Virus outbreak yet to impact Lao exporters
Virus outbreak yet to impact Lao exporters
Lao exports to China continue to flow as normal despite China being in the midst of the current coronavirus outbreak.Laos has not received any impact reports yet from exporters since the start of the virus outbreak, according to the Import and Export Department of the Ministry of Industry and Commerce.
In December, the value of exports from Laos to China hit $175 million, making the northern neighbour Laos’ top export market, while it is expected that the value of exports in January will not decrease.
Official estimates for 2019 put total exports to China at $1,510 million with imports reaching $985 million.
Laos’ main exports to China are ore sand, rubber and rubber products, copper and copper products, bananas, corn and fertilisers.
In turn, Laos imports electrical appliances, vehicles and spare parts, mechanical and electronic equipment, and steel.
China is now the biggest foreign investor in Laos and the country’s second-largest trading partner.
In 2016, Laos exported about $1,133 million worth of goods to China, which rose to $1,233 million in 2017.
In 2018, Laos planned to earn $1,478 million from exports to China but achieved only $1,406 million, and expected to spend $945 million on imports but the final figure was $1,381 million.
An increasing number of Chinese investors in Laos and cooperation projects by both governments has been a major reason for increased imports from China in recent years.
The China-Laos railway, the launch of Laos’ first satellite, hydropower development and other projects funded by China have helped to promote connectivity between the two nations.
The government is optimistic that exports to China will rise this year, given increasing trade and economic cooperation.
Agriculture is seen as an important sector to bolster Lao exports to China, especially bananas, rubber, fertilisers, cassava and sweetcorn.
China approved a rice import quota of 50,000 tonnes along with accepting other industrial goods as part of efforts to bolster bilateral trade.
Lao Airlines has suspended charter flights to five cities in China after Chinese authorities prohibited its citizens from leaving the country in an attempt to limit the spread of the coronavirus.
Charter flights from Vientiane to Changzhou, Hangzhou and Shanghai, and from Luang Prabang to Shanghai and Jinghong have all been suspended.
