Transportation upgrades essential to boost Quang Tri’s trade with neighboring localities

Quang Tri Province needs to upgrade traffic infrastructures at the La Lay International Border Gate to boost its trade with neighboring countries.

From the international border gate, truck drivers have no other options but to move on a stretch of National Road No.15 to reach Ho Chi Minh Route and circulate imported merchandise nationwide.

However, the drivers may find it challenging to travel through this route as the road curves along mountains. It is often blocked by ongoing construction sites, and extreme weather in the area makes it muddy and hard to drive.

Kaleum coal mine in Sekong Province, Lao. Photo: Le Truong

According to business executives, the underdeveloped infrastructure of the border area increases the time and expenses of carrying the goods. More time also means the goods will downgrade in quality, and businesses will become less confident in the area’s logistic services.

“Our trade activities are limited because of the underdeveloped infrastructure,” said Hoang Thi Cuc, Thong Phat Ltd Co. “Congestions often occur and damage our commitment to customers.”

According to the La Lay International Border Gate’s Customs Division, a total of US$261 million worth of products passed through the gate, bringing about VND574.6 billion ($23.6 million) to the provincial budget. The figures rose 1,341.6% and 188% on year, respectively.

“If the infrastructure gets improved, it will shorten the distance and time to travel between the border gate and ports,” the division’s Deputy Chief Le Cam An said.

“Upgraded roads and other infrastructures will increase transport for all goods, including coal,” he added.

The La Lay International Border Gate is the gateway that connects Vietnam, through central coastal provinces, to Laos’ southern region and Thailand’s northeastern region, which has a total population of some 22.5 million.

Customs and border guard officials check a container truck at La Lay International Border Gate. Photo: Thanh Truc

To boost economic activities at the area of the border gate, Quang Tri Province mulls multiple activities to develop the infrastructure and better connect the gateway to other areas and localities.

Quang Tri Provincial People’s Committee and local government agencies are working on a plan to boost the socio-economic growth in the border gate area until 2035.

Under the plan, the province will develop a new economic corridor that parallels the East-West Economic Corridor and turn the area into a dynamic logistic hub for a total of VND3.15 trillion ($129 million). The new corridor is facilitated by a 70-kilometer route that connects the border gate with the Southeastern Economic Zone and My Thuy Deepwater Seaport.

Vice Chairman of the Provincial People’s Committee Ha Sy Dong on January 22 asked relevant units to finalize the plan soon and make Quang Tri live up to the expectations of becoming a hub connecting the central coastal region and Vietnam to the world.

The plan developers must also address the difficulties, project future changes, and deliver feasible solutions to improve the infrastructure in the border region by 2035, thus bridging Vietnam to Laos and other ASEAN member states, he said.

In mid-January 2024, Quang Tri Province and Thailand’s Ubon Ratchathani Province inked a memorandum of understanding to initiate their friendly and economic relations.

At the event, Chief of Ubon Ratchathani Supasit Kocharoenyos said that the Thai province is building the Sixth Friendship Bridge with Laos’ Salavan Province.

The new bridge will reduce travel time and boost trade activities between Quang Tri and Thai and Lao provinces, he said.

Coal imports

Coal is a key import channeled from Laos to Vietnam through the La Lay International Border Gate.

As mentioned, trade activities through the border gate brought some VND575 billion ($23.6 million) to the provincial budget in 2023. Income from coal importation was VND500 billion ($20.5 million).

Chairman of the Quang Tri Provincial People’s Committee Vo Van Hung and other provincial officials visit Kaleum coal mine in Sekong Province, Laos. Photo: Le Truong

In June 2023, an investor consortium proposed to build a 160km cross-border coal conveyor that transports coal from the Kaleum mine in Laos’ Sekong Province to My Thuy Seaport.

Two of the three components in the project will be implemented in Vietnam. Those include a 5.5km conveyor to transport coal from Laos to Vietnam through La Lay International Border Gate. The project is worth VND1.84 trillion ($75.5 million) and it is capable of conveying 6,000 tons of coal per hour.

The other component is the construction of a 65km conveyor to transport the coal from the border gate to My Thuy Port. At the port, the investors will construct a terminal capable of receiving 50,000-DWT ships and loading 30 million tons of coal each year. The total project estimate is about VND7.5 trillion ($307.8 million), and it is slated to compete in 2026.

Tran Nam Khanh, an executive at Hoanh Son Group, said that the conveyor and upgraded infrastructure will help multiply the volume of coal imports from Laos to Quang Tri by 10 times.

According to Chairman of the provincial People’s Committee Vo Van Hung, the coal conveyor project will create a new growth momentum for the border region, and encourage more companies to invest in the province’s western area.

“Quang Tri has formed a steering committee and tasked relevant units to complete administrative procedures and resolve existing issues so investors may soon kick off the project,” he said.

A birdview shows La Lay International Border Gate. Photo: Le Truong

In late January 2024, Chairman Hung led a Quang Tri delegation to visit the Lao provinces of Salavan and Sekong to drive the project. During the trip, the Vietnamese delegates arrived at the Kaleum coal mine in Sekong Province, which has a coal reserve of 800 million tons and signed a working minute to hasten the preparations.

The chairman suggested that Sekong and Salavan make a joint proposal to the Lao Government to enable the project implementation and extend the working tenures for government officials at the La Lay border gate so that imports and exports are processed in mass volume.

“Aside from encouragement of economic cooperation in trade, logistics, investment and tourism between the three provinces, we hope that authorities of the three provinces will create the best conditions for companies to exploit coal and transport it to Vietnam via La Lay International Border Gate,” he said.

“Total coal imports from Laos through the border gate was 2.33 million tons. The conveyor will result in a great source for State revenue and lift the socio-economic growth in the border region,” said Deputy Chief of the border gate’s Customs Division, Le Cam An.

He said the customs division has approved new regulations on cross-border coal conveyance. “We also have utmost support for investors to develop coal warehouses and resolve other issues.”

According to Nguyen Thanh Minh, Chief of the Border Guard Division at La Lay International Border Gate’s Border Guard, the plans to ensure security and safety for the coal conveyor operation have been completed and finalized.

Huy Nam – Huy Anh