Chiang Khong Logistics E-Commerce New Hub Connecting Thailand, Laos, China

Chiang Khong Logistics

Bright future after COVID The Ministry of Transport drives infrastructure and drives policies to create economic growth on the Chiang Khong trade route to elevate it to become a regional logistics city, helping to reduce the cost of transporting goods and logistics with neighboring countries along the route, Thailand, Laos, China.

The first phase of the freight interchange project is scheduled to be fully operational by 2022, with Phase 2 to be completed in 2025.

The Chiang Khong Freight Interchange Project will support the expansion of the ASEAN economy, including the economic growth of landlocked China, along with plans to transport goods from road to rail, in line with the construction plan for the Den Chai-Chiang Rai-Chiang Khong railway line.

One of the policies that the government has given great importance to is cross-border economic cooperation in the Mekong-Lancang group, which consists of 6 member countries: Cambodia, Laos, Myanmar, Thailand, Vietnam, and China.

Since 2015, the government has developed border trade facilitation, such as customs procedures, to facilitate the release of goods, increase efficiency in logistics services, and reduce costs for entrepreneurs.

which will be completed by the end of this year. The next step is to prepare a policy proposal for the development of the Chiang Khong Special Economic Zone by the Ministry of Commerce.

The objectives of the policy proposal for the development of the Chiang Khong Special Economic Zone

1. Chiang Khong is a logistics hub for cross-border e-commerce (CBEC).
2. Promote the export of Thai and ASEAN products through the R3A route (which connects China, Laos and Thailand through border points and important cities such as Chiang Khong District, Ban Huay Sai, Bo Ten, Bo Han and Kunming) and the Kunming Free Trade Zone.
3. Further enhancing trade to northern China and Europe in the future

The Chiang Khong Freight Interchange Project Phase 1 and Phase 2 have been promoted by the government to be in line with this goal. The project area is located at the 4th Thai-Lao Friendship Bridge, close to the Chiang Khong border checkpoint.

Phase 2 of the project is the construction of a cargo transfer and packing building and a container storage yard to support the Den Chai-Chiang Rai-Chiang Khong dual-track railway of the State Railway of Thailand. Construction is scheduled to be completed in 2025.

The tax privileges that Thailand will receive include the following products: dried fruits, tea, coffee, cosmetics, which will be exempted from customs duties and will be subject to VAT and excise taxes at a rate of 70 percent of the normal tax rate.

For Thai entrepreneurs in the aforementioned product list, they should be alert and follow the progress of the project so as not to miss business opportunities.

Information source: Bangkok Business