Mekong Region Leaders Meet on Economic Crisis

By THE ASSOCIATED PRESS

HANOI—The prime ministers of five Southeast Asian nations gathered in Hanoi on Friday to strengthen cooperation in face of the global economic slowdown.

Their mutual efforts have become "extremely necessary" given the world's financial troubles, said Vietnamese Prime Minister Nguyen Tan Dung, speaking at the opening of the meeting, also attended by the leaders of Laos, Cambodia, Burma and Thailand.

With the exception of Thailand, the so-called Mekong region nations are among the poorest in Asia.

Dung said the summit offered an opportunity for the member countries to "share experiences and help one another to cope with common challenges."

Cambodian Prime Minister Hun Sen said boosting cooperation in trade, investment and tourism would help to "narrow the development gap and reduce poverty in the region."

But he warned that a shortage of financing may hinder their cooperation.

Thai Prime Minister Somchai Wongsawat said member countries were all affected by the prevailing economic uncertainty.

"We are not immune to the recent global financial crisis," he said "We have been affected by volatile oil and food prices as major commodity producers and exporters."

The organization of five Mekong River countries was established in 2003.

Meanwhile the Asian Development Bank warned that the world could easily slide into a global recession and growth in Asian economies will slow further next year amid weaker demand for their exports.

Recent dismal trade, employment and manufacturing data all point to a shrinking international economy and falling consumer demand for products made in Asia, said ADB Managing Director General Rajat Nag.

"The global slowdown could easily turn into a global recession," Nag said in a speech in Singapore. "Growth in developing Asia will likely slow further in 2009."

Governments across the region have slashed growth forecasts this year as a credit crisis that began last year in the US spreads across the globe, battering investor and consumer confidence.

"Asia's economic and financial systems will likely come under increased pressure," Nag said. "Asia's export-dependent economies also face a sharp slowdown as global demand weakens."