R12, newly proposed route to boost Thailand-Vietnam trade
Thailand, Laos, Vietnam to be linked by new trade corridor, cutting travel times to China

Plans are underway for the construction of Route R12, a new trade corridor in Laos, which will connect Thailand, Vietnam, and China.
Perames Vudthitornetiraks, President of the Neighbouring Countries Economic Development Cooperation Agency (NEDA), stated that the route will begin in Thakhek, Khammouane province, Laos, 17 kilometres from Thailand’s Nakhon Phanom border checkpoint.
The route will link the towns of Yommalath and Boualapha, ending at the Napao border checkpoint in Laos, opposite Vietnam’s Cha Lo checkpoint in Quang Binh province. The entire length of Route R12 is 147 kilometres.
Perames emphasised that this highway will significantly ease trade between Thailand and Vietnam and offer an additional route for Thailand to connect with China. The road is expected to cut travel time by car from Nakhon Phanom to Vietnam to four hours, down from the current ten hours.

In its first year of operation, the highway is projected to contribute 1.51 billion baht to Thailand’s GDP, and from the second to fifth years, this contribution is expected to rise to 2.84 billion baht annually.
From the Cha Lo checkpoint, the distance to Nanning in China’s Guangxi province is approximately 700 to 750 kilometres, taking 12 to 14 hours by car or bus. NEDA will provide a low-interest loan of 1.74 billion baht to the Lao government for construction, with an interest rate of 1.75% per year and a repayment term of 30 years, including a seven-year grace period.
Construction is anticipated to commence post-rainy season and take around 30 months. The project involves upgrading the road to Asian Highway standards, enhancing border checkpoint facilities, office buildings, cargo transfer stations, storage yards, and public utilities, reported Bangkok Post.
Additionally, street lighting at community intersections will be improved, safety equipment installed at hazardous locations, and tourism facilities developed.
Perames highlighted that over the past two decades, NEDA has supported official development assistance in neighbouring countries, including Cambodia, Laos, Myanmar, Vietnam, Bhutan, Sri Lanka, and Timor-Leste. This support has totalled 24.2 billion baht, covering 55 financial and technical cooperation projects worth 24.2 billion baht and 48 capacity-building projects worth 37 million baht.
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