China-Laos Railway: 2023 Great Investment Opportunities in Lao PDR老中铁路带动巨大投资机会

The Current Economic Situation of Lao PDR

Lao PDR is situated in the South East Asia. It is a small land-locked country with the total area of two hundred thirty six thousand and eight hundred square kilometers, with the population about 7 million. Lao language is an official language; however English and French and Chinless are spoken as foreign languages. Especially, nowadays more and more young people are learning and speaking Chinese. Most of Lao people are Buddhism. The GDP per capita in 2022 is about 2600 USD. In the past few years before the COVID-19 epidemic, Laos’ economic growth was at the average of 6.5%. During the epidemic period from 2020-2022 the growth rate has been down to 3-4%.

Lao PDR became a member of ASEAN in 1997 and has been implementing the ASEAN Economic Community (AEC) since 2015. Lao PDR is also a member of World Trade Organization in 2013. So far Lao PDR has trade cooperation with more than 70 countries worldwide; signed bilateral trade agreement with more than 15 countries, including China; joined at least 8 Free Trade Agreements, including ASEAN-China FTA (ACFTA); and is full implementation member of Regional Comprehensive Economic Partnership (RCEP) Agreement.

The Government of Lao PDR has demonstrated its commitment to economic growth as the surest guarantor of increasing welfare for all through the adoption of a sound macro policy framework, including strong expenditure and monetary discipline to sustain low inflation; a legal policy framework favorable toward new productive investment; and openness to global capital flows and trade. The government has also made clear intention to balance the development effort in urban and rural areas and to see the benefits of growth shared among across the nation.

In terms of encouraging foreign investment, Lao PDR refers to the new amendment Investment Law. This Law defines principles, regulations and measures regarding the domestic and foreign investment promotion and administration in order to enable convenient, expeditious, transparent and proper investments, and protected by the Government to ensure the rights and benefits of investors, the state, collective and people, enabling the regional and international integration, contributing to the continuous growth of national socio-economic development in line with green growth and sustainability, creating a favorable investment climate to enable investors to conduct their business in a convenient, expeditious, transparent, fair and lawful manner.

The Lao Government promotes investment in all economic sectors, both domestic and foreign, by formulating policies to create a favorable investment climate, including construction of infrastructure, providing necessary information, granting incentives in terms of custom duty, tax, import of foreign labor, and the land use rights and access to finance. Government also provides equal treatment, and acknowledges ownership rights, using rights, inheritance rights, transfer rights and other rights as provided by law.

In the IX Five Year National Social Economic Development Plan 2021-2025, the government reemphasized the policy intention of making Lao PDR moving from land-locked to be the land-linked country in the region and beyond; improving the basic infrastructure for the future global economic integration; continuing the social-economic development action focus in transportation, foreign direct investment and tourism.

Laos-China Political Relation

Lao People Democratic Republic and People’s Republic of China are friendly neighbors linked by mountains and rivers. Two countries have a long-standing friendly relationship and reached the long-term and stable “Comprehensive Strategic Partnership” with 4 good spirits “good neighbors, good friends, good comrades and good partners” and jointly build the “Community of a shared future”. Laos and China established diplomatic relations on April 25, 1961. Over 61 years, the Laos-China relations had been deeply and widely enhancing and strengthening in all areas that provided favorable conditions for the political, security and social-economic development of the two countries.

