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China-Laos Railway Boosts Thai Exports in 2022

December, 15 2021

รถไฟจีน ลาว

10-Month Trade Figures (Jan-Oct 2021):

  • Thailand-Laos border trade value: 62.481 billion THB, a 23.75% increase
  • Thai exports to Laos: 53.005 billion THB, a 37.79% increase
  • Thai imports from Laos: 9.476 billion THB, a 21.18% decrease
  • Trade surplus: 43.529 billion THB
  • Total cross-border trade value (all countries): 1.4 trillion THB, a 31.72% increase
  • Projected annual growth (2021): 30%
  • Expected growth in 2022: 6-8%

Thai Government’s Plan to Maximize Benefits

Deputy Prime Minister Jurin Laksanawisit has urged Thailand to maximize trade benefits from the China-Laos railway.

  • A joint government-private sector meeting was held to assess trade opportunities in Nong Khai, the key transit point for Thai-Laos trade.
  • The Thai Logistics Federation is negotiating with Chinese authorities for an MOU to facilitate Thai exports.
  • The railway reduces shipping time from Kunming to Nong Khai from 2 days by truck to just 15 hours by train.
  • Laos’ planned border reopening in 2022 is expected to boost tourism and services, particularly healthcare, retail, and education.

Trade Logistics & Challenges

Thai trade officials in Laos are monitoring rail cargo flows at the Mohan-Boten border checkpoint.

Key Updates:

  • Lao authorities have facilitated customs clearance, quarantine, and inspections.
  • China is preparing to process 8 key product categories (meat, seafood, grains, fruits, seedlings, logs, and high-risk agricultural goods).
  • Full readiness expected by March-April 2022, allowing Thai fruit & vegetable exports to accelerate.

Dr. Jaturong Bunnag, Chairman of the Thai-Lao Business Council, estimates:

  • Rail transport will cut logistics costs by 67%, enhancing Thai export competitiveness.
  • Thai-Laos trade could grow 15% in 2022, excluding further expansion to China.
  • Construction of the 2nd Thai-Lao railway bridge is urgent to prevent bottlenecks.

Initial Trade Impact from the China-Laos Railway

  • China imported 33 rail containers of vegetables in the first week of operations.
  • The second week saw an increase to 40 containers.
  • Thailand’s initial exports via railway:
    • Rubber, cassava, and mineral ores (approved for immediate transport).
    • Fresh produce & agricultural goods must pass the Mohan-Boten checkpoint and meet China’s 22-item protocol (effective Sept 23, 2021).
    • Packaged consumer goods cannot yet be exported via rail.

Thailand is pushing to increase border crossings at:

  1. Nong Khai-Tha Sadet checkpoint
  2. Ban Mo checkpoint (handling billions in exports annually).

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