Posts Tagged ‘Laos property’

Many rice fields that covered the mountainous North of Laos are gone. They are steadily being replaced by rubber trees. The Chinese are coming to Laos and they need their rubber products for their galloping economy. It appears nothing can stop the ever growing Chinese machine that seems perpetually hungry for manufacturing products supplies.

The Chines are already scouring the world for mining and logging concessions. Now it is turning to crops to feed its people and industries. Chinese are buying up vast tracts of land and are also forging contract farming deals.

Of course, this is not all bad news. Many poor families now can make a nice living out of their rubber production. And yes, to be honest, there is corruption in Laos so bribes are to be expected. However, there is a fear that opportunitists in Laos will decide to hold a quick sell-out for the fast buck.

Laos’ communist regime touts rubber as a miracle crop that will help lift the country from poverty. China is expected to consume a third of the world’s rubber by 2020, become its largest car market and put 200 million vehicles on the road.

If you know this, you should understand that usable land is very valuable to the Chinese. There is no need to a fast sell-out, and, in the long run it will pay off to hold your investment a little longer to increase the value. The fast buck (or Kip) is most often not the best buck.

Some Laotian farmers are losing their lands or being forced to become wage workers on what were once their fields. Chinese companies are accused of getting rubber concessions from officials and not compensating farmers. They are also accused of violating laws, human rights and the environment, under conditions described by experts as “anarchic.” It is clear that the Lao government has an important role in protecting their environment and people. Most likely, if they sell out, Lao people will not prosper.