Lao Cai Border Gate Economic Zone: A Bridge for Development

 

In 2006, Vietnamese and Chinese governments decided to develop the strategy “One ring and two corridors”. On the corridor Quang Ninh – Haiphong – Hanoi – Lao Cai – Con Minh, Lao Cai is regarded as the transit centre. Lao Cai – Hekow border gate is unique with rail, road, river and in near future air transports. It is the gate way for North-West Vietnam to develop trade with Western part of China (12 provinces and cities, 5 million sq. kilometres and 300 million people).

 

According to Decision 44/2008/QD-TTg of March 26, 2008 of the Prime Minister, the economic zone covers an area of 7,981 hectares of Coc Leu, Lao Cai, Duyen Hai, Pho Moi and Kim Tan wards, Dong Tuyen and Van Hoa communes, Na Mo village and Muong Khuong border gate. The economic zone is permitted to apply policy of openness and preferential treatment to attract local and foreign investments and business activities. Accordingly, Lao Cai has initiated “Project for border gate economic development”, building four economic centres (border management, commercial centre and two processing centres). The administrative centre has been moved back 7 kilometres from the border, leaving the space for border economic activities. Lao Cai is also calling for investment to build Pho Moi port connecting with Lao Cai – Hanoi railways to ensure the transport of 130,000-300,000 TEU a year. Lao Cai and Yunnan (China) have also agreed to develop Lao Cai – Hong Ha project with nuclei in Kim Thanh (Vietnam) and Bao Son (China).

 

Lao Cai is focusing on administrative reform, developing professional working style. The border gate applies “one stop for formalities and inspection” and transparency for all fees and granting C/O at the border gate. Customs formalities have been transformed from traditional manual inspection to risk management, pre-inspection to post-inspection. As a result,

import-export value could increase 25 percent a year together with 1.2 million visitors, 30,000 cars, and 1,200 trains crossing the border.

 

Mr Doan Dinh Khoi, Head of Lao Cai Economic Management Board said that because Highway 70 has been upgraded, cargo trucks can reduce transport time by half and with the permission of the Prime Minister, Vietnam Highway Company (VEC) will issue bonds in 2009 to build Hanoi – Lao Cai highway on Red River left bank parallel with Highway 70.          With the new road, the cargo transport capacity will be doubled and transport time cut in half. Together with upgraded railways and the building of the airport, Lao Cai border gate economy will no doubt make steady development.