Border trade as one of key drivers for Lai Chau’s growth

This is recognized as the "key" for Lai Chau's deep integration, solidifying national defense and security in the nation's border area, as well as a significant economic growth driver that helps to lower poverty and enhance people's lives.

Systematic planning, long-term vision

Lai Chau province has recently released a number of policies, resolutions, and action plans targeted at fostering economic growth in tandem with growing international cooperation to turn its geographic advantages into useful resources.

Prime Minister's Decision No. 1185/QD-TTg, dated June 19, 2025, which approves the Master Plan for the Construction of Ma Lu Thang Border Gate Economic Zone through 2045, is a significant feature of this plan. Lai Chau province intends to turn Phong Tho commune wih a planned area of around 26,669 hectares, into a regional center for trade, services, and tourism with strong ties to the Chinese market.

The authorities of Phong Tho commune claim that with its 27-kilometer border, the existence of Ma Lu Thang Border Gate, and Muong So Industrial Park, it has created agricultural goods related to investment attraction and border gate economy for the years 2025–2030. The commune hopes to make Ma Lu Thang a major hub for logistics by 2030 by increasing local exports by an average of 5% annually.

Infrastructure comes first, followed by technology

The economy depends on infrastructure. The Ma Lu Thang-Kim Thuy Ha border gates have been upgraded into international border gates as the province of Lai Chau has concentrated its efforts on modernizing its major transportation networks and border gate infrastructure in recent years. There is an urgent need to finish a number of important projects, including bonded warehouses, logistics hubs, freight ports, and roadways.

At the same time, the province is focusing on the promotion of science and technology and digital environment applications to innovate leadership and management methods and improve the efficiency of leadership and management work. The province has put the centralized administrative procedure reception and resolution center at Ma Lu Thang border gate into operation, creating a solid foundation for the digital border gate and smart border gate models. It has also adopted online fee collection on mobile applications with confirmation from customs authorities immediately on the digital platform, assuring transparency and speed, optimizing convenience for consumers and enterprises. Additionally, this has aided in preventing tax evasion, combating trade fraud, and enhancing the efficacy of governmental management.

These initiatives have helped Lai Chau's border trade grow. With a total registered capital of more than VND 6.8 trillion, 49 investment projects with an emphasis on commerce, services, agricultural processing, and supporting sectors have been drawn to the Ma Lù Thàng Border Gate Economic Zone so far.

The entire value of imports and exports through this region is projected to be over USD 163 million between 2021 and 2025, adding over VND 210 billion to the State budget. Specifically, the border gate area has transformed the lives of border inhabitants and given thousands of workers steady employment, increasing average income to almost VND 45 million per person annually.

Actively expanding cooperative relations

Lai Chau province has concentrated on directing a number of synchronous solutions, prioritizing foreign affairs with Yunnan province (China), closely coordinating with Kim Binh district and the Kim Thuy Ha border gate management office in border gate management, and establishing favorable conditions for customs clearance, in recognition of the importance of foreign affairs in the development of border economic zones.

In order to encourage the growth of border commerce, the Provincial Economic Zone Management Board and the Kim Binh District government signed a Memorandum of Cooperation at the same time. The two parties routinely share information, work together to address import and export challenges, support companies, and enhance the effectiveness of border economic zones. Both parties want to turn the Ma Lù Thàng-Kim Thơy Hà border crossing into a thriving, contemporary entry point, a hub for commerce between China and Vietnam, and an extension into regional ASEAN trade lines.

In a meeting with Mr. Wang Ning, the secretary of the Yunnan Provincial Party Committee (China) in Lai Chau province on October 29, Mr. Le Minh Ngan, the Secretary of the Lai Chau Provincial Party Committee, stressed that the province's top foreign policy priority in recent years has been to uphold and cultivate cordial neighborly relations with Yunnan province. People-to-people exchange activities are being strengthened, helping to further develop the friendly and cooperative relationship between the two sides, which is growing closer and more comprehensive, effective, and substantive.

In order to effectively implement the "Joint Statement between Vietnam and China on Continuing to Deepen Comprehensive Strategic Cooperative Partnership and Promoting the Building of a Vietnam-China Community with a Shared Future of Strategic Significance," the common understandings of the leaders of the two Parties and two States, and to promote cooperative relations between the two provinces in the coming time, the Secretary of the Lai Chau Provincial Party Committee proposed that both sides continue to strengthen the direction of relevant levels and sectors to cooperate comprehensively in all fields, expand new cooperation mechanisms in line with the interests and practical conditions of each side; and comprehensively and effectively implement the content of the Annual Meeting Minutes between the Secretaries of the Provincial Party Committees, focusing on bringing established mechanisms to a deeper level and achieving practical results.

At the same time, it is suggested that the Yunnan Provincial Authorities actively report to the relevant authorities in order to permit the official export of Lai Chau agricultural products and medicinal herbs, such as sugarcane, sliced cassava, bananas, macadamia nuts, cardamom, and amomum, to the Chinese market; designate the Kim Thịy Hà border gate as the gate for the importation of fresh fruits and vegetables from Vietnam in order to facilitate customs clearance and boost trade turnover between the two countries. Finish the necessary steps to set up the announcement ceremony for the bilateral border gates between Ma Lù Thàng and Kim Thủy Hà to be upgraded to international status.

In order to create a regular cooperation mechanism, concentrate on developing and utilizing mineral resources, encourage investment and business services, expand markets, and foster cross-border industrial cooperation, Lai Chau province is currently instructing the Economic Zone Management Board to work with the Department of Foreign Affairs in preparing cooperation content with the Management Board of Ca Cuu Industrial Park (Yunnan province, China). There is a system in place for intimate, long-term connection and exchange, which gives the two sides' border trade economic growth additional impetus.

The next objective is to transform Ma Lu Thang Border Gate into a dynamic, effective economic zone with regional significance, acting as a key growth pole for the Northern Border Economic Belt, according to Mr. Vu Huy Hoa, Head of the Lai Chau Province Economic Zone Management Board. In order to accomplish this, the province is concentrating on building the transportation route that connects the Noi Bai-Lao Cai expressway, the Ma Lu Thang-Kim Thuy Ha multipurpose road bridge, and the Muong So industrial and service zone, logistics center, and bonded warehouse to serve import and export.

On the other hand, the Lai Chau province concentrates on enhancing the investment climate, streamlining administrative processes, and establishing advantageous circumstances for companies that operate within the economic zone. Encourage trade promotion, host conferences on supply-demand connections, present regional goods, and highlight border services and tourism opportunities.

Lai Chau is steadily establishing itself as a vibrant border business hub thanks to the strong will of the whole governmental system and the agreement of the ethnic populace. In addition to bringing about monetary riches, the thriving growth of border gate economies helps to create a pleasant and tranquil border area, which will serve as the country's strongest defense in the new era of integration.