Bangkok Terminal Logistics Co., Ltd.
China-Laos Railway: Economic Opportunities for ASEAN
The China-Laos Railway, also known as the Boten-Vientiane Railway, officially opened its doors on the first day of service, coinciding with the 46th anniversary of Lao National Day.
China-Laos Railway: Economic Opportunities for ASEAN
On December 2, 2021, the China-Laos Railway, also known as the Boten-Vientiane Railway, will officially open for service, which is the first day of service coinciding with the Lao National Day, the 46th anniversary of the founding of the “Lao People’s Democratic Republic”, with a total construction period of 6 full years.
Dr. At Pisanwanich, Director of the Center for International Trade Studies, University of the Thai Chamber of Commerce, commented on this matter that the results of this railway route will not only change the face of Laos’ economy, but will also have an effect on many aspects.
1. Trade between Laos, Thailand, Malaysia and Singapore, with the World Bank estimating that China’s trade with ASEAN will “increase by 200%” from 2 million tons (2016) to 6.3 million tons in 2030, and Laos’ trade with China will “increase by 350%” from 1.2 million tons (2016) to 5.4 million tons in 2030.
2. Foreign tourists: In 2020, 5 million foreign tourists visited Laos, 21% went to Vientiane, 10% went to Luang Namtha (500,000 people), followed by Luang Prabang and other provinces.
The opening of the Laos-China railway will cause the number of foreign tourists to “double” to 10 million (estimated by the International Trade Studies Center, University of the Thai Chamber of Commerce) by 2030. Importantly, these tourists will also come to visit Thailand.
3. Reduce the cost of transit trade (Transit Trade) will reduce the cost of transportation from Vientiane to Kunming by “40-50%” and will reduce the cost of transit between Kunming and Laem Chabang by “50%” under the condition that Thailand has a railway connection from the Laos-China Railway.
4. Investment will expand significantly. FDI entering Laos will be in the form of electricity, mining, followed by services and agriculture. It is also expected that the service business groups, hospitals, construction, business consulting, computer connection and department stores will also expand significantly.
5. The value of R3A route trade has increased with more goods transported to Boten-Mohan. There is Mohan-Boten Economic Cooperation Zone, Boten SEZ, Duty Free train station, and Nong Khai checkpoint, which is a province with more trade and investment opportunities than other provinces because it is close to the train station in Vientiane Province, with the most of 9 stations (for both people and goods transport).
The opportunity that will arise is a business that is worth investing in for Thai people under the Laos-China Railway, which is
- Product groups that are sold in both Kunming and Laos that have seen high growth include processed foods, vegetables, fruits, household items, gems, jewelry, cosmetics, and herbal products.
- Livestock processing business, especially “beef cattle”, is both a distribution center and a market, including processing at Bo Ten Mo Han border checkpoint, which can also be exported to Vietnam. However, it must be done according to good standards.
- Service business This business group will have a very high opportunity for expansion because it is a business that is connected to other businesses and the tourists that will come in.
- Thai fruit market business cooperates with the market in Vientiane because most of the fruits come from Thailand and Vietnam. If Thailand is slow, it will be finished by Vietnamese fruits.
- Transportation business
Information source: Thansettakij
Contact us for BTL service inquiries
02-681-2005 to 9