Project Name:  Preparation Survey on Vientiane Logistics Park (VLP) Project

Project Narrative

Lao People’s Democratic Republic (PDR), also called Laos, is a landlocked country surrounded by five neighboring countries: Thailand, Cambodia, Vietnam, Myanmar and China (Yunnan). Being landlocked has traditionally been a large constraint in the economic development in Lao PDR for a long time. However, favorable changes in international trade and logistics to facilitate the movement of people, goods and money within the countries comprising the Association of Southeast Asian Nations (ASEAN) and the Greater Mekong Sub-region (GMS) through the Cross-Border Transport Agreement (CBTA) and bilateral agreements on cross border facilitation may further improve the efficiency and reliability of transport connecting Lao PDR with ASEAN/GMS markets and international ports in Indochina.

Moreover, industrial locations have been gradually increased with venturing into the international supply chain/international division of labor in production sector as well as the relatively lower production cost in Lao PDR compared to that of Thailand and Vietnam. To receive demand of those industrial locations, industrial estates are going to be developed around Vientiane. Looking at current trends as indicated above, the volume of international logistics tends to increase in accordance with increase of industries in Vientiane. The potential of industrial location seems to continue to increase in the future. High quality logistics service with reasonable cost would be indispensable together with infrastructure development to allow this potential to emerge. International cargo passes through the First Friendship Bridge.

This study aimed at carrying out a feasibility study on the VLP project under public and private participation. The VLP is the facility to offer logistics services comprehensively as a core of international logistics system in Lao PDR including:
• Interface of import and export and domestic transport.
• Transit service and consolidation service.
• Delivery center targeting Vientiane, and the northern and central regions of Lao PDR.
• Inventory service and storage service targeting the Mekong area of Thailand.
• and Distribution processing targeting import products from Thailand in the short term, and the transit products between China and Thailand in the medium term, and inventory management service of parts and semi-products.

Fund Sources

Granted by Japan International Cooperation 

Overall Contract Amount

–

Project Owner / Counter Part

Department of Public Works and Transport of Vientiane Capital

Associated Firm / Partner

Nippon Express Company Limied

What Mekong consultant Co., Ltd contributes

– Topographic survey
– Geographic survey
– Data collection

Location

Vientiane Capital, Lao PDR

Duration

May 2014

Project Status under Mekong Consultants Co., Ltd
>>Completed<<