Advancing the Growth of Border Gate Economy

Lang Son province has determined that border gate economic development will create a driving force to promote local socioeconomic development. With consistent solutions, from planning and infrastructure construction to investment attraction, the province's border gate economic zone has increasingly demonstrated its role as an economic driver, fostering local growth. To find out more, our reporter has an interview with Mr. Hoang Khanh Duy, Deputy Director of Dong Dang - Lang Son Border Gate Economic Zone Authority.

Huu Nghi International Border Gate, Lang Son province

The 17th Provincial Party Congress (2020 - 2025 term) states that one of four key economic programs is “Further focusing on rapidly developing the border gate economy and creating a driving force to promote the economic growth of the province”. Could you please tell us some recent outstanding results of border economic development in Lang Son?

Dong Dang - Lang Son Border Gate Economic Zone has staged a consistently high economic growth rate, averaging 14% a year in 2008 - 2012 and 7.67% a year in 2011 - 2023. Its gross regional domestic product (GRDP) was VND4,157.8 billion in 2010 and VND18,619.8 billion in 2023, as much as 4.4 times higher than in 2010. The highest-growing sector was industry - construction (up 9.73%), followed by the service sector (7.8%) and the lowest-growing agriculture (3.65%). The economic structure has shifted in an expected pattern, with a rising share of services, industry and construction and a decreasing share of agriculture and forestry.

The economic zone has contributed significantly to the province's GRDP structure, accounting for about 35.42% in 2010 and 40.33% in 2023. Total social investment capital in the economic zone in 14 years was VND77,010 billion, including VND11,574.6 billion in 2023, an increase of 6.5 times over 2010.

Regarding importing and exporting activities, 2,800-3,000 domestic corporate entities and business organizations import and export products through the province every year. The import and export value totaled US$51,487 million in the 2008 - 2023 period, including over US$41,101 million through the border gate economic zone, accounting for 70% of the total.

Besides, immigration has become increasingly vibrant. In the 2008 - 2023 period, about 27.6 million people entered and exited the country (an average of 1.8 million people a year) and the total number of entry and exit vehicles reached over 6.0 million units.

Total budget revenue in the border gate area was over VND88,365 billion in the 2008 - 2023 period, of which fees on infrastructure use in the border gate area have continuously increased over the years. In 2012 - 2023, four border gates in the economic zone collected VND5,291.9 billion, accounting for over 82% of the total revenue at all border gates in the province (VND6,402.7 billion). Budget revenue from import and export activities was over VND58,891 billion.

The above results have proved that trade, tourism and service in the border gate economic zone have been very vibrant, an important “boost” to the province’s growth and economic restructuring.

In 2023, despite facing many challenges, how has the authority promoted its role as a leading agency in border gate management and closely coordinated with competent agencies and forces to implement measures to tackle difficulties and facilitate customs clearance of goods?

As a leading agency in border gate areas, the authority has coordinated with relevant agencies to propose and advise the Provincial People's Committee to carry out the plan to establish green zones, reduce epidemic levels at border gates, and remove buffer zones. The authority has directed the Border Gate Management Center to work with competent forces at Huu Nghi and Tan Thanh border gates (where the volume of imports and exports is large) to serve customers through noontime; implement non cash toll collection and use electronic receipts for tolls for vehicles transporting goods as per Resolution 01/2019/NQ-HDND dated July 12, 2019 of the Provincial People's Council. At the same time, the authority has worked out plans to regulate and classify vehicles carrying exported goods through Huu Nghi Border Gate during peak hours (in 2023, it agreed with related forces to conduct three periods of review and regulation) into free tariff zones to ensure traffic safety and environmental sanitation and facilitate customs clearance of goods.

The authority also hosted two conferences to meet with commercial companies, service companies, importers and exporters in border gate areas. In these conferences, attendants got informed about import and export situations, listened to suggestions and recommendations and resolved policy difficulties and obstacles in State management of exported and imported goods. Additionally, the board always actively performs assigned tasks in foreign affairs and especially organized working delegations to exchange and hold talks with Chinese authorities.

In 2023, the authority advised on organizing 15 meetings, exchanges and working sessions; sent 53 working letters and conveyed four delegations, and received eight delegations from Guangxi, China. Hence, many contents were unified to facilitate and promote freight importation and exportation across border gates.

The Dong Dang - Lang Son Border Gate Economic Zone Authority has coordinated with the Department of Information and Communications and relevant bodies to adopt digital border gate platforms at Huu Nghi International Border Gate and Tan Thanh Border Gate; effectively operated the intersectoral working group to support the administration of freight importing and exporting as per Decision 1161/QD-UBND dated June 12, 2021 of the Provincial People's Committee; advised and prepared for the expansion of Huu Nghi Border Gate for cargo transportation to specialized roads.

With consistent solutions, the province currently maintains stable and smooth importing and exporting activities at seven border gates to ensure high customs clearance efficiency, averaging about 1,200 vehicles a day, even over 1,350 vehicles at peak times, of which exporting vehicles were 400 - 450 and importing vehicles were 750 - 800.

Regarding fee collection according to Resolution 01/2019/NQ-HDND in 2023, fee revenue totaled VND660.7 billion, up 108.5% year on year. Of the sum, transshipment fees reached VND103.67 billion, up 119.6%.

In 2024, to soon complete amendments to the general construction planning of Dong Dang - Lang Son Border Gate Economic Zone as a basis for adjusting subsequent plans, what specific solutions and activities has the authority proposed?

Currently, the Ministry of Construction has collected, integrated and sent opinions from ministries and central agencies to the Lang Son Provincial People’s Committee. The Dong Dang - Lang Son Border Gate Economic Zone Authority has advised the Provincial People's Committee on a written explanation and completed documents on tasks of amending the General Construction Planning of Dong Dang - Lang Son Border Gate Economic Zone, Lang Son province to 2045 to submit it to the Ministry of Construction for consideration and to the Prime Minister for approval. Once ratified, the authority will continue to advise the Provincial People's Committee on procedures of selecting consulting units and amend the General Construction Planning and submit it to the Ministry of Construction for consideration and to the Prime Minister for approval.

The authority will advise the Provincial People’s Committee to direct accelerated infrastructure construction, expansion and upgrading investment in border gates and border areas; mobilize resources to focus on investing in synchronous technical and transportation infrastructure construction to smoothen connectivity in the economic zone and surrounding areas to facilitate management, regulation, operation and capacity-building of cargo distribution.

At the same time, the board will continue to revise the planning of main functional areas to match with actual situations and other provincial as well as local corresponding plans in China. The authority will also strengthen management of approved plans.

Thank you very much!

Source: Vietnam Business Forum