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Laos as the only landlocked country on Indo-China Peninsula， and a friendly neighbor bordered by China on the north， always boasts its unique and mysterious charm. At present， exchanges and cooperation between Laos and China have been continuously strengthened， and Laos as a member of ASEAN has played an increasingly important role in the world. After its debut as the Country of Honor of the CAEXPO for the first time in 2009， Laos was designated as the Country of Honor for the second time at the 17th CAEXPO to be held in September 2020. So， what changes have taken place in this mysterious country？ And what kind of highlights will it show after 11 years？
Bilateral trade between Laos and China is booming
There are countless examples of Lao enterprises that have successfully entered the Chinese market through CAEXPO.
“In the past， Beerlao heavily relied on the border trade to enter China from Yunnan Province， and its volume of sales was very small. I have never thought that Beerlao， once an unsought good in China， may become a hit one day in China，” said Vonlatanawon Keasong， a Lao businessman who has been engaged in overseas marketing for many years. Beerlao was once rated as the best beer in Asia by Time in the U.S.， but it did not sell well due to a lack of suitable distribution channels. It wasn’t until 2012 that Beerlao was introduced to the Chinese market via the CAEXPO. Since then， Beerlao has been snapped up by various merchants from the CAEXPO as well as other provinces.
Since its inception in 2004， CAEXPO， which tailor-made for the China-ASEAN Free Trade Area （CAFTA）， has been innovated to set up five functional areas， including commodity trade， investment cooperation， service trade， advanced technology and the “City of Charm”. In the field of trade， there is even an exhibition area of ASEAN commodity to highlight the leading products of ASEAN countries that are popular in the Chinese market.
By virtue of the exhibition area， more and more high-quality commodities with Lao characteristics enter the Chinese market and are favored and sought after by Chinese consumers， with the turnover increasing year by year. It is reported that in the previous 16 sessions of CAEXPO， Laos used more than 1，500 booths to display and promote wood furniture and wood products， jewelry， handicrafts， food and beverages， rice， coffee and other special commodities （services）. At the same time， data showed that in the first 11 months of 2019， bilateral trade between China and Laos exceeded US$ 3.54 billion， up 17.4% year on year， ranking the third among ASEAN countries. China has become the largest export market and second-largest trading partner of Laos. Investment cooperation is deepened
The Nam Ngiep 2 Hydropower Station in Xieng Khuang Province， Laos， is a hydropower project operated and implemented by China Water Conservancy and Electric Power Foreign Corporation. It is worth mentioning that this project is a China-Laos cooperation project signed at the CAEXPO. Since it was completed and put into operation in 2015， the power generated by the hydropower station has not only tackled power shortages， but also increased the employment rate， providing a lot of opportunities for the residents around the project to get out of poverty and become rich.
With the expansive influence of the CAEXPO， Laos has also actively promoted a series of investment promotion activities， opening the door for China-Laos cooperation and even global cooperation.
For example， Laos Agri-Industrial Development and Import & Export Services Company signed a US$ 1.8 billion cooperation agreement with China’s Wuhan Kaidi Holdings Investment Co.， Ltd. The Electricite du Laos （EDL） signed the investment project of NamLik 1-2 Hydropower Station in Laos with China Water Conservancy and Electric Power Foreign Corporation. And Lao Overseas Chinese Qinkeyuan and Guangxi Beiliu Tongjia Ceramics Co.， Ltd. signed the Laos-Tongjia high-grade porcelain project.
“Every year， the special promotion meeting was organized to promote tourism and services of Laos， and introduce the achievements made by Chinese enterprises in Laos. CAEXPO， an effective platform， has brought more opportunities for Lao enterprises to communicate with enterprises from other countries and establish good cooperative relations，” said the then Deputy Secretary-General of the Department of Production and Trade Promotion of the Ministry of Industry and Trade of Laos.