Over long history, two countries constantly exchanging the high level visits and the visits among Officials of many different levels. Chinese Premier Li Peng paid an official visit to Laos in December 1990. Chinese President Jiang Zemin paid a state visit to Laos in November 2000. The two countries issued the Joint Statement on Bilateral Cooperation, which identified the development of a comprehensive cooperative relationship featuring long-term stability, good-neighborliness and mutual trust between the two countries. President Hu Jintao, General Secretary of the Central Committee of the Communist Party of China paid a state visit to Laos in November 2006, during which the two sides issued a joint statement, deciding to further deepen the traditional friendship and comprehensive cooperation between the two parties and the two governments, and bringing China-Laos relations to a new level. In September 2009 during the visit to China, Lao President Choummaly Saygnasone, General Secretary of the Lao People’s Revolutionary Party (LPRP) Central Committee agreed with President Hu Jintao, General Secretary of the Central Committee of the Communist Party of China to upgrade the Laos-China relationship to a comprehensive strategic partnership of cooperation. In November 2017, H.E Bounnhang Vorachit, General Secretary of the Central Committee of the Lao People’s Revolutionary Party who is also President of Lao PDR and H.E Xi Jinping, General Secretary of the Central Committee of the Communist Party of China, president of PR of China agreed to jointly build a community of a shared future. The two Leaders of both sides together signed the Action Plan on Building a Community of Shared Future between Laos and China in April 2019. H.E Thongloun Sisoulith, General Secretary of the Lao People’s Revolutionary Party Central Committee had a phone call with Chinese President and General Secretary Xi Jinping in January 2021. In April, 2022 Prime Minister of Laos, H.E Phankham VIPHAVANH had a telephone conversation with Chinese Premier H.E Li Keqiang. Recently, on the 29th November 2022, H.E Thongloun Sisoulith, General Secretary of the Lao People’s Revolutionary Party Central Committee, President of the Lao PDR paid state-visit to China. During the visit the General Secretary of the Lao People’s Revolutionary Party Central Committee and the General Secretary of the Central Committee of the Communist Party of China has exchanged the view on deepening the two countries cooperation to higher level. The two countries will continue to extend deeper collaboration and coordination in all aspects to implement the two countries all fields of cooperation.

Laos-China Economic Cooperation and Laos-China Railway

Lao PDR pays an importance attention in supporting the “Belt and Road Initiative”, which is a long-term policy and investment program aimed at infrastructure development and accelerating of the economic integration of participating countries. During the past few years, there are a lot of projects been implemented alongside the Belt and Road Initiative, of which the Laos-China Railway Project is one of those ongoing an outstanding project and we considered as the largest cooperation project for Lao PDR, this project is a symbolic project under the Belt and Road Initiative and a milestone of the Laos-China friendship in the new era.

With the aims to integrating Lao PDR’s strategy of “Transforming from land-locked into the land-linked Country”, Laos-China Railway is a huge and long run governmental cooperation project promoted by the two leaders of the parties and the governments, and a docking project between the Belt and Road Initiative and Laos’ strategy to convert itself from landlocked country to a land-linked hub. Running south from the China–Laos border Mohan-Boten border, the line traverses across 4 Provinces of northern part of Laos: Luang Namtha, Oudomxay, Luang Prabang, and Vientiane provinces, which ending in Vientiane Capital with a total length of 422.4 kilometers and a design speed of 160 kilometers per hour, with a total investment of 37.4 billion Yuan.

At the end of 2021, the great important event took place in Lao PDR, the Laos-China Railway was officially opened to traffic, on the afternoon of December 3rd 2021, witness by H.E Thongloun Sisoulith, General Secretary of the Lao People’s Revolutionary Party Central Committee, President of Lao PDR and H.E Xi Jinping, General Secretary of the Central Committee of the Communist Party, President of PR of China via video link. This railway plays a positive role in promoting the economic and social development of Laos and the region. We hope that Lao-China Railway will become a bridge connecting the whole ASEAN and China, driving regional bilateral and multilateral trade cooperation, and finally bringing higher-level effective win-win cooperation to promote the development of regional economy, trade and investment, strengthening connectivity and achieving mutual benefit of the both sides.

Since the Regional Comprehensive Economic Partnership (RCEP) came into effect on January 1, 2022, economic and trade exchanges between China and ASEAN have become closer. With the advantages of short transportation time, low logistics cost, safety and environmental protection, Laos -China Railway has rapidly become an important logistics channel to promote bilateral trade, making it another golden international logistics route for China to connect Southeast Asian countries. With the expansion of the railway, the Laos-China Railway will further expand trade ties between China and Laos, Thailand, Malaysia, Singapore and other countries. At present, international freight trains from China’s more than 20 cities in 13 provinces (autonomous regions and municipalities) including Hunan, Sichuan, Guangdong and Jiangsu Provinces along the Laos-China Railway have passed the customs quickly under the supervision of the customs.

