Wednesday, August 21, 2024 Laos, a landlocked country often overlooked for high-speed rail travel, has now had a bullet train linking it to China in operation for over two years. Despite facing significant economic challenges, including severe currency depreciation and a growing trend of workforce migration to Thailand, Laos is navigating a difficult economic landscape. The nation is hopeful that a boost in tourism, facilitated by the new railway, could pave the way for an economic turnaround, reports Cristian Gherasim from Vientiane, Laos.
In 2016, China emerged as the largest foreign investor in Laos, with investments totaling approximately US$5.395 billion since 1989, as reported by the Laos Ministry of Planning and Investment. This deep financial involvement underscores China’s significant influence in the Laotian economy, particularly through large-scale infrastructure projects.
One of the most notable of these projects is the construction of the high-speed Boten–Vientiane railway, which officially opened in December 2021. This ambitious endeavor, which ultimately cost over US$6 billion, reflects China’s strategic interest in enhancing connectivity between Laos and its neighboring countries. The construction of the Boten–Vientiane railway was not without its challenges, particularly in relation to the legacy of the Vietnam War.
The route had to be meticulously cleared of unexploded bombs dropped during the war, a dangerous and complex task that added to the proje.