Although there are many advantages for economic development in border areas, focusing on areas with border gates connecting with Laos, promoting trade development and clearing the "flow" of goods between the two sides to increase import and export turnover is facing many difficulties.
It is undeniable that the development of border trade between Nghe An and the provinces of Laos in recent years has achieved positive results, however, there are still many difficulties and challenges. In fact, the structure of import and export goods between Nghe An and Laos is still monotonous, unsustainable, and not commensurate with the potential and advantages of both sides. The goods circulated between the two sides are mainly agricultural products and construction materials with low value and low tax rates.
In the total turnover of the whole province in 2021, the export turnover of Nghe An goods to Laos has a small proportion, accounting for only 1.7%. Except for the Nam Can International Border Gate, which has been invested quite systematically, the remaining technical infrastructure of the border gate area and border openings between Nghe An and 3 provinces of Laos is still limited. Traders participating in border trade activities are mainly small and medium-sized enterprises with about 100 enterprises per year; the scale of shipments is small, of a commercial nature, and there is no long-term development strategy.
During a recent survey at Nam Can International Border Gate, we found that import, export and exit activities here after the Covid-19 pandemic have basically stabilized, with agricultural products from Laos being transported and in the opposite direction, construction materials and steel also going through customs clearance procedures to be transported to Laos. However, the number of goods exchanged between the two sides is still small. Meanwhile, in recent years, the Vietnamese Government and the Lao Government have signed agreements to create conditions to promote economic development at border gates, especially creating conditions for businesses to operate, through simplifying import and export procedures. Along with that, tax policies also have many incentives, most goods are exempt from import tax and electronic customs procedures are implemented, helping to save time for businesses, speeding up the circulation of goods...
Mr. Phan Van Nham - Head of Nam Can International Border Gate Customs Branch shared: Currently, the Branch is managing Nam Can International Border Gate with Tam Hop sub-border gate (Tuong Duong) and 3 openings Tha Do, Na Ngoi, My Ly (Ky Son). In reality, because the goods traded through these areas are very limited, the economic value is not high. Not to mention, the traffic infrastructure system is not yet developed, leading to many difficulties in the circulation of goods.
Mr. Nham also said that because the distance from Nam Can International Border Gate to Vientiane (Laos) and to Thailand - the most developed economic centers is too far (over 500 km), goods with high import and export value do not come through this route. Therefore, the goods exported and imported at Nam Can International Border Gate are mainly raw goods with zero tax rate. Moreover, due to unfavorable climate and road conditions, the circulation of goods only takes place mainly in the dry season, from October to April of the following year.
Right at the Nam Can International Border Gate area, although a commercial center building has been built, for a long time now the number of businesses or small traders registering to open booths can be counted on the fingers, making it ineffective and degraded and damaged.
In Nghe An, in addition to the Nam Can International Border Gate, to expand and promote economic trade between Vietnam and Laos, since 2011, the Prime Minister has agreed to upgrade the Thanh Thuy Border Gate in Thanh Chuong District to a National Border Gate with the goal of turning this place into a bustling place in all aspects. Not to mention upgrading to a National Border Gate, a "roadmap" to develop this area has also been outlined quite specifically, but has not been implemented yet.
Thanh Thuy National Border Gate is very conveniently located, only about 50 km from Vinh City, and about 60 km from Cua Lo Port and the Southeast Nghe An Economic Zone. If you go from Vinh through Thanh Thuy to Vientiane - the capital of Laos, it only takes about 446 km, this is the shortest route compared to current routes. To develop this area, on December 23, 2009, at the 17th session, term XV, the People's Council of Nghe An province issued Resolution 305 approving the Project "Establishment of Thanh Thuy Border Gate Economic Zone, Nghe An province". The goal of this project is to build a multi-industry, multi-functional Thanh Thuy Border Gate Economic Zone, becoming one of the breakthrough areas, the locomotive attracting the socio-economic development of the Southwest region of Nghe An province; becoming a center of trade, services, tourism, industry, with synchronous and modern infrastructure; become a driving force to attract socio-economic development of the province, especially the Southwest region to narrow the development gap between mountainous, remote, rural areas with plains and urban areas...
