High-Quality Infrastructure Boosts Trade on PRC-Viet Nam Corridor

Lao Cai, Viet Nam – Transport infrastructure is a critical input to economic growth.

For 25 years, six countries in the Greater Mekong Subregion have been promoting regional economic development. Upgrading cross-border transport networks is a key area of investment.

Six well-developed road networks now connect the countries of Southeast Asia.

The final leg of the 813-kilometer North-South Corridor from Kunming in southern People’s Republic of China (PRC) to Hai Phong, Viet Nam, was upgraded in 2014. People and goods now flow freely all along the route.

“Roads are wider and smoother now,” says Tran Manh Hung, who has worked as a truck driver in the region for more than 20 years. “We drivers no longer have to worry about congestion.”

Northern Viet Nam has seen a surge in investment in recent years, including from large electronics firms.

At the Hekou, PRC-Lao Cai, Viet Nam, border crossing, tourist and trade traffic is expanding rapidly. Some 4.6 million tons of cargo crossed the border in the first half of 2017; more than in all of 2014.

“The most important thing for border trade are customs matters, customs processes,” says Tom Kim, North Viet Nam Director for Heung-A Shipping. “We are sure if the process is as simple as possible a lot of people, a lot of companies want to use this route and then they can enjoy a lot of profit for this route.”

And the benefits flow all along the corridor. Throughput at Hai Phong port has been expanding at about 15% a year.

“The expressway has contributed to satisfying growing demand for freight services. The volume of goods passing though Hai Phong ports to the People’s Republic of China and vice versa now accounts for about 25% to 30% of all cargo,” says Pham Hong Minh, Deputy Director General of the Port of Hai Phong.

The Asian Development Bank is committed to supporting regional cooperation and integration in the Greater Mekong Subregion.