With this port, Laos would be able to connect to the South China Sea and get access to major markets in neighboring countries like South Korea and Japan. The Laos-China high-speed railway, the first of its type in Southeast Asia, will officially open in 2021.

The Laos-Vietnam railway is a planned rail link between Vientiane, the Laotian capital, and Vung Ang, a major port in Vietnam. Estimated to cost US$5 billion, the 555-kilometer track would convert Laos into a logistics center and encourage increased commerce between the country's regions and its ASEAN neighbors. No completion date has been set, although construction is anticipated to begin in November 2022.

The deep seaport at Vung Ang, the nearest practical seaport to Vientiane, is connected to the city by the railway. By linking up with the Laos-China rail line, the corridor's potential customer base would expand to include both northern Laos and southern China. It will also connect with Vietnam's North-South railway, making a Hanoi-Vientiane connection possible.

It was in November of 2021 when Laos opened up Southeast Asia's first high-speed railway, connecting Laos and China. Vientiane and Boten, on the Laotian-Chinese border, are now linked by train. The train leaves Boten and travels north to Kunming, the capital of Yunnan Province in China. Poor in infrastructure, Laos now has a 414-kilometer railway between Boten and Vientiane, while there was previously just 4 kilometers.

Laos's economy benefits greatly from the marine commerce and transportation connections made possible by Vietnam's Vung Ang deep-sea port. Access to the South China Sea, Central Vietnam, Northeast Thailand, and major Asian markets like South Korea, China, and Japan are all made possible thanks to the port, of which the Laotian government controls 60%. A 50-year concession to Laos has been approved by the Vietnamese government.

The necessary infrastructure is in place

Laos has started developing the Thanaleng Dry Port (TDP) and the Vientiane Logistics Park (VLP) as part of the Lao Logistics Link (LLL) initiative, in addition to the Laos-China railway and the Laos-Vietnam railway. Government plans call for LLL to become ASEAN's logistics center.

The TDP and VLP, built on a total area of 300 acres and scheduled for completion in the third quarter of 2022, will connect the Laos-China railway and the Laos-Vietnam railway, among other freight and cross-border transport services. The TDP and VLP, situated next to the 1st Lao-Thai Mekong Friendship Bridge, are anticipated to cut transport costs by up to 40 percent from present rates by 2025, and eventually offer an alternate route for ASEAN exporters to the European markets.

It would take a little more than 10 days for shipments to arrive in Europe from Southeast Asia by train. Currently, Singapore's massive harbor serves as the primary transit hub for ASEAN exporters, and shipments to Europe take about 45 days to arrive.

Commercial stations, an export processing zone, a free trade zone, and a tank farm that will serve as Laos' gasoline distribution hub are just some of the other facilities that will be built as part of the VLP.

The State Railway of Thailand (SRT) intends to increase the number of freight train trips between Laos and Thailand to 24 by 2026 as a direct result of the proposed logistics park and expanding rail network. It currently makes two daily round trips. The Laem Chabang Port will be connected to a logistics hub that the SRT proposes to build on 430 thousand square meters of land. Freight would be shipped over the Mekong River into Laos and subsequently onto the Laos-China railway, as per the proposed route.

While increased regional connections might benefit Laos, the government must continue to invest in critical infrastructure, offer incentives to attract international investment, and provide training for the local labor force.