China woos Laos with grants, aid
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Seeking influence in SE Asia, Beijing helps upgrade industry, highway
Laos and China signed six agreement documents in Vientiane on Wednesday, aiming to develop the comprehensive strategic partnership between the two countries.
The move comes amid concerted efforts by energy-and-resource-hungry China to strengthen trade with regional powers.
The agreements cover a Chinese grant for economic and technical aid worth 100 million yuan (about Bt510.3 million), revision of a plan to build an International Convention Centre, and the resurfacing of Road No 13 north.
The main northern highway will be resurfaced from Pakmong area in Nambak district, Luang Prabang province to Nateuy area in Luang Namtha province.
China also agreed to hand over two MA60 aircraft, 10 industrial drying kilns and US$200,000 (Bt6.22 million) to assist with dengue prevention in Laos.
Over the decades, Lao-Sino relations have seen comprehensive development and exchanges of visits between the leaders of the two countries are becoming increasingly frequent.
Last month, Lao President Choummaly Sayasone paid an official goodwill visit to China in response to an invitation from his Chinese counterpart Xi Jinping.
During the visit, the two sides signed a number of cooperation documents relating to the further development of their comprehensive strategic partnership and the future development of economic cooperation between the two countries.
The two sides also agreed to enhance their mutual trust and assistance in both the bilateral and multilateral arenas for their shared benefit and also to contribute to regional and global peace, friendship and cooperation in development.
China is a key trading partner with Laos and their annual trade volume has been increasing on a year-on-year basis. In 2010 bilateral trade volume reached $1 billion, rising to $1.728 billion in 2012. In the first five months of 2013, bilateral trade stood at $794 million, and China’s non-financial direct investment in Laos reached $339 million.
China is among the largest foreign investors in Laos, mainly in the areas of hydropower, mining, agriculture and forestry.
