Chinese business leaders eye opportunities in Laos
A group of Chinese business representatives met up with their Lao counterparts in Vientiane on Friday to discuss partnerships in the manufacturing industry and the transfer of knowledge and technology from China to Laos.
The one day meeting was a joint effort by the Lao National Chamber of Commerce and Industry and the Yunnan provincial authorities in China. The private sector cooperation is a part of the Laos-China strategic partnership.
Laos is encouraging foreign investment, especially from China, as the two countries share similar political systems. There are a number of potential areas for investment, including border trade, agriculture, hydropower and mining.
The Chamber's Secretary General, Mr Khanthavong Daravong, said about 80 representatives of Chinese businesses had visited Laos this year, which reflected the growing interest in Laos' investment potential.
He said this was the second Laos-China business matching meeting, after the first such meeting took place two years ago.
Mr Khanthavong said Chinese operators were not only looking for Lao business partners who could help them to distribute their goods but were also looking for Lao products that could be sold in China.
Some are looking for Lao partners to establish joint ventures in mining, hydropower and agriculture, as they believe Laos has plenty of natural resources that can be used as raw materials.
Mr Khanthavong said there were both opportunities and challenges in rising Chinese investment in Laos. One of the positives is the spur to economic growth, while the downside is that people in Laos need to be better educated to ensure they get a fair deal in any business venture.
“Lao nationals need to raise the level of their education and working skills if they want to partner with Chinese businesses, otherwise they will face challenges in running a joint venture,” he said.
Yunan Zhenxing Group Co Ltd General Manager Mr Ma Zhukuan said his company was looking for a Lao business partner to set up a battery factory, adding that one of the major advantages of Laos was the plentiful supply of raw materials.
Another advantage was that Laos would be a suitable production base for the supply of batteries to the Mekong region due to its central location among strengthening economies.
This was his first visit to Vientiane, he said, but he had already been to northern Laos to explore business and investment opportunities there.
According to a report from the Ministry of Planning and Investment, China is one of the top three investors in Laos along with Vietnam and Thailand.
