5.1 Thailand and Lao PDR “We are stronger together than we are alone” ,Walter Payton. The famous quote about teammate and none-solitude relationship works well for Thailand and Lao PDR. For Thailand is a country of various transport facilitation but lack of connection with several trading countries. Whereas Lao PDR is a landlocked country, with no any seaport of its own, has direct route to powerful trading country, China and another country, which outside Thailand border connection, Vietnam. But when the two countries decide to work together as one, every trade route within AEC is easily accessible. There exists a direct evidence indicating how significant Lao route is to Thailand cross border trade. The mentioned …show more content…
The physical position of both two countries when combines is also a logistic advantage since it is in the middle of all AEC member countries. Supply Chain Management will be of high advantage by importing raw materials from other member countries and spreading finished products as well. An advantage of efficient supply chain management will enhance the whole production line for both Thailand and Lao PDR which could highly result in cost reduction, product quantity expansion, lower shipping damage cost and also higher business profit.
Trading among AEC member countries will also be made more efficient from the logistic collaboration between Thailand and Lao PDR. By the fact that Thailand has made wise move by signing bilateral agreements with neighboring countries, such as Lao PDR, Vietnam, and Malaysia, it also help trading with AEC become …show more content…
Table 5.1.1 : AEC Map
Considering the cost, in both time and monetary terms, land logistics is the most efficient measure considering the urgency of transportation and average total distance traveling in AEC. It is undeniable that one of the major destinations of logistics from AEC is China while the same goes for the most sources of products people buy from. Simply put, since China is the major industrial plant of the world as well as the major consumer of many goods, logistics routes between China and AEC is undoubtedly one of the primary to consider. Moreover, Thailand is also a port country in the middle of AEC. If it comes to distribution of products or circulation of materials, even from port to warehouse, it is positive that Thailand holds the most prompt facility, infrastructure, and locational advantages.
However, Thailand alone cannot expand all the way to China while Lao PDR alone in the land-lock situation cannot benefit