Laos and Chinese firms cooperate trade agriculture products to boost trade revenue
VIENTIANE, May 31, 2021, The Vientiane Times/ANN. The cooperation agreement between the AIDC Trading Sole Co Ltd and Zhengzhou City Grain and Oil Industry Co Ltd was signed in Vientiane during a recent video conference, The Star reported.
The document was signed by the AIDC Trading President, Pheutsapha Phoummasak, and the General Manager of the Zhengzhou City Grain and Oil Industry, Dai Wei, the Director General of the Trade Promotion Department, Xaysomphet Norasingh and the Office Head of the Ministry of Agriculture and Forestry, Sypaphai Xaisongkharm.
The event in Vientiane was attended by the Minister of Industry and Commerce, Dr Khampheng Xaysompheng, the Minister of Agriculture and Forestry, Dr Phet Phomphiphak, the Deputy Minister of Planning and Investment, Khamchanh Vongseneboun, government officials and company representatives.
Under the terms of the agreement, AIDC Trading will export nine types of agricultural products to China.
These products are 100,000 tonnes of peanuts, 100,000 tonnes of cassava, 100,000 tonnes of frozen and dried beef, 200,000 tonnes of cashew nuts, 50,000 tonnes of durian, 100,000 tonnes of bananas, 100,000 tonnes of mangoes, 200,000 tonnes of soybeans and 500,000 tonnes of sugar.
The total exports over five years from 2021 to 2026 will be worth US$1.5 billion.
The cooperation will help improve the living conditions of hundreds of families, contribute to the revenues of the government, and develop infrastructure for local communities.
With the support and close cooperation of the government, AIDC Trading is demonstrating commercial crop plantations and preparing land for growing agricultural products on 100,000 hectares in different areas in the central and southern parts of Laos.
After the signing of the agreement, the two companies will consult each other on planting and processing techniques, and propose projects to the government for consideration under export quotas so that goods can be exported at reasonable prices when compared to prices in neighboring countries and the world market price.
At the same event, all the participants also joined a video conference between AIDC Trading and COFCO (China Oil and Foodstuffs Corporation which is the largest agriculture stated-owned company in China).
AIDC Trading and COFCO signed an agreement in 6th November 2020, as Laos and China were grappling with the Covid-19 crisis, and the cooperation of both sides was confirmed at this conference.
More details about their cooperation will be announced to the media at the Shanghai Imports Expo in November, the General Manager of COFCO Sundry, Wang Peng, told a news conference.
The cooperation will cover the supply of 11 categories of crops to China, including peanuts, cassava, cashew nuts, durian, chili, mango, beans, banana, sweet potatoes, sugar, other nuts and tree nuts total of more than US$1 billion.
If this cooperation is successful, COFCO will provide funding to build processing facilities in Laos.
After Laos-China Railway finish in December 2021 it will become a key channel connecting the two countries, and this is expected to improve trade links between the two sides and Laos’ strategy of turning the land-locked country into a land-linked country.