Removing obstacles to boost coal imports from Laos.

Recently, coal imports from Laos to Vietnam, primarily through the La Lay International Border Gate, have seen positive developments. However, alongside these encouraging signs, several difficulties and obstacles remain, requiring prompt action from relevant authorities and agencies. A reporter from Quang Tri Newspaper recently interviewed Mr. Nguyen Huu Hung, Deputy Director of the Department of Industry and Trade, on this issue.

- First of all, thank you for taking the time for this interview. Could you please provide some information on the encouraging signs regarding coal imports from Laos to Vietnam via the La Lay International Border Gate?

- Quang Tri province shares a land border with two provinces of the Lao People's Democratic Republic: Savannakhet and Salavan, with a total length of over 187 km. The province has two international border gates: Lao Bao International Border Gate and La Lay International Border Gate, and four pairs of sub-border gates. This is an important transportation link connecting Central Vietnam with the provinces of Laos and other countries along the East-West Economic Corridor. The large coal reserves in Laos, imported through the La Lay International Border Gate via a short transportation route, are a favorable factor for promoting coal imports, contributing to supplementing raw materials for production and serving the socio-economic development of the country.

Importing coal from Sekong province through the La Lay International Border Gate is a reasonable choice for businesses. This option shortens transportation routes, lowers costs, improves production and business efficiency, and contributes to the socio-economic development of localities in both Vietnam and Laos. In recent times, customs clearance procedures for coal shipments at the La Lay International Border Gate have been facilitated by authorities. On average, approximately 400-450 transport vehicles are cleared through the La Lay International Border Gate daily. In 2024, the amount of coal imported into Vietnam through the La Lay International Border Gate is expected to reach nearly 1.5 million tons.

Vehicles transporting coal from Laos to Vietnam are preparing to go through customs procedures at the La Lay International Border Gate - Photo: Provided.

- To seize this opportunity, what efforts has Quang Tri province made to promote coal imports from Laos, sir?

- In recent times, coal transportation projects from Laos to Vietnam have received strong and close attention, guidance, and support from the governments of both countries and central ministries and agencies. This is considered a favorable condition for accelerating the appraisal, approval, and implementation of these projects. With the increasing demand for coal transportation, investors are more determined to implement and accelerate the progress of projects related to coal import activities. This is an important basis for contributing to improving the efficiency of coal transportation from Laos to Vietnam.

From 2023 to the present, Quang Tri province has received numerous investment proposals and implemented infrastructure construction projects to facilitate the transportation of coal from Laos to Vietnam via the La Lay International Border Gate. Provincial leaders have actively and proactively worked with relevant ministries, agencies, and proposed to the Government and the Ministry of Foreign Affairs for support and unified direction in implementing the investment project approval procedures.

In addition, relevant departments and units of the province have worked with many investors such as Central Capital Investment Co., Ltd.; Nam Tien Co., Ltd.; PTS Vien Dong Co., Ltd.; My Thuy Port Joint Venture Company; Anh Phat Petro Joint Stock Company... to research and propose the implementation of projects on conveyor belts, specialized ports, coal storage and transshipment yards, loading and unloading yards, service infrastructure...

Support and guidance for investors in surveying and identifying investment project locations, as well as ensuring compliance with prescribed procedures, have been prioritized. Regarding the import of coal from Laos to Vietnam via the La Lay International Border Gate, four key projects are currently under study and proposed for investment in the province. Furthermore, the provincial leadership has actively promoted the implementation of key projects within the province that directly or indirectly contribute to the promotion of coal trade with Laos.

- Besides the encouraging signs mentioned above, what difficulties and obstacles are still being encountered in the import of coal from Laos to Vietnam, mainly through the La Lay International Border Gate?

- Observations indicate that coal imports from Laos still face several difficulties and obstacles. Firstly, the approval of investment projects related to transporting coal from Laos to Vietnam is slow due to the failure to meet certain legal conditions and regulations. Another reality is that project ideas are formed after the basic planning has already been approved. The investment model for these projects is unprecedented in the province. Therefore, the projects have not been fully incorporated into the relevant plans and strategies.

Another reality is that the infrastructure and working conditions at the border gate on the Lao side are not yet fully developed, thus failing to attract significant import, export, and customs clearance activities from businesses. On the Vietnamese side, while significant investment has been made in infrastructure at the La Lay International Border Gate, many aspects remain incomplete, and there is a lack of supporting services. The underdeveloped border trade infrastructure significantly impacts the import and export of goods from countries in the region in general and Laos in particular. Another noteworthy issue is the transportation of coal from Laos through the La Lay International Border Gate to seaports, generating dust and fumes that pollute the environment and affect the health of residents in areas such as the La Lay International Border Gate, residential areas along the Ho Chi Minh Trail (Western branch), National Highway 9, and National Highway 15D. This is a matter that needs attention and resolution.

So, in your opinion, what needs to be done to boost coal imports in the coming period?

- To ensure smoother, more efficient, and effective cooperation in coal trade with Laos, I believe the governments of Vietnam and Laos, along with relevant ministries and central agencies, need to continue paying attention to and creating favorable conditions for related projects to be approved and implemented smoothly and quickly, ensuring full legal basis in accordance with current laws. In particular, the immediate priority is to accelerate the implementation of the cross-border coal conveyor belt project from Laos through the La Lay International Border Gate to the goods storage area in A Deng village, A Ngo commune, Dakrong district, and the My Thuy Port area project; approve the investment policy for the project to renovate and upgrade National Highway 15D, the section from the Ho Chi Minh Highway (Western branch) to the La Lay International Border Gate; support the implementation and investment in the construction of the Dakrong suspension bridge; and research and allocate funds to invest in an automatic air quality monitoring system in Quang Tri...

Central ministries, departments, and agencies need to pay attention to supporting the province in attracting and introducing capable businesses to invest in the development of infrastructure, seaports, warehouses, and logistics centers... serving the socio-economic development of the locality in general and coal import activities in particular.

Develop and coordinate the implementation of information connectivity programs, support localities in carrying out investment promotion activities, developing logistics services and activities related to the transportation and import/export of coal from Laos. Allocate capital to complete infrastructure construction at the La Lay International Border Gate area; create conditions to support and accelerate the construction of key projects of the province...

Regarding Quang Tri province, it is necessary to strengthen investment promotion efforts, calling on domestic and foreign investors to research, invest, and form joint ventures and partnerships with the State in infrastructure development projects, especially in the fields of road transport and seaports... in order to participate more deeply in the exploitation of infrastructure, transportation, production, and business, especially in processing and enhancing the value of imported coal from Laos in Quang Tri province.

Thank you, sir!

Tay Long (performed)

Source: https://baoquangtri.vn/go-kho-de-thuc-day-hoat-dong-nhap-khau-than-da-tu-lao-192424.htm