Data showed that in the first 11 months of 2019， new Chinese contracts for project contracting in Laos reached US$ 1.88 billion， up 25.9% year on year. Laos ranked second in China’s ranking of the growth rate of new construction contracts by 10 ASEAN countries， up 133%. China has become the largest source of investment for Laos.
People-to-people exchange is dynamic
Depending on series of exhibitions and promotion activities at the CAEXPO， Laos has displayed its well-preserved natural scenery， unique cultural and historical tourist attractions， abundant tourism resources， as well as opening and innovative folkway， attracting considerable attention.
It is reported that Vientiane， Luang Prabang， Savannakhet， Khammouan， Champasak， Bokeo， Oudomxay， Attapu， Azopol， Xayabury of Laos have already shown their unique charm in the previous 16 sessions of CAEXPO， and promoted cross-regional cooperation and people-to-people exchange between China and Laos. In 2019， more than one million Chinese tourists visited Laos， an increase of 200，000 over 2018. More new highlights anticipated
In April 2019， the leaders of China and Laos inked the Action Plan to Jointly Build A Community of Shared Future， calling for a new era of China-Laos relations. In this historical period， it is highly anticipated that Laos will once again serve as the Country of Honor of the 17th CAEXPO in September 2020.
In December of 2019， Secretary-General of the CAEXPO Secretariat Wang Lei led a delegation to visit Laos， respectively held talks with Lao Ministry of Industry and Commerce， Lao Ministry of Finance， Lao Ministry of Planning and Investment， Lao National Chamber of Commerce and Industry， and Chinese General Chamber of Commerce in Laos. The parties indicated that they will continue to actively hold a series of activities under the mechanism of the Country of Honor， showcased the business opportunities and charm of Laos and further strengthen cooperation with China.
“The CAEXPO has been always innovative and increasingly well-organized. In recent years， with the promotion of the CAEXPO， the cooperation between Laos and China has become increasingly close. I hope CAEXPO can continue to play its role as a bridge between China and ASEAN， resulting in more cooperation，” said Lao Deputy Prime Minister Sonexay Siphandone. We are also more firmly convinced that， by relying on the CAEXPO， Laos， the Country of Honor for the second time， will once again bring more highlights， and China-Laos and even China-ASEAN cooperation will embark on more and better visions in 2020.
Bilateral trade between Laos and China is booming
There are countless examples of Lao enterprises that have successfully entered the Chinese market through CAEXPO.
“In the past， Beerlao heavily relied on the border trade to enter China from Yunnan Province， and its volume of sales was very small. I have never thought that Beerlao， once an unsought good in China， may become a hit one day in China，” said Vonlatanawon Keasong， a Lao businessman who has been engaged in overseas marketing for many years. Beerlao was once rated as the best beer in Asia by Time in the U.S.， but it did not sell well due to a lack of suitable distribution channels. It wasn’t until 2012 that Beerlao was introduced to the Chinese market via the CAEXPO. Since then， Beerlao has been snapped up by various merchants from the CAEXPO as well as other provinces.
Since its inception in 2004， CAEXPO， which tailor-made for the China-ASEAN Free Trade Area （CAFTA）， has been innovated to set up five functional areas， including commodity trade， investment cooperation， service trade， advanced technology and the “City of Charm”. In the field of trade， there is even an exhibition area of ASEAN commodity to highlight the leading products of ASEAN countries that are popular in the Chinese market.
By virtue of the exhibition area， more and more high-quality commodities with Lao characteristics enter the Chinese market and are favored and sought after by Chinese consumers， with the turnover increasing year by year. It is reported that in the previous 16 sessions of CAEXPO， Laos used more than 1，500 booths to display and promote wood furniture and wood products， jewelry， handicrafts， food and beverages， rice， coffee and other special commodities （services）. At the same time， data showed that in the first 11 months of 2019， bilateral trade between China and Laos exceeded US$ 3.54 billion， up 17.4% year on year， ranking the third among ASEAN countries. China has become the largest export market and second-largest trading partner of Laos. Investment cooperation is deepened
The Nam Ngiep 2 Hydropower Station in Xieng Khuang Province， Laos， is a hydropower project operated and implemented by China Water Conservancy and Electric Power Foreign Corporation. It is worth mentioning that this project is a China-Laos cooperation project signed at the CAEXPO. Since it was completed and put into operation in 2015， the power generated by the hydropower station has not only tackled power shortages， but also increased the employment rate， providing a lot of opportunities for the residents around the project to get out of poverty and become rich.
