Govt takes active steps to penetrate Chinese market

The move is part of the government’s preparations to capitalise on the US$5.9-million Laos-China railway, which is slated for completion in 2021. 
Minister of Agriculture and Forestry Dr Lien Thikeo told Vientiane Times recently that Laos is currently building the nation’s biggest modern warehouse, located in Vientiane.
“The cost of this project amounts to hundreds of millions of US dollars. The first phase of construction will cost as much as US$140 million,” he said.  
“We have met with the developers of the railway to discuss the possibility of building a 2-km rail track to connect to the warehouse.”
The government signed a Memorandum of Understanding with a Chinese company to carry out a feasibility study regarding the construction of the warehouse during Chinese President Xi Jinping’s state visit to Laos in 2017. 
This company is in the process of sourcing funding to build the warehouse which would store goods made in Laos before export to China and Asean countries. 
China has also agreed to help Laos build a rubber research centre in the Dongmakkhay area of Vientiane’s Xaythany district to certify the quality of rubber produced in Laos before export to China.
This would ensure that all the rubber tapped from the country’s 130,000 hectares of rubber trees was certified and granted a quota for export to China, Dr Lien said.
The government has also partnered with Chinese companies to build a plant and animal quarantine station in Luang Namtha province to ensure that crops grown in Laos can be certified and are acceptable to the Chinese market.
Meanwhile the Ministry of Agriculture and Forestry in cooperation with the Ministry of Industry and Commerce is working to define areas for rice production in Khammuan and Savannakhet provinces. 
They are in the process of developing the necessary infrastructure for rice production and processing for export to China. Modern rice mills will be built in Vientiane and the provinces of Borikhamxay, Khammuan, Savannakhet and Champassak. This will ensure that good quality rice is produced before export to China. 
The Ministry of Agriculture and Forestry has adjusted its policy on farming and has moved away from merely encouraging people to grow crops for domestic consumption. It is now urging crop diversification so that more crops are available for export. 
“We will not just grow one particular crop but will grow several crops concurrently based on market demand,” Dr Lien said.
Chinese entrepreneurs are flocking to Laos to explore business opportunities, particularly in relation to the cultivation of crops for export to China.
This process will see investors providing funding, technical advice, markets or buyers for crops while villagers will provide the necessary labour and land. 
The government is also carrying out surveys and identifying the needs of the Chinese market to identify which crops are required by Chinese consumers.