Tran Huong Giang

Research and Project Associate

Fulbright School of Public Policy and Management

Mekong countries face a difficult trade-off between energy needs and food production as the global energy and food crises worsen. Thus far, this issue has largely been mediated within the decision-making bodies of individual countries.

This absence of inter-country coordination can result in ruinous ecological changes that impact the entire Mekong sub-region. Countries located higher in the stream of the Mekong River build hydroelectric dams to power their manufacturing industries. These dams cause serious negative externalities, which include reductions in agricultural production among the Lower Mekong River countries due to compromised river ecosystems and salinization.

Given the current context, it is necessary to have a joint coordination mechanism among countries in the Mekong sub-region. Countries need to know the regional consequences of their individual actions in order to mitigate (or eliminate) the negative effects on the entire ecosystem. However, countries are often self-interested. Therefore, it is necessary to have an incentive or sanction mechanism that encourages maximal contribution to the shared sub-regional interests.

The phenomenon of turning the commercial shaft to Asia Pacific comes with agreements signed by several countries will cause the motives of Mekong countries to change. In addition, the new trade context will affect the production and supply chain of the two food and energy industries making Mekong countries have different choices and behaviors compared to before.

The paper analyzes changes in the choices and policies of Mekong countries in the context of trade integration that affect the energy and food value chains as well as related clusters. From there, the author makes recommendations on possible alliances between the countries of the Mekong sub-region to protect the environment and maximize the benefits of countries in the energy and food industries.

Keywords: Mekong countries, trade integration, digitalization, value chain, energy and food, free trade agreements, economic growth, Asia-Pacific region, cluster framework.