Laos eyes more agricultural export to China via China-Laos Railway

Xinhua | November 1, 2024

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Laos is seeking to promote sustainable agricultural production and encourage farmers and producers to increase the export of agricultural produce to China through the China-Laos Railway.

"I've heard that several Chinese businessmen have expressed interest in growing durian in Laos to feed the surge in demand for the fruit among Chinese consumers. And I've seen how much Chinese people love durian. I think this is a golden opportunity for Laos to benefit from the Chinese market," Phonesak Jaliya, a vendor who sells fruits in the Lao capital Vientiane, told Xinhua.

"Laos has abundant natural resources and we have land that's suitable for cultivation. I think Laos could become a potential supplier of the crop for China," he said.

The Lao National Chamber of Commerce and Industry (LNCCI) and a Chinese business group recently convened a meeting to explore the potential of Laos' durian sector for export to China.

At the meeting, Vice President of LNCCI Bounleuth Luangpaseuth emphasized the rapid growth of durian cultivation in Laos' fertile agricultural land, highlighting the China-Laos Railway as a crucial transport link.

Also speaking at the meeting with the Chinese business group, President of the Lao Agribusiness Association Bounthieng Lattanavong said the Lao and Chinese governments have invested a lot in infrastructure development, especially the China-Laos Railway, so that Lao products can be sent to the large markets in China.

"The Lao government has also paid attention to improving relevant laws and regulations to strongly promote the production, processing and export of agricultural products," he said.

Manichanh Bounheuang, a vendor in the Lao capital Vientiane, said the China-Laos Railway emerged as a crucial factor in boosting exports. The railway has a critical role in ensuring the prompt movement of farm products, especially fresh produce.

"Lao farmers need to manage quality control of their products, including packaging and logistics. China is a large market, and if their products meet the quality standards required for export to China, I believe they will earn lots of money," said Manichanh.

A shipment of 390 tons of bananas has been transported by rail to China on a refrigerated train traveling from Lao capital Vientiane to Kunming and onwards to Pinggu District of Beijing. The train left Vientiane on Oct. 12, and arrived in Beijing on Oct. 20.

Laos earned more than 1.4 billion U.S. dollars from agricultural exports in 2023. The value of production in agriculture and forestry accounted for 21.4 percent of the gross domestic product in 2023.

The Lao government is encouraging farmers and producers to supply more goods to the domestic market and to produce more for export to bring in much-needed foreign currency and help reduce high foreign exchange rates.