and student groups located in South
Australia to develop common themes for engagement
7.2 Encourage greater participation of Indonesian students in South Australian
workforce aligned to their study interests
7.3 Promote South Australia as a destination for Health, Education and Training in
provinces were relationships exist
Recommendation 8 - Vietnam
8.1 Investigate feasibility to expand VietFest activities in South Australia and to
co-ordinate with activities promoting South Australia in Vietnam provinces in
Vietnam.
8.2 Explore opportunities in Khanh Hoa province to export South Australian wine
and to produce high traffic tourist areas
8.3 Explore niche areas where South Australian SMEs can establish a foreign base
to distribute to local Khanh Hoa province
8.4 Investigate the feasibility of Private-Public Partnerships (using a State to
province approach) to develop health and education training contracts.
8.5 Investigate the feasibility of Private-Public Partnerships (using a State to
province approach) into the implementation of knowledge transfer to design
and consult on the construction of Private Hospitals in Khanh Hoa province


4
Recommendation 9 - Lao Peoples Democratic Republic
9.1 Initiate dialogue and engage with the Vientiane Capital,
Luang Prabang City and Champassack Province

Acknowledgements
We would like to acknowledge the South Australian Government for affording us the
opportunity to consult with our group and to lead the discussion as to how South
Australia may engage with the ASEAN community. We would also like to acknowledge
the commitment and time of each of the key contributors from the countries outlined in
this submission and applying their local knowledge to these submissions.




Christina Lien
Convenor
ASEAN Alliance of South Australia
asean.southaustralia@gmail.com
+61 420 880 689



S
Introduction
The first Association of South East Asian Nations (ASEAN) Leaders Summit in 1976 was a
watershed moment. It introduced a significant economic agenda that helped drive
progressive trade and investment liberalization. By the early 1990s, the economies of
ASEANs five original members (Indonesia, Malaysia, the Philippines, Singapore, and
Thailand) and were an integral part of the East Asian Miracle. Remarkably, the group
introduced several cooperative initiatives at a time when its membership considerably
expanded with the admission of Cambodia, the Lao Peoples Democratic Republic (Lao
PDR), Myanmar, and Viet Nam (together known as the CLMV countries)
1
.
Indonesia, Vietnam, Cambodia and Lao Peoples Democratic Republic are represented
within these submissions. We believe these countries have potential to be unlocked and
should be given priority by the South Australian Government by the Office of
International Engagement. The developments within each country show that there is
genuine change processes at the local and national levels and there is ample opportunity
to expand South Australias reach to generate deeper impactful engagement in the long-
term future.
While it can be intimidating to think about the multiple cultures, linguistic breadth and
vast geography that encompass South East Asia, fortunately all South East Asia is open
to external opportunities.
Recent activity of the ASEAN

Recent activity of the ASEAN has committed to launching the ASEAN Economic
Community (AEC) in 2015, which is styled on the European Union, but without a common
currency and some restrictions on movement of citizens. The establishment of the AEC
demonstrates the regions willingness for greater regional integration and policies to
improve institutions that support inclusive and fair development. Beyond the AEC there

1
ADB (2014)ASEAN 2030: Borderless economic community p xii


6
are plans for a borderless community by 2030 as researched by the Asia Development
Bank Institute. These aspirations are set out in its report, discussed below.
Aspirations for a RICH ASEAN
The Asian Development Bank institute has consulted widely with ASEAN member
countries and their respective cultural, academic, community and government groups to
produce the ASEAN 2030: Borderless economic community Report. Within the report,
ADB identifies that, despite ASEAN economies remaining extremely diverse, in response
to the changing international environment, they face common risks and must shape
common strategies to promote development within the region
2
. The comprehensive in-
depth study illustrates the common values the ASEAN region seeks to build their
foundations on, which is to become a resilient, inclusive, competitive and harmonious a
RICH ASEAN by 2030. The ASEAN recognise this is an ambitious target to reach by
2030, as they face the challenges ahead. Each country has its own specific strategy to
meet four key development challenges identified by the ADB study:
Enhancing macroeconomic and financial stability
Supporting equitable growth
Promoting competitiveness and innovation
Protecting the environment
3



2
ADB (2014)ASEAN 2030: Borderless economic community p xxiii
3
These challenges are more broadly outlined and discussed in the ASEAN 2030: Borderless economic community


