Laos’ China-funded belt and road railway: Thailand licks its lips, but fears for Luang Prabang’s World Heritage Site
- Laos section of pan-Asia rail route linking Kunming in China to Singapore expected to boost trade and tourism
- But critics say Laos could struggle to repay Chinese debt; that only a fraction of the population will benefit; and that overtourism could threaten Luang Prabang’s world heritage status
As Laos prepares to launch its section of a pan-Asia rail route that will eventually connect China to Singapore, the project has been regarded as cause for celebration for some but concern for others.
The Laos section of the route – a 414km, US$5.9 billion high-speed line financed by China – is expected to open this December and will run half the length of the country, from Boten, on Laos’ northern border with China, south to Vientiane, on its border with Thailand.
In particular, businesses in the Thai province of Nong Khai, which is just across the Mekong from Vientiane, are hoping to cash in on the increase in Chinese visitors and have proposed various schemes – from building a new theme park and infrastructure to overhauling customs procedures and creating a special trade hub – to lure them over the border.
But some critics warn that in Laos the economic boost is unlikely to be spread among the population at large and that the country could struggle to repay Chinese loans, meaning it may have to grant China concessions over the use of its land or other resources. They also warn the potential of overtourism could hurt some of the country’s best known sites, such as the World Heritage Site of Luang Prabang.
