11-year-old CAEXPO Promotes China-Laos Cooperation

written by Chen Libing / translated by Xu Ming, Jiao Qian

11-year-old CAEXPO Promotes China-Laos Cooperation

written by Chen Libing / translated by Xu Ming, Jiao Qian

China-ASEAN Expo has gone through 11 years, during which the cooperation between China and Laos has speeded up. The two countries have cultivated higher mutual trust, growing from dialogue partners to strategic partners, and have seen a breakthrough in the breadth and depth of the cooperation between China and Laos.

Rapid Development of Economic and Trade Cooperation

“The trade volume between China and Laos increases really fast in recent years, especially the volume between Laos and Guangxi Province,

which is 10 times the volume before the China-ASEAN Expo,” said Somvang Ninthavong, Office Head at the Ministry of Industry and Commerce as well as Deputy Secretary General of China-ASEAN Expo Secretariat, in the 11th China-ASEAN Expo. The word “rapid” is the very word to describe the trade cooperation between the two countries.

In 2004, the bilateral trade volume between China and Laos was only 75.9 million U.S. dollars. The trade cooperation develops fast after 2006. By 2007, the volume reached 249 million U.S. dollars, expanding the volume of 2004 by 218.4%, in which China’s export to Laos was 164 million U.S. dollars, import $85 million, increased by 162.4%and 653.8% respectively than 2004. Moreover, the trade cooperation of the two countries reached a new level after the establishment of the China-ASEAN Expo. According to the statistics, China’s direct nonfi nancial investment in Laos reached 2.73 billion U.S. dollars, with yearon-year growth of 142%. The bilateral trade volume in the fi rst halfyear of 2014 reached 2.3 billion U.S. dollars in which China’s non- fi nancial FDI to Laos topped 510 million U.S. dollars. China has become Laos biggest investment source country and second largest trade partner.

All mentioned are closely related to China-ASEAN Expo. On each expo, Laos bridged the economic and trade cooperation of two parties by displaying its featured products and investment advantages to China. Accordingly, leaders of Laos with its delegation annually took part in the exhibition. Since 2009, Laos occupied booths independently for concentrated display of its timber furniture and wood products, jewelry, crafts, garment, textile, tourism and advisory service, which helps its turnover grow year by year.

“The China-ASEAN Expo provides Laos a good opportunity to show the potential of its merchandise, which promotes Laos’s launching in China’s market. The trade volume between China and Laos is increasing every year, which I think is the main outcome and opportunity the expo brings to us,” said Bounthavi Souphanthong, Lao Deputy Minister of Planning and Investment.

Trade and Investment Platform for Bilateral Enterprises

Many Chinese customers start to know Laos and its commodities in the China-ASEAN Expo. For example, the renowned Beerlao is made of German hops and yeast, French malt and the water at the foot of Himalaya. In 2012, Beerlao became a partner of the China-ASEAN Expo, whose beer was served on the expo for three consecutive years, winning high praises. This opportunity helps Beerlao access to the Chinese market. At the 11th China-ASEAN Expo, the general agent of Beerlao said that the sales volume of “Beerlao” in China reached 50,000 boxes in one month.

Lao’s featured products such as red wood furniture, handmade silk, natural cotton cloth have also launched in the broad Chinese market.

Laos is the only inland country of the ASEAN with rich forests, most of which is hardwood. At each expo, rosewood products have long been a staple of Laos in trading platform to expand the international market. Since 2007, zero-tariff treatment granted by Chinese government for imported wood furniture boosted the demands in red wood furniture market of China. In 2007, the volume of red wood furniture exported from Laos to China reached 26.325 million U.S. dollars. Meanwhile, Laos signed a series of investment cooperation agreements with Chinese enterprises in the expo, including Nam Ngiep 2 Hydropower project between Electricite Du Laos and China International Water & Electric Corp., a high-grade porcelain project and a contract for the purchase of 15,000 tons of cassava starch between Lao-Indochina Group Co., Ltd. and Zhejiang Machinery & Equipment Import and Export Co., Ltd.

“Cities of Charm” of the expo is another window to Laos. Since the 2nd China-ASEAN Expo, Luang Prabang, Vientiane and Savannakhet as “Cities of Charm” participated in the expo and comprehensively displayed the city features and cooperative business opportunities in tourism, science and technology, culture and education, etc.

The Bokeo Province of Laos is one of the 11 “Cities of Charm” in the 11th China-ASEAN Expo of 2014. In its exhibition area during the expo, besides Lao’s peculiar architecture -- the white-and-golden“ancient pagoda”, there are business negotiation area where visitors can get business materials in detail. Many people came to consult issues about investment and travel cooperation.“Lao rice, bananas and handicrafts have impressive features, but we want to attract foreign business and investment and expect large-scale investment projects to settle down in Laos this time,” said by a deputy director of Laos Merchants Bureau in Golden Triangle Special Economic Zone.