7
Quality of growth is at the forefront of ASEAN development, as illustrated in the following table:


Role of the AEC
The ASEAN Economic Community Benefit Blueprint
4
outlines the vision and framework
for ASEAN to transform into a region with free movement of goods, services, investment,
skilled labour and freer flow of capital.
More specifically and importantly ASEAN seeks to converge its common interests of
member countries and to deepen and broaden economic integration through existing
and new initiatives
5
:

4
Source: ASEAN on-line http://www.asean.org/archive/5187-10.pdf


8
At the same time, the AEC will address the development divide and accelerate
integration of Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV) through the
Initiative for ASEAN Integration 6 and other regional initiatives. Other areas of
cooperation are also to be incorporated such as human resources development and
capacity building; recognition of professional qualifications; closer consultation on
macroeconomic and financial policies; trade financing measures; enhanced
infrastructure and communications connectivity; development of electronic
transactions through e-ASEAN; integrating industries across the region to promote
regional sourcing; and enhancing private sector involvement for the building of the
AEC.
8. Based on the above and taking into consideration the importance of external
trade to ASEAN and the need for the ASEAN Community as a whole to remain
outward looking, the AEC envisages the following key characteristics: (a) a single
market and production base, (b) a highly competitive economic region, (c) a region
of equitable economic development, and (d) a region fully integrated into the global
economy. These characteristics are inter-related and mutually reinforcing.
Incorporating the required elements of each characteristic in one Blueprint shall
ensure the consistency and coherence of these elements as well as their
implementation and proper coordination among relevant stakeholders. [Emphasis
added]
6

While South Australian relationships with South East Asian countries has been long
standing and strong trade relations in Singapore, Malaysia and Thailand
7
there are of
course further opportunities to diversify to other neighboring countries such as Laos
Peoples Democratic Republic (hereinafter referred to as Laos), Cambodia. These CLMV
countries are still in the earlier stages of their development. The OECDs Economic

5
Ibid, p6
6
Ibid, p 6
7
Source: South Australian South East Asia Discussion Paper


9
Outlook for South East Asia
8
projects that the CLMV countries will grow at a robust pace
over the medium term led by Laos at 7.7% per annum
9
.
Integration and strategically aligning South Australias interests with the above core and
common values of the ASEAN region as well as facilitating trade relations at the
beginning of the AEC can be incorporated into the South Australian South East Asian
strategy.
Efforts should therefore be focused on partnership with local governments in targeted
provinces using government to government dialogue in mind, as well as involving
reputable Non- Governmental Organisations where possible to support and build the
bridges to closer engagement.
It is our opinion that using a holistic model to build bridges is necessary, a model that
can transcend a transactional binary relationship. By using a combination of initiatives
such as developing human capability in the health, food technology in the agribusiness
sector and opening further avenues for educational scholarship can be used as tools for
sustainable and forward looking development. South Australia has niche specialist
expertise in a variety of sectors and the Premiers 10 Point Plan highlights these
strengths. It is for these reasons that we believe it is also the right time for South
Australia to leverage its own human capital for engaging with Laos, Cambodia, Vietnam
and Indonesia, as set out within these submissions.





8
0ECB (2u1S), Economic 0utlook foi South East Asia, China anu Inuia 2u14: beyonu the Niuule- Income Tiap
9
Ibiu p 24


1u
Example of holistic model Japan narrows the development gap
Engages on various sub-regional development endeavours
Japan is continuing to support strengthen the capacity of CLMV countries through
the Initiative for ASEAN Integration Work Plan II.
Japan also supports other sub-regional development areas within ASEAN such as
the Greater Mekong Sub-region and Brunei Darussalam-Indonesia-Malaysia-
Philippines-East ASEAN Growth Area (BIMP-EAGA) to promote economic and
social development of the sub-regions.
Increased maritime security cooperation with Cambodia and created a framework
for holistic engagement with Laos on a range of development, defense and
security issues.

