Lao-China trade flourishes

Lao-China trade flourishes

Bilateral trade value between Laos and China saw a remarkable growth last year as the two nations established a close economic cooperation.

According to Nakborihan magazine, the bilateral trade value of Laos and China was more than US$3 billion which was a total of 46 percent more than the previous year due to the friendly economic relationship of the neighbouring countries.

The latest issue of Nakborihan magazine said in 2013 Laos imported more than US$1.2 billion worth of goods from China with machinery and construction materials being the main products imported.

Laos exported more than US$803 million worth of produce to China in the same year. The goods were largely made up of agricultural produce such as tea, sweet corn, water melon, banana, vegetables and rubber.

Handicraft items and wooden furniture were also some goods which were exported to China. These items form an opportunity in one of the largest markets in the world with more than 1.3 billion consumers.

According to the article, Laos has begun promoting Chinese investment in the country as a result of the close economic cooperation between the two countries.

Currently, a number of Chinese companies are investing in real estate development projects in Laos. One of the major projects is the construction of two shopping centres located in central Vientiane. Chinese firms are also investing in a number of hydropower development projects such as the project along Nam Ou River in Luang Prabang and Phongsaly provinces.

The increase in these investments has seen a spike in the import of Chinese construction materials which effectively boosts the overall import value of Chinese goods into the nation.

Laos is also urging businesspeople to explore the Chinese market as they could possibly export their produce to one of the largest markets in the world.

Lao Coffee Association President, Mr Sinouk Sisombath told Vientiane Times that Laos could potentially export its coffee to China as Chinese people were becoming avid coffee consumers due to more people working in offices.

He said many Chinese people liked Lao coffee because of the quality of the beans.

Lao National Chamber of Commerce and Industry urged the government to speed up negotiations with China so the two nations could facilitate the trading of goods.

The chamber said Lao farmers and businesspeople have invested large sums of money in rubber tree plantations with the aim of exporting rubber to the Chinese market.

The chamber also urged the government to improve logistics systems so goods could be exported easily.

Laos and China are currently negotiating the construction of a Lao-Chinese railway, which many economists believe will boost the trade and economic cooperation of the neighbouring countries.

vientiane times