[2] The North-South Corridor Project has been part of the Asian Development Bank's (ADB) agenda since 1993 and aimed to improve the connected economies of China, Myanmar, Laos, Vietnam, Thailand and Cambodia.
[2] The most significant problem with the corridor was the lack of progress on the Fourth Thai-Lao Friendship Bridge to be built across the Mekong River connecting the Thai town of Chiang Khong, with its cross-border neighbour of Ban Houayxay in Laos.
China meanwhile is anxious to develop its land-locked Yunnan province through the creation of trade links with Southeast Asia, including access to Thailand's sea ports.
[3][4] Although Laos was pressured to eliminate transit taxes, the cash-short government remained hesitant, in part because China and Thailand were seen to benefit disproportionately from the completed roadway.
[2] A 2002 ADB report estimated that approximately 2,500 people (500 households) might have to be relocated due to the road project; some monitoring groups put the real number much higher.
Although resettlement plans were drafted by the ADB to compensate for the loss of houses, land, rice granaries and shops, it was not clear that the funds were truly reaching the people most affected.
[2] Among the issues involved was the resettlement of the original Lao inhabitants of Boten village near the Chinese border, who were moved a kilometer or more down the road to allow the construction of a new Chinese-owned casino, hotel and other commercial developments.
[2] Rights groups were also concerned with the remote area's rapid development resulting in increases to exposure of HIV/AIDS, human trafficking and the possible exploitation of the surrounding forests and wildlife resources.