Lao Cai Province Developing Border Gate Economy

Every year, when the water melon season arrives, convoys of trucks are seen carrying the fruit to the Lao Cai border gate for export to China. The tropical fruit is most welcome in China for its wonderful flavour and reasonable price. The supply is also facilitated by Vietnamese traders selling the fruit at the Chinese market of Hekou, accepting Chinese Yuan and speaking in Chinese.

 

Likewise, at Coc Leu market on the Vietnamese side, Chinese traders sell every kind of Chinese product from footwear to computers. They may stay in Vietnam for months or cross the border each day.

 

Since ancient times, Vietnam and China have developed trade along the flow of the Red River. In 19^th century, 90 per cent of the import-export volume of the Chinese province of Yunan were channelled through Bao Thang border gate (Lao Cai). In the same way, the trade of the North-Western part of Vietnam was also promoted by the transit border.

 

Since late 1980s, with economic booms and the improvement of bilateral relations, the border trade has developed vigorously. People from other provinces have rushed to Lao Cai to do business, building houses and shops. Chinese commodities dominate newly built commercial centres and market places and penetrated deep into Vietnam. Meanwhile Vietnamese exports have also spread to inland China by way of the Lao Cai border gate.

Vietnam exports to China include agriculture-forestry-fisheries products, minerals, fresh and processed fruit, consumers goods, handicraft products and imports machines, equipment, chemicals, fertiliser, building materials.

 

Despite the trade deficit, the border trade has improved the socio-economic development of Lao Cai and neighbouring provinces and has promoted production in Vietnam.

 

The upgrade atLao Cai border gate has been completed with economic and communication factors (land, rail, river and soon air transport). The Vietnamese and Chinese governments have decided to establish “two economic corridors and an economic ring” with priority given to the corridor Kunming-Lao Cai-Hanoi-Haiphong.

 

Since 2001, to promote trade and tourism, Lao Cai and Yunan have alternately organised annual trade fairs. Trade fairs in 2001 and 2003 were organised successfully in Lao Cai. 307 enterprises including 91 Chinese enterprises participated in the 2003 fair and concluded economic contracts worth over US$50 million. According to the Organising Committee, the 2005 fair to be held on November 2-6, 2005 will have 500 pavilions including 160 Chinese pavilions.

 

This year, Lao Cai and VCCI will organise an e-transaction floor in Vietnamese, Chinese and English languages on www.laocai.com.vn and an international seminar “Lao Cai and the development of Kunming-Lao Cai-Haiphong corridor”. In addition, a job fair will attract the participation of enterprises, training centres and job centres from Vietnam and Yunan.

 

The development of border trade will help improve the production and welfare of neighbouring provinces and contribute to the economic and friendly relations between the two countries.