Red tape keeps Lao transport fees high
Red tape keeps Lao transport fees high
Lao businesses are still struggling with transportation fees which are high compared to the rest of the region.
The cost of goods transport in Laos remains high because of the rising fees paid for administration and documentation services and taxation, an official from Lao Freight Forward Co. Ltd, Mr Somlack Nhoybouakong, said.
The routes we have to take are a major problem as it can take a long time for goods to reach their desti nation, he said.
Customers have to pay almost US$2,000 per container to get goods transported from Vientiane to Hai Phong harbour in Vietnam, a distance of about 980 km, while the journey to Sabang harbour in Thailand is more than 800 km, Mr Somlack said.
The services a transport company provides include documentary requirements, taxes and inspection by local authorities at each point along the route as well as an allowance for the drivers and vehicle rental.
Laos is a transit country within the regio n and has no direct links to seaports.
Mr Somlack said he was certain the cost of transport would remain high in the next few years if Laos continued the same practices.
Transportation fees will only drop when Laos improves logistics by providing better facilities and making journeys faster through such measures as road upgrades, railway transport and d ocumentary services through a one-stop service system, he added.
Laos will become part of the Asean Economic Community next year, so the government should formulate plans to better link with the region.
In other countries, especially Vietnam and Thailand, transportation fees are lower because they have a good system of management and faster routes, without the many inspection stops on the way.
The Lao government will actively work to improve the regulations to provide a better service for domestic and foreign entrepreneurs.
Laos has strong policies in place to attract investors but their implementation will take time.
The government should also take steps to improve the skills of truck drivers.
Lao transport companies will still use hauliers in other countries to take goods to their final destination when they have a contract to transport export goods beyond Lao borders.
vientiane times
