Chiang Khong: The New E-Commerce Logistics Hub Connecting Thailand, Laos, and China
May, 17 2021
With a promising outlook post-COVID-19, the Ministry of Transport is accelerating infrastructure projects and economic policies to support the Chiang Khong Logistics City initiative. This will help reduce transportation and logistics costs for trade between Thailand, Laos, and China. The first phase of the Chiang Khong Transshipment Center is set to be fully operational by 2022, with Phase 2 expected to be completed by 2025.
Chiang Khong Transshipment Center: A Game-Changer for ASEAN Trade
This project aims to support ASEAN's economic expansion and China's inland economy, which lacks direct access to the sea. Additionally, it aligns with plans to shift freight transport from road to rail, leveraging the upcoming Den Chai–Chiang Rai–Chiang Khong railway line.
A key focus of the Thai government is cross-border economic cooperation among the Mekong-Lancang countries—Cambodia, Laos, Myanmar, Thailand, Vietnam, and China.
Since 2015, the government has enhanced border trade facilitation, including customs clearance procedures, to streamline cargo flow, improve logistics efficiency, and reduce costs for businesses. These measures will be fully implemented by the end of the year. The next step is formulating a policy proposal for developing the Chiang Khong Special Economic Zone, spearheaded by the Ministry of Commerce.
Key Goals of the Chiang Khong Special Economic Zone
- Establish Chiang Khong as a cross-border e-commerce (CBEC) logistics hub
- Boost exports of Thai and ASEAN products via the R3A trade route, which links China, Laos, and Thailand through key border points such as Chiang Khong, Houay Xay, Boten, Mohan, and Kunming
- Expand trade to northern China and Europe in the future
The Chiang Khong Transshipment Center (Phase 1 and 2) has been endorsed by the Thai government to support these goals. The project is strategically located at the Fourth Thai-Lao Friendship Bridge, adjacent to the Chiang Khong border checkpoint.
Phase 2: Enhancing Infrastructure for Future Rail Connectivity
Phase 2 will involve building a cargo handling facility and a container yard to support the Den Chai–Chiang Rai–Chiang Khong double-track railway. This phase is expected to be completed by 2025.
Tax Incentives for Thai Businesses
The Thai government will offer tax exemptions and VAT/excise tax reductions (70% of the normal rate) for key products, including:
- Dried fruits
- Tea & coffee
- Cosmetics
Thai entrepreneurs in these sectors should closely monitor project developments to seize new business opportunities.