Promoting cooperation on the East-West economic corridor

Strengthen connections, seize opportunities

In recent years, cooperative relationships between provinces on the East-West economic corridor, including Ubon Ratchathani (Thailand), Sekong and Champasak (Laos), Da Nang, Quang Nam (Vietnam) have been established, with continuous activities of connection and trade promotion.

According to comrade Luong Nguyen Minh Triet - Alternate member of the Party Central Committee, Secretary of the Quang Nam Provincial Party Committee, Quang Nam has friendly cooperative relations with 4 southern Lao provinces. In particular, the twinning and comprehensive cooperation relationship with Sekong province has been established since 1984; and the signing of cooperation agreements on trade, investment, tourism, culture and education with Champasak province since 2007.

Besides, Quang Nam has signed cooperation agreements on agriculture, trade, investment, tourism, and logistics with Ubon Ratchathani province (Thailand) since 2013.

Quang Nam cooperates with Sekong, Champasak and Ubon Ratchathani. Photo: HQ

Thus, it can be seen that Quang Nam has had a long-standing cooperative relationship with all localities on the East-West economic corridor connecting Northeast Thailand with Southern Laos and the Central Key Economic Zone of Vietnam. At the same time, it has proactively prepared related conditions for cooperation connecting this corridor for more than 10 years.

1(4).jpg — Da Nang City exports goods to Laos and Thailand through Nam Giang International Border Gate. Photo: HQ

According to Mr. Le Trung Chinh - Chairman of Da Nang City People's Committee, in the field of trade, export turnover from Da Nang to Laos in 2023 is estimated at 10.5 million USD; export from Da Nang to Thailand is estimated at 5.5 million USD, import is estimated at 42 million USD.

In addition, trade promotion activities, goods exchange, and trade connection between Laos, Thailand and Da Nang have been increasingly organized and of high quality. Many Lao and Thai enterprises have participated in the East-West Economic Corridor International Trade and Tourism Fair (an annual event of Da Nang City) organized to introduce tourism, trade and investment products with many attractive projects and exchange products between localities such as wooden furniture, interior decoration, handicrafts, cuisine, etc.

In 2022, Da Nang city also signed with the southern Lao provinces on cooperation in trade promotion, import-export promotion, logistics service development, information sharing, human resource training, etc.

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Since 2016, Da Nang has proposed mobilizing ODA loans to develop the East-West economic corridor from Da Nang to Nam Giang border gate (Quang Nam), through Sekong, Champasak provinces (Laos) and Ubon Ratchathani (Thailand). This is a route connecting to the sea through Da Nang port for the provinces of Southern Laos and Eastern Thailand to transport by sea to Northeast Asia, opening up great opportunities for localities on the route in shortening the transit distance for export goods to countries in the region and around the world.
Mr. Le Trung Chinh - Chairman of Da Nang City People's Committee

Champasak Province (Laos) actively invests in infrastructure. Photo: HQ

As the two central localities of the corridor, Champasak and Sekong (Laos) have made many preparations to connect with localities on the route. Mr. Somboun Hueangvongsa - Deputy Governor of Champasak (Laos) said that although the corridor is short, it has a lot of potential and creates opportunities for localities to promote their potential and strengths. Notably, all 5 provinces on the corridor have potential for industrial factories, large agricultural production areas and tourism potential. If connected into a unified block, it will be favorable for development and attracting investment and international visitors.

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In order to become a connecting center between provinces on the East-West economic corridor, in recent times we have focused on developing infrastructure, many roads have been upgraded; investing in building embankments to prevent landslides on the banks of the Se Pon and Mekong rivers to prevent floods and create green spaces. In addition, improving the infrastructure of 3 industrial parks and 4 economic zones to attract and welcome domestic and regional investors from Thailand and Vietnam to invest. Champasak will have its own preferential policies for investment projects in the special economic zone.
Mr. Somboun Hueangvongsa - Deputy Governor of Champasak Province (Laos)

Mr. Lech-lay Si-vi-lay - Member of the Central Executive Committee of the Lao People's Revolutionary Party, Secretary - Governor of Sekong Province said that Sekong Province has opened the road in the corridor and is focusing on developing economic - social and service infrastructure to create favorable conditions for domestic and foreign investors to come and invest. Sekong is oriented to become the power production area of Southern Laos; a clean agricultural production area associated with the processing industry. Currently, Sekong is attracting projects to exploit ore, coal, bauxite, iron; 3 hydropower projects and 1 600 MW wind power project, the largest in Asia.