Recommendations:
Recommendation 1: A holistic approach needed to pursue meaningful opportunities with
Laos, Cambodia, Vietnam and Indonesia.
Recommendation 2: Develop small-scale projects, using the Japanese type model
Recommendation 3: Initiate State to Province dialogue model where South Australia liaises
directly with ASEAN countries where comparative advantages can be leveraged
Recommendation 4: Launch a scoping study into relevant provinces in which to engage
Recommendation 5: Build on social capital existing within South Australian ASEAN
communities to develop information partnerships





11



Cambodia
Key Contributors
Sovan Vith
Completing a Master of Global Food and Agricultural Business, University of Adelaide
Technical officer at GRET (Group of Research and Exchange Technology) (NGO),
specialising in food technology, production and quality.
Sokchea Saing
Completing a Master of Public Administration, Flinders University
Founder, Attitude Centre for Education (NGO), specialising in providing holistic
educational services in Phnom Penh
Consultation attendees
(L-R) Sovan Vith, Tuon Sayvuoy, Ing Chhaypor, Sokchea Saing


12
Country overview
With a population of 15 million people and an average GDP growth rate of
approximately 7% (between 2010 and 2013), Cambodias major domestic industry
sectors are the textile/garments industry, construction, agriculture and tourism. Main
exports include clothing, timber, rubber, rice, fish, tobacco, and footwear. Major imports
include petroleum products, tobacco products, rare earth minerals, construction
materials, machinery, motor vehicles, and pharmaceutical products
10
.
Generally, the people of Cambodia have witnessed political stability, especially after the
recent elections and there is a steady rise in demand to reform for more governance and
accountability. Optimism for reform is driven by a growing middle class who are driving
private consumption growth, as economic development has been fast paced
11
. It is
hoped that the changes will contribute to Cambodias new chapter for economic
development.
Cambodias strategic focus
Cambodias Trade Integration Strategy 2014-2018
12
Report sets its targets on
strengthening the competitiveness of its established sectors and nurturing new ones
13
. It
recognizes that trade sector competitiveness is critical to growth in the provision of
better employment outcomes and generating incomes to alleviate poverty. Cambodia
recognises that the challenge to connect trade expansion with poverty reduction, gender
equality and greater inclusiveness remains.
Cambodias rapid growth in export-orientated agricultural sectors in rural areas and
emerging diversification in the number of tourism destinations holds great promise
14
.
OECD reports that further promotion of agricultural and rice production should be a

10
The Economist, Country profile, http://country.eiu.com/cambodia
11
OECD (2013), Economic Outlook for South East Asia, China and India 2014: beyond the Middle- Income Trap, p 112
12
Cambodia CTIS 2014-2018 Full Report
13
Ibid, p 13
14
Ibid p14


1S
priority and secondly, financial sector reform in the areas of implementing a prudential
and supervisory framework to ensure financial stability
15
.
Emerging markets for key engagement opportunities
Tourism
The trend of tourism industries has been growing gradually. There is optimism in
Cambodias tourism trade that Cambodia it may become one of the leading tourist
destinations in the world within 10 years. Development of beach-oriented tourism is
beginning to spread away from Sihanoukville into the surrounding coastal provinces.
Eco-tourism is getting a foothold in the countrys Northwest and Cardamom Mountains.
These and other developments are pulling growth of the hospitality sector into new
provinces and regions.
Cambodia may therefore demand more hospitality-related products and services. This
could be a consideration for South Australia to promote its products, wine in particular.
Despite the growth in tourism, there is a need to improve infrastructure to ensure
sustainable growth in the sector. OECD cites that this is problematic, as the transport
infrastructure is not yet fit for the tourism purposes.
Agriculture
In agriculture-oriented sectors, the growing focus on export of semi-processed
agricultural commodities or processed food is bringing new, modern processing
activities into newer areas
16
. Agriculture is a priority for Cambodias strategy for poverty
reduction. Establishing trade links with South Australias Small to Medium business to
access this market would align with South Australias 10-point plan. There is opportunity
for consultancy firms specialising in agriculture and business to make their mark in any
one of the areas in this sector, given South Australias specialist knowledge in food

1S
0ECB (2u1S), Economic 0utlook foi South East Asia, China anu Inuia 2u14: beyonu the Niuule- Income Tiap, p 112
16
Cambodia CTIS 2014-2018 Full Report , p18


14
technology and agricultural irrigation systems for example in rice farming. Areas such as
food production, standard certification, processing, packaging, other technologies,
policy, research, and trade related matters could generate these mutually beneficial
outcomes. This is also a key recommendation by OECD, which urges collective action
and knowledge-base farming to improve labour productivity is crucial
17
.
Food and Beverage
Observations and trends of Cambodias middle class have seen a shift in demand for
higher quality products. Provision of South Australias premium food and wine would be
highly recommended. Especially in the areas of South Australias Dairy industry, Beef,
Pork and Chicken exports.
Cambodia imports the above products from neighboring countries; but a new player
such as South Australia with its superior quality would be highly received; this is also
aligned to the South Australian 10 point plan.
Health
As a rapidly growing economy and population base, Cambodia has a booming
requirement for health industry services such as health insurance, new hospitals, allied
health and other related professional services.