According to the report from Laos-China Railway (LCR) Company Ltd., since the starting up to the 30th November 2022, LCR provided a total of 2046 times passengers trains services, transporting 1,257,682 passengers of the average of 3465 passengers per day, with the highest daily passenger number of 8,041 people. In terms of cargo, freight trains has carried the total volume of 1,944,823 tons of import and export goods, in which 1,561,315 tons of goods, mostly agricultural and mineral products like rubber, iron ore, charcoal, beer, potato flour, coffee beans, barley kernels, alloys and lead ingots were exported to China; while 383,508 tons of goods, including groceries, flowers and vegetables, tires, fertilizers, auto parts, digital communication equipment, household appliances, pandemic prevention supplies, ceramic tiles, mono-crystalline silicon wafers were imported from China.

Both countries pay great attention of making use of the Laos-China Railway to push forward economy recovery after the epidemic ended, Laos-China Railway will keep playing an important role in terms of transportation and trade and tourism. Since the opening of the railway, international freight transportation has developed rapidly, more conditions will be upgraded to enhance the advantages of short transportation time, low logistics cost, safety, and environmental protection of railway. From 2023 onward, Laos-China Railway Company Ltd., decided to upgrade the operation of regular passenger train as well as transportation train to meet growing diverse needs of passengers and cargo services and further enhance the transport capacity of the railway. Lao government believes that the Laos-China railway will play a huge role in promoting economic and trade cooperation between Laos and China in the near future.

2023 Great Investment & Trading Opportunity in Laos

Economic and Trade Cooperation between two countries has expanded year by year. In terms of investment cooperation, China is still the largest investor in Laos. Chinese companies have invested in a total of 821 projects in Laos from 1989 to 2021. In 2021 alone, Chinese companies invested 20 projects worth more than US$1 billion, driving the socio-economic development of Laos and providing jobs for many Lao people. For trading, up to the 31st December 2022, the bilateral trade volume between Laos and China reached 5,728,191,917 US$, in which Laos exported to China 3,358,011,717 US$ while Laos imported from China in the total volume of 2,370,180,200 US$, making China continue to maintain the status of Laos’ second largest trading partner.

We believe that with the increasingly and deeply closed Laos-China’s relationship, the bilateral economic and trade cooperation will flourish in all fields and expand to all areas. Lao PDR will continue to welcome more Chinese investors to invest in Lao PDR, especially in the areas which China has great experience, such as energy, processing industries and agriculture and so on. Meanwhile, Lao PDR will increase its potential exports to PR China, such as non-toxic agricultural products, mineral products and so on.

From the mid of 2022 Lao PDR has open up its border and welcome back the foreign travelers as well as business entitles to revisit and invest or doing business in Lao PDR. 2023 will become the recovery year and greatest opportunities for exploring the potential sectors in Lao PDR. Laos’ main potential export products for consideration are: mining (such as gold iron….); rubber (including rubber processing); agricultural products and so on. While Laos’ main potential imported products for consideration are: automobiles, machinery, pharmaceuticals, appliances and so on.

In summary, we strongly believe that Laos-China Railway will bring a great practical significance and far-reaching influence on the promotion of economic cooperation between the two countries as well as providing strong support for regional trading regime and especially it will make a great contribution for regional economic growth in the Post-COVID-19 Era.

Since the opening of the Laos-China Railway 13 months ago the import and export freight volume of the Laos-China Railway has reached over 2 million tons, and the import and export value has reached over 14 billion Yuan. That number showed the great potential of this high speed railway for future promotion of trading and tourism in the region. Nowadays, commercial operators from Thailand, Vietnam, Cambodia and Myanmar are being aware and using the Laos-China Railway for the transportation of goods in and out of China and beyond.

Laos-China Railway has spurred the two-way trade between China and ASEAN member states by allowing for convenient, fast and efficient flow of goods. China is the main export market for Laos’ and other SAEAN countries commodities, especially agricultural products. Laos exported different kinds of agricultural products to China annually such as banana, cassava, sugarcane, watermelon and rubber. Lao Government called for mobilize and encourage more potential Lao agricultural exports and encourage the cultivation of crops along the railway.

