VZCZCXRO7835
PP RUEHCN RUEHDT RUEHHM
DE RUEHCHI #0011/01 0221422
ZNR UUUUU ZZH
P 221422Z JAN 08
FM AMCONSUL CHIANG MAI
TO RUEHC/SECSTATE WASHDC PRIORITY 0649
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHCN/AMCONSUL CHENGDU PRIORITY 0066
RUEHGZ/AMCONSUL GUANGZHOU PRIORITY 0027
RUEHBK/AMEMBASSY BANGKOK PRIORITY 0830
RUEHCHI/AMCONSUL CHIANG MAI 0703

UNCLAS SECTION 01 OF 06 CHIANG MAI 000011 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BEXP BTIO TH LA CB CH
SUBJECT: BFIF REQUEST FOR CHIANG MAI, VIENTIANE, AND PHNOM PENH 
 
REF: 07 STATE 159597 
 
CHIANG MAI 00000011  001.2 OF 006 
 
 
------- 
SUMMARY 
------- 
 
¶1. The Greater Mekong Subregion's North-South and East-West 
corridors form a "golden gateway" linking southern China and all 
the countries of mainland Southeast Asia.  This vast market 
provides significant opportunities for U.S. businesses.  At the 
heart of the Greater Mekong Subregion are three U.S. missions - 
Chiang Mai, Vientiane, and Phnom Penh - all of which are 
non-commercial presence posts.  Our three posts are pleased to 
submit a joint request for support from the Business 
Facilitation Incentive Fund (BFIF).  Our proposal centers on 
collaboratively holding a series of conferences that will bring 
together U.S. and regional business executives to explore the 
development of new opportunities in this dynamic region.  We are 
pleased to have support in this effort from Embassy Bangkok, 
ConGen Chengdu, the American Chamber of Commerce in Bangkok, and 
the United Parcel Service.  End Summary. 
 
------------------- 
REQUEST FOR FUNDING 
------------------- 
 
¶2. Consulate General Chiang Mai is pleased to submit a request 
for funding from the Business Facilitation Incentive Fund (BFIF) 
for FY2008 on behalf of the following posts:  Consulate General 
Chiang Mai, Embassy Vientiane, and Embassy Phnom Penh.  Though, 
as non-Commercial Service posts, our resources for business 
promotion and commercial outreach are limited, the eagerness of 
these three posts to engage in these activities both 
independently and cooperatively makes us strong candidates for 
BFIF support.  Our posts appreciate the opportunities that the 
BFIF provides to small posts like Chiang Mai, Vientiane, and 
Phnom Penh, which are located at the heart of a key economic 
region, the Greater Mekong Subregion (GMS).  Posts appreciate 
the Department's careful consideration of our proposed projects. 
 
------------------- 
OUTLINE OF PROPOSAL 
------------------- 
 
¶3. Because of the regional nature of economic development in 
mainland southeast Asia through the Greater Mekong Subregion 
(GMS) project, Consulate General Chiang Mai, Embassy Vientiane, 
and Embassy Phnom Penh have worked collaboratively to produce 
one BFIF proposal that includes proposed projects for the 
subregion and the individual posts.  Posts organized this 
proposal as follows: 
 
  ¶I. Proposed Collaborative Regional Projects 
 
  II. Proposed Chiang Mai Projects 
 
  III. Proposed Vientiane Projects 
 
  IV. Proposed Phnom Penh Projects 
 
 
------------------------------------------- 
¶I. PROPOSED COLLABORATIVE REGIONAL PROJECTS 
------------------------------------------- 
 
¶4. The Greater Mekong Subregional Economic Cooperation (GMS-EC) 
program is a regional effort among the countries and provinces 
of the Mekong river basin to develop infrastructure with the 
goal of expanding trade and growth in the region.  Though 
transportation - specifically the development of north-south and 
east-west highways - is the most active component of the GMS-EC 
program, other components include cooperation on 
telecommunications, tourism, the environment, and human resource 
development.  At the heart of the GMS-EC program are three U.S. 
missions - Chiang Mai, Vientiane, and Phnom Penh - which are all 
non-commercial posts.  (Consulate General Chengdu is also active 
in this proposal but is a commercial-presence post and is not 
requesting funding.)  The three non-CS posts are requesting BFIF 
support to host or support a series of two conferences in FY2008 
in Chiang Mai and Phnom Penh and a third and final conference 
organized by Embassy Bangkok in FY2009.  Each post will organize 
its respective conference as described in the following 
paragraphs. 
 