17
OECD (2013), Economic Outlook for South East Asia, China and India 2014: beyond the Middle- Income Trap, p 115


1S
Province in focus: Kampong Thom
Kampong Thom (Grand Port in English)
18
is a province located in the centre of
Cambodia. It is Cambodias second largest province by area with a total land area of
15,061km
2
divided into 8 districts, 81 communes and 477 Villages and the total
population of 576,805 people. The province is divided into two parts: the Eastern part
which consist of forests and plateau, rich in natural resources which are good for
agriculture, forestry and animal husbandry and the Western part which consist of the
plain area and is good for rice growing and fishing supporting the needs for the whole
province and exporting to others. In 2005, Kampong Thom was a significant harvester of
wild fish (18,800 tons) and the fourth largest producer of fish through aquaculture in
Cambodia (1,800 tons). Most fish-raising is home production, with a growing segment
devoted to rice field aquaculture (Save Cambodia's Wildlife, 2006). Kampong Thom is
also one of the largest producers of cashew nuts in Cambodia (Ministry of Agriculture,
2004).
Recommendations
1. Target growth tourism destinations to promote South Australian wine and produce

2. Create small to medium sized projects using South Australian contractors to work with
Agricultural industries, in partnership with NGO to improve human capabilities in
knowledge based farming.


18
Angkor Tuk Tuk Travel: Discover Angkor Tour by local Khmer people, http://www.angkortuktuktravel.com/, accessed date: 24
th

September 2014; Ministry of Agriculture, Forestry & Fisheries, The Fruit Crops: Agricultural Statistics, 200304, Phnom Penh, 2004;
Save Cambodia's Wildlife. The Atlas of Cambodia: National Poverty & Environment Maps, SWC, Phnom Penh, Cambodia, 2006,
pp. 7881.



16
3. Expansion of Health and Education training partnerships with local government.

4. Engage with local government to develop transport infrastructure projects connecting
to tourist destinations.




17

Indonesia
Key contributors:
Gilang Rahmadan
Completing a Master of Public Administration, Flinders University
Internal Auditor, Ministry of Finance
Jackson Yumame
Completing a Master of Public Administration, Flinders University
Lecturer, Cenderawasih University, Papua province
Consultation attendees:
(L-R) Devi Octavia, Nur Asni, Dyah Laksita, Jackson Yumame, Gilang Rahmadan, Anggun
Wibowo, Andi Wahyudi, Irmasari Nenobais


18
Country overview
As a relatively young democracy, Indonesia shows signs of resilience and an enduring
commitment to unity in diversity. Geographically, Indonesia is an archipelago containing
approximately 17,000 islands and almost 250 million people. The Australian Department
of Foreign Affairs and Trade (DFAT) describes the relationship between Australia and
Indonesia as:
A highly productive and broad-based partnership that encompasses business,
education, defence, security and people-to-people links. The strength of the
relationship can be seen in the depth and breadth of high-level exchanges between
leaders, ministers and prominent people of both countries.
Australia and Indonesia cooperate in practical ways on a wide range of international
and regional issues particularly in multilateral forums such as the East Asia Summit,
the G20 and APEC. Australia is also committed to a long-term development
partnership with Indonesia.
19

Strategic focus of Indonesia
Presidentelect Joko Jokowi Widodo is known as the reform-minded leader
20
who will
encourage business sector growth. As former Jakarta Governor, he was a middle class
furniture entrepreneur who served as Mayor of the mid-sized city of Surakarta in Central
Java, where he built a consensus for a series good government reforms that attracted
nationwide attention.
Recent reports have indicated that Jokowi may focus on the resource rich region of West
Papua, an impoverished Melanesian- Christian ethnic majority.
21


19
BFAT Countiy piofile
2u
}okowi pleuges Eneigy iefoim, but points to insiuei, Septembei 24 2u14http:www.thejakaitapost.comnews2u14u924jokowi-
pleuges-eneigy-iefoim-appoints-insiuei-team.html
21
http:www.smh.com.auwoilujoko-wiuouo-piomises-to-focus-on-west-papua-2u14u82S-1u7juu.html


