Improving the Border Agency Cooperation

Among the OIC Member States for Facilitating Trade

2.4.

Case Vietnam – Laos BAC

Highlights



The cooperation in Laobao-Dansavanh border crossing point builds on the Greater Mekong

Sub-region Economic Cooperation Program – Trade and Transport Facilitation initiatives –

The Cross Border Transport Agreement (GMS CBTA) – since the year 2005.



Key achievements until today include: (i) advanced participation of key border enforcement

agencies in the two countries including customs, border guard, police, immigration and

quarantine, (ii) improved enforcement and faster and easier clearance and (iii) increased

inbound and outbound volumes of trade in goods and traffic in vehicles.



Unresolved issues today include: (i) low interconnectivity and synchronisation of the legal

and institutional frameworks, (ii) lack of transparency and availability on legal documents,

(iii) lack of common language and (iv) inadequate infrastructure, among few other issues.

2.4.1.

Setting the scene for iBAC

As a landlocked country Laos is dependent on the transit traffic from and to Vietnamese ports.

Also the Vietnamese industry relies on a variety of raw materials and mining products

originating in Laos. In fact, the trade between the countries has increased significantly over the

past years. The two countries form part of the East-West Economic Corridor of the Greater

Mekong Subregion (GMS). The corridor which is illustrated on the map in the Figure below

connects Vietnam and Laos with Thailand and Myanmar.

The border crossing point (BCP) Laobao-Dansavanh connects the provinces of Quang Tri in

Vietnam and Savanakhet in Laos. These border crossings play a very important role in

enhancing trade and investment flows between Vietnam and Laos and also between Thailand

and Myanmar. It is important for both Laos and Vietnam to improve the cross-border control

cooperation at the Laobao-Dansavanh BCP in order to promote the flow of goods transiting via

Vietnam.

Figure 10. Position of the Laobao border gate in Vietnam and the Dansavanh border gate in

Laos

Source: ADB