Lao Cai agri products make their way abroad, driving border economy

Reducing vehicle congestion at the border entry

Every day, hundreds of trucks transport agricultural products for import-export at the Kim Thanh No. 2 International Road Border Gate, which serves as one of the primary crossings between Lao Cai (Vietnam) and Hekou (Yunnan Province, China).

In order to accommodate the increasing demand for trade, the Kim Thanh border gate has undergone considerable enhancements, such as the implementation of information technology and the expansion of its infrastructure, thereby transforming it into a "smart border gate".

At present, the border gate facilitates the processing of up to 1,000 import-export trucks per day by operating two outbound and three inbound channels for vehicles. This five-lane system has considerably enhanced clearance capacity and resolved the long-standing vehicle congestion on the border bridge.

Mr. Pham Hung, the Head of the Border Gate Management Department at the Lao Cai Economic Zone Authority, reports that the Lao Cai border gate manages the daily crossing of approximately 600 persons and more than 400 vehicles. About 150 trucks transport fresh fruit exports to China from among these.

Despite the fact that the lychee season is rapidly approaching its end, the number of trucks exporting this fruit remains substantial. During peak periods, over one hundred trucks are recorded daily.

According to Mr. Pham Hung, the management board has directed functional agencies at the border, including customs, border guards, and plant quarantine officers, to prioritize the quick clearance of perishable goods like fresh fruit and guarantee sufficient staffing to facilitate trade activities. The border gate area is well-regulated to prevent congestion, and adequate warehouse facilities are also prepared.

Furthermore, the Chinese side in Hekou has participated in improved communication and coordination to optimize the flow of products and better manage customs capacity.

Increasing agricultural exports

At the Kim Thanh No. 2 International Road Border Gate, the trade of traditional export items, including peeled timber, dragon fruit, watermelon, durian, jackfruit, bananas, rambutans, mangoes, and cassava, continues.

Flowers, ornamental plants, fresh vegetables, fuel, fertilizers, machinery, confectionery, and electricity from China continue to be in high demand in the domestic market.

In the meantime, the Lao Cai International Railway Border Gate processes 2–4 trains per day in both directions. Transit sulfur and iron ore, as well as re-exported or re-imported coke, are the primary goods that pass through this location.

Nevertheless, the export of critical agricultural products, such as durian, continues to encounter obstacles. Durian exports have experienced a decline in recent months due to the implementation of more stringent plant quarantine requirements and new regulations by Chinese authorities. This trend is alarming because durian makes a substantial contribution to the province's overall export value.

Coconut is a more recent export item from Lao Cai. Nevertheless, coconut exports are still extremely restricted, with only a handful of truckloads recorded since the beginning of the year. According to Lao Cai Customs, coconut yields low profits and has a low market value, while high road transportation costs from southern Vietnam reduce its export viability.

Mr. Pham Van Phuc, the Deputy Head of the Lao Cai Border Gate Customs Team, disclosed that customs procedures are being implemented in compliance with Decrees 58, 59, and Circular 38 (as amended by Circular 39), while anticipation of revisions to the Customs Law continues. Throughout this period, the border gate customs team has operated in accordance with the current regulations.

To ensure smooth export-import operations, Mr. Pham Van Phuc recommended that businesses carefully study Chinese market policies and ensure their goods meet the required standards to minimize export risks.

Additionally, provincial authorities in Lao Cai are intensifying diplomatic initiatives with pertinent Chinese agencies to address impediments, particularly in the realm of durian exports.

Trading activities at the border gates of Lao Cai have been consistent and uninterrupted since the beginning of the year. The estimated total value of products traded across these border gates in the first half of 2025 is nearly USD 900 million.

During the 2021–2030 period with a vision toward 2050, Lao Cai’s agricultural sector is expected to focus on five key crops, one key livestock, and two strategic areas (including pigs, cinnamon, tea, bananas, pineapples, medicinal herbs; upland forest economy; and potential sectors such as temperate fruits, vegetables, flowers, cold-water fish, and poultry).

Notably, among the five main crops, Lao Cai has already planted over 60,000 hectares of cinnamon, which is now largely exported successfully to China. Nearly 100% of Lao Cai's cinnamon essential oil has entered the Chinese market, along with several medicinal products such as cardamom and amomum.