Laos Delighted To See India And China Strengthening Relations
October 31st, 2007 - by 2point6billion.com
Deputy Prime Minister of Lao People’s Democratic Republic, Thongloun Sisoulith is very delighted at the growing relations between India and China.
There were a series of multilateral meetings in Manila that were organised by the Association of South East Asian Nations (ASEAN) where the PM said:
Laos has long-lasting friendship with both India and China. With regard to the rise of these two important countries, Lao PDR would see it in a very positive way, as the two countries will help strengthen our region.
The Hindu, an Indian newspaper reported that Laos was happy to “witness” the growth of India-China ties “from strength to strength” and that ASEAN too recognised their “contribution” to peace and stability in East Asia.
Further on India he said the following:
The Lao PDR appreciates the assistance rendered by the Government of India, particularly in providing us with credit and soft loans to be utilised in various development projects. Many of them are under implementation, and, of course, there would be more projects in the future.
Another important area is to enhance investment from India.
And, apart from the information technology sector, we would very much welcome investments by India in hydro-electric power plant construction as well as in the agricultural sector, in particular agro-processing.
Vientiane and New Delhi were now discussing the possible involvement of India in the construction of the Asian highway projects that would link the east-west and north-south economic corridors of Laos.
Seems like every country is happy with the growth in India and China in one way or another and all want to reap the benefits that accrue from it in one form or another.
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November 8th, 2007 at 12:02 am
Laos is interesting, yet quiet, and off many radars. However - China’s new Free Trade Zone area with Vietnam scheduled for early 2008 will change this….the significance of this thread I feel has gone under the radar for many. Watch this space concerning S/E Asia, China & India. Laos will become more strategic in terms of overland logistics, and it’s a smart one to watch.
November 8th, 2007 at 1:41 am
Since the fall of Lane Xang, Laos has gotten used to having greater states at their doorstep. It is a position that they have learned to live with, whether that means playing the Vietnamese off against the Chinese, or the Burmese off against the Thais.
As Chris pointed out, China’s new FTA with Vietnam and the rest of ASEAN is something to keep an eye on. And Laos’ role as a crossroads between Vietnam, China Thailand, Cambodia and Burma will become that much more important. One only needs to take a bus from Vientiane to Oudomxai in Northern Laos to see the future - Chinese construction crews leveling and paving a highway that will connect Bangkok to Kunming in Yunnan province.
For more on the ASEAN FTA, Laos’ role as a logistical crossroad, and the future of China and its southern neighbors, check out this article from the China Briefing blog.
November 8th, 2007 at 10:03 pm
Vietnam is the destination for industries looking to move out from an increasingly expensive China. The governments ‘go west’ policy makes Vietnam a more competitive location than going into the interiors of China where the logistics supply chains on the raw materials and the manufactured goods get stretched.