Laos-China Railway and Economic Opportunities for Nong Khai

In terms of the opening of the Laos-China railway, it will definitely have an impact on Nong Khai border trade because in 2020, the value of Thai-Laos trade was 190 billion baht, with Thailand having a trade surplus of 17 billion baht.

How much of a chance Nong Khai has depends on the following pushes:

  1. Build the railway route Khamsawad – Vientiane Capital Station 10 km. (people transport) because There is currently no such railway line, which means that there is no direct rail connection from Nong Khai to the Laos-China railway station.
  2. Build a railway route Nong Khai – Vientiane South Station 4 km. (freight transport) ) by the route from the new bridge, Nong Khai, connecting the dry port (Dry Port) and Vientiane South Station. Having these two railway lines will make Nong Khai Province a “connecting point” for the Laos-China railway by default. If “the connection is fast, Nong Khai’s chances are even greater
  3. The construction of the second Nong Khai-Laos bridge, although there is currently the first Thai-Laos Friendship Bridge connecting Nong Khai with Tha Duea (Laos), when the Laos-China Railway is fully operational, both people and goods will be transported more, which will exceed the capacity of this bridge. Therefore, having a second bridge is urgently necessary.
  4. Nong Khai will become a large fruit trading market in ASEAN because it is close to the Chinese market, fast and has low transportation costs. Traveling by train on this route from Vientiane to Kunming takes only 8 hours, compared to the original 15 hours by car and 22 hours by bus.
  5. Modern business centers include online trading of all kinds of products nationwide because there is a database of Thai products nationwide where Chinese businessmen can come and immediately contact and negotiate business, including business matching which may be an opportunity for Thai Start Ups with Chinese businessmen.
  6. Nong Khai Tourism Route Center will be the gateway for tourists from the Laos-China Railway with tourism information throughout Thailand.
  7. Mega Hub Nong Khai must quickly adapt to accommodate what will happen on the Lao side, including the Dry Port and the large Vientiane Logistics Park, including the Agricultural Product Center, Export Zone, Business Zone, Light Industrial Zone, Halal Center and Agro-processing.

In terms of the opening of the Laos-China railway, it will definitely have an impact on Nong Khai border trade because in 2020, the value of Thai-Laos trade was 190 billion baht, with Thailand having a trade surplus of 17 billion baht.

By “Thailand exports to Laos via Nong Khai checkpoint, the largest proportion, at 45%” (out of 8 checkpoints: Nong Khai, Mukdahan, Nan, Ubon Ratchathani, Loei, Nakhon Phanom, Chiang Rai, Bueng Kan)), it is expected that in the next 5 years (2025), the value of border trade will increase 3.3 times from 2020, an increase of more than 200%.


Reference source: Thansettakij Newspaper

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