Laos-China Railway picks up steam, but S-E Asian country struggles to capture gains
As new industries prove elusive, Laos wants to switch from a transit route to a manufacturing base
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[VIENTIANE] Nearly five years after the first train left Laos’ capital city Vientiane for the Chinese border, the Laos-China Railway is carrying record numbers of passengers and goods.
The train route is also drawing investors to the north of the country, albeit primarily from Chinese companies, mostly in rubber, durian and banana plantations, and mining. And it has cut transport time significantly to the world’s second-largest economy.
But even with all that, the US$5.9 billion railway project has not quite been a magic bullet for Laos, with new industries and new incomes continuing to prove elusive. This is likely to be the South-east Asian nation’s next challenge.