¶5. GMS-EC Conference #1: Developing the Logistics Sector in the 
Greater Mekong Subregion.  Consulate General Chiang Mai is 
pleased to request BFIF support for the first of this proposed 
series of conferences related to the GMS-EC program.  Northern 
Thailand, specifically the nine most northern provinces of 
Chiang Mai, Chiang Rai, Phrae, Phayao, Nan, Lampang, Lamphun, 
Mae Hong Son, and Tak, serves as a crossroads for the 
 
CHIANG MAI 00000011  002.2 OF 006 
 
 
North-South and East-West corridors of the GMS-EC program.  In 
addition to the growth of infrastructure, a key sector that 
local business and government leaders expect will benefit from 
the GMS-EC program is logistics. 
 
¶6. Post proposes, therefore, that the first of this series of 
conferences focus on the development of the logistics sector. 
Post recommends a two day conference including speakers from the 
public and private sectors in Thailand, China, Laos, Cambodia, 
and the U.S.  Recommended topics from local industry leaders 
include human resource development, managing trade in services, 
logistical management of the GMS transportation network, and a 
case study of the logistics of the U.S.-Mexico trade 
relationship. 
 
¶7. The estimated cost for the conference at a local hotel is 
$15,260 (including $5,260 for hotel space and coffee hours; 
$6,000 for airfare for approximately 10 speakers from 
neighboring posts; and $4,000 for translation services in Thai 
and Chinese).  The United Parcel Service (UPS) has agreed to 
sponsor one evening reception, and the American Chamber of 
Commerce in Bangkok has agreed to reach out to other relevant 
U.S. companies for participation.  Post will plan for the 
conference from January through mid-March, with the conference 
taking place March 18 and 19, just prior to the 175th 
anniversary of the establishment of U.S.-Thai diplomatic 
relations on March 20.  Post will evaluate the success of this 
conference based on surveys conducted at the conclusion of the 
event. 
 
¶8. GMS-EC Conference #2: Developing the Energy Sector in the 
Greater Mekong Subregion. Embassy Phnom Penh is pleased to 
request BFIF support for the second of these proposed series of 
conferences related to the GMS-EC program.  Along with 
transportation networks, the GMS countries have agreed to 
develop an interconnected power transmission grid which will 
allow GMS countries that produce surplus energy to sell it to 
other GMS countries, leading to business opportunities in 
efficient energy production and distribution. 
 
¶9. Cambodia's electricity infrastructure is the least developed 
in the region, and prices for electricity are among the highest. 
Most electricity is generated using heavy fuel oil or diesel and 
costs $0.20/Mwh in the city and up to $1.00/Mwh in rural areas, 
significantly higher than in neighboring countries. Despite the 
high prices, demand for energy is increasing 20% annually, with 
high levels of economic growth putting pressure on the already 
overburdened system. Regionally, high levels of economic growth 
are also putting strain on domestic producers, who must identify 
new opportunities to increase production capacity. To address 
this problem, the Cambodian government expects to cooperate with 
the construction of GMS power transmission lines and is seeking 
$3 billion in energy-production investment. Government leaders 
believe Cambodia has potential for the development of 
hydropower, as well as other alternative and traditional forms 
of power generation. 
 
¶10. Post proposes, therefore, that the second of this series of 
conferences be hosted in Cambodia and focus on the development 
of the energy sector.  Post recommends a two day conference 
including speakers from the public and private sectors in 
Cambodia, Thailand, Vietnam, China, Laos, and the U.S. 
Recommended topics include GMS energy needs and strategy 2008 - 
2020, government procurement, GMS power generation 
opportunities,  hydropower and other renewable energies, 
development and management of the GMS power transmission 
network, environmental issues, and a case study. 
 
¶11. The estimated cost for the two-day conference at a local 
hotel is $8,000 (including $4,000 for hotel space and two coffee 
hours; and $4,000 for airfare for approximately 10 speakers from 
neighboring posts).  Post plans to organize one dinner hosted by 
a local business group.  Post will plan for the conference from 
March through October, with the conference taking place October 
¶24.  Post will evaluate the success of this conference based on 
surveys conducted at the conclusion of the event. 
 
¶12. Embassy Bangkok will organize a third conference to be 
planned in FY2009. 
 
