Boats parked along the Mekong River
SUMMARY
On March 31, six countries sharing banks of the Mekong River agreed to an aggressive investment program involving 227 projects expected to cost $66 billion over five years. Leaders from Vietnam, Cambodia, Laos, Thailand, Myanmar, and China reached the agreement at a summit in Hanoi. The investment program is expected to include the construction of a 41 dams through Southeast Asia. Cambodia, the economically weakest of the six, hopes to enjoy additional foreign investment as a result of the program. Although the projects could bring new wealth to the region, local activists warn of possible negative environmental consequences.
FAO GLOBAL ASSESSMENT
New infrastructure projects in the region will likely bring additional business opportunities and greater ease of trade. For American firms looking to enter the Southeast Asian market, this program might create an entrance at the ground floor. Companies hoping to get involved, however, should be aware of the environmental movement currently underway in the region, as it might create obstacles for foreign businesses. Additionally, many of the countries involved are going through intense political transitions and disruptions. Businesses seeking to enter these markets should understand the local politics, potential impacts on operations and PR, and how this affects sales and distribution channels before making significant investments or promoting potential inroads to the region.
Related Links
- Financial Times - China eyes role as world’s power supplier
- South China Morning Post – Are Chinese-funded dams on the Mekong River washing away Cambodian livelihoods?
- CNBC – Study says China-backed dam would destroy Mekong
- Foreign Policy – China’s Mekong Plans Threaten Disaster for Countries Downstream
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