Thursday, October 23, 2008

Project Yet to Bring Promised Prosperity


Vietnam News Service (18-09-2008)

HA NOI - The East-West Economic Corridor (EWEC) - a 1,450km highwaylinking central Viet Nam with Laos, Thailand and Myanmar - whichopened two years ago has yet to boost trade equitably among countriesas anticipated.

Statistics released by Tien Sa Port in Da Nang City, revealed that inthe first five months of the year, of the 30,000 containers passingthrough the port, there were only 1,000 belonging to Lao enterprises.

According to Thai transport companies, provinces in Thailand’s north-east region each year transport around five million tonnes of cassava,one million tonnes of rice, one million tonnes of ore and 500,000tonnes of rubber latex via Vietnamese ports. However, in reality,freight companies prefer to transport goods through Bangkok ratherthan through Da Nang, which is just 500km away - 200km nearer than theThai capital.

Thai companies claim it takes them two days to transport goods to DaNang and they incur numerous fees. They also say goods take too longto clear customs at four border gates: Mukdahan, Savanakhet, Densavanand Lao Bao.

The Lao Bao border gate in particular has suffered administrativeproblems, admitted Chairman of the central Quang Tri Province’sPeople’s Committee Le Huu Phuc.
Currently, the "one-door" administrative policy has been piloted atLao Bao and Densavan border gates - the first in the Greater Mekongsub-region to apply the policy, which is designed to shorten the timeit takes to clear customs.

However, enterprises using the two gates are still subject to numerouscharges, such as the customs fee, the botanical quarantine feecollected by the Botanical Quarantine Agency and the border-crossingfee collected by border guards.

Aside from the cost, the process is also time-consuming, freightcompanies say.
The provincial People’s Committee is drafting a plan to simplify feecollection procedures for imports and exports.

Customs clearance for imports and exports at Viet Nam’s Lao Bao bordergate are also considered more complex than that in Laos and Thailand.

Another problem encountered by freight companies is that right-handvehicles are not allowed to travel in Viet Nam, according to Lam QuangMinh, Director of Da Nang City’s Investment Promotion Centre.

Despite the fact that transport ministers from Viet Nam, Laos andThailand signed an agreement to permit right-hand-drive vehicles totravel in EWEC countries, Minh says Vietnamese cars and lorries arenot allowed to enter Thailand, while right-hand-drive vehicles areonly permitted to enter Viet Nam’s Lao Bao special commercial andeconomic zone.

Phuc suggested that the Government and the Ministry of Finance (MoF)improve fee-collecting procedures by selling goods-transport ticketsthat covers the total cost of using a border gate.
The MoF and the General Department of Customs should also simplifyprocedures for the temporary import and re-export of goods, Phuc said.

The Government, the Ministry of Industry and Trade, and the Ministryof Planning and Investment should issue concrete guidance onimplementing the memorandum of understanding on economic co-operationamong EWEC countries signed by Viet Nam, Laos and Thailand on December26 last year, he added. - VNS

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