Lao Cai, an effective trade exchange point

13:38 | 02/07/2015 Trade

(VEN) - Recognizing that Lao Cai Province is an important point in the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh Economic Corridor which links ASEAN countries with the Southwest of China, provincial authorities have provided enterprises with favorable business conditions.

Lao Cai, an effective trade exchange point

An important position

The northern mountainous border province of Lao Cai has major potential to develop industries, trade, tourism and services thanks to a series of border gates linked to the Chinese province of Yunnan. It has focused on infrastructure development and recently put into use the Noi Bai-Lao Cai Expressway which links directly to the Hekou-Kunming Motorway, forming the shortest way from Yunnan to Hai Phong and Quang Ninh.

According to Director of the Lao Cai Province Department of Industry and Trade Do Truong Giang, the Noi Bai-Lao Cai Expressway has helped improve the province’s position in the Kunming-Lao Cai-Hanoi-Hai Phong-Quang Ninh Economic Corridor in terms of foreign trade. Lao Cai recorded more than US$2 billion in import-export value last year, excluding trade between border residents, and expects to see US$2.2 billion this year.

Last year, about 643,000 out of two million tonnes of rice were exported to China via Lao Cai’s border gates, in addition to cassava and litchi. Meanwhile, machinery and raw materials were imported from China.

An open business environment

Lao Cai’s authorities are focusing on creating the best conditions for firms in terms of investment, trade and cooperation, highlighting the Businesses Thrive through Lao Cai’s Development motto, while struggling to make the province a socioeconomic highlight in the Northwest. The provincial competitiveness index (PCI) has been vastly improved and Lao Cai has been ranked among the top ten provinces in terms of the PCI for several consecutive years, finishing third last year.

Local authorities including economic zone management boards, customs and market surveillance departments have closely cooperated with their Chinese counterparts at Hekou on cross-border trade issues and streamlining related customs and quarantine procedures, with the intention of facilitating the clearance of cross-border goods, especially agricultural products and seafood. Lao Cai has applied electronic customs declaration models and businesses can perform customs declaration procedures at their offices, said Deputy Chairman of the Lao Cai Province People’s Committee Le Ngoc Hung.

The Lao Cai-Hekou border crossings are playing an important role in promoting bilateral trade, especially in terms of import and export of agricultural products, seafood, wood furniture, raw materials and machinery between Vietnam and Yunnan Province in particular and the Southwest of China in general.

Quynh Nga & Lan Ngoc