Vientiane Logistics Park showcases Laos’ land link opportunities at int’l expo
Laos’ major logistics service operator, Vientiane Logistics Park, is showcasing at an international expo the opportunities Laos is offering as the landlocked country rapidly becomes an integral land link in the global and regional supply chain.
Vice President of Vientiane Logistics Park Co., the developer of the Thanaleng Dry Port, Viengkhone Sitthixay, is leading company executives attending the 8th China-South Asia Expo, which kicked off in Kunming, China, on Tuesday.
The six-day event, which has attracted over 2,000 exhibitors, provides a golden opportunity for Lao businesses to explore opportunities and partners.
As the pan-Asia rail network takes shape, Mr Viengkhone and his team from PTL Holding, the parent company of Vientiane Logistics Park Co., are using the event to inform investors from across the region how logistics services through Laos offer more cost-effective transport routes.
Since the Laos-China Railway, which converges with the Laos-Thailand railway at the Thanaleng Dry Port, came into operation in December 2021, importers and exporters have enjoyed significant logistics cost cuts.
Speedy freight transport by trains from Thailand to China cut costs by 30 percent compared to road transport, according to Thailand’s Kaocharoen Train Transport Co., Ltd.
Given this cost advantage, the railway has become an important trade gateway between Southeast Asia and China with more and more countries in the region grabbing the opportunities offered by the trade route.
Recently, ASEAN Express – a cargo train system linking Malaysia to Thailand, Laos and Chongqing, China – completed its first round trip, taking just nine days (one-way) in total against the 14 to 21 days it takes by sea. It was reported that the rail route can cut costs by about 20 percent, thus strengthening regional trade links in ASEAN.
Through the China-Europe rail network, freight dispatched from Southeast Asia can reach Europe in 14-21 days as opposed to 45 days by sea.
With improved connectivity and competitive access to global and regional supply chains, investors are seizing the opportunity and pouring more investment into Laos, hoping to use the country as a production base for exports.
Vientiane Logistics Park Co. is a case in point, investing US$547 million to develop a world-class logistics park that includes an export processing zone, logistics park, free trade zone, technology and halal hub.
Shortly after the opening of the expo, the exhibition booths set up by Vientiane Logistics Park Co. welcomed a visit by Laos’ Deputy Prime Minister Prof. Dr Kikeo Khaykhamphithoune, the Vice-Chairman of the National People’s Congress of China, Ding Zhongli, and leaders from other countries taking part in the event.
Mr Viengkhone briefed the delegations about the operation of the Vientiane Logistics Park and Thanaleng Dry Port, Laos’ integrated logistics centre.
The China-South Asia Expo was first held in Kunming in 2013, the same year China put forward the Belt and Road Initiative. Since its inception, the expo has served more than 18,000 domestic and foreign companies, promoted trade of more than US$100 billion, and facilitated the signing of over 3,000 projects, Xinhua reported.