Laos sources more investment to boost agricultural exports

Laos is keen to boost agricultural exports through the railway. - Lao Economic Daily

VIENTIANE (Vientiane Times/Asia News Network): The government has pledged to secure more investment from China in the agriculture and forestry sector, using the potential offered by the Laos-China Railway to boost exports.

Last year, more than 300 Chinese companies expressed interest in investing in the agriculture and forestry sector of Laos, with the investments expected to touch US$1 billion due to the export potential provided by the railway, the Minister of Agriculture and Forestry, Dr Phet Phomphiphak, said.

Dr Phet was quoted by China Radio International recently as saying that exports of Lao agricultural products to China had increased significantly.

“I observe that trade and investment cooperation between Laos and China has grown continuously and we will further broaden cooperation in this area from now until 2025,” he said.

“We will continue to negotiate with China to ensure that more agricultural produce such as rice, other crops and livestock can access the Chinese market. This year, we expect to negotiate the sale of 20 more agricultural products to China.”

Last year, Laos earned more than US$900 million from the export of agricultural products, reaching 82 per cent of the target set for 2021.

Key export products included bananas, rubber, cassava, sugarcane, watermelons, cattle and buffaloes, with China being the largest purchaser.

Although the export of goods via the railway is seen as convenient and quick, very little agricultural produce is currently transported this way.

Some 400-600 trucks loaded with produce head to China each day, but many of them are currently stranded at the border.

President of LS Trading Import-Export Company, Mr Somxai Duangchaleun, said that only iron ore, dried cassava and cassava powder are being transported via the railway to China. A train loaded with these goods leaves Vientiane each evening and arrives in Kunming, China, the following morning.

“Other Lao products, notably sweetcorn and watermelons, should also be shipped by rail so that crops don’t go rotten because of delays,” he said.

Somxai urged the Laos-China Railway Company Limited to run more train services to meet the high demand for the shipment of agricultural produce. On some days, only one train carries produce, while on other days there are three trips.

The sectors involved have been urged to strengthen cooperation to ensure that more agricultural produce is transported by rail to bolster trade between Asean and China.

The Laos-China Railway, which recently marked 100 days of successful operation, has carried more than 360 cross-border freight trains and transported more than 280,000 metric tons of international freight.

Goods transported by the railway have reached Laos, Cambodia, Myanmar, Vietnam, Thailand, Malaysia, Singapore and Bangladesh.

The railway has also transported more than 1.8 million passengers.