As mentioned, the potential for cooperation in developing border trade between Vietnam and Laos in general and Nghe An and Lao provinces in particular still has a lot of room for development. In order for the above field to have a new, timely and appropriate development step, in the coming time, it is necessary to closely follow the guidelines, mechanisms and policies of the Central Government and the province to propose and drastically implement synchronous solutions with high feasibility.
At the 17th session, on December 13, 2020, the People's Council of Nghe An province passed Resolution No. 18 on the 5-year socio-economic development plan (2021-2025). This Resolution sets out the goal of sustainable socio-economic development in Western Nghe An on the basis of exploiting the potentials and strengths of the region, while at the same time implementing well the work of social security, hunger eradication, poverty reduction, and maintaining stability in the border area. In particular, continuing to invest in the construction of Nam Can International Border Gate; developing Thanh Thuy National Border Gate into an international border gate; gradually investing in the construction of secondary border gates: Tam Hop (Tuong Duong district), Thong Thu (Que Phong district), Cao Veu (Anh Son district).
In addition, Resolution No. 26-NQ/TU dated July 30, 2013 of the Politburo on the direction and tasks for the development of Nghe An province until 2020 also determined: Promoting the development of Thanh Thuy Border Gate Economic Zone, upgrading Thanh Thuy National Border Gate into an international border gate, becoming an important trade hub with Laos, Thailand, and Myanmar. This is a mechanism and policy that paves the way for the development of border gate economy between Nghe An and Laos.
Overall, Nghe An aims to become a fairly developed province in the Northern region by 2025, a fairly developed province in the country by 2030 and an important development pole in the East-West economic corridor connecting Vietnam - Laos and countries in the Southeast Asian region. From there, it will contribute to exploiting Laos' export potential with agricultural and forestry products... and Nghe An's advantages with products such as: Construction materials, aquatic products, seafood, machinery and equipment...
In particular, the application of incentives from the Vietnam - Laos Bilateral Trade Agreement (2015) and the Vietnam - Laos Border Trade Agreement (2015) has contributed to strongly promoting trade in goods and services as well as developing close economic connections between the two countries. Because with the East - West Asia route connecting Myanmar - Thailand - Laos - Vietnam via National Highway 7 to Cua Lo Port, along with Vinh International Airport with a capacity of 3 million passengers/year, and many large seaports with a total cargo volume through the ports reaching over 6.3 million tons/year. Not to mention, once the Hanoi - Vientiane Expressway is built, Nghe An will be a suitable location for logistics development, a transit point for goods from countries in the region to the international market.
According to the Vietnam-Laos border market network development plan until 2020 approved by the Ministry of Industry and Trade in Decision No. 6076/QD-BCT dated October 15, 2012, the Western Nghe An region has 30 border markets. Currently, there are 7 border markets in operation. The system of border gates and openings in the area has created favorable conditions for buying, selling, trading, exchanging goods, means of transport across the border and people's travel. In order to promote import and export turnover and create better conditions for customs clearance, the People's Committee of Nghe An province has been gradually investing in infrastructure, arranging forces at the border gate system, openings and has held many talks with the authorities of Lao border provinces to propose upgrading some pairs of secondary border gates and openings.
With a system of border gates and openings stretching along the border, Western Nghe An has a strategic position in terms of economy - society, security - defense and foreign affairs. Currently, this area has many investment mechanisms and policies, many economic development models have opened up a sustainable way out of poverty for ethnic minorities. In particular, the development of eco-tourism combined with the exploration of cultural and traditional characteristics in this area is increasingly developing, opening up great opportunities for tourism development, connecting with the Central Laos region.
Despite many efforts, it must be recognized that the development of border trade between Vietnam and Laos in general, and between Nghe An province and other provinces of Laos in particular, still faces many difficulties and limitations. Most of the imported and exported goods between the two countries are raw, unprocessed products with low added value. Not to mention, the technical infrastructure of the border gate and opening areas in Nghe An is still weak and outdated. In recent years, the impact of the Covid-19 pandemic has affected trade activities between the two sides, causing a decrease in import and export turnover between Nghe An and Laos.
