Quang Tri envisions establishing new growth pillar in western region

In recent times, the bustling activities of goods import and export, especially the import of coal from Laos to Vietnam through the La Lay International Border Gate, have been vibrant. Numerous infrastructure projects connecting the La Lay International Border Gate with the Southeast Quang Tri Economic Zone are under study, proposed, and in preparation for implementation. Agreements on cooperation between Quang Tri province and neighboring provinces in Laos and Thailand have been signed, opening up prospects for the emergence of a dynamic economic development zone in the western part of Quang Tri.

Quality infrastructure to boost economic growth

Arriving at the La Lay International Border Gate area in late January 2024, one becomes aware of the difficulties and challenges faced by cargo transport drivers engaged in import and export activities, particularly those transporting coal from Laos to Vietnam. The approximately 10 km stretch of National Highway 15 from Ho Chi Minh Road to the La Lay International Border Gate encompasses winding mountainous sections, narrow roadways with one side against the mountain and the other overlooking deep valleys, and several incomplete construction sites. At the border area, the infrastructure is cramped, with many construction projects yet to be completed, exacerbating the situation with coal and dust haze under the sun and muddy conditions during rainfall.

The La Lay International Border Gate needs investment to meet growing trading activities. Photo: Le Truong

This reality poses numerous challenges to the smooth flow of goods transport between Laos and Vietnam, leading to prolonged traffic congestion due to the increased movement of heavy trucks and containers or occasional breakdowns.

Many business owners express concerns, stating that the subpar and poorly interconnected infrastructure at the border area, combined with difficulties in connecting to other vital transport arteries, not only prolongs travel times and distances but also results in a sharp increase in costs, compromises the quality of goods, and causes damage. This situation further discourages businesses from choosing the La Lay International Border Gate for import and export activities or expanding their investment endeavors.

Information from the La Lay International Border Gate Customs Department, Quang Tri Customs Department, reveals that in 2023, the total import-export turnover of goods through this gateway reached US$261 million, contributing a total state budget revenue of VND574.6 billion ($23.5 million). These figures represent a significant increase of 1341.6% and 188% compared to 2022, respectively. Notably, the state budget revenue from coal imports exceeded VND500 billion ($20.5 million).

"The reality at the border crossing indicates that with better infrastructure and more convenient connections to transportation routes leading to ports, the volume of imported coal will not only remain at the average of about 6,400 tons per day but will increase significantly. This applies not only to coal but also to the import and export of other goods," shared Le Cam An, Deputy Head of the La Lay International Border Gate Customs Department.

Hoang Thi Cuc, a representative of Thong Phat Trading and Services Co., Ltd., remarked, "Our company encounters numerous challenges and limitations in the process of importing and exporting goods, particularly in terms of volume, due to the constrained infrastructure conditions at the La Lay International Border Gate, which has not received comprehensive investment. Goods from Laos often get stuck due to road congestion, impacting our ability to fulfill contracts with partners."

Custom clearance process at the La Lay International Border Gate. Photo: Anh Quan

Opening new direction for development

To awaken the potential and promote the economic development of the La Lay International Border Gate area, the province has implemented various directions and solutions, with businesses actively investing.

In addition to mobilizing significant investment resources for the infrastructure of the La Lay International Border Gate area, the provincial authorities have directed relevant departments and localities to urgently develop the Economic Development Plan for the La Lay International Border Gate area until 2030, with a vision towards 2035, based on existing planning.

The goal of the plan is to establish a new economic corridor parallel to the East-West Economic Corridor, creating a dynamic logistics service center. The total capital needed to implement the plan, ensuring alignment with development directions in trade, services, tourism, and infrastructure, is approximately VND3.14 trillion ($128.7 million).

These specific conditions are set to facilitate the implementation of several motivating projects, generating new momentum and propelling the province into a breakthrough development phase during the process of international economic integration.

In June 2023, an investor consortium proposed a research and investment plan for transporting coal from the Kaleum mine in Sekong province, Laos, to the My Thuy port via the La Lay International Border Gate using a conveyor belt with a total length of 160 km. The project comprises three components: a conveyor belt system within Laos with a length of 85 km, a conveyor belt system crossing the Vietnam-Laos border with a length of approximately 5 km, and a conveyor belt system from kilometer 4+200 of National Highway 15 to the My Thuy port, spanning 70 km.

Among these components, the project involves investing in the construction of a specialized port and conveyor belt for transporting coal from the La Lay International Border Gate to the My Thuy port, covering a distance of 70 km. The investor will build a dedicated bulk cargo port and port infrastructure capable of receiving ships up to 50,000 DWT, with an annual capacity of 30 million tons. The conveyor belt will be constructed enclosed, floating on beams, high steel trusses, overpasses, or mountain tunnels. The total investment for the project is approximately VND7.5 trillion ($307.4 million), with implementation scheduled from 2023 to 2026.

Based on the province’s proposal, on January 5, 2024, the Government issued a resolution allowing the implementation of the project to build a coal conveyor belt system from Laos to Vietnam crossing the border at the La Lay International Border Gate in phase 2 of the comprehensive project for transporting coal and bulk cargo from Laos to Vietnam proposed by Nam Tien Company.

The project, with a length of approximately 5.5 km, involves the conveyor belt section situated on Laotian territory for about 200 m and on Vietnamese territory for about 5.5 km. Its purpose is to transport coal from the storage yard in Salavan province, Laos, through the La Lay International Border Gate to the storage yard in A Ngo commune, Dakrong district. The total investment for the project is around VND1.84 trillion ($75.4 million), divided into two phases to construct a conveyor belt with a total transport capacity of 6,000 tons per hour and accompanying supporting facilities.

