Economic Analysis - Economy To Benefit From China's Expanding Role In Mekong Development - MAR 2018


BMI View: China is expanding its leading role in the Mekong region as a builder, financier, and coordinator of interregional affairs in an effort to widen its influence in the region, export its industrial capacity and know-how, and to promote its B&R initiative. We expect Laos to be a key beneficiary given its strategic location.

We believe that China will continue to expand its leading role in the Mekong region as a builder, financier, and coordinator of interregional affairs in an effort to build its reputation and influence in the region, support its own construction and industrial companies in light of a slowing domestic economy, and to promote its Belt and Road (B&R) initiative. The improvement in regional transport connectivity will also allow for more supply chain integration and for Mekong countries to increase trade with China. We expect the Laotian economy to benefit immensely from China's rising role given its strategic location linking Kunming to Southeast Asia, particularly its hydropower, transport infrastructure, manufacturing sectors.

China To Play A More Active Role In The Mekong Region

Ambitious Plans To Boost Regional Connectivity
Asia - Possible Regional Rail Network
Source: BMI

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