China-Laos Railway Boosts Thai Exports in 2022
December, 15 2021

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