¶13. Embassy Vientiane requests funding to attend the conferences 
on Developing the Logistics Sector and Developing the Energy 
Sector in the Greater Mekong Region and will support both posts 
in finding appropriate speakers from Laos.  As the "land-linked" 
country at the center of the GMS region, Laos and its 
infrastructure play a critical role in facilitating regional 
trade.  Estimated cost for econoff and commercial LES to attend 
both conferences is $3,438. 
 
¶14. Embassy Phnom Penh requests funding to attend the conference 
 
CHIANG MAI 00000011  003.2 OF 006 
 
 
Developing the Logistics Sector in the Greater Mekong Subegion 
and will support Consulate Chiang Mai in finding appropriate 
speakers from Cambodia.  Cambodia, too, is a central player in 
the GMS transportation network, with the Southern transportation 
corridor connecting Saigon to Bangkok passing through Cambodia. 
Estimated cost for econoff and two economic/commercial LES to 
attend is $2,175. 
 
¶15. Consulate General Chiang Mai will send econoff and econLES 
to the conference on Developing the Energy Sector in the Greater 
Mekong Subregion using post funds. 
 
¶16. Total requested regional BFIF budget is $28,873. 
 
-------------------------------- 
II. PROPOSED CHIANG MAI PROJECTS 
-------------------------------- 
 
¶17. Consulate General Chiang Mai requests BFIF support to 
conduct the following four post-specific activities: 
 
-- Host a one-day workshop entitled "Business Skills for 
Entrepreneurs" for local small and medium enterprises (see 
paragraph #18); 
 
-- Develop an electronic and print toolkit for potential 
American investors on doing business in northern Thailand (see 
paragraph #19); 
 
-- Send econLES and econoff to education industry tradeshow in 
Washington, DC (see paragraph #20); and 
 
-- Send econLES and econoff to Commercial Diplomacy Training in 
Bangkok (see paragraph #21). 
 
¶18. Chiang Mai Project 1: "Workshop for Local Entrepreneurs." 
Northern Thailand is at the crossroads between an agrarian and 
knowledge-based economy.  While the agricultural sector still 
dominates the economies of the 15 northern provinces, pockets of 
IT manufacturing in Lamphun province and services in Chiang Mai 
province suggest that change is on the horizon.  In an effort to 
contribute to the evolution of the northern Thai economy, post 
proposes hosting a workshop entitled "Business Skills for 
Entrepreneurs."  This one-day workshop targeting new small and 
medium business owners will invite lecturers from local graduate 
business programs and successful northern Thai small and medium 
enterprises as speakers.  This project meets the following goal: 
to develop a country's export market or trade capacity. 
Planning period is April 14 - May 2.  Invitations will be sent 
on May 5, and the workshop will take place on May 23.  The 
estimated combined cost for a hotel space, two coffee hours, and 
honoraria for speakers is $3,000.  Post will evaluate the 
success of this event by three methods: (1) the number of 
participants, (2) the results of an evaluation completed at the 
end of the workshop, and (3) follow-ups with selected 
participants on how skills acquired at the workshop were applied 
in their businesses. 
 
¶19. Chiang Mai Project 2: "Toolkit for Investing in Northern 
Thailand."  The combined development of human capital and 
infrastructure in northern Thailand positions this region as a 
desirable, lower-cost alternative to Bangkok for foreign 
investment.  As interest among U.S. investors in this region 
grows, however, so does confusion about the rules, regulations, 
and processes of doing business in northern Thailand.  As a 
result, post proposes the development of an investment toolkit 
to assist potential U.S. investors in understanding how to do 
business in the region.  This project meets the following goal: 
to increase U.S. investor awareness and confidence. Development 
of the toolkit will occur from March through May with the launch 
of the toolkit taking place by May 9.  Post has recently hired 
an unpaid Thai intern with web-design skills to work full-time 
from March through May.  The intern will be responsible for this 
project, keeping the cost low.  The cost is $600 for publication 
of 1,000 print copies. Post plans to evaluate the success of the 
toolkit through two methods: (1) tracking the number of visitors 
on the website and (2) soliciting feedback on the website from 
viewers on the value of the information provided. 
 
¶20. Chiang Mai Project 3: "Participation in National Association 
of International Educators (NAFSA) Conference."  As the 15 
northern provinces of Thailand strive to progress to a more 
skills-based economy, the development of the education industry 
will play a major role in this region.  With dozens of public 
and private universities in the region and student enrollment 
from across Thailand and Asia, technology, study abroad, and 
tertiary education will be key in the growth of human capital in 
northern Thailand.  Post requests BFIF support to send econLES 
and econOff to Washington, DC from May 25-30 for the NAFSA trade 
expo and conference.  Estimated cost is appx. $6,000 (including 
 
CHIANG MAI 00000011  004.2 OF 006 
 
 
appx. $3,000 for round-trip airfare and appx. $3,000 for per 
diem for two persons).  Upon return to post from the conference, 
econLES and econFSN will compose a guidebook for future econ 
teams on the education industry in the U.S. including contacts 
and business models. 
 
