Beijing (TDI): As Chinese Premier Li Qiang prepares to attend a series of high-level regional summits in Vientiane, Laos, including the 27th China-ASEAN Summit, the focus on fostering deeper ties through Belt and Road cooperation remains at the forefront of regional diplomacy.
Li’s official visits to Laos and Vietnam aim to further strengthen bilateral relations, boost regional connectivity, and enhance people-to-people exchanges, in line with China’s broader goal of advancing high-quality development and modernization in collaboration with its Southeast Asian neighbours.
Laos, a landlocked nation characterised by its rugged terrain and high plateaus, has historically struggled with poor transportation networks that have hindered its development.
However, the launch of the China-Laos Railway—a flagship Belt and Road project—has turned these geographic challenges into economic opportunities, transforming Laos into a vital hub on the Indo-China Peninsula.
The 1,035-kilometre railway, connecting Kunming in China’s Yunnan Province with Vientiane, has already handled over 10 million tonnes of goods, valued at approximately $5.7 billion.
The variety of goods transported along this route has expanded from 500 to over 3,000 types, contributing significantly to the economies along the line, according to Xinhua.
In April 2023, the railway began offering international passenger services, facilitating cross-border travel for over 222,000 passengers by early July this year.
According to Daovone Phachanthavong, Vice Executive President of the Lao National Chamber of Commerce and Industry, the railway has “promoted regional connectivity and injected vitality into economic and social development.”
China-Vietnam Cooperation
Vietnam, a close neighbour to Laos, has also benefitted from enhanced logistics and connectivity through infrastructure projects with China.
Since the launch of China-Vietnam freight trains in 2017, the volume of trade has surged, further integrating the region into a seamless transport network.
Do Thi Thu, a senior lecturer at the Banking Academy of Vietnam, pointed out that while China possesses strengths in infrastructure development, Vietnam stands to benefit from this cooperation, particularly in transportation, energy, and urban infrastructure.
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Infrastructure investments have served as the backbone of China-ASEAN cooperation, opening up further prospects for high-quality development.
China, the largest foreign investor in Laos, has contributed significantly to infrastructure, development zones, and energy projects.
This has not only created jobs for local populations but also pushed forward Laos’ industrial development.
In particular, agriculture, a key sector for Laos, has seen growing exports to China, including bananas, rubber, and cassava, supported by the China-Laos Railway.
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Chinese companies have also been working with the Lao government to promote sustainable agricultural practices, with plans to boost exports through the railway, further strengthening trade ties between the two nations.
Vietnam, which has been China’s largest trading partner in ASEAN since 2004, enjoys an annual trade volume exceeding $200 billion.
Vietnam-China cooperation has yielded large-scale projects in infrastructure, energy, and border area development, contributing to socio-economic growth in both nations.
