Quang Tri and Savannkhet required to boost cross-border trade

The Quang Tri Online Newspaper is honored to present the full text of the speech of Vo Van Hung, Vice Secretary of the Quang Tri Provincial Party Committee cum Chairman of the Quang Tri Provincial People’s Committee regarding the development of the Lao Bao-Densavan Economic and Trade Zone:

Quang Tri Province’s Lao Bao Special Economic and Trade Zone was established under Decision No. 219/1998 QD-TTg dated November 12, 1998, by Vietnam’s Prime Minister to promote socio-economic growth in the Lao Bao-Densavan border region.

The idea of the free economic and trade zone between Lao Bao and Densavan (Laos' Savannakhet Province) was initiated by the Vietnamese Communist Party and the Lao Revolutionary People Party in 1997.

Vo Van Hung, Vice Secretary of the Quang Tri Provincial Party Committee cum Chairman of the provincial People’s Committee.

In recent years, Quang Tri has made substantial investments in developing the Lao Bao Special Economic and Trade Zone, and formed an urban area that has boosted Quang Tri and Vietnam on the East-West Economic Corridor.

The operation of the Lao Bao Special Economic and Trade Zone has remained below expectations. The zone needs new regulations and bottlenecks removed to develop under the new context and situation.

Under Resolution No. 26-NQ/TW dated November 3, 2022 of the Politburo of the Communist Party of Vietnam on socio-economic development and ensuring national defense and security in the Northern Central and Central Coastal regions to 2030 with a vision to 2045, Vietnam has to promote economic cooperation through regional border gates associated with the East-West Economic Corridor and conduct a cross-border economic zone model on the East-West Economic Corridor.

Under the agreement on bilateral cooperation between Vietnam and Laos signed on January 12, 2023 in Vientiane, the two governments agreed to include the pilot content of the gateway economic zone model.

The workshop entitled "Lao Bao-Densavan cross-border economic and trade zone: From idea to reality. Photo: Nguyen Kha

As per the said documents, Quang Tri Province has coordinated with Savannakhet Province to develop a pilot project entitled “Building the Lao Bao-Densavan cross-border economic and trade zone”. Following the project, Quang Tri and Savannkhet provinces will advise governments, ministries and agencies of the two nations to implement this important policy.

The workshop entitled “Lao Bao-Densavan cross-border economic and trade zone: From idea to reality” aimed to introduce the project content, especially the specific and outstanding policy mechanisms expected to be applied to the zone.

Quang Tri and Savannakhet anticipate receiving opinions from experts, scientists, and relevant agencies, especially the contributions of the Vietnamese and Lao business communities to help the two provinces continue to complete the project.

Authorities of the two provinces will draft the content of the Agreement between the two governments and submit it to the Ministry of Planning and Investment, the standing agency of the Vietnam-Laos Cooperative Committee, and the ministries and branches of the two countries.

Quang Tri and Savannakhet hope the zone will be highly feasible, consistent with the practical conditions and relations between Vietnam and Laos, and attractive to businesses.

To soon put the cross-border economic and trade zone into official operation, Quang Tri has worked with Savannakhet to coordinate research, develop new policies and rules, adjust the development plan of the Lao Bao Special Economic and Trade Zone, and overhaul the operation of the Densavan Border Trade Zone. The two provinces expect to draw businesses to come and invest in the area, especially in the fields of traffic and technical infrastructures.

As part of the conference, nearly 100 domestic and foreign businesses in Vietnam and Laos joined a field trip to the Densavan Border Trade Zone and the Lao Bao International Border Gate. Quang Tri and Savannakhet, in collaboration with the US consulting company CTS, asked for the feedback of the businesses to remove difficulties and barriers for businesses, create favorable conditions for businesses to operate, and ease travel through the Lao Bao-Densavan Cross Border Economic and Trade Zone.

At the conference, delegates, experts, scientists and businesses discussed theoretical and practical issues. The meeting was a channel to connect Quang Tri and Savannakhet and enhance the cooperative relationships between the provincial authorities and business communities.

Furthermore, authorities of the two provinces were able to disseminate information about potential investment opportunities in Quang Tri’s Lao Bao Special Economic and Trade Zone and Savannakhet’s Densavan Border Trade Zone to organizations, associations, business communities, and investors.

The workshop’s success will make a significant contribution to the pilot construction of the first joint cross-border economic and trade zone between Vietnam and Laos, meeting the requirements of both parties, governments, businesses and people.

Huy Anh