Cau Treo Int’l Border Gate Economic Zone: Opening New Way

Investment capital for Cau Treo declined from 2010 to 2012. The economic zone was granted a target reciprocal capital of VND140 billion in 2010, VND93 billion in 2011 and VND45 billion this year. Capital inadequacy has delayed many basic items there. Tran Bau Ha, Head of Cau Treo International Border Gate Economic Zone Management Board, said: "We are already a debtor. We owe VND200 billion to contractors but we cannot stop a project that presents the face of the nation.”

 

Capital shortage is the hardest problem. All resources have been taken into account. But, the most important issue is to find the best direction for Cau Treo to go forward. Recently, Ha Tinh provincial authorities in general and Cau Treo International Border Gate Economic Zone Management Board in particular have been doing their best to seek approval for the formation of Vietnam - Laos border economic cooperation zone. This proposal is highly appreciated by the Governments of Vietnam and Laos, particularly the two incumbent prime ministers.

 

Building the Vietnam - Laos border economic cooperation zone (under the mechanism of two countries and one policy) will help open trade opportunities within the economic zone, and elevate the position of Cau Treo International Border Gate Economic Zone in the Greater Mekong Subregion (GMS). Actually, this is a driving force for Cau Treo to access the fund from the Asian Development Bank (ADB), the benefactor of the Trans-Asia road - GMS cooperation. Tran Bau Ha said: “To develop, we must successfully tap the Thai market. The 300 km distance from Northeast Thailand to Vung Ang is very convenient for trade development. Especially when Cau Treo joins the Trans-Asia road, accessibility to ADB’s funds will be much more favourable.”

 

Since the start of this year, Cau Treo International Border Gate Economic Zone has stepped up public administration reform. The authority carried out a series of activities like boosting transparency and publicity of administrative procedures, reviewing unreasonable expenses, and providing most favourable conditions for businesses. He said “Previously, businesses had to encounter mixed police, environment police, district police, rangers and market watchdogs (province and district) from the management board to Section B. This year, we cleared all checkpoints to facilitate businesses.”

 

By the end of 2011, Vo Kim Cu, Chairman of the Ha Tinh Provincial People’s Committee, led a delegation to visit Laos, met with Laotian Prime Minister, Deputy Prime Minister, and heads of Bolikhamxai and Khammouan provinces. After this visit, Laos agreed to reduce weighing stations (from 37 to 13, and more in the future.) There are six traffic checkpoints from Cau Treo to Lac Xao, which will be removed by Laos in the future to facilitate trade exchange. In economic cooperation with Thailand, Ha Tinh province has also established direct lines between the provincial chairman with governors of Nakhon Pathom and Sakon Nakhon provinces to report on action programmes for economic development cooperation.

 

And, administrative reform and cooperation expansion has generated good economic effects. In March 2012, the economic zone saw US$37 million of export - import revenue, equal to 60 percent of the value in 2011. Tran Bau Ha said, “Given this pace throughout the year, the Economic Zone will achieve export turnover of US$150 - 200 million.” With the success of the conference on investment promotion into Cau Treo International Border Gate Economic Zone held in Nakhon Pathom, Thailand on March 26, 2012, Cao Treo sees signs of growing FDI flows, particularly from Thailand.