Such cooperation and economic promotion plans have pushed strong growth in the trade and investment value of the two countries, with China now the top foreign investor in Laos.

Laos’ Ministry of Planning and Investment (MPI) reported recently that in the period since 2011 to last year, the trade value between Laos and China increased annually from about 10.5 trillion kip (US$1.3 billion, Bt45 billion) in 2011 to $1.7 billion in 2012, about $2.7 billion in 2013 and $3.6 billion in 2014.

“However trade value declined to around $2.78 billion last year due to the impact of the global economic slowdown as some product prices dropped globally, such as mining ore and rubber,” the report noted.

The trade also includes that between Laos and China’s Yunnan province, which had a value of $203 million in 2010 and increased to $1.37 billion last year, covering 40 per cent of the trade value of the two parties.

The main important factor pushing the trade growth is that the two parties often hold discussions on any problems and find solutions to facilitate imports and exports at the border.

Laos is also invited to various trade fairs in China to promote trade and investment cooperation.

The two parties also cooperate on checking agricultural-product quality before it is exported to China, including rice, dried cassava chips, bananas and watermelons.

In the investment sector, the MPI reported that in 2011, Chinese investment in Laos saw 160 projects under way valued at more than 22.27 trillion kip, including joint-venture investment within the local sector.

“Now Chinese investment in Laos has over 760 projects under way with a value of about [$6.7 billion], making China the top-ranked foreign investor in Laos, followed by Thailand and Vietnam,” the five-year report noted.

Investment cooperation also included Laos and Yunnan. Currently Laos is the No 2 in terms of overseas investment by Yunnan with a value of $1.04 billion.

Many companies from Yunnan completed construction projects in Laos, including the development of roads, electricity-transmission lines, water supplies, and economic zones.

Liu Zhi, deputy division director of the Department of Asian Affairs under China’s Ministry of Foreign Affairs, while addressing a recent seminar in Beijing on production-capacity cooperation, said China’s investment in Laos mainly focused on infrastructure development that helped improve people’s livelihoods.

The main project in Laos is the China-Laos railway, while in the telecommunications sector China is partnering with Laos on the country’s first satellite project. In the energy sector, China is helping Laos to build power plants. The two countries have also established cross-border economic zones to support free-trade-agreement projects, especially the Yunnan-Laos project.

These projects will play an important role in terms of improving people’s livelihoods. China is still looking forward to deepening cooperation with Laos in the future. It boasts advantages in production capacity including equipment, technology and managerial experience.

Laos is in need of advanced production capacity. In the short term, Laos needs more technological support and technology transfer in the areas of energy, manufacturing, agriculture, education, medicines and services. In the long run, Laos is looking for help with the development of human resources.