Crowds of people crossed into Thailand from Vientiane over the New Year holiday, leaving Vientiane authorities wondering what they could do to keep people, and their shopping sprees, at home.
According to a report from the Thai News Agency MCOT, in 2011 some5.3 million people crossed the Vientiane-Nong Khai Friendship Bridge, up from 4.7 million in 2010. Trade value through the bridge reached 43.7 billion Thai baht (about US$1.4 billion), up from the previous year’s 38.1 billion Thai baht (about US$1.2 billion).
As Vientiane residents travel to Thailand’s Nong Khai and Udon Thani provinces in greater numbers, shopping mall developers in Laos are wondering if they can wean locals off the habit of shopping across the border. But the government is encouraging the construction of large retail outlets in Laos in the hope that shoppers’ money will stay in the country rather than be spent outside.
A large section of the new Talatsao Shopping Mall in Vientiane opened to the public on November 11, giving Vientiane shoppers an attractive new option, while three other large shopping malls are under construction.
Developers hope that when these facilities throw open their doors, they will bring in crowds of eager shoppers. However, casual observation makes one wonder if these megamalls will stem the cash flow across the border.
Many of those who went to Thailand over the New Year said one of the major attractions there was the lower prices.
Ministry of Finance officials admitted that prices of imported goods in Laos are higher as they include Lao and Thai consumption taxes, whereas in Thailand only the Thai tax is included in the retail price. The price of imported goods would be similar or lower than in Thailand if importers bought goods directly from the manufacturers, as they would not carry Thai Value Added Tax, officials said.
Some shoppers say Thailand offers products that cannot be found in Laos such as the latest movies and various consumer goods. Cinemas in Laos don’t show the latest releases because of the high copyright fees.
Of the total border trade, imports into Thailand were worth about Bt2.5 billion (US$80 million) while exports were valued at almost Bt41 billion (US$1.3 billion).
Acting head of Thailand’s Nong Khai customs checkpoint, Mr Padermdej Mangkang, told the Thai News Agency he expected to see an increase in the number of border traders and tourists crossing the bridge in 2012.
just wait and see till they get it done, after that we will have many shops to compete with then the price will go down automatic, just wait don't worry,it will takes time to get better.
