Railway to expedite Laos-China trade

The government believes that the Laos-China Railway will be a huge boost to economic and trade cooperation between Laos and China in the coming years. 
In 2021, the value of trade between the two countries soared to US$4.35 billion, an increase of 21.4 percent compared to the previous year, according to the Laos-China Cooperation Commission.
The value of goods imported by Laos from China was recorded at US$1.67 billion, an increase of 11.9 percent, while the value of Lao exports rose to US$2.68 billion, an increase of 28.2 percent.
China has become a key export market for Lao goods, especially agricultural produce, following the opening of the Laos-China railway at the end of 2021.
Last year, Laos earned more than US$900 million from the export of agricultural produce, accounting for 82 percent of the target figure set for 2021.
Bananas were the highest income earner, bringing in US$225 million, while rubber exports earned US$214 million, cassava sales brought in US$196 million, sugarcane earned US$25 million, and watermelon exports earned US$26 million.
China is the top foreign investor in Laos, with Chinese businesses investing in 821 projects with a total value of over US$16 billion, Vice Chairman of the Laos-China Cooperation Commission Mr Xaysana Sitthiphone told a recent meeting chaired by Deputy Prime Minister Dr Sonexay Siphandone.
“In 2021 alone, Chinese businesses invested in 20 projects with an investment value of more than US$1 billion, which will strengthen Laos’ socio-economic development and generate job opportunities for local people,” he said.  
Deputy PM Dr Sonexay instructed the sectors concerned to encourage more businesses to invest in Laos to maximise the potential offered by the railway. The authorities responsible need to do more to encourage crop cultivation alongside the railway, he said.
According to a recent Xinhua report, the Laos-China Railway has transported more than 1 million passengers and 500,000 tonnes of cargo including 100,000 tonnes of cross-border goods since it became operational in December.
Business operators from Thailand, Vietnam, Cambodia and Myanmar are now using the railway to import and export goods to and from China and beyond. 
Thailand transported its first shipment of 1,000 tonnes of rice to Chongqing in China using the railway.
The Thai government is also studying the possibility of exporting fruit, orchids, rubber, cassava, palm oil and fishery and livestock products by the new rail route.

By Somsack Pongkhao
 (Latest Update February 15, 2022)