In recent times, border trade activities between Quang Tri and neighboring provinces of the Lao PDR that share a land border such as Savannakhet and Salavan have been increasingly focused on. Although these activities have achieved many results, there are still problems, limitations, difficulties and obstacles that require more appropriate and open policies to promote socio-economic development and exchanges between the provinces on both sides of the Vietnam - Laos border.
Traffic infrastructure at La Lay International Border Gate is still not synchronous - Photo: D.V
Border trade activities of traders in recent times have been concentrated at Lao Bao International Border Gate and La Lay International Border Gate. The total two-way turnover through border gates in the province from 2020 to July 2023 reached nearly 2 billion USD with nearly 1 million vehicles entering and exiting, nearly 2 million passengers passing through and over 6 million tons of goods.
In 2023, the total two-way turnover through international border gates in the province reached 653 million USD, an increase of 5.6% over the same period last year. At the secondary border gates, trading activities have not been carried out because according to the Law on Foreign Trade Management: border trade activities are carried out through international border gates and main border gates. In the case of trading and exchanging goods across the border through secondary border gates and border openings, the People's Committee of the bordering province decides and publishes the list of secondary border gates and border openings that are allowed to be implemented.
From November 2023, Ton Quang Anh Company Limited in Huong Hoa has been approved by the People's Committee of Quang Tri province to support residents on both sides of the border to exchange and transport agricultural products through Thanh sub-border gate, Huong Hoa district. Agricultural products of Lao people are transported to the border and unloaded at Thanh Border Control Station. Vietnamese vehicles support the transportation of the above goods to the place of consumption, without carrying out exit and entry procedures for the vehicles.
Mr. Vo Quang Anh, Director of Ton Quang Anh Company Limited, said that because there is no bridge across the Sepon River, the process of transporting agricultural products from Laos is facing many difficulties. If the weather is unfavorable, the transportation will have to be suspended for several days.
Mr. Anh added: “Our unit does not choose to transport agricultural products via Lao Bao International Border Gate because the long distance will increase costs, and damaged roads will reduce the quality of starch. Therefore, we choose to transport agricultural products by river through the secondary border gate. We hope that in the near future, the authorities of the two provinces and two countries will soon study and build a bridge across this pair of border gates.”
Major Nguyen Van Chinh, political commissar of Thanh Border Guard Station, said: “The cross-border trade, which is typically done by crossing the river, greatly affects the movement and loading and unloading of goods onto boats. Therefore, we boldly propose that the competent authorities study the construction of a bridge across Thanh secondary border gate to facilitate people’s trade, contributing to promoting socio-economic development in the area.”
Although the border trade cooperation between Quang Tri and Savannakhet and Salavan provinces has had new developments, there are still difficulties and challenges.
Firstly, the trading and exchange of goods by border residents through the secondary border gates is still small-scale and simple, mainly necessities such as consumer goods, construction materials from Vietnam and agricultural products such as cassava, bananas, and licorice peel from Laos.
Second, infrastructure development, especially the construction of connecting roads to border gates in some areas, is still slow and has not met the needs of trading, exchanging and circulating goods in border areas.
The reason for the above situation is that the transport infrastructure in border areas has not been invested synchronously. Some businesses are hesitant to invest in border areas. Investment and management of upgrading border gates have not kept up with the demand for trade between border provinces.
Director of the Department of Planning and Investment of Savannakhet province Kham Phui Xi Bun Huong said: “The policy of developing secondary border gates adjacent to Quang Tri is strongly supported by Savannakhet province. However, currently, the border gate infrastructure, especially the roads leading to secondary border gates on the Lao side, are mainly dirt roads. Repairs and upgrades are facing many difficulties. The headquarters of units such as quarantine, police... in this area are both small and degraded. We need more investment in these areas.”
Regarding border trade infrastructure, Huong Hoa district has Lao Bao Trade Center and 4 semi-permanent markets in border communes; while Dakrong district has 5 border communes, but so far there is almost no trade infrastructure. The border residents are allowed to buy, sell and exchange goods through secondary border gates and openings, which are also affected by many constraints.
Deputy Director of the Department of Industry and Trade of Quang Tri, Nguyen Huu Hung, said: Goods of border residents are exempt from tax within the limit of VND 2,000,000/person/day/trip and no more than 4 trips/month for the purpose of production and consumption; or crops, livestock, goods produced by residents in border districts of Laos are exempt from tax when imported if there is confirmation from the competent authority of the Lao PDR on quarantine, quality control and food safety; as for traders, they must collect at the border market and make a list. Second, border infrastructure is still limited, of which border trade infrastructure of Dakrong district is almost non-existent.
The potential for development of the border area between Quang Tri and the two provinces of Savannakhet and Salavan is still very large. In order for the cooperation in developing border trade between the provinces to achieve the set goals, the parties need to quickly overcome barriers and difficulties; speed up the implementation of signed agreements, and create favorable conditions for people and goods to cross the border.
Continue to innovate import-export management policies, simplify import-export goods management policies. Promote the implementation of investment attraction policies, increase investment in infrastructure, especially the construction of border markets, traffic to pairs of secondary border gates, openings and technical infrastructure at secondary border gates; support and give incentives to investors in border areas of the two countries in areas such as agricultural processing, large-scale livestock farming... creating conditions for businesses to seek opportunities and promote investment in the area.
Deputy Director of the Quang Tri Department of Industry and Trade Nguyen Huu Hung emphasized: The authorities of border provinces need to prioritize capital allocation and call for businesses to invest. The provinces must also agree to propose that the governments of the two countries create conditions to announce the list at the secondary border gates that are allowed to conduct cross-border trading and exchange of goods. On that basis, the authorities of both sides have the basis to arrange forces for inspection and control.
Quang Tri province has a land border with two provinces of Savannakhet and Salavan with a total length of more than 187 km, with two international border gates of Lao Bao and La Lay. In addition, the province also has 4 pairs of secondary border gates: Ta Rung - La Co, Cheng - Ban May, Thanh - Denvilay, Coc - A Xoc and 6 temporary border openings.
Quang Tri hopes that the secondary border gates will soon meet the technical infrastructure standards to be announced as secondary border gates permitted to conduct cross-border trade and exchange of goods. With the desire to transform the cooperation model from focusing on traditional friendship to a mutually beneficial and sustainable economic cooperation model, relying only on the efforts of the localities is not enough, but there needs to be special and outstanding mechanisms and policies from the two governments to support and create favorable conditions for the provinces on the Vietnam - Laos border to strengthen economic cooperation.
Currently, Quang Tri province is planning and proposing a pair of secondary border gates Coc - A Xoc in Dakrong district to become the main border gate, and secondary border gate Ta Rung - La Co in Huong Hoa to allow traders to buy, sell and exchange goods; at the same time, proposing the Ministry of Industry and Trade to create favorable conditions to support investment in border trade infrastructure, especially in the border area of Dakrong district and requesting the Government, ministries and branches to support the implementation of projects and plans to develop border trade in Quang Tri province.
Hieu Giang
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