When the China-Laos electric train enters Thailand, the government, private sector and civil society will have to study and manage development strategies in the different areas together; the economic ecosystems will be closer to each other.
At present, China has a population of over 1.4 billion, and Yunnan Province alone has a population of about 50 million. Its capital is Kunming, and there are seven other cities and eight ethnic minority autonomous regions. China has an economic value (GDP) of 510,777 million yuan.
Yunnan Province exported 17.6 billion yuan and imported 29,050 million yuan, which is expected to be an important export market for Thailand in the future.
Positive factors for Thai SMEs
Fast and low cost distribution route:
From Kunming to Nong Khai province, it takes no more than 15 hours compared to the original 2 days. Thai SMEs will benefit from reduced transport costs. This results in lower product costs and faster shipping.
The arrival of marketing channels will expand the market into other parts of China and Laos.
This will be an opportunity to open up new tourism channels and thus create added value. There is an opportunity to increase revenue by attracting tourists from China, Laos and other countries for creative tourism.
Negative factors for Thai SMEs
Chinese invasion :
China is an economic and political superpower. There is a risk that China will play a role in the trade, investment, resource use of Southeast Asian countries.
Lower prices for Thai agricultural products:
The government must be clear in enacting protective laws and enforcing them so that Thai farmers and SME entrepreneurs are not exploited and do not benefit as they should from this transport link.