Mr. Nguyen Huu Minh - Chairman of the People's Committee of Ky Son district said: Because the localities on both sides of Nam Can International Border Gate are still poor, economic development around the border gate area faces many difficulties. Basic works such as commercial centers, systems of stores introducing, buying and selling goods and border trade service areas are all lacking. Moreover, because the border gate is quite far from major economic centers, it has somewhat limited the connection and development. Therefore, in order for the border gate area to develop, there needs to be large investments from both our country and the neighboring country, when the economy develops, it can promote trade activities.
Expressing his opinion, Mr. Pham Van Hoa - Director of Nghe An Department of Industry and Trade affirmed that the potential and opportunities for trade in the border gate area of the province are very large; the policy on developing border gates and border trade is of interest to the Party and the State. However, he also said that from policy to reality is still a long process; implementation is very difficult, requiring comprehensive and synchronous solutions. In particular, one of the current difficulties is the issue of developing economic infrastructure at border gates.
To promote economic development in border areas, all levels and sectors need to quickly overcome barriers and facilitate people and goods crossing the border. Continue to innovate import and export management policies, simplify customs procedures according to international standards. Promote the implementation of more open investment attraction policies, and increase investment in infrastructure.
At the macro level, it is necessary to develop legal documents as a basis for attracting investment activities, especially in border economic zones, developing infrastructure to serve commercial activities in economic zones and international border gates. Support and incentives for investors in border areas of the two countries in areas such as agricultural processing, seafood, large-scale livestock farming, etc. to create favorable conditions for businesses to seek opportunities and promote investment in the area.
Recently, at the 12th Vietnam - Laos Border Trade Development Cooperation Conference held on April 11, 2022, the Ministers of Industry and Trade of the two countries signed the Minutes of Cooperation on Border Trade Development between the two countries as a basis for the two sides to develop and implement tasks in the coming time. Attending the Conference, Permanent Vice Chairman of Nghe An Provincial People's Committee Le Hong Vinh affirmed that the potential for cooperation in border trade development between Vietnam - Laos in general and Nghe An and Lao provinces in particular still has a lot of room for development. Therefore, Permanent Vice Chairman of the Provincial People's Committee Le Hong Vinh recommended that the two sides need to study and review the mechanisms and policies for border trade development, and propose that the governments of the two countries have special investment incentives for border infrastructure development. Strengthen bilateral consultations and exchanges on issues arising in the management and construction of border gates, openings, and freight transport, etc. Invest in the construction of telecommunications and internet receiving and transmitting stations for border and mountainous areas, especially at border gates, openings, and towns, etc., to eliminate “low-lying areas” for mobile and internet coverage; gradually bring banking services directly to border gates.
In addition, the Government, relevant ministries and sectors of the two countries also need to actively seek investment capital to build the Hanoi - Vientiane expressway through Thanh Thuy Border Gate. Soon announce Nam On Border Gate (Bolikhamxay province) as the main border gate, creating favorable conditions to promote import, export, and immigration activities. Pay attention to arranging investment capital, upgrading and building market systems, infrastructure for Vietnam - Laos border gates in general and Nghe An - Laos in particular, especially technical infrastructure at Thanh Thuy, Thong Thu, Cao Veu, Tam Hop border gates, etc.
Many opinions also suggest that businesses of the two countries need to quickly research and develop service and logistics systems to connect and transport goods from Laos, Thailand and the region through the international seaport system in Nghe An and other localities in Vietnam and the transportation system of Laos; Border gate management needs to be strengthened to facilitate trade activities between businesses and people of the two countries... Although Vietnam is not yet the country with the highest investment activities in Laos, many Vietnamese experts believe that businesses also need to pay attention to expanding investment in the neighboring country, in order to promote development, especially in the border provinces, only then can products be created and conditions for products and goods to circulate.
