Chinese businesses have signed an agreement to purchase nine types of agricultural produce from Laos in a deal worth over USD 1.5 billion.
The nine agricultural products China will purchase from Laos include beans, cassava flour, frozen beef, cashews, mangos, durian, soybeans, bananas, and sugar, according to a report by Pasaxon Newspaper.
A signing ceremony took place on Friday in Vientiane Capital, attended by Minister of Industry and Commerce, Mr. Khampheng Saysompheng, and Minister of Agriculture and Forestry, Dr. Phet Phomphiphak.
“We have been working on expanding agricultural areas over the past five years, with nearly 100,000 hectares of land now operating commercial farms in the southern and central provinces of Laos,” said Mr. Phudsapa.
Laos and China have already made a 20,000 ton rice purchase agreement, according to the Minister of Industry and Commerce, and Laos will continue to export 50,000 tons of rice to China in the future.
Minister of Agriculture and Forestry, Dr. Phet Phomphiphak says Laos currently exports seven agricultural products to China, including corn, cassava, bananas, rice, watermelons, sweet potatoes, and beans, among others.
President of AIDC company, Mr. Pheutsapa Phoummasack, says the export value of USD 1.5 billion would be over five years, from 2021 to 2025.
Chinese agricultural companies have also begun to grow various fruits in Laos for export back to China. By 2020, a total of 239 Chinese companies had invested USD 590 million in agriculture and forestry in Laos, making China the country’s largest agricultural investor.