Lao PDR attaches great importance to promoting the regional trading alongside with the efficient operation of Laos-China Railway. The government promotes investment in all sectors, business operations and in areas throughout the country. We are warmly welcome more and more Chinese friends to visit and explore the investment and doing business opportunities in Lao PDR, especially with the high and modern technology, scientific research, new innovation, environmental friendly, and efficient use of natural resources and energy to cooperate with local entitles to explore in the areas such as: clean agriculture, toxic-free agriculture, animal breeding, industrial crops and plants plantation, environmentally friendly agro-processing industry, environmentally friendly and sustainable eco-tourism, cultural and historical tourism industry, education, physical sports, human resource development and skills labor development, vocational training, production of educational and sports equipment, modern hospitals, pharmaceutical and medical equipment factory, traditional medicine production and treatment, development of public infrastructure, development of infrastructure supporting agriculture and industry, cargo transportation, transit and international linkage services and so on.

老挝人民民主共和国当前的经济形势 

老挝人民民主共和国位于东南亚。它是一个内陆小国，总面积为23.68万平方公里，人口约700万。老挝语是官方语言，英语、法语和汉语作为外语使用。现在越来越多的年轻人在学习和说汉语。大多数老挝人信奉佛教。2022年老挝的人均国内生产总值约为2600美元。在新冠疫情暴发前几年，老挝的经济增长率平均为6.5%。在2020-2022年的疫情期间，增长率降至3-4%。

老挝人民民主共和国于1997年成为东盟成员国，自2015年以来一直在履行东盟经济共同体的职责。老挝人民民主共和国还在2013年成为世界贸易组织的成员国。迄今为止，老挝人民民主共和国与全球70多个国家开展了贸易合作，与包括中国在内的15个国家签署了双边贸易协定，加入了至少8项自由贸易协定，包括东盟-中国自由贸易协定，并且是区域全面经济伙伴关系协定的正式执行成员。

老挝人民民主共和国政府通过采取健全的宏观政策框架，包括强有力的支出和货币原则，维持了低通货膨胀，不仅兑现了其对经济增长的承诺，也使其成为增加全民福利最可靠的保证；政府还构建了有利于新的生产性投资的法律政策框架，并对全球资本流动和贸易实行开放。政府明确表示，要在平衡城市和农村地区的发展方面做出努力，确保增长的收益实现全国范围内的共享。

在鼓励外国投资方面，一定要提及老挝人民民主共和国新的投资法修正案。该法案规定了有关国内外投资促进和管理的原则、条例和措施，目的是为了方便、迅速、透明和适当地引进投资，并使投资受到政府的保护，从而确保投资者、国家、集体和人民的权利和利益；同时也能够推动区域和国际一体化，并按照绿色增长和可持续性的原则，促进国家社会经济发展的持续增长，创造有利的投资环境，使投资者可以采取简捷、快速、透明、公平和合法的方式在老挝开展业务。

为了促进所有经济领域的国内外投资，老挝政府通过制定政策，创造了有利的投资环境，包括基础设施建设、提供必要的信息以及在关税、税收、外国劳动力进口、土地使用权和融资方面给予奖励。政府还对投资提供平等待遇，承认所有权、使用权、继承权、转让权和法律规定的其他权利。  

在第九个国家五年社会经济发展规划2021-2025中，政府再次强调了使老挝人民民主共和国从内陆国转变成为该地区甚至更大范围内的内陆连接国的政策规划；这就需要为未来全球经济一体化改善基本的基础设施和继续采取以交通、外国直接投资和旅游业为重点的社会经济发展行动。

 
⬆ 圣萨尔瓦多（首都）及其令人印象深刻的火山全景

老挝和中国的政治关系

老挝人民民主共和国和中华人民共和国是山水相连的友好邻邦。两国有着悠久的友好关系，并且在“好邻居、好朋友、好同志、好伙伴”的基础上建立了长期稳定的“全面战略伙伴关系”，共同构建了“命运共同体”。老挝和中国在1961年4月25日建立外交关系。61年来，老中关系在各个领域都得到了深入、广泛的发展和加强，为两国政治、安全和社会经济发展提供了有利条件。

