Laos builds railway with loans from China

According to a New York Times reporter in Laos, the railway project connecting southern China through Laos to Bangkok (Thailand) and the Bay of Bengal (Myanmar) "will definitely be implemented".

Areas in Oudom Xai begin to be restricted to serve the construction of a railway in Laos - Photo: New York Times

Reporters Jane Perlez and Bree Feng from Oudom Xai, Laos, reported that China will provide Laos with a credit loan to build this 420km railway, worth 7 billion USD. This amount is nearly equal to Laos' annual gross domestic product (8 billion USD).

At least 20,000 Chinese workers will go to Laos to build the railway. When completed, it will help China expand its trade route, transporting goods from Kunming, the capital of Yunnan province, down a large area of ​​Southeast Asia, passing through important cities such as the Lao capital Vientiane, Bangkok, and out to Myanmar.

Map of the railway route passing through Laos (red) - Photo: New York Times

Passenger and freight trains on this railway line will run at 160km/h. The project is expected to be completed in 5 years.

Laos is a country without a railway system while its roads are quite backward. This railway project has encountered opposition as many international organizations believe that it will greatly benefit China while Laos will bear most of the construction costs. Not to mention the related terms of the agreement that Laos will sell minerals such as potash and copper to its northern neighbor.

It is known that two-way trade between China and ASEAN reached 370 billion USD in 2011. It is expected that by 2015, when ASEAN becomes a common economic community, the turnover between China and ASEAN will reach 500 billion USD.

According to Tuoi Tre - DT