Issue 11: 1 Sept 2014

The small rectangle of land connecting Thailand, Myanmar, Laos and China's Yunnan province is now providing business opportunities for the Greater Mekong Sub-region.

Dr. Pussadee Polsaram, the director of the Thai Chamber of Commerce’s AEC Strategy Centre

Beyond the beautiful landscape and authentic local colour that attracts travellers to the Golden Rectangle, straddled across the region’s main artery are plenty of business opportunities for the first-time entrepreneur. Comprising of the R3A and R3B highways, the R3 road system connects northern Thailand with Myanmar, Laos and Yunan province in China.

Starting in Chiang Rai, Thailand, the eastbound 1,200km-long R3A runs through the Laos provinces of Viangphoukha, Bo Kaew and Long Namtha, as well as China’s Jinghong province before terminating in Kunming. While the westbound R3B runs 1,200km through Myanmar’s Tachilek and Kentung provinces before coming to rest in Jinghong province in China.

The completion of the R3 road system has contributed to the growth of businesses of all shapes and sizes along the route, especially in tourism, hospitality and logistics. However, unique strategies must be used in each country, to achieve business success, explains Dr. Pussadee Polsaram, the director of the Thai Chamber of Commerce’s AEC Strategy Centre.

“It is necessary to understand the nature and background of each area in the Golden Rectangle before making a decision about investment,” she says.

Polsaram adds that the R3 road system is connected to Thailand’s sophisticated highway network that runs to Bangkok and other countries in the peninsula. With air transportation an alternative mode, Thailand can be seen as the base for storing raw materials and transporting commodities across the region.

In Laos, where the R3A road runs along the Bo Kaeo national park, the beauty of the landscape, verdant forests and traditional lifestyle afford great potential for investment in tourism and hospitality businesses. Contrastingly Myanmar, has a great potential market for both consumer and agricultural products, in addition to hospitality. “The promising business [opportunities] for this region are in import-export joint ventures with local people,” says Polsarum.

At the end of the road, the city of Kunming in China’s Yunnan province has plans for six joint-venture industrial zone mega projects. These have enormous potential for investors, says Polsaram, as Yunnan has connections with many countries, providing the opportunity for traders to penetrate new markets.

Wimon Punkong, the director of the Research Division for the International Institute for Trade and Development, believes Thailand has the capability to respond to these trade opportunities, especially in processed food goods, spa and beauty businesses and construction; all areas in which Thailand has already established a regional base. “These are what Thai entrepreneurs are good at, and they are well accepted by [its] ASEAN neighbours,” he says.

The road from Chiang Rai may seem long, but it is one paved with gold – golden business opportunities.

Words by Phraewphan Puangkasem