With the largest wind power project in Asia, Sekong will export electricity to countries on the East-West economic route. Photo: HQ

Talking about the opportunities when connecting in the East-West economic corridor, Ms. Songlak Worapai - Deputy Governor of Ubon Ratchathani (Thailand) said that the province is making efforts to develop border trade routes with other countries. Currently, Ubon Ratchathani has signed a cooperation agreement with Quang Nam. Da Nang is a favorite tourist destination of Ubon Ratchathani people. Promoting cooperation with localities in the corridor will develop trade, facilitate the transportation of goods to the central provinces of Vietnam and promote heritage values, connect tourism tours...

The delegation of Quang Nam province leaders visited the Southern Laos Friendship Company investing in Champasak. Photo: HQ

Opportunity for Quang Nam

According to comrade Luong Nguyen Minh Triet, one of the key tasks and breakthroughs of Quang Nam province in the coming time is to improve competitiveness, promote the potential, dynamic role, and competitive advantages of Nam Giang International Border Gate Economic Zone. To achieve the goal With this goal, Quang Nam identified promoting comprehensive cooperation with the southern Lao provinces and focusing on economic, trade, tourism, service and logistics cooperation with the northeastern region of Thailand as important tasks.

Through research and practical surveys, the fields of agriculture, forestry, tourism and transportation have great potential, opening up great opportunities for cooperation between localities.

THACO Group invests in agriculture in Laos. Photo: THACO

In the field of agriculture and forestry, Laos is currently becoming an important market for supplying raw materials for Vietnam's processing industry. In particular, the Southern Laos region has great potential and advantages for investing in agricultural development, forming fruit tree material areas, planting large timber forests, researching and developing farms, planting and raising livestock in a concentrated and modern direction, providing stable input for processing enterprises. Currently, THACO Group and a number of Quang Nam enterprises and investors have invested in the agricultural sector in this region.

In the tourism sector, the five provinces on the corridor all have their own advantages such as eco-tourism, resorts, community tourism, world cultural heritages, shopping centers, experiential tourism services, adventure tourism, etc. Promoting cooperation will create a rich and diverse tourism connection chain, meeting all the needs of tourists.

Transporting goods from the center of Sekong province to the Nam Giang - Dac Ta Ooc international border gate pair. Photo: HQ

Regarding traffic and transportation, the Nam Giang - Dac Ta Ooc International Border Gate will bring into play its advantages. This is the shortest route connecting Ubon Ratchathani province, the Northeast region of Thailand and the Southern provinces of Laos with the East Sea through Da Nang port and Chu Lai port (Quang Nam). The synchronous connection of the traffic infrastructure system can help Ubon Ratchathani province, Thailand, and the Southern provinces of Laos conveniently export and import goods to countries around the world at reasonable costs.

Recently, the 5-day working trip of the delegation of Quang Nam province's leaders led by Provincial Party Secretary Luong Nguyen Minh Triet to visit and work with the two localities of Sekong and Champasak continued to open up positive signals for a comprehensive cooperation strategy.

[VIDEO] - Secretary of Quang Nam Provincial Party Committee Luong Nguyen Minh Triet visited and worked with Sekong and Champasak provinces:

Secretary - Governor of Sekong Lech-lay Si-vi-lay said that from Da Nang deep-water port, Chu Lai port (Quang Nam) to Nam Giang - Dac Ta Ooc international border gate, the distance is 260km, the travel time is 5 hours. Meanwhile, from Sekong to Vang-tau, Xoong-mec international border gate and ending at Lem-xa-bang deep-water port (Thailand) is 877km, taking up to 16 hours.

Thus, the circulation of goods through the East-West economic corridor is closer and shorter, saving more time and costs.

Chu Lai Port will be the place to export goods from the southern provinces of Laos and northeastern Thailand. Photo: HQ

Sharing the same view, Comrade Vilayvong Butdakham - Member of the Central Executive Committee of the Lao People's Revolutionary Party, Secretary - Governor of Champasak Province said that Quang Nam has Chu Lai port which is very convenient for exporting goods to other countries. If goods from the southern provinces of Laos, northeastern Thailand and northern Cambodia are exported via the East-West economic route, they only need to be transported within the day. However, when exported via the deep-water port of Lem-xa-bang (Thailand), it takes more time.

