Laos earns more from rice exports to China

Farmers plant rice on a field in the outskirts of Vientiane, Lao (Photo: AFP)

 Laos has earned more from rice exports to China in the past few years due to trade preference arrangements between the two countries.

In 2017, Laos raked in 5.6 million USD from rice exports to China. This figure increased to 7.25 million USD in 2018 and to 14.54 million USD last year, according to the Lao Ministry of Industry and Commerce.

The Chinese market has become more 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.

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 the ACFTA.

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.

China is the biggest importer of rice from Laos, and the second-biggest trading partner of the Southeast Asian country./.

VNA