The Impacts of Transport Infrastructure on International Trade in Lao PDR

Ta Van Loi; Keodara Vongsavanthong

Authors

Ta Van Loi National Economics University, Vietnam
Keodara Vongsavanthong Bolikhamxay public works and transport department, Laos PDR

Keywords:

transportation infrastructure, smart transportation infrastructure

Abstract

Laos PDR is a landlocked country with a low GDP growth rate of 6% over the last few decades. GDP per capita increased to USD 2,550 in 2018 and then dropped to USD 1,880 in 2020, which has been affected by the pandemic of COVID-19 since late 2019. The services sector is the largest contributor to GDP, accounting for 47% of it in 2018, followed by agriculture, fisheries, and forestry (17.9%), and electricity (12.3%). The fiscal deficit has been raised by external debts (WTO, 2020). The country is not only integrated with the three major trading partners, such as Thailand, Vietnam, and China, but it is also expanding to international and global trade following the improvement of the quantity and efficiency of transport infrastructure for logistics services. Currently, poor logistics services such as limited coordination among countries on border procedures, inefficiency of customs clearance process at the border checked point, fragmented and poor quality of transportation-related infrastructure, costly and infrequent shipping, delays in tracking and tracing consignments, delays in clearance of goods, the absence of cool storage facilities, and the inability to certify product quality can cause significant obstructing to international trade. This research will show the real situation and analyse some findings about ways for Laos’s government to chase the new trend in the world in smart transportation systems.

Author Biography

Keodara Vongsavanthong, Bolikhamxay public works and transport department, Laos PDR

He provides data and analysis for this paper.

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