Thai-Lao border trade thrives after advent of AEC

[webfact]

Thai-Lao border trade thrives after advent of AEC

NONG KHAI, 20 May 2016 (NNT) – The opening of the ASEAN Economic Community has provided a boost for border trade between Thailand and Laos in Nong Khai province, with petroleum exports generating the most income for the country.

Director of the Nong Khai Office of Commerce Chonticha Laddawan reported that the value of Thai-Lao border trade in the province during the first quarter of this year stood at about 15 billion baht. The figure represents a year-on-year increase by over one billion baht or approximately 6.95 percent.

The top three export products from Thailand during the period were petroleum, four-wheel-drive passenger cars and beverages. Meanwhile, the top imports from Laos were pickup trucks, car wires and cables and shoe components.

The commerce official noted that further growth of border trade between the two neighbors could be seen in the remaining quarters of the year. Laos is also expected to be in need of more construction materials from Thailand as the country is undergoing infrastructure development.


-- NNT 2016-05-20

[worgeordie]

AEC, I thought all great things were going to happen,bit of a damp squib

so far.

regards worgeordie

[clockman]

Better beer in Lao!

[Tomtomtom69]

The article states that the top exports from Thailand to Laos were four-wheel drive passenger cars while from Laos the top imports were pickup trucks, car wires and cables?

Sounds a bit contradictory. So Thailand re-imported rejected pickup trucks from Laos? Last I checked, Laos didn't make any pickup trucks, or any passenger vehicles nor parts for that matter. Unless Thailand was importing US made Toyota Tundras that are quite common on Lao roads which I doubt, since those vehicles are LHD, while Thailand has RHD. Secondly, the import duties would be a killer.

Looks like this article was very poorly translated and doesn't make any sense whatsoever. Laos exports raw materials, agricultural goods and electricity; Thailand exports processed food and beverage products, electronics and motor vehicles.

Also, AEC has nothing to do with this increase in trade. Trade between Thailand and Laos has been increasing year-on-year every year since official statistics have been gathered. AEC has changed absolutely nothing with respect to any cross-border activities between Thailand and it's neighbors. Thai vehicles can travel to Laos the same way they've been allowed since almost 20 years, ditto for Lao vehicles crossing into Thailand. However, despite AEC, you still can't drive a Thai vehicle to Myanmar (except in the vicinity of the border) or vice versa. Freedom of movement of labour doesn't exist. Goods traded across borders are still largely subject to the same duties as before AEC, or if their duties have been reduced, it's in line with agreements made a number of years ago.

What a non-article. Are the writers just churning out useless drivel so they don't lose their jobs?

[phoenixdoglover]

The article states that the top exports from Thailand to Laos were four-wheel drive passenger cars while from Laos the top imports were pickup trucks, car wires and cables?

Sounds a bit contradictory. So Thailand re-imported rejected pickup trucks from Laos? Last I checked, Laos didn't make any pickup trucks, or any passenger vehicles nor parts for that matter. Unless Thailand was importing US made Toyota Tundras that are quite common on Lao roads which I doubt, since those vehicles are LHD, while Thailand has RHD. Secondly, the import duties would be a killer.

Looks like this article was very poorly translated and doesn't make any sense whatsoever. Laos exports raw materials, agricultural goods and electricity; Thailand exports processed food and beverage products, electronics and motor vehicles.

Also, AEC has nothing to do with this increase in trade. Trade between Thailand and Laos has been increasing year-on-year every year since official statistics have been gathered. AEC has changed absolutely nothing with respect to any cross-border activities between Thailand and it's neighbors. Thai vehicles can travel to Laos the same way they've been allowed since almost 20 years, ditto for Lao vehicles crossing into Thailand. However, despite AEC, you still can't drive a Thai vehicle to Myanmar (except in the vicinity of the border) or vice versa. Freedom of movement of labour doesn't exist. Goods traded across borders are still largely subject to the same duties as before AEC, or if their duties have been reduced, it's in line with agreements made a number of years ago.

What a non-article. Are the writers just churning out useless drivel so they don't lose their jobs?

Yes. In general,articles from NNT are incomplete, misleading, or propaganda. It is government policy to praise the wonders of AEC....therefore NNT churns it out.

In this TVF news forum we get too much crap from NNT, and not nearly enough (crap?) from other sources. I'm not sure why.

Edited May 21, 2016 by phoenixdoglover

[chowny77]

I thought only last week Thailand was up in arms because Laos had increased the tariff on heavy goods vehicles entering Laos. Seems that is now all in the past or maybe Thailand has now done the same so everyone breaks even.

[Tomtomtom69]

AEC, I thought all great things were going to happen,bit of a damp squib

so far.

regards worgeordie

7/11 sells 1.5 liter malaysian bottled water for 3.50 myr or about 31 baht. not a thai bottle in sight.

as opposed to the best thai bottled water at 19 baht in thailand 7/11.

milk 8.50 0r 6.30 myr depending on brand not thai, cheaper one is an oz import for a liter as opposed to 40 odd baht in thailand.

this sort of nonsense for daily comodities

By the sounds of it you are talking about Malaysia right? Anyway, that doesn't surprise me. AEC or not, retailers in each country will import from countries they have always traded with, sure, a reduction of import tariffs naturally leads to an opening up of that market but as you say, Malaysians aren't all of a sudden going to start importing Thai produce more than they already do just coz it's "AEC" now.

Besides, having spent time in quite a number of ASEAN countries over the last couple of years including recently, the only country in ASEAN that even talks about AEC is Thailand. Hardly anyone in Laos, Myanmar, Cambodia or Vietnam cares or even knows about it. It's barely spoken about. Last year when I was in Singapore (twice) I didn't notice any mention of it in any news media source. Sounds to me like Thailand is living in it's own world regarding ASEAN because every time we read an article with "AEC" in the headline, we know it's just another piece of propaganda drivel that has absolutely zilch to do with AEC because nothing has changed since it went into force.

[Tomtomtom69]

I thought only last week Thailand was up in arms because Laos had increased the tariff on heavy goods vehicles entering Laos. Seems that is now all in the past or maybe Thailand has now done the same so everyone breaks even.

Oh yeah that happened about 2 weeks ago, the Lao side was imposing a higher entry fee for Thai registered trucks at the Huay Xai crossing opposite Thailand's Chiang Khong, which were heading to Boten on the Chinese border. The fee had been increased to 3100 Baht or something, virtually twice the previous 1600 Baht. Fees were also levied in Boten even after trucks had already paid their duties at the Thai/Lao border. After protests from the Thai side, which briefly blocked cross border traffic across the bridge, the Lao side let the trucks go after paying a higher parking charge making it 2000 Baht or something.

Similar situations and "misunderstandings" happen all the time along the borders here, though it's usually between Thailand and Myanmar (or occasionally Thailand and Cambodia) rather than with Laos. Just a few weeks back Myanmar blocked all cargo shipments and movements of people heading to a casino on their side of the river at Mae Sot in Tak province. The dispute was caused by the Thais building a levy on their side of the embankment. While the bridge remained open during this time, a couple of months earlier the Burmese blocked the bridge briefly due to a dispute with the Thai side regarding oil shipments. On another occasion not so long ago, Cambodians blocked the main Aranyaprathet/Poipet crossing to vehicles (not that many are allowed to cross there, but it's the main entry/exit point for trucks) because they were somehow offended by something the Thai side did, I think it had to do with LPG smuggling.

This shit happens all the time and AEC certainly isn't going to resolve it, no matter what smiling Thai officials would like to believe.