On March 14, 2025, the 2024 Work Summary Meeting of the Laos-China Cooperation Committee and the Meeting on the Key Work Directions for 2025 were held in Vientiane. This meeting focused on the cooperation between Laos and China in areas such as investment and trade, and revealed a series of remarkable achievements.

Since the Lao government introduced policies to encourage investment, cooperation, and trade, investment from China has shown a continuous growth trend.

In terms of trade, the bilateral trade volume between Laos and China reached 8.23 billion US dollars in 2024, an increase of 15.91% compared with 2023, demonstrating a strong development momentum. Over the past 10 years, the bilateral trade volume between Laos and China has continued to rise, especially after the China-Laos Railway was opened and put into cross-border freight transportation, the trade volume has significantly increased.

These data fully demonstrate that Laos and China have achieved fruitful results in economic cooperation, and the prospects for cooperation are very broad. The meeting not only summarized the work of the past year but also pointed out the direction for the in-depth cooperation between Laos and China in various fields in the future.

The Situation of China's Investment in Laos

Continuous Growth of China-Laos Trade, Promotion of Trade by the Railway, Complementary and Win-Win Results

1. Investment Scale and Status

The scale of China's investment in Laos is quite considerable. Since 1989 up to now, the total number of approved projects has reached 927, with a total investment of over 18 billion US dollars. Among the 53 countries and regions that invest in Laos, China ranks first.

This data fully demonstrates China's important position in the field of investment in Laos. Although other countries and regions also invest in Laos, in terms of scale and influence, it is currently difficult for them to match China.

China's continuously growing investment has injected strong impetus into Laos' economic development and laid a solid foundation for the long-term cooperation between the two countries.

2. Distribution of Investment Industries

China's investment in Laos is widely distributed across multiple industries.

The power industry is one of the key investment areas. Chinese enterprises have participated in the construction of numerous hydropower station projects, providing a stable power supply for Laos. In the mining sector, investment in the development of resources such as copper mines and gold mines has promoted the effective utilization of Laos' mineral resources.

In the service industry, Chinese capital can also be found in industries such as hotels and catering, which has improved the local service level. In the agricultural field, Chinese enterprises have invested in building farms and introduced advanced planting technologies, improving the agricultural production efficiency of Laos.

These investments have not only promoted the development of various industries in Laos but also achieved mutual benefit and win-win results for both China and Laos.

The Development of Bilateral Trade between Laos and China

Chinese Investment Leading the Way, Progress in Multiple Industries, Mutual Benefit and Common Prosperity

1. The Growth Trend of Trade Volume

Over the 10-year period from 2014 to 2024, the bilateral trade volume between Laos and China has shown a continuous and good growth trend. The trade volume was at a certain basic level in 2014 and then steadily increased year by year.

The bilateral trade volume reached 5.68 billion US dollars in 2022, increased to 7.09 billion US dollars in 2023, and further grew to 8.23 billion US dollars in 2024.

Especially after the China-Laos Railway was opened and put into cross-border freight transportation, the effect of the increase in trade volume is remarkable. The China-Laos Railway has greatly reduced logistics costs, shortened transportation time, made the transportation of goods between the two sides more convenient and efficient, and strongly promoted the rapid development of bilateral trade.

2. Analysis of Import and Export Situation

In 2024, Laos' exports to China amounted to 4.56 billion US dollars, a year-on-year increase of 21.4%; imports from China were 3.68 billion US dollars, a year-on-year increase of 9.8%.

Laos' exports to China are mainly resource-intensive products, such as minerals and agricultural products, which give full play to Laos' resource advantages.

While Laos mainly imports labor-intensive products and capital-intensive products from China, such as daily necessities, electronic and electromechanical products, etc., which meet the production and living needs of Laos. The characteristics of the import and export products reflect the economic complementarity between the two sides, providing strong support for the continuous growth of bilateral trade.

Prospects for Future Trade Potential

Expected to Become the Largest Trading Partner, Smooth Transportation and Expanded Areas, Deepening Collaboration

1. The Possibility of Becoming the Largest Trading Partner

Judging from the current bilateral trade data and development trends between Laos and China, it is highly likely that China will become Laos' largest trading partner.

In recent years, the bilateral trade volume has continued to grow rapidly, with a 15.91% increase in 2024 compared with 2023, and it has been on the rise for the past 10 years. The opening of the China-Laos Railway has further promoted trade exchanges, reduced logistics costs, and improved transportation efficiency.

With the economic development of Laos and the increasing demand for infrastructure construction, resource development, etc., China's advantages in investment and trade will become more prominent. Currently, China is already Laos' second-largest trading partner, and it is just a matter of time before it surpasses the current largest trading partner.

2. Directions for Expanding Cooperation Areas

In the future, there is broad room for cooperation between Laos and China in multiple fields.

In terms of cultural exchanges, more cultural exhibitions, art performances and other activities can be held to enhance the mutual understanding and friendship between the people of the two countries. In the field of education, academic exchanges and student exchange programs can be carried out to improve the education level of Laos.

In infrastructure construction, continue to improve transportation, energy and other projects to assist Laos' economic development. In the tourism field, strengthen publicity and promotion to attract more Chinese tourists to visit Laos. In the field of science and technology, cooperation can be carried out in agricultural technology, information technology, etc., to promote the industrial upgrading of Laos. (This article is from the official website of Seetao.com, www.seetao.com. No reprinting is allowed without permission. Otherwise, legal liability will be pursued. If reprinting, please indicate Seetao.com + the original text link.) Editor of the Strategic Column of Seetao.com / Yin Shiqian