Son La: Solving the "problem" of developing commercial infrastructure in border areas

Cross-border import and export remains stable but turnover is not high

Son La has a 274.065 km long Vietnam - Laos national border, with 06 border districts: Moc Chau, Van Ho, Yen Chau, Mai Son, Song Ma and Sop Cop with 17 border communes and over 90 thousand people in the border communes. The province has 01 international border gate (Long Sap border gate, Moc Chau district), 01 national border gate (Chieng Khuong border gate - Song Ma district), 02 secondary border gates (Na Cai secondary border gate - Yen Chau district; Nam Lanh secondary border gate - Sop Cop district) and 07 trails and openings. The number of business households in the border districts is nearly 4,000 households.

Border gate infrastructure in general and border markets in particular in Son La still have many limitations (Photo: VNA)

According to the Department of Industry and Trade of Son La, in recent times, the buying and selling and exchanging of goods by border residents in Son La province has been taking place regularly. The buying and selling and exchanging of goods is carried out at main border gates, secondary border gates, trails and openings and at border markets. The main goods are: construction materials (bricks, cement, construction steel, etc.); production tools, agricultural machinery and supplies, plant varieties, etc.; consumer goods: food; agricultural and forestry products (all kinds of wood, corn, rice, beans, medicinal herbs, etc.) to serve the daily needs of the people.

Currently, the economic life as well as the population density in the border areas of both sides are still low, the infrastructure serving commercial activities in the border areas is weak, so the trading and exchange of goods of the border residents on both sides are still limited. The trading of goods by residents is mainly still at the markets where business households are concentrated in the area near the border gates, border markets in the form of bartering goods for goods, or in cash at the exchange rate determined through self-negotiation.

The number of businesses conducting trading activities through the border gates of Son La province is still small, trading activities are irregular and seasonal. Imported goods from 2016 to present are mainly wood, agricultural products (corn, cassava) and forest by-products. However, in recent years, with the Lao Government closing natural forests and restricting the export of round timber, it has caused great difficulties for businesses importing the above items, directly affecting the import turnover of the province. Meanwhile, Son La's main export items to the Lao market in recent years are cement products, construction materials, electricity, and also temporarily importing and re-exporting machinery for construction projects.

The value of import and export of goods through border gates of Son La province with Lao PDR from 2016 to June 2023 reached nearly 6.6 million USD, of which export reached nearly 5 million USD and import reached more than 1.6 million USD.

Border infrastructure is still poor

Son La Department of Industry and Trade informed that currently, Son La province has 05 communes in the border area that have invested in building markets, including: Chieng Khuong Commune - Song Ma District, Phieng Khoi Commune - Yen Chau District; Chieng Son Commune - Moc Chau District, Muong Lan Commune - Sop Cop District, Chieng Khua Commune - Moc Chau District. Of which, 02 markets (Chieng Khua Market and Muong Lan Market) are not operating effectively so their purpose of use has been changed and 03 markets are operating (Chieng Khuong Market, Phieng Khoi Market, Chieng Son Market). The remaining 12 communes have been planned for markets, however, due to limited economic conditions and sparse population, they have not invested in building markets, but only have spontaneous market meeting points with a small number of buyers and sellers, exchanging goods, not regularly, goods are mainly food, foodstuffs, essential consumer goods.

Currently, Chieng Son Border Market in Chieng Son border commune - Moc Chau district was invested in construction in 2005 and put into use in 2007, with a total investment of 5,724.4 million VND from the central budget and support capital for border communes, solid market type. Business activities at the market mainly trade in food, foodstuffs, and essential consumer goods.

Chieng Khuong border market in Chieng Khuong border commune - Song Ma district was invested and built according to Decision No. 2245/QD-UBND dated September 21, 2007 of Son La Provincial People's Committee on the Economic - Technical Report on investment in construction of Chieng Khuong Market. With a total construction investment of 4,948.8 million VND (of which the state budget support capital is 3,500 million VND, the people's contribution capital is 1,474.8 million VND). The type is a solid market. The market plays an important role in promoting the exchange of goods, serving the consumption needs of border residents.

Phieng Khoai border market is located in Phieng Khoai border commune, Yen Chau district. The market was established and put into operation in 1997. Local residents gathered and contributed to build the market. The number of households doing regular business in the market is about 50. They sell food and essential consumer goods to serve people in the central area of the commune cluster and neighboring areas. By 2017, the market was invested in construction from the local budget, with a total investment value of over 9,000 million VND.

Regarding supermarkets, shopping malls and other types of commercial infrastructure, due to the difficult economic conditions and living conditions of people in the border communes of Son La province, the population density is low, so the border communes have not attracted businesses to invest in building supermarkets, shopping malls and other types of modern commerce. The buying and selling of goods is mainly carried out through markets and agents and retail stores.

According to the Plan for implementing the Border Trade Infrastructure Development Program to 2025, with a vision to 2030 issued by the People's Committee of Son La province, the goal is to promote cooperation, development and connection of border trade infrastructure between Son La province and neighboring provinces of Laos; attract and socialize investment in building and developing border trade infrastructure.

According to the plan, provincial units will disseminate and popularize legal policies on border trade infrastructure development; integrate contents related to border trade infrastructure into the province's general planning; attract and mobilize resources to develop border trade infrastructure, focusing on attracting investment in logistics service centers and complexes in Long Sap and Chieng Khuong border gates to improve infrastructure in border gate areas; encourage the development of a team of traders participating in business activities; improve the quality of human resources working in border trade development; and build a database on border trade development. This plan is expected to contribute to the development of border trade infrastructure, enhancing trade between Son La and neighboring localities of Laos.

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