多年来，两国不仅始终保持着高层互访，而且其他级别间的官员也经常进行互访。1990年12月，中国总理李鹏对老挝进行了正式访问。2000年11月，中国国家主席江泽民对老挝进行了国事访问。当时两国发表了双边合作联合声明，确定要在两国间发展长期稳定、睦邻互信的全面合作关系。2006年11月，中国共产党中央委员会总书记、中国国家主席胡锦涛对老挝进行了国事访问，期间双方也发表了联合声明，决定进一步深化两党和两国政府之间的传统友谊和全面合作，将中老关系提升到一个新水平。2009年9月，老挝人民革命党中央委员会总书记、老挝国家主席朱马利·赛雅颂在访问中国期间，与中国共产党中央委员会总书记、中国国家主席胡锦涛达成共识，同意将老中关系进一步提升为全面战略合作伙伴关系。2017年11月，老挝人民革命党中央委员会总书记、老挝人民民主共和国主席本扬·沃拉吉和中国共产党中央委员会总书记、中国国家主席习近平一致同意共同构建命运共同体。2019年4月，双方领导人共同签署了老中构建命运共同体行动计划。2021 年1月，老挝人民革命党中央委员会总书记通伦·西苏里与中国国家主席、中国共产党中央委员会总书记习近平通电话。2022年4月，老挝总理潘坎·维帕万也与中国总理李克强举行了电话会谈。最近，2022年11月29日，老挝人民革命党中央委员会总书记、老挝人民民主共和国主席通伦·西苏里对中国进行了国事访问。访问期间，老挝人民革命党中央总书记和中共中央总书记就在更高水平深化两国合作交换了意见。两国将继续扩大各方面的合作与协调，同时也要把各领域的合作落实到位。

老中经济合作和老中铁路  

老挝人民民主共和国十分重视和支持“一带一路”倡议”，因为它是一项旨在发展基础设施和加速参与国经济一体化的长期政策和投资计划。在过去几年里，在“一带一路”倡议下实施了许多项目，其中，老中铁路项目是仍在进行中的杰出项目之一。我们认为它是老挝最大的合作项目，是“一带一路”倡议下的一个标志性项目，也是新时代老中友谊的一个里程碑。

为了配合老挝人民民主共和国“从内陆国向内陆连接国转型”的战略，老中铁路是一个大型的、长期的政府合作项目。它由双方领导人和政府推动，是一个“一带一路”倡议与老挝从内陆国家转变为陆路连接枢纽战略之间的对接项目。该铁路线从中老边境的莫汉-磨丁边境向南延伸，横跨老挝北部的4个省：琅勃拉邦省、乌多姆赛省、琅勃拉榜省和万象省，终点位于首都万象，全长422.4公里，设计时速每小时160公里，总投资374亿人民币。

2021年底，老中铁路在老挝人民民主共和国正式通车。2021年12月3日下午，老挝人民革命党中央总书记、老挝人民共和国主席通伦·西苏里和中共中央总书记、中国国家主席习近平通过视频连线的方式共同见证了这一盛事。这条铁路对促进老挝及该地区的经济和社会发展发挥了积极作用。我们希望老中铁路将成为连接整个东盟和中国的桥梁，推动区域的双边和多边贸易合作，并最终带来更高层级的有效共赢合作，从而促进区域的经济、贸易和投资发展，加强互联互通以及实现双方间的互利共赢。

自2022年1月1日区域全面经济伙伴关系协定生效以来，中国与东盟的经贸往来更加密切。老中铁路凭借运输时间短、物流成本低、安全环保等优势，迅速成为促进双边贸易的重要物流通道，也成为中国连接东南亚国家的又一条国际物流黄金路线。随着铁路的扩建，老中铁路将进一步扩大中国与老挝、泰国、马来西亚、新加坡及其他国家的贸易联系。现在，老中铁路沿线的湖南、四川、广东、江苏等13个省（自治区、市）的20多个城市的国际货运列车可以在海关监管下快速通关。

根据老中铁路有限公司的报告，自2022年11月30日开通以来，老中铁路已经提供了2046次旅客列车服务，共运送125.7682万名乘客，平均每天3465人，最高日客运量达到8041人。在货物方面，货运列车共运输进出口货物194.4823万吨，其中156.1315吨货物出口到中国，主要是橡胶、铁矿石、木炭、啤酒、马铃薯粉、咖啡豆、大麦粒、合金和铅锭等农产品和矿产品；同时，从中国进口的商品有38.3508万吨，包括食品杂货、花卉和蔬菜、轮胎、化肥、汽车零部件、数字通信设备、家用电器、防疫用品、瓷砖和单晶硅片。