19
In terms of Indonesias strategy, its National Medium- Term Development Plan 2010-
2014 (Rencana Pembangunan Jangka Menengah Nasional 2010- 2014) is the second
phase of the National Long-Term Development Plan 2005- 2025, which aims to make
Indonesia a more advanced, peaceful and democratic nation. The plan informs
government agencies in their development of their respective strategic plans to achieve
the goals pronounced within. Regional governments also must take this medium term
plan into account when formulating or adjusting their respective regional development
plans. Important part of the Indonesian government's intention to become one of the ten
major world economies by 2025 is the Masterplan for Acceleration and Expansion of
Indonesia's Economic Development (MP3EI). This recently unfolded long-term program
envisages a high degree of cooperation between the central government, local
governments, state owned enterprises and the private sector. The private sector in fact
has a vital role to play in this masterplan (in the form of PPP schemes) as it is expected to
contribute the bulk of financing
Key engagement opportunities
Potential is in the provinces
Strategically, South Australia should engage with Indonesia through focusing on key
provinces, where social capital generated from the networks that already exist here in
South Australia.
Cultural and community groups, students and businesses within South Australia provide
the flow of information for deeper engagement. A willingness on the South Australian
Government to develop small scale projects that align with region specific initiatives and
South Australias 10 point plan, especially after a student has returned to their home
region (in the case for Australian Award students) can strengthen already existing ties
and develop South Australias long term relationships at the people to people level. See
for example, province in focus, Papua, below.


2u
Is the environment encouraging?
As recommended by this submission a holistic approach using a state to region
relationship would be beneficial. Indonesia adheres with a decentralised system, which
means that there is greater autonomy in local/regional government authorities. Regional
governments have the responsibility and authority to initiate policies that will affect
several smaller regional cities. For example, policies in the implementation of public
transport systems or allocation of industries areas.
Province in focus: Papua Province
Special autonomy and its advantages
In 2001 the central government gave special autonomy (local autonomy) to this province
in which this province has more authority or local autonomy to manage their region.
Further, the government also increased the budget of this province as the way to
accelerate the development. The focus of the development is to improve education and
health services, infrastructures and strengthen local economy.
Through this policy (special autonomy), Papua province has more authority to work
together with stakeholders nationally and internationally including the development of
government to government partnerships. It aims to produce mutual beneficial outcomes
between Papua and stakeholders with other governments as the way to improve the
development in both regions. Past projects have included priority of students to study
abroad, encouraging international trade in specific regions and promoting culture and
tourisms sites.
The Papua government has committed to external local governments to work together
to create partnerships in education, health, infrastructure and local economy.




21
Location
Papua Province lies between 20 25 North Longitude 90 South Longitude and 1300
1410 East Longitude. In the Northern part there is Pacific Ocean. The Southern part there
is Arafuru Sea and Western part is Seram Sea, Banda Sea, and Maluku Province. The
Eastern part is Papua New Guinea. Papua Province with area 317.062 Ha is the greatest
province in Indonesia. Jayapura is the capital of the province. Merauke Regency with
43.979 Ha or 13,87 % of Papua Province is the greatest regency. While, Yalimo Regency
with 775 Ha or 0,24 % of Papua Province is the smallest regency in Papua Province
Government (administration division)
As of 2011, the residual Papua Province consisted of 28 regencies and one autonomous
city these regencies are subdivided into 117 districts, and then it is divided into 66 sub-
districts and 830 villages.
Key opportunities for engagement
Education
Literacy levels in Indonesias Papua region is lower compared to its other regional
neighbours. Even though Indonesia is on track to achieve universal primary education by
2015 as part of the Millennium Development Goals. Progress has been uneven. The
People-Centred Development Programme (PCDP) is run by the Institute of Community
Development and Empowerment (IPPM) has shown that improvement can be realised. In
2011, the school received a Millennium Development Goal runner-up award, a national
recognition organized by the Government of Indonesia. PCDP, with funding from the
governments of the Netherlands and New Zealand, is working with civil society
organizations (CDOs) like IPPM to increase access to basic education and health services,
particularly to communities in rural and remote areas. Many local governments are now
replicating this initiative with funds sourced from the local government budget (APBD).



