China’s backyard
During my visit to Laos in January and February of this year I couldn’t help but to notice consumer products from China, flooding the markets all over the country. I asked many of my relatives In Vientiane Province as well as in Champassack Province how they feel about products from China and they all agreed that it is a good thing for the average citizens.
My uncle in Champassack told me how the new plan of the government has made it more affordable for the villagers to buy motorbikes. He said a couple of years ago you have to save up more than $1,000 in order to buy a motor bike from Thailand. For a Japanese motorbike, then it is even more expensive. Now the average citizen can buy brand new Chinese motorbike for around $600. For a used one it is roughly around $300. This means my cousins can each own a bike and be able to attend a high school that is in another town. It also mean having an extra bike in the family so my aunt can go to the market and run errands while my uncle can be at work and pick up the younger kids from school afterward.
Since the government has opened up the market to China, many people are seeing the impact of this trade. Many people are saying Laos is becoming China’s backyard. That is not so bad in reality. If things are done properly, then we can see more of the positive sides of the trade, rather than the negative.
Shopping Malls in Laos is a sign of economic progress. I want to see pictures from the inside of this mall. Since it is in my aunt’s neighborhood I will ask her to take some photos for me. I have no doubt the next time I am in Laos, I will be hanging out at this mall with my relatives.
New Chinese shopping mall opens
( Front left ) The Standing Deputy Prime Minister, Mr Somsavat Lengsavad, the Chinese Ambassador to Laos , Mr Pan Guangxue, and the President of the SanJiang Company, Mr Ding Guo Jiang, cut the ribbon to open the Chinese shopping mall.
The newest and biggest shopping mall in the country was officially opened to local and foreign customers yesterday, providing a range of quality Lao and Chinese products, as well as gathering various Chinese businesses together in Vientiane.
“The new Chinese market is now the largest mall for Chinese products in Southeast Asia, and a gathering point for the city’s Chinese merchants,” the President of main investor the SanJiang Company, Mr Ding Gou Jiang, said at the opening ceremony yesterday.
He added that many of these businesses had not been properly organised before, creating an obstacle to the security of Vientiane’s urban areas.
Now that the shopping mall was finished, there was enough room for all Chinese merchants to do business in a more orderly and profitable way.
Participating in the ceremony was the Standing Deputy Prime Minister, Mr Somsavat Lengsavad, along with the Chinese Ambassador to Laos , Mr Pan Guangxue, and various deputy ministers, members of the Chinese Association and business owners in Vientiane.
Construction on the SanJiang Shopping Mall began in September last year, and the company had expected to complete the project in April, but had to postpone the opening date to August because some Chinese businesses had requested permission to design their own shop spaces.
The shopping mall is targeted at the Chinese market in Vientiane , and most of the products sold there will be imported from China , including both quality and low-priced goods.
Of the more than 300 spaces in the SanJiang Shopping Mall, around 200 have already been filled by Chinese businesses and 100 by Lao business.
“The whole mall was fully rented out before it had even opened,” the SanJiang Shopping Mall Project Advisor, Mr Vixay Darasath, said.
The SanJiang Company invested about 57 billion kip (about US$6 million) in the initial construction at Oumoung (Neua) village in Sikhottabong district, Vientiane.
“This project actually has three phases. The first, which is now complete, was to build the best shopping mall in Vientiane. The second phase will involve investing another US$6 million in hotel construction in the same area and the third phase will see a further US$6 million for an office building,” Mr Jiang said.
“The shopping mall reflects the relationship of cooperation and traditional solidarity between Laos and China,” he added.
The company also reported that the centre would facilitate customer parking, with a parking lot for 800 cars and 5,000 motorbikes. Mr Jiang’s experience is that most markets around Vientiane don’t have enough parking.
“Many markets in Vientiane have this problem, but they are unable to do anything about it because they don’t have any space to build more car parks. This centre will be very convenient for customers to use,” he said.
By Souknilundon Southivongnorath
August 2 , 2007
Vientiane Times
[...] Aug 3rd, 2007 by Sim This is a response to Darly’s post China’s Backyard. [...]
I've noticed that the Chinese are making lots of low cost (important for business) tools such as lathes and sheet metal fabrications tools. Some even have industrial cooking tools for cheap. Those that want to start a business may be able to do so. This may help the local Lao economy by giving the people (with the help of credits and loans) an opportunity to buy the important products. An opportunity is in the eye of the beholder. If they see no hope, then there is none. I believe in the power of empowerment. If we stop giving but instead loan, we can empower people to see light where there are none. However, I still believe free education is still important to children that can't yet think for themselves.I'm quoting Sam Vong. "Don't look at it from making money out of it, your $25 loan or more can go a long way for some people to start their small business. This is your chance to be a banker."
Find out how Kiva.org works at http://www.kiva.org -Kiva yet doesn't have Laos as a member.
Hi Sim, in a normal investment situation, high risk yields high return, but to become a bank to your friends or family members, I’m afraid it’s more of a high risk and zero return. Those that would come borrowing money from you are most likely the ones that couldn’t borrow from the bank because of bad credit, if the bank wouldn’t take their chance, would you? My parents lend money to friends in the past, and they were fortunate enough to get it back, and didn’t charge interest. The guideline that they’d go by was “to give what you can part, but don’t expect to get it back,” which means that if you want to borrow $5000, you might only get $500 because that’s all my parents could part with. I think to open a successful business; you have to have your own money for start up cost, especially for the first year or so. Some people have other company to back them up, also using the credential of that company to borrow money from the bank. If you were the lender which you call it “be a banker”, would you keep giving (sinking) money into a business? Remember that most of the time, loan to friends and family means high risk, and no return. This is from the lenders prospective; you the borrower have to convince the lender that you’ll make it big.
[...] It will be interesting to see what Pakse will look like in ten years from now. If Laos is truly China’s backyard, then Pakse must be one of the planting spots. addthis_url = [...]
[...] made or create it. This is just another sign of more things to come and how Laos is becoming China’s backyard. [...]
[...] Mall is located in Oumoung (Neua) village, Sikhottabong district, Vientiane. According to the Vientiane Times Newspaper, the mall is the “gathering point for the Chinese merchants” and most of the products [...]