Expectations for the Lao Bao-Densavan “new type free trade zone”

Workshop on Lao Bao-Densavan Cross-Border Economic and Trade Zone - Photo: T.NGUYEN

Many practical solutions

After a period of active preparation, on March 15, 2024, in Lao Bao town, Huong Hoa district, the Provincial Party Committee, the People's Committee of Quang Tri province and the Government Committee of Savannakhet province (Laos) organized the Workshop "Lao Bao-Densavan Joint Border Crossing Economic Zone: From Idea to Reality".

At the workshop, delegates highly appreciated the policy of the two governments on building the project, and focused on clarifying the feasibility and proposing incentive mechanisms and policies to facilitate businesses to invest and do business in the BTA, introducing the model of free trade zones and duty-free zones; introducing the potential, strengths, and investment opportunities to strongly attract resources to invest in the Lao Bao BTA and Densavan BTA such as: There needs to be a new approach and solution to orient the construction of the BTA as a new model of fundamental and essential development. Building the BTA in a comprehensive manner, linked with other strategic projects such as airports, seaports, and Dong Ha urban areas, oriented towards a new model of "free trade zones". There is a mechanism to attract "leading" businesses in each field to form linkages and investments.

The study focuses on developing the processing industry and building a green economic zone. The two provinces of Quang Tri and Savannakhet need to calculate the content of the linkage and plan the two areas of Lao Bao and Densavan to distribute economic sectors to attract investment, create infrastructure connections, train common human resources, common labor market and common policy mechanisms.

There are policies to encourage and create favorable conditions to attract investment in priority industries and occupations for development of the BKTMXB, build in the direction of green-knowledge-sustainability, apply advanced management methods, form a civilized, modern, high-quality living environment; ensure social security, maintain political and social stability in the BKTMXB.

The study continues to apply the "one-stop, one-stop" inspection model with new regulations, simplifying customs procedures and inspection and control of goods and means of transport to create maximum convenience for international trade activities, entry and exit, import and export, with information connection between functional departments in the border gate area.

Vietnam-Laos Combat Alliance Traditional Museum in Ban Dong - Photo: KS

On the side of Quang Tri province, it affirmed that the pilot project to build the Lao Bao-Densavan Border Crossing Economic Zone is the right policy of the senior leaders of Vietnam and Laos, with the expectation that the new cooperation model between the two countries will create a new cross-border development space worthy of the special friendship between the two Parties and Peoples of Vietnam and Laos.

The leaders of Quang Tri and Savannakhet provinces agreed to propose relevant ministries and branches of the two countries to advise the Governments of Vietnam and Laos to sign an agreement on piloting the construction of the Lao Bao-Densavan Joint Border Crossing Economic Zone as a legal basis for Quang Tri and Savannakhet provinces to have a basis to develop coordination regulations in the management and operation of the Joint Border Crossing Economic Zone. At the same time, continue to coordinate with relevant ministries and branches of the two countries to advise the Government to issue regulations and guiding documents for implementation.

Early pilot implementation of the model

The construction and development of the Lao Bao-Densavan Joint Border Economic Zone has strategic significance in promoting Vietnam-Laos economic connectivity, making an important contribution to promoting Vietnam-Laos friendly cooperation and ensuring national defense and security for both countries.

In recent years, along with the transport infrastructure system that Vietnam and Laos are investing in and starting to take effect, investment activities along Route 9, especially in Sepon District (where the Densavan Trade and Investment Zone is located), are seeing new movements. Many large-scale projects have been invested in, contributing to the rapid increase in the volume and value of import and export goods through the Lao Bao-Densavan border gate pair.

If implemented, the project will create momentum to promote cooperation and socio-economic development of the two provinces, spreading to the economic development of Vietnam and Laos. Gradually build the Lao Bao-Densavan area into a logistics and transit center for goods in Southeast Asia and transport corridors in the ASEAN region, the Mekong sub-region (GMS), and the Silk Road connecting India and ASEAN.

Currently, My Thuy Deepwater Port and Quang Tri Airport are under construction. It is expected that by the end of 2025, the first two terminals of My Thuy Port will be put into operation. In 2026, Quang Tri Airport will be put into operation. These are important connecting infrastructure works for the operation of the Lao Bao-Densavan Joint Border Crossing Economic Zone.

The construction of the Lao Bao-Densavan Joint Economic Zone to become a center for production, processing, and transit of goods on the East-West Economic Corridor, with free trade zones and logistics centers to and from countries in the Greater Mekong Subregion, connecting with China via the Vientiane-Kunming high-speed railway to My Thuy Port (Quang Tri), and Da Nang International Port is in line with the current new trend and context.

In order to implement the policy of the two countries' senior leaders, in recent years, Quang Tri province has actively and closely coordinated with Savannakhet province and had many working sessions with the Lao Ministry of Planning and Investment to unify the policy and exchange the contents of the project and the draft Agreement between the two Governments on the pilot construction of the Lao Bao-Densavan Joint Border Crossing Economic Zone. The Lao side participated, agreed on the content of the project and agreed on the policy to submit to the two Governments to sign the agreement to have a basis for implementing the construction of the pilot project "Construction of the Lao Bao-Densavan Joint Border Crossing Economic Zone".

From October 15-16, 2024, General Secretary and President To Lam visited and worked in Quang Tri province. On this occasion, the province made many proposals to the General Secretary to direct the early implementation of the Lao Bao-Densavan Border Crossing Economic Zone model to gain experience, which can be replicated in other localities on the Vietnam-Laos border and policies to promote socio-economic development of the border of Quang Tri and Savannakhet provinces in particular, and Vietnam-Laos in general.

Regarding this issue, General Secretary To Lam has issued a document directing the Central Party Office to study and discuss with relevant agencies to advise the Politburo and the Central Party Secretariat on the province's proposals, especially the early pilot implementation of the Lao Bao-Densavan Joint Border Crossing Economic Zone model.

It is expected that with the attention and direction of General Secretary To Lam and the participation of the political system from the central to local levels, the Lao Bao-Densavan Border Gate Economic Zone will soon come into operation and operate effectively according to the model of a new type of "free trade zone", which is to form "new generation" international logistics centers, "green development" industrial parks associated with smart and creative urban areas, bringing the two provinces of Quang Tri-Savannakhet to increasingly sustainable development.

Ko Kan Suong

Source: https://baoquangtri.vn/ky-vong-khu-thuong-mai-tu-do-kieu-moi-lao-bao-densavan-192901.htm