Laos-China railway has made about 20.09 million passenger trips since it became operational in 2021. - VT
VIENTIANE (Vientiane Times/Asia News Network): The Laos-China railway, which came into service in late 2021, has become an ideal example of economic success and boosting of Asean-China economic cooperation, according to a report in the China Daily.
The 1,035-kilometre-long railway, linking Vientiane to Kunming, the capital of China’s Yunnan province, has spurred trade in the region and generated significant benefits for local people in both Laos and China.
The report said Laos could even become a transport hub for the Mekong River region and a dry port for China and Southeast Asian countries.
During an interview with Lao media recently, Vice President of the Lao Academy of Social and Economic Science, Dr Kikeo Chanthaboury, said Laos should now focus on the processing of agricultural produce and minerals for export using the Laos-China railway, and reduce the amount of unprocessed products currently exported.
This would add value to exported products and earn more foreign currency for Laos.
He said logistics and cross-border services must be streamlined to simplify and speed up trade within the region, otherwise exporters may look for other options.
Dr Kikeo urged all the sectors concerned to fully tap the potential offered by the Laos-China railway, saying that all state bodies must work together to improve services and facilities, to attract more rail passengers and freight transport in the region.
“In the long term, it’s essential for Laos to build a road network and railways to connect to countries in the region as well as improve logistics and the quality of products exported to international markets,” he said.
According to the China Daily, the Laos-China railway has been extended to Thailand, reducing the transport time for China-bound cargo from that country by more than one-third.
In the first five months of this year, Thailand exported goods worth 2.84 billion baht (about US$80 million) to China through the extended China-Laos railway, 72 per cent of which were fresh durian.
Since it became operational in 2021, the Laos-China railway has made about 20.09 million passenger trips, with 17.09 million of them being on the Chinese side, according to the China Railway Corporation, and transported more than 24 million tonnes of freight.
The railway passes through the World Heritage Town of Luang Prabang, which has many tourist attractions.
Last year, Luang Prabang received more than 500,000 passengers, which brought in tourism revenue of US$216 million in a huge boost to the local economy.
The Laos-China railway is helping to strengthen regional trade, with Asean-China economic cooperation facilitating regional economic recovery. In 2022, Asean-China trade increased by 11.2 percent year-on-year to US$975.3 billion - an increase of 120 per cent over the past decade.
Chinese enterprises are cooperating with their counterparts in Laos, Malaysia, Singapore, Myanmar, the Philippines and Indonesia in fields such as the internet and cloud computing.
