18-05-2025
Cassava exports from Laos surge as railway boosts trade efficiency
VIENTIANE (Laotian Times): Cassava exports from Laos have grown significantly in early 2025, thanks to increased shipments along the Laos-China Railway.
In the first five months this year, the railway transported 5,750 containers of cassava (about 156,000 tonnes), marking a 43 percent rise compared to the same period in 2024, according to the Laos-China Railway Company Limited.
During the same period, the railway also carried 172,410 tons of Lao agricultural goods, a 40.18 percent increase from last year.
This success came as the railway now follows a 'prioritizing approval and prioritizing transportation' policy, ensuring that goods like cassava are moved quickly, regardless of volume, making cassava the leading agricultural export being transported via the railway.
Strong Demand, But Supply Still Falls Short
Driven by strong market demand, many Lao farmers have shifted to cassava cultivation.
Minister of Agriculture and Forestry Linkham Douangsavanh mentioned during a March meeting in Pakse, Champassak Province, that cassava farming is expanding across the country. However, Laos is currently facing a production gap.
The country's 22 tapioca factories can only process around 1 million tonnes of cassava annually – far short of the 3.7 million tonnes needed to meet domestic demand.
In 2024, Laos produced about 7.4 million tonnes of cassava and exported over 2.4 million tonnes, earning more than USD 440 million. Major growing areas include Champasack, Vientiane, Xayaboury, Sekong, Salavan, and Bolikhamxay provinces.
Cassava was Laos' top export in January 2024, bringing in US$94 million of the total US$561 million in exports.
This rose slightly to US$95 million in February. Despite this growth, the country still faced a trade deficit of US$40 million in early 2024, largely due to reliance on imports, especially from Thailand.
Railway Strengthens Trade Links with China
Despite the challenges, the Laos-China Railway still serves as a crucial route for moving agricultural products quickly and efficiently.
The railway also offers several advantages for exporters, such as lower costs, faster delivery, and easier access to key markets in China, including Kunming, Chongqing, and Guangzhou. In response to rising demand, the railway has improved scheduling, increased the number of daily train services, and streamlined customs clearance with both Lao and Chinese authorities.
Since its launch in 2021 to March this year, the Laos-China Railway transported over 54 million tonnes of goods and carried more than 48.6 million passengers. It has also enabled time-sensitive exports, such as bananas and coffee beans, to reach international markets more efficiently. - Laotian Times
