Wednesday 1 July 2009

Formal Opening of New Road Link

Two weeks ago there was the formal opening of the South East Asia East-West Corridor. Ceremonies were held at the two major border gates along the East-West Economic Corridor: between Lao Bao in Vietnam and Dansavanh in Laos, and between Savannakhet in Laos and Mukdahan in Thailand.
A seemingly obscure agreement on traffic rights between Vietnam, Laos and Thailand now allows trucks to transit the three countries without having to unload cargo at border crossings for trans-shipment. Shipments previously needed to be unloaded and re-loaded in Lao territory. This will cut costs and time for regional trade, and is expected to have far-reaching consequences. The formal opening of the East-West Corridor is part of a regional plan to break down barriers at borders across mainland South-East Asia. Overland transport time between Vietnam and Thailand has been shortened by the agreement for commercial trucks from Thailand and Vietnam to be able to enter each others' territory for the first time to deliver and pick up goods.
In 10 years narrow dirt trails that were once used to transport refugees and military hardware have given way to modern highways and bridges carrying electronic goods, exotic fruits and tourists and is a reflection of the increasing trade .
France as part of its plan to establish its south-east Asian empire set up the Mekong Exploration Commission of 1866-68 hoping that the river would prove to be a back door to the riches of China. Its efforts are one of the great Asian journeys, following the river from its mouth in southern Vietnam, then known as Cochin China, through what is now Cambodia, Laos and Burma, before travelling north through Yunnan to the Yangtze. The idea of the Mekong as a marine highway to inner China was doomed. Nonetheless France, which had designs on Thailand, persisted in the face of competition with Britain for Asian territory
Now the global centres of power have shifted and the modern-day equivalent is being played out between China and Japan. Beijing is blasting rapids on the upper stretches of the Mekong to open up a commercial shipping route at least as far as Thailand, while the recently built Freedom bridge was paid for with loans from Tokyo.
Sanit Nakajitpi, managing director of the Pacific Strategies and Assessments consultancy in Thailand, said the different approaches reflected the two countries’ goals. “The Japanese have been here in Thailand for the past 20 years, and I think their time is running out,” he said, as Japanese firms have already invested heavily in Thailand and trained highly-skilled workers but are now looking for lower-cost locations. “This bridge is maybe a symbol of Japan wanting to re-invest in that area, moving from Thailand to Laos and Vietnam, while China sees Thailand as a market. It’s the time that China is coming in.”
The corridor - an upgraded highway with the transit agreements in place - runs from Danang, Vietnam, through Savannakhet, in the Lao People's Democratic Republic, or Laos, and into Thailand. Ultimately, the corridor is intended to extend to Burma, also a member of the Association of South-East Asian Nations (Asean) Thailand is providing financing to upgrade the road to the Andaman coast of Burma, while the Asian Development Bank (ADB) has been the prime mover behind the corridor idea. Arjun Thapan, director general of ADB's South-East Asia department said "You can now set out from Thailand, do business in Laos, and arrive in time for dinner at Danang in Vietnam - all in the space of a single day,"

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