With the expansive influence of the CAEXPO， Laos has also actively promoted a series of investment promotion activities， opening the door for China-Laos cooperation and even global cooperation.
For example， Laos Agri-Industrial Development and Import & Export Services Company signed a US$ 1.8 billion cooperation agreement with China’s Wuhan Kaidi Holdings Investment Co.， Ltd. The Electricite du Laos （EDL） signed the investment project of NamLik 1-2 Hydropower Station in Laos with China Water Conservancy and Electric Power Foreign Corporation. And Lao Overseas Chinese Qinkeyuan and Guangxi Beiliu Tongjia Ceramics Co.， Ltd. signed the Laos-Tongjia high-grade porcelain project.
“Every year， the special promotion meeting was organized to promote tourism and services of Laos， and introduce the achievements made by Chinese enterprises in Laos. CAEXPO， an effective platform， has brought more opportunities for Lao enterprises to communicate with enterprises from other countries and establish good cooperative relations，” said the then Deputy Secretary-General of the Department of Production and Trade Promotion of the Ministry of Industry and Trade of Laos.
Data showed that in the first 11 months of 2019， new Chinese contracts for project contracting in Laos reached US$ 1.88 billion， up 25.9% year on year. Laos ranked second in China’s ranking of the growth rate of new construction contracts by 10 ASEAN countries， up 133%. China has become the largest source of investment for Laos.
People-to-people exchange is dynamic
Depending on series of exhibitions and promotion activities at the CAEXPO， Laos has displayed its well-preserved natural scenery， unique cultural and historical tourist attractions， abundant tourism resources， as well as opening and innovative folkway， attracting considerable attention.
It is reported that Vientiane， Luang Prabang， Savannakhet， Khammouan， Champasak， Bokeo， Oudomxay， Attapu， Azopol， Xayabury of Laos have already shown their unique charm in the previous 16 sessions of CAEXPO， and promoted cross-regional cooperation and people-to-people exchange between China and Laos. In 2019， more than one million Chinese tourists visited Laos， an increase of 200，000 over 2018. More new highlights anticipated
In April 2019， the leaders of China and Laos inked the Action Plan to Jointly Build A Community of Shared Future， calling for a new era of China-Laos relations. In this historical period， it is highly anticipated that Laos will once again serve as the Country of Honor of the 17th CAEXPO in September 2020.
In December of 2019， Secretary-General of the CAEXPO Secretariat Wang Lei led a delegation to visit Laos， respectively held talks with Lao Ministry of Industry and Commerce， Lao Ministry of Finance， Lao Ministry of Planning and Investment， Lao National Chamber of Commerce and Industry， and Chinese General Chamber of Commerce in Laos. The parties indicated that they will continue to actively hold a series of activities under the mechanism of the Country of Honor， showcased the business opportunities and charm of Laos and further strengthen cooperation with China.
“The CAEXPO has been always innovative and increasingly well-organized. In recent years， with the promotion of the CAEXPO， the cooperation between Laos and China has become increasingly close. I hope CAEXPO can continue to play its role as a bridge between China and ASEAN， resulting in more cooperation，” said Lao Deputy Prime Minister Sonexay Siphandone. We are also more firmly convinced that， by relying on the CAEXPO， Laos， the Country of Honor for the second time， will once again bring more highlights， and China-Laos and even China-ASEAN cooperation will embark on more and better visions in 2020.