European delegates explore business opportunities generated by Thanaleng Dry Port

Doing business in Laos, manufacturers can enjoy privileged access to markets in major countries. Improved connectivity has provided better facilities and cut logistics and transport costs, which increases competitiveness.

Improved connectivity has enabled Laos to provide cost-effective logistics and transport services, which could reach European markets and the rest of the world, the developer of the Vientiane Logistics Park and Thanaleng Dry Port told European delegates.
The Ambassador of the European Union (EU) to Laos, Ms Ina Marčiulionytė, diplomats and business executives from European countries on Thursday visited the dry port in Vientiane, where extensions of the Laos-China and Laos-Thailand railways meet, to learn about these opportunities.

Mr Sakhone Philangam (right) explains the workings of the operations room to the European delegates.

Under development near the first Laos-Thailand Mekong Friendship Bridge, the logistics park and dry port – the only one-stop customs clearance hub for cross-border rail transport – functions as an international border checkpoint for freight and a facilitator of trade and transport.
Open for service since December last year, the modern dry port could facilitate the shipment of freight between Asean (Association of Southeast Asian Nations) and Europe, its Managing Director Sakhone Philangam told the visiting guests.
Through Laos, freight can go further via the China-Europe rail network, passing through Eurasia and eventually reaching Germany.
Using these rail networks, the transport time from Southeast Asia to Europe is about two weeks instead of about 45 days by sea.
The Lao developer has signed a deal with its Chinese partners to set up Chinese Sanitary and Phytosanitary (SPS) and China Certification and Inspection Group (CCIC) representative offices at the dry port. These are able to issue the necessary certificates to enable cargo to reach Chinese markets quickly.
In addition, the Lao investor has signed deals with Thailand’s Laem Chabang seaport and a dry port in Kazakhstan, in a joint effort to streamline logistics and expedite the shipment of freight.
Rail transport is increasingly popular for both passengers and freight.
Marking its first anniversary on Saturday (December 3), the Laos-China Railway - part of a planned regional railway linking China’s Kunming to Singapore through Laos, Thailand and Malaysia – has handled 8.5 million passenger trips and 11.2 million metric tons of cargo, the China Daily reported.
Driven by the railway, the Thanaleng Dry Port, which marks its first anniversary on Sunday (December 4), handled as many as 41,000 containers (loaded with import, export and transit goods) during the first nine months of this year.

Railway network links Laos to Germany.	Laos links to many economic corridors as shown on the map.

The US$727 million Vientiane Logistics Park and the Thanaleng Dry Port is part of the packaged Lao Logistics Link project being developed to fulfil Laos’ strategy to transform the country from being landlocked to a land link within the region, President of the Vientiane Logistics Park Company Limited, Chanthone Sitthixay said.
The Lao Logistics Link also includes the Vung Ang Seaport in Vietnam’s central Ha Tinh province, a planned railway linking the seaport to the dry port in Vientiane, and a planned logistics park in central Laos’ Khammuan province.
Petroleum Trading Lao Public Company (PetroTrade) – the mother company of Vientiane Logistics Park Company Limited - was given the green light to partner with the governments of Laos and Vietnam to develop and operate the Lao Logistics Link project, which will form an important regional and global interlink network.
Through the Vung Ang Port, Laos would become a connecting point to countries in the Pacific region, Mr Chanthone said.

Mr Chanthone Sitthixay (front, third left), Ambassador Ina Marčiulionytė (fourth left) and other representatives of both sides gather for a group photo.

To maximise manufacturing-for-export potential, the Lao developer is also developing facilities at investment zones to encourage more companies to set up business. 
Recently, an official groundbreaking ceremony took place to start construction of Phase 2 of the Vientiane Logistics Park and Thanaleng Dry Port project on 327 hectares of land. This will include a tank farm, export processing centre, logistics park, free trade zone, and technology and halal hub.
“It is expected that services (for investors) can begin by the end of next year,” Mr Chanthone said.
Surrounded by the emerging economies of China, Thailand and Vietnam, Laos’ central location is a huge boon for incoming investors, Mr Sakhone said.
He estimated that thousands of Chinese visitors would arrive in Laos daily once China relaxes its Zero-covid policy, thanks to the railway. This influx would be a lucrative opportunity for businesses that set up shopping centres inside the designated duty-free area within the logistics park.  
In addition, manufacturers assembling and repackaging products in the project’s processing zone for export will enjoy Lao origin status and have privileged access to major markets. These include the EU, United States and India, with some product categories eligible for zero-tariff status when exported to those countries.
Investing in these zones, intrepreneurs will also enjoy tax breaks for somewhere between 8-16 years, depending on the type of investment.
Ambassador Marčiulionytė said the visit by her delegation was aimed at learning more about the project and its opportunities so that they could inform their businesses back home.
She added that European countries have provided considerable support to Laos with a focus on areas such as strengthening the economy, human capital and good governance, with the ultimate goal of enabling Laos to graduate from Least Developed Country status.
“One of the main areas we would like to emphasise now is to boost trade between Laos and European countries and also to encourage European investment in Laos,” she told her host, adding that connectivity improvement is critically important to this drive.
Accompanying Ambassador Marčiulionytė on the visit to the dry port were the Ambassador of France to Laos, Siv-Leng Chhuor; the Ambassador of Germany to Laos, Annette Knobloch; and the Charge d’Affaires of Luxembourg to Laos, Sam Schreiner.

By Advertorial Desk
 (Latest Update December 5, 2022)