Exports via the China-Laos high-speed railway through Nong Khai checkpoint increased fourfold.

Currently, China-Laos high-speed railway

The distance of cross-border passenger transport from Vientiane, Laos to Kunming, China via Nong Khai border checkpoint has been extended. Initially, the service was only provided within Laos. As a result, more goods and passengers can be transported between China, Laos and Thailand. This is an opportunity for Thai entrepreneurs to expand trade and investment in China and Laos, including the opportunity to accommodate more Chinese and Lao tourists who are likely to travel to Thailand.

China is an important export market for Thailand, accounting for 12 percent of the total export value. According to data from the Krungthai Compass Research Center, cross-border exports to China continue to grow, especially Thai exports to China via the China-Laos high-speed train through the Nong Khai checkpoint in 2023, with a total export value of almost 10 billion baht, or an increase of almost four times.

The products with the highest export value include other fresh fruits, petroleum and bituminous oils, electrical machinery and electrical equipment, electric power, automobiles and other motor vehicles designed for the transport of persons, water including mineral water and soft drinks, plastic packaging, etc. The products with the highest import value include electric power, doped chemical elements for electronic use, hydrogen, other gaseous and non-metallic minerals, mineral or chemical fertilizers, watch straps and parts, tubes, pipes and other hollow profiles, telephones for cellular networks, etc.

Examples of products with the top 3 highest export value via train (data as of July 2023) are durian, plastic pellets, and mangosteen. The top 3 products with the highest import value via train are fertilizer, fresh vegetables, and fans, motors. In 2030, it is expected that the value will increase to approximately 27 billion baht. Trends in products with high potential for expansion include fresh, chilled and frozen vegetables and fruits, cassava flour, copper and products, rubber, rice. For the Lao PDR market, these include livestock products, wood and wood products, etc.

In addition, Chinese tourists from Yunnan Province, the starting station of the China-Laos high-speed railway, and 4 nearby areas can travel by train, namely Sichuan Province, Guizhou Province, Chongqing Province, and Guangxi Zhuang Autonomous Region. They can travel to visit the northeastern region of Thailand by 1 percent, or about 2.5 million people, which will generate at least 4,685 million baht in tourism income per year.

The boost from the China-Laos high-speed railway and supply chain transformation will create opportunities for Thai entrepreneurs in the China and Laos markets in three main areas: trade, potential Thai products such as fresh and frozen vegetables and fruits, cassava flour, copper and products, livestock products, wood and wood products;

For the service sector such as tourism, transportation and logistics businesses, they will benefit from the growth trend of cross-border freight transport and the growth of Chinese and Lao tourists who will travel to Thailand more, especially in the northeastern region of Thailand. Meanwhile, in terms of government investment, it will be able to attract investment from China, such as in the electric vehicle and parts industry, as well as the opportunity to attract more investment from Laos, especially in the real estate industry in the northeastern region.

Thai entrepreneurs still have the opportunity to invest in China and Laos in businesses where Thailand has the potential and expertise. It is also an opportunity to trade low-cost products from China to be used as raw materials for production in downstream industries such as solar panels, lithium-ion batteries, cold-weather vegetables and fruits, etc.

The potential of the Chinese and Lao markets can support the demand for products and services in the future. Thai entrepreneurs should therefore study the regulations and conditions of related investment, as well as analyze the direction of product trends in the Chinese and Lao markets, which have potential for growth. The government sector should accelerate the plan to connect Thailand’s rail system with the China-Laos high-speed railway and the Eastern Economic Corridor (EEC), along with developing appropriate infrastructure and environment, which will support Thai entrepreneurs to expand trade and services between each other even more.

Source of information: Thai PBS / 7HD Online News

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