VIENTIANE, Feb 26 (NNN-KPL) – Laos earned more from the sale of rice to China in the past few years due to trade preference arrangements between the two countries.
In 2017, the value of rice sold to China was 5.6 million U.S. dollars. This figure increased to 7.25 million U.S. dollars in 2018, and to 14.54 million U.S. dollars in 2019, according to the Lao Ministry of Industry and Commerce.
The Chinese market is increasingly attractive to businesses across a range of fields. This is driven by rapidly changing demographics in China, along with rising incomes, increased consumer spending and an increasingly open business environment, local daily, Vientiane Times, reported today (Wednesday).
China’s economic growth has increased and plays an important role in the ASEAN economy, said the report. The trade preferences which Laos and China are party to include the ASEAN-China Free Trade Agreement (ACFTA).
As a result, trade growth between Laos and China has sharply increased, particularly under ACFTA.
The Trade Preferences offer Lao entrepreneurs the chance to export more goods to China, as these arrangements provide special and differential treatment, mainly in terms of tariff reduction or exemption and foreign investment attraction.
Laos has an export quota of 50,000 tonnes of polished rice from the Chinese government. However, the effects of natural disasters may pose challenges for Lao rice exporters, in meeting the target, said the report.
China is Laos’ largest rice export market, and the country’s second-biggest trading partner.
