Lao, Chinese businesses boost cooperation in trade and investment

Lao and Chinese enterprises have agreed to partner in various areas of trade and investment and to enhance relations between the two countries.

A Memorandum of Understanding was signed in Vientiane yesterday during a meeting with Chinese business leaders led by the China-Asean Economic and Cultural Research Institute, Guangxi.

Also present were representatives of Lao enterprises, business operators and government officials.
The meeting took place at the Lao National Chamber of Commerce and Industry (LNCCI).

Projects included in the cooperation agreement relate to waste water treatment and garbage recycling, traditional medicine, disease treatment centres, and information exchange on investment promotion.The MOU was an agreement between Lao and Chinese business operators and was supported by the government after previous visits to Laos to discuss the issues involved.

Laos has businesses in many different sectors. Some are members of the LNCCI and some are not, but most need partners for business expansion and development, said the Vice President of the LNCCI, Mr Vanthong  Sithikoun.

Under China’s The Belt and Road initiative, trade and investment between Laos and China is growing, he added.

The value of trade between the two countries has reached US$1 billion, which makes China the second largest trading partner and Laos’ biggest foreign investor, Mr Vanthong said.

Three years ago, the LNCCI and the China-Asean Economic and Cultural Research Institute, Guangxi, organised meetings between Lao and Chinese business operators and many companies had signed agreements with business partners, he added.

Cooperation is important for economic and trade promotion and the overall relationship between the two countries.

Mr Vanthong said he hoped the meeting would encourage more Chinese companies to invest and partner with Lao business operators.

The government, and especially the LNCCI, would try to encourage Lao businesses to integrate and grow to regional and international levels, he added.

He suggested that business operations between Lao and Chinese enterprises should not be competitive but should be undertaken in a spirit of cooperation and mutual assistance.

China’s “One Belt, One Road” initiative is an important strategy for relating to and integrating with regions including Asean, said the Director of the China-Asean Economic and Cultural Research Institute, Guangxi, Mr Huang Bocheng.

Chinese business operators are interested in investing in various sectors in Laos, especially agriculture, real estate, construction, engineering, tourism and trade, he said.

The meeting aimed to boost cooperation between Lao and Chinese businesses through consultation and information exchange.

At the same time, Chinese business operators were able to learn more about Laos’ investment policy, the challenges involved, and investment potential in the country.

Editor: John Li