Laos upgrades its National Road 2 to strengthen the Thailand-Laos-Vietnam trade corridor


VIENTIANE (Laotian Times): Laos is upgrading the National Road 2, a key link connecting Thailand, Laos, and Vietnam, as part of a broader push to strengthen regional trade and transport connectivity across mainland Southeast Asia.

The rehabilitation began in early 2025. 

With a budget of over EUR 150.4 million (USD 172 million), the project  is upgrading the road to ASEAN standards, according to official documents published on the European Union (EU)’s website.

National Road 2W runs from Xay district in Oudomxay through Pak Beng district. The 136-kilometer rehabilitation is divided into three phases and is now more than 20 percent complete.

Meanwhile, the Eastern section of that road is also beginning to undergo renovation. 

Running from Xay, Oudomxay, to Khua district in Phongsaly, National Road 2E covers 99 kilometers across three phases. The first two phases, spanning a total of 78 kilometers, are over 5 percent complete, while the third phase, signed on 30 May, remains in the research and design stage.

Both sections bypass Xay district, meeting National Road 13 North, Laos’ longest road.

Contracts run under Output and Performance-Based Road Contracts (OPBRC), spanning 10 years, three for rehabilitation and seven for maintenance.

The upgrade falls under the Southeast Asia Regional Economic Corridor and Connectivity project, funded by the World Bank and co-financed by the European Investment Bank, the EU, and the Lao government. 

The project covers Phongsaly, Oudomxay, Luang Namtha, Luang Prabang, and Xayabouly, aiming to improve trade facilitation, border management, and weather resilience along the East-West Economic Corridor.

National Road 2, both West and East, forms part of Asian Highway 13 (AH13) and is one of ASEAN’s key infrastructure projects

Once fully completed, the nearly 300-kilometer route will link the Thai border at Huai Kon-Nam Ngeun, in Nan Province, Thailand, through into Ngeun district in Xayabouly Province, ending at the Lao border with Vietnam at Panghok-Tay Trang in Phongsaly Province.

The road also cuts across the Laos-China Railway in Oudomxay Province, opening the door to future transport links connecting China, Laos, Thailand, and Vietnam. Officials say upgrading the route will help it fulfill its potential as a climate-resilient regional logistics corridor.

To date, the existing road goes from Pak Beng to Ngeun districts, and the last part from Khua to Mai districts in Phongsaly Province remains under consideration. -- Laotian Times

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