22

Indonesian suggestions for South Australias meaningful relationship
Collaborative efforts in cultural tourism
Example: working with private sector firms, universities and targeting regions within
Indonesia to expand both South Australian tourism and spur Indonesian interest.
South Australia is relatively unknown in many parts of Indonesia, should South Australia
choose to approach targeted regions for deeper engagement, it may want to establish a
South Australian desk in that region specifically to promote South Australias brand, or
work collaboratively with South Australian universities to lift the profile of South
Australias strengths. This could be embedded in various collaboration activities film
festivals, youth leadership programs, annual South Australian tourism/ health/ education/
agricultural summits in targeted provinces.
Generate internship/exchange opportunities beyond the undergraduate level:

Example: Develop human capabilities of Indonesian public sector workers with the South
Australian public sector.
South Australia has a high quality education and large public sector. A partnership in the
form of a short-term internship or exchange between two parties would be beneficial for
post-graduate Indonesian students looking to extend and understand the principles and
practicalities in the provision of public sector services outside a university setting.


2S

Recommendations
1. Gauge interest of small-scale projects that can be applied in specific provinces in
Indonesia from community, NGO and student groups located in South Australia to
develop common themes for engagement.
2. Encourage greater participation of Indonesian students in South Australian workforce
aligned to their study interests.
3. Promote South Australia as a destination for Health, Education and Training in
provinces were relationships exist.





24

Vietnam
Key Contributors:
Yen Tran Thi Thu
Completing Masters of Public Administration, Flinders University
Assistant to Vice Chairman, Peoples Council & Peoples committee, Khanh Hoa Province
Tran The Phung Phan
Graduate of Masters in Public Administration, Flinders University
Consultation attendees
(L-R) Nguyen Dinh Toan, Lien Nguyen Thi, Hoang Thi Lan, Yen Tran Thi Thu, Tran The
Phung Phan


2S

Country overview
Vietnam and Australia has celebrated its 40th anniversary of bilateral diplomatic ties in
2014. With its strategic geographical location of the two countries in the Asia - Pacific
region, developing meaningful and fruitful partnerships between South Australia and local
provinces within Viet Nam can be established with initiatives from both sides.
Strategy of Vietnam
Vietnam has successfully modernised its economy and produced impressive growth and
poverty reduction. The Socio-Economic Development Strategy (SEDS) 2011-2020
22
gives
attention to structural reforms, environmental sustainability, social equity, and emerging
issues of macroeconomic stability. It defines three "breakthrough areas": (i) promoting
human resources/skills development (particularly skills for modern industry and innovation),
(ii) improving market institutions, and (iii) infrastructure development. The overall goal is for
Vietnam to lay the foundations for a modern, industrialized society by 2020
23
.
Key Opportunities for engagement
While the existing relationship between Australia and Vietnam has been a healthy one,
particularly utilising the liberalisation of regional trade, with the implementation of the Free
Trade Area ASEAN-Australia-New Zealand agreement. It is our suggestion that South
Australia should focus on generating greater commercial participation of its small to
medium enterprises and exposing South Australian products to new markets within
Vietnam. Particular focus on modernised areas and receptive local government may also
generate stronger sister-to-sister city exchanges.

22
Sourced from www.economica.vn Unofficial Translation.
23
http://www.worldbank.org/en/country/vietnam/overview


26
Cultural exchange: VietFest- South Australia
South Australian Vietnamese Students held the inaugural VietFest in South Australia on
23
rd
May 2014. That event promoted traditional cultural activities and community
engagement. It was a successful event, which demonstrated the Vietnamese students
enthusiasm and initiative for greater cultural exchange. Many of the students organising the
VietFest celebrations have or will return to Vietnam and keep the memory of the day alive
24
.
We see this as an opportunity for South Australia to expand on this development by
coordinating a reciprocal South Australian promotion by South Australian Alumni and
Expats in Vietnam perhaps on the same day to celebrate and mark the strength of the
relationship between each country.
Province in focus: Khanh Hoa
Khanh Hoa province is located South of Central Vietnam and is known for its tourism and
beachside attractions. It is a popular destination for travel because of its popular site -
Nha Trang. The population of Khanh Hoa province is approximately 1,160,100 million.
The area, including land and 200 islands, archipelago is 5.197 square kilometers. Its
advantages are that is has a developed and modern road, railway, seaway and airway
system. The local economy also relies on seafood exports and is known as the birds
nest for export; it has developed its strengths as a market leader in aquaculture and has
advanced irrigation system, developed the technology to enhance the quality of
produce.
Khanh Hoa is also a military base because of its position near the maritime port adjacent
to the Spratly Islands and Cam Ranh.
Tourism
Khanh hoa is a market leader in tourism as it is in the top ten destinations to travel to due
to Nha Trang, which is a coastal city and capital of Khanh Hoa Province. It has a

