Chinese auto makers gear up to enter Lao market
Chinese auto makers gear up to enter Lao market
As the Lao auto market grows, carmakers from China are looking to find lucrative opportunities, and a recent business meeting in Vientiane saw officials from China and Laos discussing the potential for cooperation.
A Chinese delegation from Liuzhou Municipality led by the city's mayor, Mr Zheng Jun-Kang, met with officials from Laos' Ministry of Industry and Commerce, Ministry of Planning and Investment, Lao National Chamber of Commerce and Industry, and businessmen to discuss trade and investment in the auto market.
“From our visit, we can see the Lao economy is growing and there will be more opportunities for further cooperation between our two countries,” Mr Zheng said.
Six large Chinese companies were represented at the meeting. Most of them are involved in the auto market in one way or another. Within the trade delegation, there are four major carmakers from Liuzhou alone that are well known throughout China.
“Cars and spare parts from Liuzhou are already being sold in Laos,” Mr Zheng said.
“We welcome products from Laos to sell in China, especially agricultural products,” Mr Zheng said.
Vice President of the Lao National Chamber of Commerce and Industry, Dr Sanan Choulamany, said “This meeting is another step to boost cooperation in trade and investment between Laos and China.”
Cooperation has been on the increase recently. In 2011, the number of Chinese investment projects in Laos stood at 740, representing an investment of US$3.1 billion.
“Chinese investment in Laos has seen an increase in all sectors,” said Dr Sanan.
China mainly invests in hydropower, mining, trading, hotels, services and the timber industry. China mainly exports machinery, vehicles and furniture to Laos. In return, Laos mainly exports coal, timber, copper, rubber and woodcraft items to China.
The auto industry is the first pillar industry of Liuzhou. It is home to many automotive giants such as General Motors Corporation, Nissan, Shanghai Automotive Industry Corporation, and China Faw Group Corporation. Now Liuzhou is one of the national productive bases for automotive parts.
Famous Chinese automobile brands from Liuzhou are SGMW, Dongfeng Chenglong, Dongfeng and Fengxing (MPV).
On September 23-25, the Liuzhou Municipal Government will hold its second China-ASEAN expo, featuring automobiles, construction equipment, and auto parts.
Liuzhou is the industrial manufacturing base of Guangxi province and even for Southwest China. At present, there are 2,848 industrial enterprises in the city. Its gross industrial output value accounts for more than a quarter of the whole amount of the entire province.
Liuzhou is a famous historical and cultural city. It has an incredible landscape. According to the Liuzhou official website, Liuzhou is also known as Dragon City.
Liuzhou covers an area of 18,600 square kilometres, and is inhabited by people of 48 ethnicities, such as the Han, Zhuang, Miao, Yao and Dong. The total population is 3.72 million.
vientiane times
