CLMV Countries

 

  • CLMV stands for Cambodia, Laos, Myanmar and Vietnam
  • These countries have a unique position in the regional value chains in Southeast Asia region.
  • These countries offer a gateway for market access to China, European Union and other markets due to various trade agreements.
  • These four countries represents rapidly growing economy with rising consumption, strategic location and access, rich natural resources (oil, gas, copper, teak and gemstones), biodiversity and industrious workforce with low wages.
  • Why in news?
    • India is creating a Project Development Fund (PDF) for catalysing Indian economic presence in the CLMV countries viz. Cambodia, Laos Myanmar and Vietnam
    • It will benefit India’s industrial community for business expansion in the CLMV countries
    • PDF will give key advantage position to India in securing regional value chains on a long term basis
    • Besides, it will provide a dedicated market for Indian raw materials and intermediate goods and also a dedicated source of raw materials for Indian industry
Importance of CLMV countries:
  • CLMV countries collectively are the third largest economy in ASEAN, followed by Indonesia and Thailand.
  • In the last 10 years, India’s trade with the CLMV countries has grown from $1.5 billion to more than $10 billion.
  • India seeks to invest in CLMV countries (which are part of 10-member ASEAN group) to take advantage of free trade agreements they have with various countries such as China.