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Businesses back Laos-China high-speed rail project
Lao and Chinese business representatives have expressed strong support for the proposed Laos-China high-speed railway as they believe land connectivity will facilitate increased trade and business cooperation.
Lao National Chamber of Industry and Commerce President Mr Kissana Vongsay and China International Commerce Chamber President Mr Wan Jifei reaffirmed their support for the US$7 billion railway at the Laos-China Business Forum held in Vientiane on Friday.
The 480km railway would run from the Lao-Chinese border in Luang Namtha province to Vientiane.
Deputy Minister of Industry and Commerce Ms Khemmani Pholsena and a number of Lao and Chinese investors attended the one-day forum, which aimed to increase private sector cooperation in investment, trade and tourism.
Speaking at the opening ceremony of the forum, Mr Kissana said the construction of the railway would help to increase investment and trade cooperation between the two countries.
“I believe that infrastructure development projects will increase border trade, investment, tourism and people exchange by more than tenfold,” he said.
Mr Jifei said that construction of the railway, coupled with improvements to roads between the two countries, will boost relations between Laos and China, in particular their border provinces, and increase trade volumes and investment.
“The project will not only improve trade relations between the two countries but also facilitate people exchange and enhance friendship and cooperation between our two countries in the future,” he said.
Laos and China have signed a memorandum of understanding on the railway and marked out the area of the track, and are currently negotiating the project concession agreement. It is still unclear when construction will begin following its postponement on April 25.
According to the China International Commerce Chamber and Lao National Chamber of Industry and Commerce, Laos-China border trade value has reached more than US$1 billion, up about 40 percent from last year.
Most of Laos' exports to China are copper and timber products, while China's exports to Laos include vehicles, garments, metals and electronic equipment.
Over the past few years, Chinese investment in Laos has seen a significant increase, with investment value of US$2.6 billion. Chinese investment is mostly in the areas of hydropower plant development, mining, commercial centres, banking, restaurants, hotels, rubber tree plantations and telecommunications.
Mr Kissana said that although Laos and China trade and business cooperation has seen significant growth, there is still a need for discussion between the two countries' private sectors to break down certain business barriers.
He said the Lao chamber has instigated improvements to legal and investment procedures to meet international standards, adding that this will attract foreign investors, in particular from China.
Mr Kissana also said the business forum is part of Laos and China's efforts to boost trade and investment between the countries to fulfill economic cooperation goals.
vientiane times
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