Trade is sluggish.
In early November 2023, we visited the Nam Can International Border Gate. Normally, the end of October is the busiest time for preparations for the Lunar New Year, but activity here remained quiet. Besides trucks carrying ore from Laos to Vietnam undergoing customs clearance and some people visiting relatives, the amount of goods exchanged between the two sides was very small.
Ms. Y Khan, a resident of Noong De village specializing in buying and selling brocade fabrics and general merchandise, said that almost every household in Nam Can produces brocade fabrics; the Nam Can market is held on weekends every month, but the amount of goods allowed to be brought from Vietnam for sale at this market is not large. The same applies to other agricultural products.
In the Nam Can border economic zone, a commercial center building was constructed, but it is currently almost empty, with no shops or trading activities taking place. Inside, the commercial center consists of empty spaces, with no people passing through, and is deteriorating and looking old.
Furthermore, there are currently no accommodation facilities in Nam Can commune to serve the needs of tourists and locals passing through the area.
According to Mr. Lang Luong, Secretary of the Party Committee of Nam Can commune, trade between the two sides through the Nam Can International Border Gate is currently limited. Vietnamese citizens crossing the Nam Can border gate once a month are allowed to bring goods worth no more than 2 million VND, failing to achieve the commercial potential befitting an international border gate. Therefore, most people go to the border market for entertainment and sightseeing; there are not many traders. Although the service sector accounts for 55% of the commune's economy, this is still a modest figure compared to its potential.
In Nghe An province , besides the Nam Can International Border Gate, the Thanh Thuy Border Gate is also a potential location for regional economic development. Currently, although infrastructure around the border gate has been planned for construction, it has not yet been implemented in practice. Apart from security controls, there is virtually no trade activity on either side of the border gate.
According to the leaders of Thanh Thuy commune People's Committee (Thanh Chuong district), one of the reasons why the Thanh Thuy border gate area has not been fully developed is partly because the Lao side has not yet upgraded the Nam On border gate to an international border gate.
Solutions to unlock the economic potential of border gates.
Nghe An province has four border gates, including the Nam Can International Border Gate - Ky Son; the Thanh Thuy National Border Gate - Thanh Chuong; and two other border gates: Tam Hop - Tuong Duong and Cao Veu - Anh Son. Located in the southwestern region of the province, it boasts diverse cultures and natural resources favorable for the development of forestry, tourism , and border gate-based economic activities.
According to statistics from the Department of Industry and Trade, in recent times, thanks to the close and timely attention and guidance of Party committees and authorities at all levels, security and defense in the border area have been ensured, national border sovereignty has been maintained, creating favorable conditions for the development of border gate economy, contributing to the overall economic development of the province.
Specifically, border areas and border districts have maintained positive economic growth. The exchange of goods between residents and traders through border markets, especially during holidays and market days, has increased.
The import-export turnover between Nghe An and Laos in the first nine months of 2023 is estimated at 78.82 million USD (exports estimated at 44.63 million USD, imports estimated at 34.19 million USD); and is projected to reach 100 million USD this year. Prior to that, in 2022, the import-export turnover between Nghe An and Laos reached 73.47 million USD.
Resolution 39-NQ/TW dated July 18, 2023, of the Politburo on the construction and development of Nghe An province until 2030, with a vision to 2045, has identified the development direction of the western area of Nghe An as the Ho Chi Minh Trail Economic Corridor and the National Highway 7 Economic Corridor, including border gate economy. Regarding the border gate economy, development should follow a regional development direction, linking with neighboring Laos and integrating with border region security and defense.
For districts with border crossings, the current transportation system in the region includes major routes such as National Highway 7 to Laos and the Ho Chi Minh Trail connecting the districts and the western region.
In the near future, the construction of the Hanoi-Vientiane expressway project, including the Vinh-Thanh Thuy (Thanh Chuong) section, will further enhance the region's development advantages. Most recently, the Government included the Vinh-Thanh Thuy expressway project in the investment portfolio for the 2026-2030 period. This is a 61km component of the 688km Hanoi-Vientiane expressway project.
This is an advantage in regional development linkages and with neighboring Laos. When the Hanoi-Vientiane expressway is completed, passing through the Thanh Thuy border gate to the west, it will connect with the North-South road and rail network, the Cua Lo seaport, and Vinh airport, all of which are included in the provincial planning approved by the Government. At the same time, the expressway's proximity to the Vinh-Cua Lo-Nam Dan development triangle creates advantages and momentum for Thanh Chuong's rapid, sustainable development and the promotion of its border economic zone.
At a recent scientific conference on the development of the Southwest Nghe An region, scientists proposed several solutions to promote border gate economics in Nghe An. According to Dr. Nguyen Thi Minh Tu, Director of the Center for Social Sciences and Humanities of Nghe An, the Southwest Nghe An region, in addition to its potential for economic development from tourism, high-tech agricultural production, and forestry, also considers border gate economics as an effective strategic direction. Therefore, Dr. Nguyen Thi Minh Tu proposed developing a border gate economic zone linked to the Thanh Thuy National Border Gate; and continuing to invest in the infrastructure of the Nam Can International Border Gate.
According to Dr. Nguyen Ngoc Chu, former Chairman of the Board of Directors of Dong A University of Technology, developing border trade and expanding cooperation with Laos and Thailand is a strategic priority. Trade between Nghe An and Laos and Thailand through the southwestern region of Nghe An has a history spanning centuries. In today's digital age, barriers in transportation and communication infrastructure have been reduced, creating more favorable conditions for expanding cooperation and development. Many people from Nghe An have businesses in Laos and conduct trade with Thailand through Laos. The province needs preferential policies to encourage Nghe An residents to expand their businesses in Laos and Thailand.
Furthermore, many opinions suggest that it is necessary to continue encouraging and facilitating the participation of economic entities in investing in and developing potential sectors in border gate areas. Priority should be given to investment capital for the construction of the Nam Can International Border Gate and the completion of infrastructure at the Thanh Thuy National Border Gate to prepare the conditions for the formation of a border economic zone. A specific investment incentive policy mechanism should be developed for border infrastructure development, with a focus on developing the province's land border trade infrastructure.
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