Advancing Regional Connectivity, East-West Logistics Corridor Development

10:44:56 AM | 11/24/2022

Saigon Newport Corporation (TCSG) recently hosted a workshop on improving regional connectivity, and East-West logistics corridor development in Vientiane, Laos. The event aimed to depict a panoramic picture of Vietnam-Laos logistics market connection and development, as well as in the Northeast region of Thailand, to help TCSG, Vietnamese and Lao companies to develop and expand markets, and seek cooperation opportunities with potential partners, and develop effective domestic and international export solutions.

Mr. Bui Van Quy, Deputy General Director of Saigon Newport Corporation, delivers a speech at the workshop 

Potential for logistics development in Laos

With railways and high-speed roads linked to other countries in the region, Laos has huge potential to become a trading center of Mekong subregion countries in the coming time. Laos is the second largest recipient of Vietnam's overseas investment allocated in a total of 78 countries and territories, with 209 projects and US$5.1 billion of registered investment capital. In Laos, Vietnamese companies have the opportunity to boost their exports such as iron and steel, means of transport and parts, machinery, equipment and tools, fertilizers, and animal feeds. In addition, many Chinese-invested projects in Laos are conveniently connected with Vietnam, especially through Ha Tinh province. Typical projects include China's East Steel factory expansion project, a manufacturing facility of Kali Donlinks International Investment in Khammouane province, and a Sekong wind power project invested by Sun Paper Group in Savannakhet province.

Ha Tinh province proactively spurs logistics development

With a "golden" position on the corridor of international maritime routes directly connected to Laos, Ha Tinh is an import and export gateway of the Northern Central Region of Vietnam and the Northeastern region of Thailand, a logistics center and a promising investment destination in the central region. In recent years, the province has also focused investment on developing a fairly continuous and smooth transport infrastructure, from road and air to sea, notably Bai Vot - Vung Ang Highway, railways and roads linked to Laos. Besides, in order to receive goods from Vung Ang Seaport to Laos and Thailand, Ha Tinh is drawing investment capital for the construction of an ICD inland clearance depot, covering 5-10 ha and being capable of serving 13,500 - 27,000 TEUs a year, at Cau Treo International Border Gate.

TCSG signs a cooperation deal with the Laos International Logistics Association and the Vietnam Business Association in Laos

Promoting regional connectivity, East-West logistics corridor development

With a long-term vision and a pioneering mission, TCSG has built strategic solutions to the comprehensive development of Vietnam-Laos logistics services through Vung Ang Economic Zone, Ha Tinh province.

TCSG launched the Hai Phong-Vung Ang-Ho Chi Minh City inland shipping route with 2-4 trips per month and each vessel is carrying 700 TEUs a trip. The firm also works with the General Department of Vietnam Customs to enable transited goods from Laos and Thailand to be transported on inland waterways from uploading ports in other areas like Hai Phong, Ho Chi Minh City, Cai Mep and Da Nang to Vung Ang Port and then transported by road to border gates of destination. In addition, TCSG continues to develop roads on the East-West Economic Corridor and the Attapeu - Bo Y - Ho Chi Minh City Corridor.

At the workshop, Deputy Director of the Lao Trade Promotion Department Somvixay Vongthirath highlighted the importance of logistics services in promoting trade, import, export and services of Laos. Despite being a landlocked country, Laos has received support from Vietnam in maritime transport. In the coming time, in addition to special bilateral trade cooperation ties, Laos will continue to strengthen border trade cooperation and logistics connectivity with Vietnam.

Lieutenant Colonel Bui Van Quy, Deputy General Director of Saigon Newport Corporation, expressed his hope that through the conference, logistics firms of Laos will recognize the great potential of the regional market and their advantages to expand operations to neighboring countries, affirming the role Laos plays in the common development of the ASEAN Community.

At the end of the workshop, TCSG signed a memorandum of understanding with the Laos International Logistics Association and the Vietnam Business Association in Laos to jointly call for investment funds for infrastructure, roads, railways and waterways between Laos and Vietnam, and more broadly, for neighboring countries such as Thailand, China and Cambodia to form a seamless and convenient transportation network. Besides, 11 other MOUs were also inked by companies and associations of Vietnam, Laos and Thailand, such as Lao National Young Business Association and Global Tech Co., Ltd.

A representative of the Laos International Logistics Association also highlighted practical difficulties faced by logistics firms in Laos and also affirmed that they will develop strategic cooperation with logistics companies and associations in countries in the region, especially Vietnam. At the seminar, logistics companies placed emphasis on the investment and development of Thanaleng Inland Port in Vientiane, Laos- Kunming (China) railway and a railway linked to Vung Ang Economic Zone, Ha Tinh province. This development will help businesses in the region to optimize logistics costs. Commodities in areas linked to TCSG ports across the country form the East-West Logistics Corridor to develop regional and international trade.

Bich Hanh (Vietnam Business Forum)