¶21. Chiang Mai Project 4:  "Participation in Commercial 
Diplomacy Training in Bangkok."  The push for decentralizing the 
Thai economy out of Bangkok has led to an expansion of 
manufacturing, tourism, services, trade, and investment across 
northern Thailand.  With this shift comes a greater need for 
commercial promotion activities locally.  Chiang Mai requests 
funding of an estimated $1,400 ($400 for airfare and $1,000 for 
per diem for two persons) to send one econLES and one econoff to 
Bangkok for Commercial Diplomacy Training in March 2007.  The 
econ staff will apply the lessons learned from this training to 
other proposed local and regional projects. 
 
¶22. Total requested BFIF budget for Consulate General Chiang Mai 
is $11,000.  The point of contact is Kevin Rosier 
(RosierKJ@state.gov). 
 
-------------------------------- 
III. PROPOSED VIENTIANE PROJECTS 
-------------------------------- 
 
¶23. Embassy Vientiane requests BFIF support to conduct the 
following two post-specific activities: 
 
¶24. Vientiane Project 1:  "Participation in Commercial Diplomacy 
Training in Bangkok."  Embassy Vientiane requests funding to 
attend the Commercial Diplomacy Training to be held in Bangkok 
in March 2008.  The Lao economy continues to grow at over seven 
percent a year; increased training will assist us in better 
serving and attracting future U.S. investment.  Estimated cost 
for econoff and commercial LES for two nights/three days is 
approximately $1,500. 
 
¶25. Vientiane Project 2: "Participation in American Water Works 
Association (AWWA) National Conference and Expo."  With over 70 
dams planned for the Mekong and its tributaries within Laos, 
getting hydropower and related water-focused activities correct 
is crucial for future Lao development and environmental 
sustainability.  As economic growth continues, more and more Lao 
cities and towns are also looking to develop municipal water 
utilities.  The potential for American business, if it becomes 
aware of the opportunities, is considerable.  Post requests BFIF 
support to send econoff and commercial LES to Atlanta, Georgia 
from June 8-12 to attend the AWWA conference and expo. 
Estimated cost is approximately $6,500 (including approximately 
$2,500 for round-trip airfare per person and approximately $750 
for per diem per person.)  Post will use the conference as an 
opportunity both to inform participants about opportunities in 
Laos and expand Post knowledge of water industry and specific 
contacts to better support companies seeking to develop water 
projects in Laos.  Post will also explore the AWWA's "Water for 
People" project and explore a public-private partnership to 
expand its operations into Laos. 
 
¶26. Total requested BFIF budget for Embassy Vientiane is $8,000. 
The point of contact is Joshua Archibald (ArchibaldJC@state.gov). 
 
-------------------------------- 
IV. PROPOSED PHNOM PENH PROJECTS 
-------------------------------- 
 
¶27. With an average rate of growth of 8.4% from 1994 - 2006, 
commercial opportunities in Cambodia are becoming increasingly 
attractive. Despite no USCS staff, in addition to one econoff, 
Embassy Phnom Penh hopes to have two LES staff working on 
economic/commercial issues in 2008, and to facilitate greater 
American participation in Cambodia's economic growth, Embassy 
Phnom Penh requests BFIF funds to perform three post-specific 
activities: 
 
-- Commercial Training for econoff and two LES staff (see para 
 #28); 
 
-- Develop U.S. Commercial Information Section within the 
American Corners at local libraries (see para #29); 
 
-- Host one day seminar for importers entitled "Made in America: 
How to Identify the Best Products for the Local Market" (see 
para #30); 
 
¶28. Proposed Phnom Penh Project 1:  "Participation in Commercial 
Diplomacy Training in Bangkok."  Embassy Phnom Penh requests 
funding to attend the Commercial Diplomacy Training to be held 
in Bangkok in March 2008.  Post has limited experience dealing 
with commercial issues.  Increased training will assist us in 
 
CHIANG MAI 00000011  005.2 OF 006 
 
 
better serving and attracting future U.S. investment.  Estimated 
cost for econoff and two commercial LES for two nights/three 
days is approximately $2,250. 
 
