Laos, Yunnan trade value to surge next year
Laos, Yunnan trade value to surge next year
Trade value between Laos and Yunnan province of China could exceed 8 trillion kip (US$1 billion) next year thanks to the trade promotion policies implemented by the respective countries.
The trade value of the two parties reached more than 4.8 trillion kip (US$600 million) last year and looks set to continue to grow.
It is forecast that next year's value will exceed 6.4 trillion kip (US$800 million) and could even reach US$1 billion.
An honourary official of the wood and minerals export-import chamber from Yunnan said that trade between Laos and Yunnan has seen continued growth.
“In 2008, two way trade value was around 80 billion kip (US$10 million). It had increased to US$600 million last year,” he said during a visit in Vientiane last month.
“The enlargement has made the two parties be confident that the value will improve to US$1 billion.”
Another official from the chamber said that there are more than 100 companies in Yunnan that have business operations in wooden production and supply, mining, trade and services.
“These companies have shown their interest to invest and open business in Laos and they are undertaking studies,” he said.
Some of them are still waiting to see the policies in Laos because they have noted that exports still face many barriers causing delays in trading and services.
“However, with all of the issues, the Lao government and Yunnan provincial authorities will continue discussions to help each other on finding solutions to these issues and difficulties that hinder trade cooperation between Laos and Yunnan,” he said.
“The cooperation is set to ensure the trade value between Laos and Yunnan will meet the requirements of US$1 billion.”
China is a large country that produces goods for export to many countries including Laos. However it still demands to import some products from Laos, including wood products and furniture.
The Lao Furniture Association signed a cooperation agreement with a Chinese furniture importers' group in October 2011 on furniture production in Laos and export to China.
The agreement with the Chinese group will see the production of furniture worth up to 2.6 trillion kip (US$333 million) per year for supply to the Chinese market over the next 20 years.
Trade between Laos and China reached about 16.24 trillion kip (US$2.03 billion) last year, which was an increase of almost 30 percent compared to the year before, according to a senior official.
“Cooperation between Laos and China rapidly increased over the past year. Altogether, Chinese investment in Laos is worth over 40 trillion (US$5 billion) making it amongst the largest investors in Laos,” said Vice President of the Laos-China Cooperation Commission, Mr Vichit Xindavong at a day-long photo exhibition in Vientiane in January.
vientiane times
