Lancang-Mekong Cooperation sets new benchmarks for modernization

On December 25, a five-year plan of action (2023-2027) to deepen economic and social cooperation was jointly endorsed by leaders of six Lancang-Mekong Cooperation (LMC) states including China, Cambodia, Laos, Myanmar, Thailand, and Vietnam at the fourth LMC Leaders' Meeting, virtually held under the theme "Join Hands on the Building of a Community of Shared Future and Modernization." The leaders also agreed to boost progress towards the Lancang-Mekong Economic Development Belt (LMEDB) at the meeting.

Launched in 2016, the LMC mechanism has served as a major avenue to improve livelihoods and promote integrated development between all six countries. Cross-border investments have continued to surge along the Lancang-Mekong River Basin, while technology-driven water resource management generates momentum for basin-wide governance of the Mekong.

The fourth leaders' meeting puts the spotlight on deepening integrated development through significant cross-border growth imperatives. These span trade, production capacity, and agricultural projects. Beijing's decision to introduce a specially designated loan for LMC's common development is particularly noteworthy. The move builds on a track record of flexible financing to support production and manufacturing capacities across partner states, and over a dozen infrastructure and industry projects have benefitted from this consistency.

As a result, the common development loan stands to bridge progress disparities across key priority areas spanning connectivity, cross-border economy, water resources, agriculture, and poverty reduction. The recent success of the "Lancang-Mekong Space Cooperation Plan" and "Water Resources Cooperation" outcomes has reinforced the importance of flexible financing in accelerating LMC's artificial intelligence pivot. Leaders are keen to support smart technologies and develop satellites that bring their collective agricultural and resource protection needs to the forefront.

Another major takeaway was the countries' resolve to boost the "people-centered development" of the Lancang-Mekong Economic Development Belt. In recent years, trade and economic exchanges have been central to consolidating the LMEDB and delivering its tangible benefits to the people. For instance, there has been a surge in hard infrastructure projects including rail-road connectivity, airports, power grids, and green energy, helping Lancang-Mekong countries bolster local employment and enter a network of increasingly interconnected regional economies.

On the trade front, Beijing's aggregate volume with Mekong partners exceeded $415 billion last year, doubling in volume compared to seven years ago. All this is accompanied by a diverse range of cross-border investments focused in the Lancang-Mekong region, now the focus of a major "agricultural modernization demonstration zone" that can propel their resource-rich agricultural economy to its true potential.

"Countries should deepen planning for integrated development, implement strategic projects with mutual connectivity, and enhance partnership in economy and trade, industrial capacity, agriculture, and intelligent manufacturing," proposed Chinese Premier Li Qiang at the fourth LMC Leaders' Meeting. At the vast expanse of collaboration common-ground, leaders' joint focus on accelerating "science, technology, and innovation (STI)" cooperation is vital for long-term industrial development.

In a potent sign, all six nations have given way to a slate of new joint initiatives to strengthen the foundations of an "LMC innovation corridor." The corridor is seen as critical to deepening their stakes in a high-growth digital economy, valued at over $12.8 trillion across Asia.

Considering the Lancang-Mekong region's substantial development potential in Asia, the corridor can also become an engine of high-quality development cooperation under the Belt and Road Initiative (BRI). BRI projects are increasingly focused on the exchange of digital transformation practices that span the manufacturing, agriculture, education, finance, and healthcare sectors. This comes as Lancang-Mekong countries remain keen to extract lessons that propel transboundary resource governance forward, reiterating their willingness to drive high-quality BRI cooperation and explore a dedicated "meeting mechanism" for the MLC innovation corridor.

These substantial development endeavors are a testament to countries' pursuit of stronger sub-regional economic integration, where "common, comprehensive, cooperative, and sustainable security" is of paramount importance.