Economy

Nanning corridor to boost trade

By Huang Zhaohua (China Daily)
Updated: 2010-08-14 10:47

Nanning - The proposed Nanning-Singapore Economic Corridor will boost the volume of freight transported between China and the Association of Southeast Asian Nations (ASEAN) in the next 10 years, a senior researcher said on Friday.

Li Xinghua, President of the Transport Planning and Research Institute under the Ministry of Transport said the corridor may reshape Pan Beibu Bay area as an important economic channel.

The construction of the "Nanning-Singapore Economic Corridor" became the highlight for cooperation between China and ASEAN nations at the 5th Pan-Beibu Gulf Economic Cooperation Forum.

The Guangxi Zhuang autonomous region proposed the project in 2006 as part of the plan to bolster regional economic cooperation.

The "Nanning-Singapore Economic Corridor", the cross-border economic channel between China and ASEAN, starts from Nanning and traverses Hanoi in Vietnam, Vientiane in Laos, Phnom Penh in Cambodia, Bangkok in Thailand, Kuala Lumpur in Malaysia, and Singapore.

Yi Xiaozhun, vice-minister of commerce, said China's exports to ASEAN rose by 45 percent to $64.6 billion during the first half of the year, while imports from ASEAN grew 64 percent to $71.9 billion, over the corresponding period last year.

ASEAN has also emerged as the favorite destination for Chinese companies in their overseas expansion plans.

Guo Shengkun, Chairman of the Standing Committee of Guangxi People's Congress, said the establishment of China-ASEAN Free Trade Agreement has brought new opportunities to the Pan-Beibu Gulf economic cooperation.

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John Wong, a professor at the East Asian Institute of National University of Singapore, said the economic corridor will be beneficial for industrial and agriculture development. The ASEAN nations will actively participate in the construction of the Nanning-Singapore Economic Corridor, he said.

"Infrastructure construction is an important step in the Nanning-Singapore Corridor," said Michael Yeoh, chief executive of the Asian Strategy and Leadership Institute of Malaysia.

Vietnam's Vice-Minister for Transport Le Manh Huang said it was important for the ASEAN nations to streamline the regulations and formalities.

The railway line between Nanning and Singapore has been almost joined up and 10 of the 24 planned international transportation channels have been opened.

Guangxi has already reached a consensus with Vietnam for setting up two highways.