The route would run from Bangkok to Chiang Rai, Boten in Laos, Mohan and Kunming in China, and on to Hanoi and Ho Chi Minh City in Vietnam.
The route is one of four priorities under the GMS plan for rail development. It would complete a rail transport network from southern China to Thailand, linking to the 615-km standard-gauge line from Bangkok to Nong Khai and the 928-km route from Bangkok to Padang Besar.
The two routes are among 12 proposed China-Asean rail developments. The plan includes six rail links from Kunming to Singapore via Laos, Hanoi, Ho Chi Minh City and Phnom Penh.
The development of rail and road networks to link with neighbouring countries will be a significant task for the country over the next five years.
Arkhom Termpittayapaisith, the secretary-general of the National Economic and Social Development Board, said developing rail lines and roads in the region would enhance the logistics role of Thailand, especially given China's desire to use Guangxi, Guangdong and Hainan provinces as gateways to Asean.
Arkhom said roads to link China and Asean were under construction. They include two north-south economic corridors linking southern China to the north of Thailand and to Burma.
Thailand needs to develop a single national window for customs and other clearance procedures, Mr Arkhom said, and it should also develop new border towns to promote trade and tourism.
In 2010, border trade through 13 checkpoints totalled 749.52 billion baht.
Asean-China trade volume increased continuously from 2003-10, producing a trade surplus for China. Annual growth of exports from Asean to China averaged 24 per cent per year, while imports by Asean from China rose at a slower rate of 18 per cent.
Export growth from Thailand to China in the period averaged 22 per cent a year, while Thailand's imports grew at a 21 per cent rate.
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