Khammouane Province is steadily advancing one of its most significant infrastructure investments, as the upgrading of National Road No. 12, from Thakhek to the Naphao International Border Checkpoint, has reached 11 percent overall construction progress.
The road spans 147.5 kilometers across Thakhek, Yommalath, and Boualapha districts, divided into two sections: 61.5 kilometers from the junction with National Road No. 13 South in Thakhek to Yommalath Junction, and the remaining 86 kilometers through to Naphao, a Laos-Vietnam border.
Construction contracts were signed in May 2025, with ground works commencing after the rainy season in late 2025, and the full project is targeted for completion within 30 months.
Financing for the project comes from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA), through a low-interest loan of THB 1.742 billion (USD 54.2 million) at 1.75 percent per annum, repayable over 30 years with a seven-year grace period, alongside a grant of THB 91 million (USD 2.8 million) bringing the total package to over THB 1.833 billion (USD 57 million).
Under the agreement, at least half of all materials and equipment must be sourced from Thailand, with Thai contractors and supervisors leading implementation. The project consultant is Asian Engineering Consultants (Thailand), working alongside Lao Consulting Group (Laos).
The Naphao checkpoint’s growing importance is already evident in recent figures.
In 2025, the border recorded LAK 397.4 million (around USD 18,000) in revenue, with 310,099 crossings, 156,702 inbound and 153,397 outbound, and 213,033 vehicle movements.
National Road No. 12 is Khammouane’s key east-west corridor, connecting Northeastern Thailand westward to Vietnam’s Cha Lo checkpoint in Quang Binh Province, giving landlocked Laos access to Vietnamese seaports and southern Chinese markets. Its importance is set to grow further with the planned Laos-Vietnam Railway, also passing through Khammouane, cementing the corridor as a critical regional trade route.
