USEFUL ARTICLES

The Laos-China Railway and Economic Opportunities for Nong Khai

October, 30 2021

How Nong Khai Can Maximize Its Potential

1. Constructing a 10 km railway from Khamsavath to Vientiane Capital Station (for passengers)

   • Currently, no direct rail connection exists between Nong Khai and the Laos-China Railway. Developing this route would significantly enhance connectivity.

2. Building a 4 km railway from Nong Khai to Vientiane South Station (for freight transport)

   • This line would connect Nong Khai’s new bridge with Vientiane’s Dry Port and Vientiane South Station.
   • If these railway links are completed quickly, Nong Khai will become a major railway hub for the Laos-China route.

3. Constructing the Second Nong Khai-Laos Friendship Bridge

   • The existing Thailand-Laos Friendship Bridge (No.1) is already operating at near-full capacity.
   • With the full operation of the Laos-China Railway, both passenger and freight traffic will increase significantly.
   • The construction of a second bridge is urgently needed to accommodate future demand.

4. Becoming ASEAN’s Largest Fruit Trading Hub

   • Nong Khai's proximity to China offers a huge advantage for fruit exports.
   • The Laos-China Railway allows goods to travel from Vientiane to Kunming in just 8 hours, compared to 15 hours by truck or 22 hours by bus.
   • Lower transportation costs make Nong Khai an ideal location for fruit trade.

5. Establishing a Modern Business Center

   • This center would facilitate nationwide online trading.
   • A Thai product database would allow Chinese investors to easily negotiate deals and form business partnerships, including Thai Startups connecting with Chinese entrepreneurs.

6. Tourism Hub

   • Nong Khai can capitalize on the Laos-China Railway by becoming a gateway for tourists traveling by train.
   • A central tourism information hub could promote travel throughout Thailand.

7. Becoming a Mega Hub for Regional Trade and Logistics

   • Nong Khai must act quickly to integrate with major logistics developments in Laos, including:
     • Dry Port
     • Vientiane Logistics Park
     • Agricultural Product Hubs
     • Export Processing Zones
     • Light Industrial Zones
     • Halal Food Centers and Processed Agricultural Zones

Impact on Nong Khai's Border Trade

• In 2020, Thailand-Laos trade was valued at 190 billion THB.
• Thailand had a trade surplus of 17 billion THB.
• 45% of Thailand's exports to Laos were shipped via the Nong Khai border checkpoint, making it the largest border crossing among Thailand’s 8 border trade checkpoints (including Mukdahan, Nan, Ubon Ratchathani, Loei, Nakhon Phanom, Chiang Rai, and Bueng Kan).
• By 2028, border trade is expected to grow 3.3 times compared to 2020, with a projected increase of over 200%.