¶29. Proposed Phnom Penh Project 2: "Development of U.S. 
Commercial Information Section Within American Corners in Local 
Libraries." Cambodia has three American corners situated in 
local libraries in Phnom Penh, Battambang, and Kampong Cham. 
Each American Corner features a diverse collection of English 
language books and materials focusing on the United States.  The 
collections also offer poster exhibits, CDs, videotapes and 
access to several electronic data-bases.  The American Corners 
host speakers, workshops and meetings, and also offers digital 
video conferences (DVCs) with speakers from around the world. 
The American Corners in Cambodia are among the most successful 
in the region boasting 42,000 visitors last year.  To promote 
U.S. products and services, and to develop Cambodia's trade 
capacity, post requests funds to create a shelf in each American 
corner dedicated to U.S. commercial information as well as 
information about American businesses, American business 
leaders, entrepreneurial skills, and business educational 
opportunities.  In addition, post requests funds to host 
bi-monthly contests about American businesses, in which the 
winners of the contests will be eligible for business-related 
prizes such as lunch with local American business leaders or 
econoffs, American products, invitations to business-related 
receptions, or tours of local American businesses.  Post hopes 
to acquire 1 wooden shelf and 100 business-related books for 
each of the three American Corners by March 28, and begin 
contests following an official launch of the American Corner 
commercial section on March 31 in Phnom Penh, April 2 in 
Battambang, and April 4 in Kampong Cham.  The estimated combined 
cost of business-related books, signage, promotional material, 
furniture, prizes, and transportation for the opening ceremonies 
is $7,000.  Post will evaluate the success of the project by (1) 
tracking the number of people that participate in the business 
contests and (2) tracking the number of people that check out 
business-related materials from the American Corner. 
 
¶30. Proposed Phnom Penh Project 3: "Seminar for Cambodian 
importers." Embassy Phnom Penh requests BFIF funds to host a 
seminar done in collaboration with USCS Bangkok for Cambodian 
importers entitled "Made in America: How to Identify the Best 
Products for the Local Market."  Cambodia's high levels of 
economic growth is leading to the emergence of a new middle 
class which has a strong affinity for American products.  In 
addition, emerging tourism, construction, agriculture, and other 
industries provide opportunities for high-quality American 
products.  Currently, importers are generalists, importing 
products in many different categories from different sources. 
Through strong social networks, many products are imported from 
Vietnam, China, and Thailand, however these products are of a 
low quality when compared to American products.  The purpose of 
this seminar would be to provide strategies and motivation to 
Cambodian importers to identify and import American products 
that would be suitable for the Cambodian market.  This event 
would meet the goal of promoting U.S. products and services. 
Planning period is July through August.  Invitations will be 
sent on August 18.  Four advertisements will be placed in the 
English-language newspapers beginning August 18.  The workshop 
will take place on September 3.  The estimated combined cost is 
$2,100 ($2,000 for hotel space, two coffee hours, and a lunch 
for an estimated 40 participants; $100 for translator).  Post 
will evaluate the success of this event by three methods: (1) 
the number of participants, (2) the results of an evaluation 
completed at the end of the workshop, and (3) follow-ups with 
selected participants on how skills acquired at the workshop 
were applied in their businesses. 
 
¶31. Total cost for proposed Phnom Penh BFIF projects is: 
$11,350. The point of contact is LES Ruwan Hulugalle who can be 
contacted at hulugaller@state.gov or (855) 23 728 137. 
 
--------------------------------------------- ---- 
SUMMARY OF FUNDING REQUESTS AND POINTS OF CONTACT 
--------------------------------------------- ---- 
 
¶32. Consulate General Chiang Mai 
    - Action Officer is Kevin Rosier (RosierKJ@state.gov). 
    - Requested Funding is $11,000. 
 
¶33. Embassy Vientiane 
    - Action Officer is Joshua Archibald (ArchibaldJC@state.gov). 
    - Requested Funding is $8,000. 
 
¶34. Embassy Phnom Penh 
    - Action Officer is Ruwan Hulugalle (HulugalleR@state.gov). 
    - Requested Funding is $11,350. 
 
¶35. Regional Request is $28,873. 
 
CHIANG MAI 00000011  006.2 OF 006 
 
 
 
¶36. The proposal was coordinated by ConGen Chiang Mai, FCS 
Bangkok, Embassy Vientiane, Embassy Phnom Penh, and ConGen 
Chengdu. 
MORROW