24
https://www.facebook.com/viet.festival.adelaide


27
reputation for its pristine beaches and many other tourist attractions. In 2013, Nha Trang
received over 3 million arrivals, including over 700 thousands foreigners, increase 29% in
2012. At present, 540 lodging establishments consisting of 15 000 rooms including 48
hotels from 3-5 stars with 4800 rooms.
The tourism sector is moving toward a green industry in terms of preserving its
environment for the purpose of tourist activities and attractions for example, developing
resorts, Eco tourism, cultural tourism and diving, water-skiing, tourism, Hot springs and
mountainous regions. Foreign companies have been known to develop in this province
as the economic climate and local government services are welcoming.
Khanh Hoa local government also focusses on exporting high quality products produced
by foreign firms. As part of this process Vietnamese workers are usually employed to
manufacture these goods. The economic climate makes Khanh Hoa province attractive
for foreign investment.
In terms of facilitating foreign firms, Khanh Hoa local government has in the past and will
continue to do so in the future co-ordinate a resettled zone and ensure that the
necessary infrastructure or accessibility to the site is available.
Khanh Hoa has prioritised manufacturing firms that produce the hi-tech and high quality
products for export. For example, agricultural products, building materials, building and
repairing naval ships. It also has recent approval for the development of oil refinement
projects, thermoelectricity in order to boost its economy.
Health and Education sector
Key priorities for Khanh Hoa are to develop the health and education sector. While the
local economy is attractive to many tourists, its public health system is constantly under
pressure from overcrowding due to demand for services by patients who live outside the
locality. While this is not a province specific problem, in fact it is country- wide, Khanh
Hoa province is looking to find private hospital projects to ease the crowding and
develop its human capabilities in treating patients.


28
Vietnams Socio-Economic Development Strategy for the period 2011- 2020 recognises
its limitations in human development and capital. It has been Khanh Hoas priority to
encourage participation within the education and training system by finding quality
teachers to rectify the mismatch between labour supply and demand and deliver the job
related and cognitive skills the market requires.
Recommendation:
1. Investigate feasibility to expand VietFest activities in South Australia and to co-
ordinate with activities promoting South Australia in Vietnam provinces in Vietnam.

2. Explore opportunities in Khanh Hoa province to export South Australian wine and
produce high traffic tourist areas.

3. Explore niche areas where South Australian SMEs can establish a foreign base to
distribute to local Khanh Hoa province

4. Investigate the feasibility of Private-Public Partnerships (using a State to province
approach) to develop health and education training contracts.

5. Investigate the feasibility of Private-Public Partnerships (using a State to province
approach) into the implementation of knowledge transfer to design and consult on
the construction of Private Hospitals in Khanh Hoa province.





29


LAO PEOPLES DEMOCRATIC REPUBLIC
Key contributor
Viengsone Leuangkhamsing
Completing Masters of Public Administration, Flinders University
Academic, Ministry of Home Affairs
Consultation attendees:
(L-R) Bounsouan Xaiasinh, Amphon Viphongxay, Viengsone Leuangkhamsing,
Danaphone Chaleunsouk and Sackalin Louangrath.




Su
Country overview
Laos is a beautiful mountainous country with natural unspoilt tropical forest. The country
is widely known as the friend to everyone and enemy of no one. Although it is a mid-
sized landlocked country with a population of approximately 6.48 million, its economic
growth has been impressive in recent years.


(Worldbank)

While economic growth reached an impressive 8.3 per cent during 2011 (real GDP),
inflation remained relatively high at 8.7 per cent. Much of the growth in the economy
during the past six years (averaging 8 per cent) has been spurred by mining and
hydropower exports
25
.
In July 2011, the continuing economic growth of Laos lead to its reclassification by the
World Bank from a low income to a lower-middle income country. This increased
progress also lends credence to the possibility that the Lao Peoples Revolutionary Party

2S
Roberts, C. B. (2012). Laos: A more mature and robust state?. Southeast Asian Affairs, 2012(1), 153-168.



