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The Star
3 days ago
- Business
- The Star
First mango shipment from Laos to China signals agricultural trade era
The Minister of Agriculture and Forestry, Dr Linkham Douangsavanh (centre), leading a ribbon-cutting ceremony on May 30 to mark the formal send-off of Laos' first mango shipment to China. - VT VIENTIANE: Ninety tonnes of fresh mangoes from Laos have been despatched to Chinese markets, which are anticipated to have a total demand for 1,500 tonnes of the fruit. The ceremony marking the inaugural shipment, held on May 30, was a milestone for Laos's agricultural sector. Laos celebrated the departure of its first shipment of fresh mangoes, equivalent to three truckloads, to China. The ceremony was attended by the Minister of Agriculture and Forestry, Dr Linkham Douangsavanh, senior economic and commercial counsellors from the Chinese Embassy in Laos, and officials and representatives from both countries. The historic export marked a significant step in strengthening agricultural cooperation between Laos and China. It followed the 2023 agreement by both governments allowing the export of fresh Lao mangoes to Chinese markets, a deal that opened the door to expanded trade and investment opportunities. Speaking at the event, the Director General of the Department of Agriculture under the Ministry of Agriculture and Forestry, Bounchan Kombounyasith, highlighted the importance of meeting stringent plant health and hygiene standards while preparing the shipment. 'We are prioritising the promotion of high-potential agricultural products that meet international market demands,' he said, adding that such efforts aim to reduce import reliance, conserve foreign currency, and encourage value-added processing for exports. Zhang Ziyong, who represented Henan Changjiu Agricultural Technology Co Ltd, shared insights on the scale of mango cultivation in Laos. 'Mango farming has seen rapid growth, with a total cultivated area of 2,248 hectares across Laos in 2023. This partnership not only benefits local farmers but also enhances regional trade integration,' he said. He said exports of mangoes from Laos are anticipated to grow to 1,500 tonnes in the years to come. To date, Laos and China have officially agreed on 35 plant health and quarantine protocols. Laos's agricultural production has been on an upward trend, touching 11.09 million tonnes in 2024, a 14 percent increase over the previous year. Major contributors to this growth include crops such as hard maize, sugarcane, cassava, bananas, watermelons and coffee. Commercial crop cultivation too has demonstrated impressive results, with an estimated output of 9.71 million tonnes, or 99 per cent of an ambitious 9.75 million tonne target for 2024, according to a report presented at the first Lao Agri Expo last year. The value of agriculture and forestry exports exceeded US$1,214 million in the first nine months of 2024, surpassing the approved target of US$1,200 million by one per cent. As the trucks rolled out, carrying the fruits of Lao soil towards new international markets, the moment underscored a broader vision: Laos is emerging as a key player in regional agritrade, leveraging its natural resources to strengthen economic ties and uplift rural livelihoods. - Vientiane Times/ANN
The Star
29-05-2025
- Business
- The Star
Lao, Filipino leaders agree to strengthen ties as trade sours
Prime Minister Sonexay Siphandone (right) meeting Philippine President Ferdinand Marcos Jr in Kuala Lumpur. - VT VIENTIANE: Prime Minister Sonexay Siphandone and Filipino President Ferdinand R. Marcos Jr. have agreed to work together to deepen cooperation between the two countries in vital areas such as trade, education, defence, and digital innovation. The pledge comes as the two nations celebrate 70 years of formal diplomatic relations, marking a milestone in their longstanding partnership. Their commitment to this relationship was reiterated and enhanced when the two leaders met in Kuala Lumpur on May 26 on the sidelines of the 46th Asean Summit. 'In commemoration of the 70th year of Philippines–Laos relations, Prime Minister Sonexay Siphandone and I agreed to further strengthen cooperation in trade, education, and security—and to unite for peace and development in the region,' President Marcos was quoted as saying by the Philippine News Agency. The two countries identified strategic sectors for deeper collaboration—including agriculture, skills development, tourism, and emerging areas like artificial intelligence and digital technology. President Marcos also highlighted the potential for expanded trade ties, noting Laos' rapid economic growth. Trade between Laos and the Philippines has nearly doubled over five years, increasing from US$7 million in 2019 to around US$13.72 million in 2024. 'We would like to strengthen all our relations - trade, defence, and security, and even people-to-people exchanges,' President Marcos said. Prime Minister Sonexay expressed his deep appreciation for the longstanding friendly relations and good cooperation between Laos and the Philippines, including mutual support in regional and international forums, according to the Lao Ministry of Foreign Affairs. The Lao PM also expressed his gratitude to the government and people of the Philippines for their continued support to Laos, especially in the development of Laos' human resources through short-term training scholarships and long-term scholarships. He confirmed Laos' support for the Philippines' ASEAN chairmanship next year, aiming to build a stronger ASEAN community and benefit the ASEAN family. The two leaders also agreed to promote cooperation in fields where both countries have potential, such as agriculture, tourism, and clean energy, according to the Ministry of Foreign Affairs. - Vientiane Times/ANN
The Star
21-05-2025
- Business
- The Star
New Lao-Thai Mekong bridge to open soon, promising economic lift for region
