In the southwest of the People’s Republic of China (PRC), Guangxi Zhuang Autonomous Region (GZAR) is becoming the epicenter of regional and global trade as multinationals shift manufacturing from South China to lower cost Southeast Asia countries. Established local logistics companies in Vietnam are partnering with international firms or are a party to a merger & acquisition as cross-border container traffic grows for garments/footwear, electronics/high technology and agriculture products. The PRC, Asian Development Bank (ADB) and logistics firms are accommodating this shift in global value chains by improving infrastructure and services at the borders and along their corridors.
A July visit to the Guangxi Pingxiang Integrated Free Trade Zone (FTZ) showed impressive developments from the first visit in 2011. Phase One is in operations to facilitate trade along the corridor from capital city Nanning to Pingxiang to Hanoi, Vietnam. The Pingxiang FTZ has a bonded logistics area, processing trading area and duty drawback functions. Pingxiang is a key node along the Nanning-Singapore Corridor, the Pan-Beibu Gulf Economic Zone and one of six platforms in the pilot program of a China-ASEAN Border Trade which is part of the Shenzhen-Hanoi-Bangkok network for full truck load (FTL) and less than truck load (LTL) potential. Phase Two will include light industry and processing areas for ASEAN shipments of equipment, agriculture and textile products.
The Vietnam side of this border is Huu Nghi (Dong Dang/Lang Son) to complement this Youyiguan or “Friendship” border gate with an ADB financed ($18.5 million) modern Customs and Immigration building opened in 2016. Further integration will occur with the construction of a Cross-Border Area Zone Industrial Park linking these two border towns for long distance trade as well as facilities for day traders that can move freely within a designated area across these two countries’ border zones…
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