The 1,200-kilometre, four-lane road will be the most convenient route connecting Thailand to China's South via Laos.

Commerce Minister Krirk-krai Jirapaet led a mission to China last week to explore trade and investment opportunities along the new land link.

Thai and Chinese officials agreed that both sides should do more to promote trade and services. Thailand can use Xishuanbanna as a gateway to boost trade and investment in mainland China, while China will benefit from expanding business into Southeast Asia via the Kingdom.

"The road will open the door for Thai investors to explore more business opportunities and natural-resources bases in China, and in Xishuanbanna in particular," Krirk-krai said, adding that Thailand's trade with Xishuanbanna accounted for 10 per cent of total trade between the two countries.

The construction of R3E has convinced Krirk-krai to reaffirm that Thailand and China will achieve trade and investment valued at US$50 billion (Bt 1.7 trillion) by 2010. Last year, two-way trade reached $25.1 billion.

Xishuanbanna is located in the southern part of China, connecting Laos with the northern part of Thailand.

Krirk-krai also suggested that Thai firms cement relationships with this province and explore new markets by forming joint ventures with local enterprises. Industries slated for promotion include tourism, health and medical care, and logistics.

The government will invite China, Laos and Burma to a trade and investment meeting hosted by Thailand later this month, the minister said.

Xishuanbanna governor Dao Linyin has invited Thai investors to tie up with their counterparts in her province, in particular the tourism sector.

She said Thai enterprises have broad experience and management know-how in the service industries.

The cooperation between the two countries will upgrade tourism-service standards in China, while Thai investors will get to exploit the plentiful natural resources and similar culture.

Xishuanbanna welcomes 3.7-3.8 million tourists a year, of which 3.5 million are local and the rest foreign. The Jinghong Industrial Zone will be set up with an initial investment of 10 million yuan, or Bt45 million, by Thai investor Globalisation Economic and Promotion Network Co. The project is aimed at Thai investors.

Six Thai and Chinese companies have already indicated their interest in purchasing 400-500 rai of land to set up manufacturing bases within the 11.8-square-kilometre estate.

They are Oriental Garment, Changtai Tea Group Changtai Tea House, Yunnan Gold Peacock Traffic Transportation Group, Xishuangbanna Tongqiuhao Tea Industry, Fo Xing Import & Export Trading , and the Charter Institute of Logistics and Transportation China.

Petchanet Pratruangkrai

The Nation

Xishuanbanna, China