S1
(LPRP) may be able to realise its Millennium Development Goal (MDG) to no longer be in
the United Nations list of least developed countries by 2020 (Robert 2012, 157).
Geography and History
The country is geographically confined by five bordering countries and due to its history,
still suffers from the consequences of colonialism, civil war and foreign conflict. Between
117 to 300 Lao die each year from contact with one of the 270 million UXO, unexploded
cluster bomlets dropped by the United States during the Vietnam War (Roberts 2012,
p155).
Economy
Lao economy is also benefiting from the small but rapidly growing sectors of
manufacturing (mainly textiles) and tourism both important sources of employment. In
the case of the manufacturing sector, the Development Plan has committed to 15 per
cent annual growth through to 2015. Despite the global financial crisis, the government
is already well on track with this target as garment exports to Europe increased by 30 per
cent in 2011.12 In the case of tourism, the Development Plan seeks to increase the
number of annual arrivals from an average of 1.76 million (200610) to 2.8 million people
per year.
To this end, the government opened a new runway at the Luang Prabang international
airport and re-established the Vientiane-Singapore route.
The rapidity with which the economic environment within Laos is changing was also
demonstrated by the opening of its stock exchange in January 2011. However, these
measures will not be adequate on their own. For example, the manufacturing and
tourism sectors in Laos typically involve small and medium enterprises (SMEs), which are
relatively more vulnerable to problems in the current investment climate. For example, in
2011 the World Banks Ease of Doing Business report downgraded Laos ranking by two
positions to 163.14 Further, within Transparency Internationals Corruption Perceptions
Index, Laos was ranked 154 out of 182 countries for public-sector corruption.


S2
The countrys current investment climate needed improvement.
Moreover, despite significant foreign investments in the natural resource sector, most of
the foreign enterprises largely employ foreign labour due to a lack of adequate
vocational skills and/or education.
Further, in 2011 the United Nations estimated that 33.9 per cent of the population
continued to live in poverty. Under these conditions, approximately 40 per cent of the
population lacks food security for three to four months of the year and there is a strong
nexus between childhood malnutrition and the stunting of growth with the latter
affecting an estimated 48 per cent of the population.
Provincial focus

The Lao Seventh Five- year National Socio- Economic Development Plan (2011 2015)
aims to develop each region by developing economic centre points in the three broad
regions of the country.

It will be important for South Australia to observe these developments and the cities
where socio- economic development in specific zones will be prioritised.

For example, Luang Prabang City and Xai District in the north, Vientiane Capital in the
centre and Champassack Province in the South. It is planned that these cities will
become the economic core of the country for industrialisation and modernisation. Should
that happen, then it is planned that these central regions will spearhead services and
respond to international integration.
Recommendation
1. Initiate dialogue and engage with the Vientiane Capital,
Luang Prabang City and Champassack Province


SS



S4
References
Angkor Tuk Tuk Travel: Discover Angkor Tour by local Khmer people,
http://www.angkortuktuktravel.com/, accessed date: 24
th
September 2014
Ministry of Agriculture, Forestry & Fisheries, The Fruit Crops: Agricultural Statistics, 200304,
Phnom Penh, 2004.
Save Cambodia's Wildlife. The Atlas of Cambodia: National Poverty & Environment Maps, SWC,
Phnom Penh, Cambodia, 2006, pp. 7881.

ASEAN (2008) Economic Community Benefit Blueprint retrieved from
http://www.asean.org/archive/5187-10.pdf

DFAT Country profile - Indonesia

OECD, South East Asia Outlook http://www.theguardian.com/global-
development/datablog/2012/nov/18/oecd-south-east-asia-economic-outlook
The Economist, Country profile, http://country.eiu.com/cambodia

OECD (2013), Economic Outlook for South East Asia, China and India 2014: beyond the Middle-
Income Trap

Cambodia CTIS 2014-2018 Full Report
DFAT Country profile
okowi pledges Energy reform, but points to insider, September 24 2014
http://www.thejakartapost.com/news/2014/09/24/jokowi-pledges-energy-reform-appoints-insider-
team.html
http://www.smh.com.au/world/joko-widodo-promises-to-focus-on-west-papua-2014082

Jokowi pledges Energy reform, but points to insider, September 24 2014


SS
http://www.thejakartapost.com/news/2014/09/24/jokowi-pledges-energy-reform-appoints-insider-
team.html
http://www.smh.com.au/world/joko-widodo-promises-to-focus-on-west-papua-20140823-
107jd0.html3-107jd0.html

World Bank, Vietnam Overview
http://www.worldbank.org/en/country/vietnam/overview
World Bank, GDP growth Data
http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG/countries/LA-4E?display=graph)
www.economica.vn