China On Track to Become Laos’ Top Trading Partner
Source: Vientiane Times
The government expects that China will soon be its top trading partner, with Chinese companies investing in 17 projects worth US$986 million since the start of this year.
More trade with China will be a boost for social and economic development as well as creating jobs for people in Laos, according to a report delivered at a meeting of the Laos-China Cooperation Committee in Vientiane on February 21-22.
The annual meeting highlighted the extent of cooperation in trade and technical fields between Laos and China last year and discussed plans for this year.
The meeting highlighted the outstanding achievements of last year with respect to the rollout of projects funded by grants from China, including the construction of a railway operations training college, the construction of schools, and other initiatives designed to spur development in Laos.
China has also provided vehicles and equipment to support Laos’ hosting of ASEAN meetings this year.
In terms of trade, the value of bilateral trade reached US$7.09 billion in 2023, an increase of 26.6 percent compared to the same period in 2022, when the value was recorded at US$5.68 billion.
Laos’ exports to China were valued at US$3.74 billion, an increase of 11 percent, while the value of goods imported by Laos from China was estimated at US$3.35 billion, an increase of 48 percent.
Statistics show there was a continuous increase in the value of trade between Laos and China in the past year.
China is the main export market for agricultural produce grown in Xayaboury, where provincial authorities are overseeing the cultivation of crops for sale within Laos as well as for export.
The increased sale of goods to China has improved conditions for farmers and created more jobs.
According to the Agriculture and Forestry Department in Xayaboury province, more crops are being grown in a larger area to help bolster food security. Farmers are growing more crops and raising more livestock to reduce the amount of imported fruit and vegetables.
The department is encouraging farmers to lead their communities by example by growing crops all year round in order to boost yields.
Provincial authorities are working with business owners to exploit the potential for crop cultivation and contracts have been signed on the sale of specific products to other countries. More than 30 types of products are being exported to China and more than 10 to Thailand.
Farmers in Xayaboury are selling seven types of crops to China, with Chinese companies advising farmers to grow cassava, sweetcorn, pears, tea, beans, vegetables, and watermelon.