Transport services in Laos continue to grow
Transport services in Laos continue to grow
Despite the fact that Thailand is currently embroiled in political turmoil, transport services are operating as normal at the Lao-Thai border and freight routes are open via air, land and the waterways.
Lao Freight Forwarder Co., Ltd's Export Division Manager, Mr Somrack Nhoybouakong told Vientiane Times yesterday that trade has been increasing steadily year by year and he doesn't expect this to change.
Mr Somrack said goods transport volumes through Vietnam are increasing by about 5-6 percent a year, while trade volumes with Thailand are increasing by 10 percent annually.
However, most customers of Lao Freight Forwarder prefer to send goods bound for export via seaports through Thailand rather than Vietnam as transport costs are cheaper by around 10 percent.
Generally speaking, Mr Somrack said, goods which are destined to be exported to Europe or America are shipped via Thailand while goods bound for Japan, Korea, Taiwan and China are shipped through Vietnam.
“The road freight route from the Lao warehouse to Laem Chabang port in Thailand is a little over 600km. In comparison, the goods we truck to Danang in Vietnam travel over 1,000km while it is 970km to the Hai Phong border,” he explained.
Thailand comprises about 60 percent of the company's transport services and Vietnam covers 30-40 percent.
However, transport services in Laos are still struggling, Mr Somrack said. They must levy higher fees due to the fact that the country is landlocked and has no direct access to the sea.
This puts Lao freight companies at a comparative disadvantage compared to those in neighbouring countries, he explained.
Lao Freight Forwarder offers a high standard of service comparable with international standards but the company is still hampered by the poor state of some of the main highways in Laos.
Logistics improvement in Laos is a priority as good transportation services are at the core of Laos' plans when it comes to integrating with other Asean countries and the region as a whole.
According to government figures, in the last six months of the 2012-2013 financial year, Laos imported approximately US$2.8 billion worth of goods while exports totalled almost US$1.9 billion.
To develop border trading for better services between Laos, Thailand and Vietnam, the Lao authorities are boosting cooperation with authorities in the two neighbouring countries regarding the monitoring of import and export flows.
The border gate has successfully deployed a new e-customs system, helping to reduce waiting times and increase precision throughout the customs clearance process.
However, each country still has different regulations on customs and the three nations are yet to reach complete consensus as to the best way to oversee customs processing procedures.
Authorities will also boost cooperation on measures to promote the application of the One Stop Service model as well as discussing plans to upgrade local infrastructure, equipment, and technology.
vientiane times
