Chongqing - In a significant development for the China-proposed Belt and Road Initiative (BRI), Chinese businesses, notably Chongqing, are rapidly expanding their global presence through vital strategic corridors such as the China-Laos Railway and the New International Land-sea Trade Corridor (ILSTC).

The China-Laos Railway, covering an impressive 1,035 kilometers and stretching from the southwest of China to the north of Laos, marks a milestone in the BRI. It has transformed Laos into a crucial regional transportation hub, offering extensive connectivity and trade opportunities.

The goods shipped from China to Laos mainly consist of machinery and equipment, household appliances, vegetables, flowers, mechanical parts, etc., while the goods exported from Laos to China mainly include metal ore and cassava, according to Xinhua.

Laos' role in radiating the Indochina Peninsula

Driven by the immense potential unleashed by the China-Laos Railway, Laos has been chosen as the first overseas company site for the New Land-sea Corridor Operation Co., Ltd.

"Before the China-Laos Railway, Laos faced high road transportation costs and limited scalability in general trade," said Alex Ding, head of New Land-sea Corridor Operation Laos Sole Co., Ltd. "With the railway now in operation, the improved transportation infrastructure and lowered costs have significantly boosted Laos' industries."

The Laos section of the China-Laos Railway. (Photo/Chen Zhan)

Ding highlighted Laos' pivotal role as a crucial node in the BRI for radiating the Indochina Peninsula. With the China-Laos Railway, the company can conveniently transport materials to other countries by connecting with Thailand and Malaysia. 

As a trade and logistics passage jointly built by provincial-level regions in western China and ASEAN members integrating land and sea routes, ILSTC facilitates regional integration and development. As the operation and organization center of ILSTC, Chongqing has gathered a wide range of goods for transportation to Southeast Asia, such as electronic products, automobiles, and motorcycle accessories. 

"The China-Laos Railway has effectively transformed Laos from a land-locked into a land-linked country, resulting in a notable 40-50% reduction in railway transportation costs from Vientiane to Kunming," he said. 

In Ding's eyes, ILSTC is a strategic platform for international trade. "We have established a comprehensive service platform for cross-regional supply chains to facilitate information sharing and product improvement, helping enterprises enhance efficiency and minimize costs," he added. 

Creating jobs and tourism opportunities

With numerous businesses seeing the international corridors' potential, LC Goods Transported Sole, Ltd., located in Luang Prabang, Laos, is a firm that offers services related to goods transportation, comprehensive warehousing, and others. 

For example, through the combination of China-Laos railway and road services, the company can provide one-stop door-to-door service throughout China and Laos. The business centered on Luang Prabang has radiated to Xayaburi, Xieng Khouang, Sai Songben, Huapan and Vientiane, and other provinces, and has business contacts with 25 direct trains in China.

Xiao Taifu, the deputy manager of LC company, revealed that although the company is locally based in Laos, its management is entirely comprised of individuals from China. This international collaboration has resulted in the recruitment of 180 Laotian employees, encompassing loading and unloading, cashiers, translators, clerks, and other roles. 

Luang Prabang's night market. (Photo/Chen Zhan)

The opening of the China-Laos Railway has profoundly impacted the local economy, providing new employment opportunities and raising salaries for the Laos people. This railway connection has boosted trade and positively influenced the culture and tourism industry.

Khom Douangchantha, the director general of the Tourism Marketing Department at the Ministry of Information, Culture, and Tourism in Laos, expressed his belief that the China-Laos Railway has made traveling from China to Laos much more convenient for Chinese tourists. 

The railway's efficient transportation services have significantly reduced travel time and expenses, benefiting Chinese tourists and opening up new possibilities for international tourists as well.