两国都高度重视利用老中铁路推动疫情结束后的经济复苏，因此老中铁路将继续在交通、贸易和旅游方面发挥重要作用。铁路开通以来，国际货运的发展也很迅速，为了增强铁路运输时间短、物流成本低、安全环保等优势，更多方面的条件还将继续升级。从2023年起，老中铁路有限公司决定进一步完善普通旅客列车和运输列车的运营，以满足日益多样化的客货服务需求，提高铁路运输能力。老挝政府相信，老中铁路将在不久的将来为促进老挝和中国之间的经贸合作发挥更大作用。

2023年老挝巨大的投资和贸易机会 

老中两国间的经贸合作逐年扩大。在投资合作方面，中国仍然是老挝最大的投资国。从1989年至2021年，中国公司在老挝共投资821个项目。仅在2021年，中国公司就投资了20个项目，价值超过10亿美元，推动了老挝的社会经济发展，也为许多老挝人提供了就业机会。在贸易方面，截至2022年12月31日，老挝与中国之间的双边贸易额达到57.28191917亿美元，其中老挝向中国出口33.58011717亿美元，老挝从中国进口23.70180200亿美元，中国继续保持老挝第二大贸易伙伴的地位。

我们相信，随着老中关系的日益深化和亲密，双边经贸合作将在各个领域蓬勃发展，并将扩展到更多的领域。老挝人民民主共和国将继续欢迎更多中国投资者来老挝投资，特别是在中国拥有丰富经验的领域，比如能源、加工业和农业等。同时，老挝人民民主共和国也将增加对中国的潜在出口，比如绿色农产品、矿产品等。

从2022年年中开始，老挝人民民主共和国已开放边境，欢迎外国客人前来旅游，也欢迎商业人士前来投资和经商。2023年将是复苏之年，也是探索老挝潜在行业的最好时机。老挝可以考虑的主要潜在出口产品有：矿产（比如黄金、铁等等）、橡胶（包括橡胶加工）和农产品等。另一方面，老挝主要潜在的进口产品是汽车、机械、药品和电器等。

总之，我们坚信，老中铁路对促进两国经济合作具有重大现实意义和深远影响，同时也能够对区域贸易体系提供有力支持，特别是为后疫情时代的区域经济增长做出巨大贡献。

老中铁路开通13个月以来，其进出口货运量已经达到200多万吨，进出口货值超过了140亿人民币。这些数字显示了这条高速铁路未来在促进该地区贸易和旅游业方面的巨大潜力。现在，来自泰国、越南、柬埔寨和缅甸的商业运营商们已经意识到并开始使用老中铁路运输进出中国及其他地区的货物。

老中铁路还促进了中国与东盟成员国之间的双边贸易，使货物可以便捷、快速、高效地流动。中国是老挝和其他东盟国家商品，特别是农产品的主要出口市场。老挝每年向中国出口不同种类的农产品，比如香蕉、木薯、甘蔗、西瓜和橡胶。老挝政府号召动员和鼓励更多潜在的农产品出口，并鼓励在铁路沿线种植农作物。

老挝人民民主共和国极其重视促进区域贸易以及老中铁路的高效运营。政府也积极推动在各行业、商业运营机构和全国各地的投资。我们热烈欢迎越来越多的中国朋友访问老挝，寻求在老挝投资和经商的机会，特别是利用中国的高科技、科学研究、创新项目、环保和高效使用自然资源和能源的优势，与当地企业合作，探索在诸如清洁农业、绿色农业、动物养殖、农作物和植物的工业化种植园、环保的农业加工业、环保和可持续的生态旅游、文化和历史旅游业、教育、体育、人力资源和技能劳动力开发、职业培训、教育和体育设备的生产、现代医院、制药和医疗设备厂、传统医药的生产和治疗、公共基础设施的发展、扶助农业和工业的基础设施的开发、货物运输、过境和国际联动服务等领域的发展。