Completion of rail & road projects to facilitate trade with Thailand

30 Aug '08

1 min read

Bilateral trade between Laos and Thailand is anticipated to increase and even exceed the US $900 million mark in 2009 with the completion of the construction of Road 3 and the operationlisation of the Lao-Thai railway line.

Lao Government officials believe that the country's first highway R3a road which got completed in 2007, would immensely contribute to the economic development of the northern provinces and would also go a long way in facilitating the economic and commercial exchanges with neighboring countries like China and Thailand.

Moreover, some others also believe that the development of this crucial infrastructure would act as a key factor in boosting trade and investment among the three countries Laos, Thailand, and China.

This was amply borne out last year when cooperation between Laos and Thailand resulted in a bilateral trade of $800 million in which the former exported goods worth $290 million largely comprising furniture and garment among other products.

On the other hand, imports made from Thailand amounted to $651 million, so much so that nearly 60 percent of the Lao market is flooded with Thai goods most of which are consumer goods while the remaining is covered by Vietnamese and Chinese products.