The under-construction Lao-Thai Friendship Bridge across the Mekong River between Borikhamxay province and Beung Kan province in Thailand. - VT VIENTIANE: A 1,350-metre bridge linking Borikhamxay province in Laos and Bueng Kan province in Thailand across the Mekong River is now 98 per cent complete. Construction is ahead of schedule and the bridge is expected to open to traffic at the end of this year. The fifth Lao-Thai Friendship Bridge is set to boost travel between Laos and Thailand and spur trade with other countries in the Greater Mekong Subregion. The project director on the Lao side of the bridge, Laythong Phommavong, last week gave a progress report to the Ambassador of Laos to Thailand, Khamphan Anlavan, when he visted the site. Laythong said that with construction progressing faster than planned, it is hoped that the bridge will be in operation by the end of 2025. He also highlighted the progress made and the challenges encountered. Plans to build the bridge were first drawn up in 2014, when a survey was carried out. The design of the structure was approved by the Lao and Thai governments in 2018 and construction kicked off in January 2021. A loan from Thailand's Neighbouring Countries Economic Development Cooperation Agency (NEDA) was secured by the Lao government to build the Lao side of the bridge, with the total cost to be shared between Laos and Thailand. The Lao component of the project comprises construction of the bridge on the Lao side of the river over a distance of 535 metres, and the construction of access roads, immigration and customs buildings, and other structures on the Lao side. Project officials have paid compensation to people who lost land and other property so the bridge could be built. More than 52 hectares of farmland was lost to free up ground for the construction of the bridge. The fifth Lao-Thai Friendship Bridge, a result of cooperation between the governments of Laos and Thailand, will be part of new infrastructure connecting regions and people on both sides of the Mekong and strengthening regional transport networks. It will help promote cross-border trade, investment and tourism, bolster economic growth in both countries, and strengthen ties between the two neighbours. The bridge will also help turn the border areas of Borikhamxay province and Bueng Kan province in Thailand into a significant economic hub. The first four bridges built across the Mekong River between Laos and Thailand serve the Vientiane-Nong Khai, Savannakhet-Mukdahan, Khammuan-Nakhon Phanom, and Huayxai-Chiang Khong routes. - Vientiane Times/ANN
The Star
19-05-2025
- Business
- The Star
Laos job market continues to evolve amid high cost of living
The prices of various types of consumer goods, whether in stores or fresh markets, remain high despite a moderate decrease in the inflation rate last month. - VT VIENTIANE: Inflation in Laos is undermining living standards and reshaping the labour market, according to the latest World Bank Household Monitoring Survey. As prices rise, more individuals are entering the workforce, but with wages failing to keep pace with inflation, many are turning to self-employment or seeking work abroad to support their families. The tenth round of the World Bank's Rapid Monitoring Phone Surveys, conducted across Laos from January to February 2025, reveals that employment has steadily increased over the past four years. In January 2025, 97.1 per cent of respondents reported being employed, compared to 94.4 per cent in June 2024 and 88.2 per cent in May 2022. A growing number of women have joined the workforce, significantly narrowing the gender employment gap from 8 per cent in December 2022 to just 1.9 per cent in January 2025. However, high inflation, currency depreciation and falling real wages have prompted many workers to shift from service-sector roles to agriculture, from wage employment to self-employment, or to emigrate. 'The transformation of the labour market in Laos is astonishingly quick,' the country manager of World Bank for the Lao PDR, Alex Kremer, said. 'Three years of high inflation and currency depreciation have reshaped work choices, eroded household living standards, accelerated migration and undermined human capital development,' he said. 'The findings of this survey suggest that families have depleted their assets and may eventually run out of coping mechanisms.' Inflation has moderated due to tight monetary policy and foreign exchange controls, dropping from 26.2 per cent in mid-2024 to 11.2 per cent in March 2025. Nevertheless, it remains high, and many households are financially weakened following years of persistent price increases. Wage growth has remained steady, recorded at 13 per cent in December 2024. The decline in real wages has eased, slowing from 11.2 per cent in 2023 to 3.9 per cent in 2024. However, profit growth among non-farm family businesses has lagged behind wage increases, with average profits rising by only 7.4 per cent in the year to December 2024. This is below both the annual wage growth rate and the year-on-year inflation rate of 16.9 per cent. In rural areas, households continue to expand agricultural activities and are selling more produce, as farming returns remain more favourable than those from non-agricultural ventures. Labour migration remains prevalent, with workers seeking better prospects and higher wages abroad. One-third of the total number of migrants reported in January 2025 had left Laos during 2024. The income earned by Lao workers overseas plays a vital role in supporting households back home: 8.6 per cent of surveyed households received remittances in 2024, averaging 22.9 million kip annually, equivalent to approximately 76 per cent of the annual minimum wage. To cope with high food prices, many households have drawn on savings, sold livestock or other assets, or resorted to borrowing. These measures are depleting household assets, undermining future resilience and income-generating capacity. One-third of households reported cutting back on health and education spending. As a consequence, children from poorer families are more likely to be out of school. In January 2025, 11.4 per cent of school-age children from low-income households were not enrolled, more than double the 4.5 per cent rate among children from more affluent families. - Vientiane Times/ANN
