Economic Border Trade Co-operation Strategy between Thailand and Lao People’s Democratic Republic
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Abstract
The research article consisted of the following objectives: 1) to investigate the economic and trade cooperation on the border of Thailand and Lao People's Democratic Republic; 2) to analyze the strengths, weaknesses, opportunities, and obstacles of economic and trade cooperation on the border of Thailand and Lao People's Democratic Republic; and 3) to present the strategy of economic and trade cooperation on the border of Thailand and Lao People's Democratic Republic. The data for the study were collected through structured and semi-structured interviews with 20 key informants who were government officials involved with SME businesses and people in the area, as well as a focus group discussion with 10 persons. The obtained data were analyzed and interpreted using an inductive method before being summarized in order to develop concrete results. The data were examined by using Triangulation method in terms of people, time, and place.
From the study, the following results are found: 1) Thailand has always had a positive trade balance at the border, with diesel being the most valuable export. The main imported products are electric power. Thailand relies on Laos to supply the industrial sector with goods and raw materials through the cross-border trade system; 2) The establishment of 17 Special Economic Zones on the Thai-Lao People's Democratic Republic border demonstrates the strength of economic and trade cooperation. The weaknesses refer to the issue of high transportation costs, labor shortages, and trade-incompatible infrastructure. Opportunity refers to Lao serving as a major hub for Thai products to Vietnam and China. Obstacle refers to a lack of proactive marketing experts as well as counterfeit products; and 3) The strategy of economic and trade cooperation on the border of Thailand and Lao People's Democratic Republic is called BETS: (1) Border development; (2) Economy; (3) Tourism; and (4) Social Conditions. The BETS strategy will increase the potential for cooperation between Thailand and Laos based on the two countries' traditional and cultural ties.
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