Article | Management area | Year 2018
 

An investigation and evaluation of cross-border truck transportation between Nongkhai, Thailand - Thanaleng to Vientiane, Lao PDR

by S. Phandanouvong; Suthep Nimsai
  
  International Journal of Supply Chain Management 7(4), p.56-65

Abstract

Lao PDR has been a large constraint in the international mark accessibility for its economic development for a long time. Moreover, Lao PDR depends on its neighbours as its key transit countries by using their sea ports. According to the 2016 UNDP Country Program for development projects, Laos has 3 potential economic vulnerabilities, one of which constraints [1]. Therefore, the cross-border truck transportation development becomes an essential for substantial economic development for Lao PDR. Therefore, the government of Lao PDR has its policy to transform its landlocked country to be as a 'land-linked' country by focusing on improving and developing the infrastructure to connect and integrate to sub-regional and regional. For example, the ASEAN Agreement Framework of 2013 of which articles 9 and 10 respectively, should be reassessed, monitored and implemented [15]. The purpose of this research is to identify and investigate the barriers and the impediments to seamless cross-border truck transportation between Thailand and Lao PDR and to use cross-border truck transportation from Nongkhai-Thanaleng to Vientiane, Lao PDR as an illustrative case study. The Analytic Hierarchy Process (AHP) to figure out the cost, time, and reliability as the key factors. From the outcome, it found that the cost of transportation service provider was the most important factor, which effected to cross-border tuck transportation was the highest weight 0.5889. Nevertheless, the experts from both government and business sectors who had many working experiences on Nongkhai to Thanaleng route are considering about improving the transportation service to supply the higher demand in current situation. Lastly, policy recommendations and suggestions are given in order to improve the three identified obstacles by this research. The problems faced are trying to be address by international agencies, and by domestic efforts, also this research specifies and critically analyzes the current issues despite the ongoing efforts. © Exceling Tech Pub, UK.

Keywords: connectivity; infrastructure; Asian economies