Resolution 305 has defined the objectives and tasks, but up to now, Thanh Thuy Border Gate Economic Zone is still in the process of preparing the conditions for establishment. Basically, the development model of Thanh Thuy Border Gate Economic Zone is similar to the model of border gate economic zones approved by the Prime Minister, with 2 main functional sub-zones: duty-free zone and tariff zone. The construction area of the duty-free zone is expected to be about 250 hectares, including 5 locations located entirely in Thanh Thuy commune, stretching from the border gate down to the intersection between National Highway 46 and Ho Chi Minh road. The tariff zone is arranged in the strips of land along Ho Chi Minh road of 3 communes (Thanh An, Thanh Thuy, Thanh Ha), with a total area of about 800 hectares. In addition, some urban areas will follow Ho Chi Minh road, formed according to industrial clusters. Urban area for developing service activities, trade, tourism, pick-up points, hotels, food services, information, etc.
Besides Thanh Thuy Border Gate Economic Zone, in 2016, the plan to build the Hanoi - Vientiane expressway through Thanh Thuy with a length of about 725 km and an investment capital of about 3.7 billion USD was also approved by the ministries and branches of both sides. If this road is completed, it will open up great opportunities for development in this area in particular and in Nghe An province in general.
In addition, in Thanh Thuy area, 2 investment projects were also approved, which are expected to change the face of this area. That is the investment project to build a wholesale market in the border area and a general business area (later renamed the wholesale market in the border area and the ecological area). This project is planned on the land east of Ho Chi Minh road, in Thuy Phong village, Thanh Thuy commune (located in the duty-free zone of Thanh Thuy Border Gate Economic Zone) with an area of over 13 hectares. On December 5, 2012, Nghe An Provincial People's Committee issued Decision No. 4896/QD.UBND-CN approving the detailed construction plan of the project. However, up to now, this project has only built a few rows of houses and has been abandoned for nearly 10 years.
Not far away is the Project of Complex for Production of Essential Oils, Medicinal Herbs, and High-Tech Functional Foods, approved by the Provincial People's Committee in Decision No. 4560/QD-UBND.CN, dated October 10, 2013, with VN Nam Dan Van An Company Limited as the investor. However, this project has not been implemented, until June 7, 2021, the Provincial People's Committee issued a decision approving the adjustment of the project's investment policy. Accordingly, the project's purpose of use was changed and its name was changed to the Project of Complex for Growing, Producing, and Processing High-Quality Export Tea, with an area of 33.59 hectares, including items such as: Processing factory, office area, warehouse, nursery, tea growing land, internal roads. The total investment capital of the project is 170.35 billion VND, expected to be completed in the first quarter of 2023.
In fact, in the Thanh Thuy Border Gate area and the area of the two above-mentioned projects, we found that the areas planned to build the duty-free zone and the duty zone of the Thanh Thuy Border Gate Economic Zone are still tea hills and dense forests. In particular, the two "key" projects in Thanh Thuy commune, which are expected by local people, one is still a vacant land, and the other has been built by the investor with several rows of houses, but is now abandoned.
According to Mr. Ha Hong Thai - Chairman of Thanh Thuy Commune People's Committee, these two projects have been implemented for a long time. At the Border Area Wholesale Market and Ecological Zone Project, the investor has only cleared about 70% of the land area, mainly 5% of the land managed by the commune; many agricultural land areas of households in Thuy Phong hamlet have not been cleared yet. As for the Project of Complex of Planting, Producing and Processing High Quality Tea for Export, the land has been handed over, however, it is currently a wasteland of weeds.
Mr. Pham Van Tam - Director of Tan Long Joint Stock Company, the investor of the border wholesale market project and ecological area in Thanh Thuy commune, said that because the Hanoi - Vientiane highway has not been implemented yet, the project implementation is very difficult, and if it is built, no one will come to do business or trade.