Tran Nam Khanh, a representative of Hoanh Son Group Joint Stock Company, stated, "When the conveyor belt project for coal transport becomes operational and infrastructure is invested, with better connectivity, the volume of coal imported through the La Lay International Border Gate by businesses will increase many times compared to 2023."

"In 2023, the imported coal from Laos through the border gate was over 2.33 million tons. Preliminary calculations suggest that when coal importation from Laos is carried out using the conveyor belt system, it will increase the imported coal volume by about 10 times. This will not only generate a significant revenue source for the state budget but also stimulate the socio-economic development of the border gate area," said Le Cam An.

Chairman of Quang Tri People’s Committee Vo Van Hung and the delegation of Quang Tri visit the Kaleum coal mine in Sekong Province. Photo: Le Truong

Drastic measures from Quang Tri’s authorities

Chairman of the People’s Committee of Quang Tri Province Vo Van Hung stated, "The coal conveyor project from Laos to Vietnam through the La Lay International Border Gate, when operational, will create new economic and social growth. It will also provide favorable conditions and motivation for businesses to invest in production and business activities in the western part of the province. To expedite the investment and operation of the project, the provincial People’s Committee has established a Steering Committee, assigning specific responsibilities to relevant departments and units to continue refining procedures and addressing difficulties for investors to proceed promptly."

At the end of January 2024, Chairman Vo Van Hung led a delegation from Quang Tri Province to visit and work in the provinces of Salavan and Sekong (Laos) to promote cooperation in various sectors, with a focus on transporting and exporting coal from Laos to Vietnam through the La Lay International Border Gate.

A highlight of this working visit was the exploration of the coal mine in Kaleum, Sekong Province, where an estimated reserve of about 800 million tons was identified. Upon hearing the mine representative’s proposal to expedite the implementation of the coal conveyor system project from Laos to Vietnam through the La Lay International Border Gate, Chairman Vo Van Hung and the delegation engaged in discussions and signed a memorandum of cooperation with the leaders of Sekong Province.

Notably, Quang Tri Province proposed to Sekong Province, in collaboration with Salavan Province, and recommended the competent authorities in Laos issue official documents to agree to the next steps of the coal conveyor project from Laos to Vietnam. They also requested the relevant authorities and the governments of both countries to extend the working hours of functional forces at the La Lay International Border Gate (Vietnam) - La Lay (Laos) to facilitate customs clearance for a large volume of goods.

"This working trip not only promotes cooperation with Sekong and Salavan provinces in terms of investment, trade, logistics, and tourism to exploit the advantages of the location along the East-West Economic Corridor (EWEC), strengthening the connection between Sekong - Champasak - Salavan - Quang Tri and the central key economic region through the La Lay International Border Gate. It also supports and creates the most favorable mechanisms and conditions for businesses to enhance coal exploration and export through the La Lay International Border Gate - La Lay pair," shared Chairman Vo Van Hung.

The Kaleum coal mine from above. Photo: Le Truong

To prepare for the commencement of the coal conveyor project from Laos to Vietnam, relevant agencies have promptly acted.

"We have developed customs clearance procedures for coal imported via the conveyor belt across the border, outlined plans to ensure the workforce for customs inspection and supervision when the volume of imported coal increases significantly, and reported to higher authorities, receiving preliminary approval. Alongside this, we are providing maximum support to the investor in developing plans and procedures for the construction of the coal storage yard and addressing other related issues," said Le Cam An.

According to Captain Nguyen Thanh Minh - Border Control Station Chief at the Border Guard Station of the La Lay International Border Gate, security and order management, border control, and entry-exit procedures for the coal conveyor project from Laos to Vietnam have been thoroughly prepared for when the project becomes operational.

Regarding the Economic Development Plan for the La Lay International Border Gate area until 2030, with a vision towards 2035, on January 22, 2024, during a working session with relevant departments and localities, Permanent Vice Chairman of the Provincial People’s Committee Ha Sy Dong urged the swift development of a comprehensive plan commensurate with the dynamic development potential of the regional linkage, connecting nationally and internationally.

This plan should clearly outline current difficulties, and project development forecasts, and propose appropriate solutions, focusing on investing in and improving the infrastructure of the border gate area to enhance regional, national, and international connectivity. By 2035, the goal is to establish a border economic zone, connecting National Highway 15D from My Thuy seaport to the La Lay International Border Gate, becoming a trade and economic hub between Vietnam, Laos, and other ASEAN countries.

In January 2024, Quang Tri Province and Ubon Ratchathani Province (Thailand) signed a memorandum of understanding to establish friendly relations with various commitments to promote diplomatic relations and economic development.

At this event, the Provincial Governor of Ubon Ratchathani, Supasit Kocharoenyos, revealed that Ubon Ratchathani is constructing the 6th Friendship Bridge, connecting with Salavan Province. Once completed, it will reduce travel time between the three provinces of Ubon Ratchathani - Salavan - Quang Tri, especially for the transportation of goods from Thailand and Laos to My Thuy port along the East-West Economic Corridor. This development is considered a boost for economic trade activities in the La Lay International Border Gate area.

In this context, the prospects for forming a dynamic economic development zone in the western part of Quang Tri are promising, contributing to the province’s goal of reaching a high average level of development by 2025 and being classified as a relatively developed province in Vietnam by 2030. This aligns with the objectives outlined in the resolutions of the 17th Party Congress of Quang Tri Province for the 2020-2025 term.

Huy Nam - Ngoc Mai