Lao exports to China this year are expected to increase to $1.510 billion, while imports will decline to $985 million. VIENTIANE TIMES/ASIA NEWS NETWORK
LAO exports to China this year are expected to increase to $1.510 billion, while imports will decline to $985 million, according to the latest projections from the Ministry of Industry and Commerce.
Last year, Laos planned to earn $1.478 billion from exports to China but achieved only $1.406 billion, and expected to spend $945 million on imports but the final figure was $1.381 billion.
Laos’ main exports to the northern neighbour are ore sand, rubber and rubber products, copper and copper products, bananas, corn and fertilisers. In turn, Laos imports electrical appliances, vehicles and spare parts, mechanical and electronic equipment, steel and steel equipment.
China is now the biggest foreign investor in Laos and the country’s second largest trading partner.
In 2016, Laos exported about $1.133 billion worth of goods to China which rose to $1.233 billion in 2017.
The increasing number of Chinese investors in Laos and cooperation projects by both governments is a major reason for the increase in imports from China.
The China-Laos railway, the launch of Laos’ first satellite, hydropower development and other projects funded by China have helped to promote connectivity between the two nations.
The government is optimistic that exports to China will rise this year in view of increasing trade and economic cooperation.
Agriculture is seen as an important sector to bolster Lao exports to China especially bananas, rubber, fertiliser, cassava and sweet corn.
The Lao Ministry of Industry and Commerce has asked China to consider a rice import quota of 50,000 tonnes along with accepting other industrial goods as part of efforts to bolster trade.
The ministry also asked China to consider more quotas for Lao products to Chinese markets this year, especially rice, rubber and other industrial and agricultural goods.
The call for the increased rice quota comes after 20,000 tonnes were purchased in 2017 by China’s Xuanye (Lao) Co Ltd following approval from China’s National Development and Reform Commission.
The government this year will strive for imports worth $5.775 billion and total exports of $5.516 billion after last year achieving $5.848 billion and $5.410 billion respectively.
Thailand is still Laos’ top trading partner among neighbouring countries and bilateral trade expands year-on-year. VIENTIANE TIMES/ASIA NEWS NETWORK
