Historic visit may be a boost, but Vientiane’s economic reliance on its giant neighbour means it faces a tightrope walk in counterbalancing Chinese influence
President Barack Obama’s arrival in Laos for the Asean leaders’ summit this week coincides with a struggle by Laos’ communist party leadership to emerge from the shadow of China’s influence.
China plays a key role in Laos’ economic transformation, with current investments in 760 projects worth US$6.7 billion. Laos’ annual growth rate has soared to 7.8 per cent, lifting per capita income to US$1,730 last year, helped in large part by Chinese investment.