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Champasak and Quang Nam have in common famous world cultural heritages. These are Watphu Temple, My Son relic site and Hoi An ancient town. In recent years, Duy Xuyen district (Quang Nam) and Pakse town (Champasak) have had a cooperative relationship in preserving and promoting heritage values. It is expected that a heritage tour will be formed in the future, promoting inter-regional tourism development.
Mr. Vilayvong Butda-kham - Secretary - Governor of Champasak Province (Laos)

More large enterprises like THACO need to invest in Sekong and Champasak. Photo: THACO

There have been businesses and investors from Quang Nam implementing projects in Sekong and Champasak. However, despite the great potential of these two provinces, the number of projects is still modest. In the meetings between local leaders, they have paid attention and created favorable mechanisms to attract Vietnamese businesses in general and Quang Nam in particular to invest. From there, promoting the cooperative relationship and comprehensive development between Quang Nam and the two provinces of Sekong and Champasak (Laos).

Together to remove infrastructure bottlenecks

Currently, the Nam Giang - Dac Ta Ooc international border gate pair is operating more and more effectively, the demand for import and export of goods through Nam Giang international border gate is increasing, especially the demand for exporting agricultural, forestry and mineral products from Sekong province and the southern provinces of Laos through Nam Giang international border gate to the seas of Quang Nam, Da Nang and Thua Thien Hue.

National Highway 14D is seriously degraded and needs investment to upgrade and expand. Photo: HQ

However, the factor that hinders the development of freight transport activities through this East-West economic corridor is the transport infrastructure. Currently, National Highway 14D is seriously degraded. The route from the Nam Giang - Dac Ta Ooc international border gate to the center of Se Kong province has many seriously damaged sections.

[VIDEO] - Secretary of Quang Nam Provincial Party Committee Luong Nguyen Minh Triet spoke at the Summit of 5 provinces and 3 countries on cooperation in developing the East-West economic corridor on the issue of inter-regional connectivity infrastructure:

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Quang Nam is focusing on proposing to the Central Government to invest in expanding and upgrading National Highway 14D, 74km long, connecting Nam Giang International Border Gate to Ho Chi Minh Road. This will help clear the flow of investment, trade, tourism, and cross-border freight transport from Ubon Ratchathani, Thailand to Southern Laos through Quang Nam to seaports such as Da Nang, Chu Lai to go to third countries or vice versa. This will be an important strategic route to help Southern Laos make a breakthrough, develop stably and sustainably.
Secretary of Quang Nam Provincial Party Committee Luong Nguyen Minh Triet

Da Nang Port is where goods from the southern provinces of Laos and northeastern Thailand are exported to countries around the world. Photo: DN

Chairman of Da Nang City People's Committee Le Trung Chinh said that the city is focusing on upgrading Road 14B to 4 lanes in the section through the city (7.5km); building the new Lien Chieu port as a type I international seaport that can receive ships up to 100,000DWT.

In May 2023, the city approved the Project "Developing logistics services in Da Nang city to effectively connect with the Central Key Economic Zone and the East-West Economic Corridor for the period 2021 - 2030, with a vision to 2050" to complete the synchronous traffic infrastructure connecting Da Nang with provinces in the Central region, the Central Highlands and provinces of Laos and Thailand on the East-West Economic Corridor.

3(4).jpg — Provinces along the East-West economic corridor need to develop a mechanism for inter-regional infrastructure development. Photo: HQ

Regarding the removal of bottlenecks in transport infrastructure, Mr. Somboun Hueangvongsa - Deputy Governor of Champasak Province (Laos) said that the provinces on the East-West Economic Corridor should prioritize allocating provincial budgets or taking advantage of government and international budgets for investment. At the same time, build a coordination mechanism for inter-regional infrastructure development, ensuring efficiency and mutual benefit.

The national gate of Dac Ta Ooc will be invested in in the near future. Photo: HQ

Along with inter-regional transport infrastructure, the Nam Giang - Dac Ta Ooc international border gate pair will play an important role in forming a trade gateway.

Quang Nam province's planning also aims to upgrade and expand Nam Giang International Border Gate by 2030. The national gate of Dac Ta Ooc border gate will also be built in the near future, with ODA capital from the Vietnamese government to Laos of 38 billion VND. When this pair of border gates is invested in upgrading and expanding, it will create favorable conditions for people, vehicles, and goods to enter, exit, and transit. At the same time, it will create favorable conditions to help Laos complete the planning of the Dac Ta Ooc International Border Gate Economic Zone.

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