Gia Lai: Strengthening cooperation to develop border trade

Border trade has not really flourished

Le Thanh international border gate (Duc Co district, Gia Lai province) has received attention from the Party and the State, supported with policies and resources to develop the economy and society, ensuring national defense and security. However, despite growth over the years, border trade activities in this area have not really flourished.

Le Thanh international border gate. Photo from Internet

In 2022, import-export turnover through Le Thanh border gate reached 140 million USD, an increase of 18% compared to 2021. Total import-export turnover across the border in the first 9 months of 2023 is estimated at 85 million USD.

Up to now, Le Thanh Border Gate Economic Zone has 36 investors implementing 40 projects with a total registered investment capital of 556.6 billion VND, the realized investment capital is estimated at 242.85 billion VND (reaching 43.6% of the total registered investment capital); of which 11 projects have been completed and put into operation, 20 projects are under construction, 9 projects are completing procedures. These projects mainly operate in trade, services, and warehouse business suitable for the border gate area.

According to Mr. Nguyen Xuan Thuong - Deputy Head of the Economic Zone Management Board, Deputy Head of Le Thanh International Border Gate: In recent years, Gia Lai province has paid great attention to border gate economy, however, the investment level is not much, so it has not attracted enterprises with large investment projects, foreign investment projects. Most of the investment projects are small-scale, mainly in the agricultural and forestry processing industry and trade and service business. Market activities, trading and buying and selling mainly take place seasonally.

Import and export goods are not diverse, mainly technical standard rubber; agricultural products include bananas, mangoes, raw cashew nuts, sliced ​​noodles, etc. Export goods are mainly general merchandise, carton boxes, agricultural materials serving projects of Gia Lai province enterprises investing in Cambodia. The number of enterprises participating in import and export through Le Thanh International Border Gate is still small.

The reason for these limitations is that the socio-economic life in the border areas is still underdeveloped. Border residents mainly rely on seasonal agricultural production, industrial production is limited, and there are no competitive key products. The population of border communes is still sparse. Many Vietnamese enterprises, especially local enterprises, have not identified Cambodia as a potential market, mainly focusing on exporting goods to traditional markets. Ratanakiri and Stung Treng provinces (Cambodia) still have difficulties in material life, lack of construction infrastructure, underdeveloped services, and low agricultural production level.

In commercial activities, most businesses only rent warehouses to purchase, gather, and quickly process goods, without deep processing on-site to save management and labor costs. On the contrary, if businesses import goods from Cambodia (Ratanakiri province) through other border gates near the seaport to industrial parks, they will save on transportation costs, warehouse and wharf costs, and management and labor costs, helping businesses increase their competitive advantage. The local labor force has not met the requirements in terms of quantity and quality, which is also one of the reasons why commercial activities at the border gates have not really flourished.

In addition, the Cambodian market has fierce competition among foreign enterprises and investors, notably enterprises from China, Thailand and some other ASEAN countries. Gia Lai is a border province far from the seaport. Enterprises importing goods through Le Thanh International Border Gate must spend more on transporting goods by road to the seaport for export, leading to increased input costs for products, affecting price competition.

Promote cooperation activities to develop border trade

To narrow the gap in trade activities, in 2022, Gia Lai Department of Industry and Trade coordinated with relevant units to successfully organize 2 safe agricultural product fairs and introduce OCOP products with 88 booths, 1 border market at Le Thanh International Border Gate with 60 booths of enterprises, cooperatives, business households in the province and business households in Oyadav district, Cambodia.

Goods transportation activities at Le Thanh International Border Gate, Gia Lai province. Photo: VNA

In the trade of goods, the functional forces at Le Thanh International Border Gate have closely coordinated with the Cambodian side to implement the import-export control process, creating favorable conditions for goods to be cleared quickly through the border gate. The highlight is that the Customs Branch of Le Thanh International Border Gate has digitized administrative procedures by supporting businesses in carrying out customs procedures through online public services.

Mr. Hoang Luong Quang, Head of the Le Thanh International Border Gate Customs Branch, Gia Lai - Kon Tum Customs Department, said that currently, the Customs system has implemented online public services at levels 3 and 4. Therefore, when completing procedures, businesses will send documents to the public service system, without direct contact with customs officers and civil servants. In addition, at the goods inspection points, customs will create the most favorable conditions within the permitted conditions for goods to be cleared as quickly as possible, avoiding congestion.

In the coming time, in order for border trade activities at Le Thanh International Border Gate to flourish, it is necessary to have the cooperation of state management agencies, enterprises and people. In particular, it is necessary to promote the development of trade, culture - society, border market development projects to create conditions for people, vehicles and goods to pass through the border gate to serve trade, contributing to improving the lives and qualifications of residents in border areas; ensuring national defense, security, social order and safety.

In particular, Gia Lai and Ratanakiri provinces need to strengthen cooperation in developing and connecting border trade infrastructure to exploit the potential and advantages of the two localities; attract investors, encourage socialization of investment in building and developing trade infrastructure. Proactively approach and attract investors capable of building and operating infrastructure in border economic zones; attract secondary investors, focusing on prioritizing investors in deep processing of agricultural products.

In addition, Gia Lai province also promotes trade promotion activities and supports and guides businesses to connect and consume products abroad through e-commerce activities, participate in international exhibition programs, border trade fairs, connection activities, promote economic diplomacy with diplomatic missions abroad, foreign representative agencies, foreign consulates in Vietnam, thereby increasing opportunities for trade promotion, promotion, and introduction of typical agricultural products, OCOP products.

Along with that, the functional forces of Vietnam and Cambodia need to continue to improve administrative procedures, creating conditions for businesses to bring goods through the border gate. In order for the trading activities in the border gate area to become bustling, Gia Lai province also needs to have mechanisms and policies to support the border market at Le Thanh International Border Gate to be organized periodically and attract many businesses and people to participate.

Source link: https://congthuong.vn/gia-lai-tang-cuong-hop-tac-de-phat-trien-thuong-mai-bien-gioi-277991.html