22-8-2023 (VIENTIANE) Since its inauguration in December 2021, the China-Laos Railway has become a vital transportation link, fostering connectivity and economic growth not only for Laos but for the broader region. The 1,035-kilometer railway connects Vientiane, the capital of Laos, with Kunming, the capital of China’s Yunnan province.
This railway project has proven to be much more than a local development; it has positioned itself as a pivotal element of the Belt and Road Initiative (BRI) proposed by China. Additionally, it aligns with Laos’ strategic objective to transform from a landlocked country into a land-linked hub within the Indo-China Peninsula.
Laos, the sole landlocked nation in Southeast Asia, had long faced economic constraints due to its limited rail access, which primarily consisted of a 3.5-kilometer railroad link to Thailand. However, the China-Laos Railway has changed the game, providing Laos with new avenues for economic growth, improving its connectivity with neighboring regions, and catalyzing economic and trade cooperation.
In northern Laos’ Luang Prabang province, companies like Yang Shixian’s have shifted from road transport to the railway, experiencing significant reductions in freight costs. Since the railway’s inception, Yang’s company has exclusively utilized rail transport for its shipments to China, handling approximately 3,000 tonnes of rubber products every month. Yang notes that this transition has allowed his company to lower expenses and increase employee salaries.
The railway has also given the tourism sector a tremendous boost. The introduction of the China-Laos Railway cross-border passenger train service in April this year breathed new life into Laos’ tourism industry. Revitalizing tourism was a top priority for the Lao government as it sought to reinvigorate the economy in 2023.
In the first half of this year, Laos welcomed over 1.6 million foreign tourists, a stark contrast to the mere 42,197 visitors during the same period last year. The Lao authorities anticipate that approximately 368,000 Chinese travelers will visit Laos in 2023, marking a 21% increase from the previous year.
