Laos, China enhance economic cooperation
Laos, China enhance economic cooperation
Laos and China's Yunnan province have agreed to enhance cooperation in the fields of tourism, trade, economics, transport, agriculture and hydropower.
Delegations from the two parties met in Vientiane on Friday to review cooperation in recent years, especially between the northern provinces of Laos and Yunnan province, and discuss preparations for hosting the seventh meeting between the coordination committee for northern Laos and Yunnan province.
The Lao side was led by Deputy Prime Minister and Laos-China Cooperation Chairman Mr Somsavat Lengsavad, while the Chinese side was led by Yunnan provincial Governor Mr Chen Hao.
The two sides reviewed their cooperation in various sectors, in particular trade and investment between Laos and Yunnan province, which has been growing year by year.
In 2014 the trade value between the two countries reached US$1.37 billion, a 31.3 percent increase compared to the previous year, and this figure is projected to increase to US$2 billion by 2020.
Companies, enterprises and other business units in Yunnan province have signed 352 concession agreements worth US$2.37 billion, which makes Laos the second largest recipient of foreign investment by Yunnan province, according to reports from both sides.
The two sides agreed to establish the Boten-Mohan Economic Cooperation Zone border crossing between Luang Namtha province and Yunnan province.
The Lao government signed a memorandum of understanding on establishing a cross-border economic cooperation zone in June 2014 with the Chinese Ministry of Commerce.
With regard to the banking sector, the China Development Bank's branch in Yunnan province is currently partnering with the Bank of the Lao PDR to implement an automated payment system between the banks, supported by the Chinese government.
The two parties discussed ways to enable more crops grown in Laos to be exported to China in a bid to improve livelihoods in northern Laos.
In the tourism sector the two sides discussed activities to promote tourism such as an international cultural tourism festival, ethnic cultural and arts festivals and international tea festivals in Yunnan province.
In recent years five tourist routes and an air link have opened up between Luang Prabang province and Jinghong (Xishuangbanna), resulting in enhanced tourism between the two sides.
During the meeting, the two parties signed five agreements involving memorandums of understanding (MOU) on building a cultural, trade and economic exchange centre and an MOU on conducting a feasibility study on an expressway construction project stretching from Vientiane to the Boten border in Luang Namtha province.
Other MOUs signed dealt with rubber production, crop cultivation and analysis in Laos, and joint investment in the Xe Lanong 1 hydropower dam.
