China to spur investment in Laos
China to spur investment in Laos
China has agreed to back capable and credible enterprises in setting up economic and trade cooperation zones in Laos, according to a joint statement released on Wednesday.
The move is part of the two countries' shared intention to raise their economic cooperation to a new stage based on a win-win approach.
During a goodwill visit to China from May 3-5 by Secretary General of the Lao People's Revolutionary Party and President of the Lao PDR, Mr Bounnhang Vorachit, the two nations signed 10 documents of co operation.
Some of the documents relate to economic and investment cooperation, which should help to boost trade and investment in Laos.
Economists are optimistic that the Lao president's visit to China, in response to an invitation from his Chinese counterpart Xi Jinping, will serve as a positive signal for economic cooperation between the two countries.
China is committed to sharing its lessons regarding the development of Special and Specific Economic Zones (SEZs) and to push for further development of an economic cooperation zone at the Boten-Mohan border area aiming to boost trade, investment and tourism in the region.
Currently, over 213 companies are investing in SEZs with a total registered capital of US$4.2 billion, with the largest number of foreign companies being Chinese.
Concerning energy cooperation, China is committed to encouraging Chinese companies and financial institutions to participate in Laos' energy development strategy.
According to the joint statement, both sides agreed to push forward construction of the China-Laos railway, work more closely in the economic sector, and push for more investment by China in Laos.
As the two countries are celebrating the 55th anniversary of the establishment of their diplomatic relations this year, they also agreed to push for further progress in ongoing Chinese-invested mega projects in Laos.
Their economic cooperation has been growing annually despite the global economic slowdown.
In 2011 the value of two-way trade between Laos and China amounted to US$1.3 billion. In 2014 it rose to US$3.6 billion in 2014 but fell to US$2.78 billion in 2015, according to the Lao News Agency.
The total value of Chinese investment in Laos has reached US$6.7 billion, making China the largest foreign investor in Laos.
Chinese companies have pumped funding into over 760 projects mainly in mining, hydropower, agriculture, finance, shopping centres, and special economic zones.
Specifically, from 2011 to the present, China has invested US$2.75 billion in 160 projects. The two governments are committed to further discussing various shortcomings in order to facilitate the import and export of goods across the countries' shared border.
Both sides agreed to enhance the integration of development strategies, coordinate the construction of regional trade infrastructure, and cooperate more closely in production capacity and investment, according to Xinhua .
