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Download Article (PDF) Advances in Economics, Business and Management Research, volume 58 Asian B&R Conference on International Business Cooperation (ISBCD 2018) Study on the Operating Mode of Agricultural Demonstration Park in Laos Aided by China Hao Yin Kunming, China [email protected] International Business School Yunnan University of Finance and Economics Kunming, China Huiping Liu [email protected] International Business School Yunnan University of Finance and Economics Ying Gao* Kunming, China [email protected] International Business School Yunnan University of Finance and Economics Abstract—Since the end of 1980s, as China carried out opium Laos has become a favorite target country for Chinese poppy replacement in the northern Laos area with agricultural OFDI. In 2015, China's total investment in Laos has reached projects, Chinese government and investors have played an 5.65 billion US dollars, and there are 125 Chinese enterprises important role in the development of agricultural industry and investing in Laos agriculture, of which 81 Yunnan enterprises, investment in Laos. The survey methods and case methods were accounting for 64.8% of the total, and more than 50% of the used in this text. The relevant conclusions have been drawn from total investment in Yunnan's foreign agricultural investment. cooperation modes and countermeasures. Firstly, the current Laos has grown up to the largest target market of OFDI of development status of the Laos agriculture was analyzed. Yunnan. China's non-financial direct investment in Laos Secondly, the mode of China's assistance to the Laos agricultural reached $1.36 billion, increased by 36.2 percentage points demonstration park was studied from major forms, achievements, compared with the previous year. The amount of OFDI to Laos and major difficulties. Finally, conclusions and some suggestions were discussed, which is of great significance to the aid of China's from China ranked second in ASEAN countries. It achieved agricultural development in Laos. win-win in bilateral economic and trade cooperation and promoted common progress of two countries. Keywords—operation mode; agricultural demonstration park; Scholars have little research on Chinese enterprises to Laos invest in Laos. In view of the existing research results, there is a lack of empirical research on the research on agricultural I. INTRODUCTION investment model and the improvement effect and impact of the development of foreign enterprises in Laos on local China has always promoted the agriculture and rural communities and farmers' life. Compared with the positive development and alleviating poverty in other developing practice of “going out” of Chinese agricultural enterprises, the countries as a priority area for foreign aid. academia lacks deep and comprehensive research on China By building farm, agricultural technology demonstration ASEAN agricultural investment [2]. For the lack of related center, agricultural technology test and promotion station, research, it can provide little theoretical guidance to water conservancy project, providing agricultural equipment investment activities of enterprise. Without research, and materials, dispatching agricultural experts and technicians, enterprises are hard to development healthily. Without research, training agricultural talents for recipient countries, and so on, government lacks reliable information to make decision [1]. China is actively aiding to other developing countries to improve their agricultural production capacity and to deal with II. THE CURRENT DEVELOPMENT STATUS OF the food crisis. AGRICULTURE IN LAOS Agricultural development is essential for developing countries to reduce poverty. Chinese agricultural experts not Agriculture is primary part of Laos' economy. Its only teach agricultural technology in recipient countries, but agricultural construction has made outstanding achievements also actively participate in the agricultural planning work of and provides a good model for the development of other recipient countries and help recipient countries complete the developing countries. The agricultural production in Laos can work of promoting agricultural development. As a pillar be divided into 3 agro-ecological areas in the north, the middle industry in Laos, agriculture has always been one of the hot and the south, of which there are 7 provinces in the northern spots of foreign investment. agro-ecological area, 6 provinces in the central agro-ecological area and 4 provinces in the southern agro-ecological area. The * Corresponding author Copyright © 2018, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 426 Advances in Economics, Business and Management Research, volume 58 northern region has a large population and developed 7 Cassava 1.1 14.7 15.3 industries, but the loss of labor force is relatively serious. The cultivated land area of rural areas has been reduced, and the 8 Coffee 6.5 0.88 4.6 level of agricultural development has lagged behind. The 9 Tobacco 0.5 10.1 4.84 central region is the highest level of agricultural development, Data source: Ministry of agriculture of Laos and the level of Agricultural Mechanization in the region is the highest in the country. The South relies on the shipping advantage of the Mekong River and the level of agricultural III. CHINA’S ASSISTANCE TO AGRICULTURAL development is inferior to that of the central region. DEMONSTRATION PARK IN LAOS Laos is rich in agricultural and forestry resources, which is incomparable to the other landlocked countries. The special A. Main Forms natural climate moistens Laos and enables its people to plant The main forms of agricultural aid to Laos by China various crops on the land. In addition, Laos has plenty of water include aiding to construct farm, agricultural technology and suitable temperature, which provides suitable conditions demonstration center, agricultural technology experiment for the growth of trees and so on, so its forest resources are station and extension station, construction of farmland water extremely rich. Laos has diversified terrain. There are conservancy projects, agricultural machinery, agricultural mountains, plains, hills and so on. the water resources in the products processing equipment and related agricultural territory are rich, such as the Mekong River, the South Sang materials, external assignment agricultural technicians and River and other rivers flowing through. Rivers nourish all experts to teach technology of agricultural production and things on the earth. It is important to emphasize that the soil provide advice on agricultural development. resources in Laos are also more special, such as humus, red soil, and submersible soil. This kind of soil is more fertile and B. Achievements rich in minerals, which plays a positive role in the growth of Chinese investment enterprises are mainly concentrated in crops. Laos is located in Southeast Asia. Neighboring countries the northern part of Laos. The main business projects are belong to coastal countries. Although they are not in the sea, agricultural cultivation, including rice, corn, sugarcane, castor, they are also obviously affected by the marine climate. rubber, cassava, vegetable, tobacco and tropical fruit, etc. [6]. The agricultural products of Laos can be divided into three The key projects of the strategic cooperation between China categories. they are food crops, cash crops and fruit. Rice, corn and the Laos are as follows: and potato are the most important food crops. Coffee, tobacco and tea are the pillar cash crops. The main fruits are tropical C. Laos-Chongqing Comprehensive Agricultural Park fruit, such as coconut, banana, yellow fruit, and so on. For The Laos-Chongqing comprehensive agricultural park is a livestock, pigs, cattle, sheep, chickens, ducks and geese are demonstration project of agricultural cooperation established widely raised. Aquatic products are relatively abundant. Carp by the Chongqing of China and the Vientiane of Laos in 2004. and catfish are favorite by resident. The total area of the park is 5000 hectares. The project is located in Vientiane, the capital of Laos. The park is mainly Because of the unique geographical location, wet and rainy divided into three stages. Agricultural experiments zone and climate, the agricultural economy of the country is growing supporting construction were developed in first stage. Crops, rapidly. At the same time, how to transform natural resources Livestock, Aquaculture are exploited in second stage. into economic resources, how to operate the scientific Agricultural production processing and related industry will be development strategy and promote the healthy development of developed in third stage. Finally, the agricultural experiment agriculture are the urgent problem that Laos need to solve. park would be developed into a comprehensive park with TABLE I. THE MAIN GRAIN CROPS AND ECONOMIC CROPS IN THE agricultural and sideline products processing, and commercial circulation platform. PLANTING AREA AND YIELD 1) Yunnan-oudomxay agricultural science and technology (UNIT: TEN THOUSAND HECTARES) demonstration park Single Plantin Total Agriculture Department of Yunnan province and the Crop output (ton agriculture and Forestry Department of the province of g area output Oudomxay Province in Laos established the agricultural /hectare) demonstration park in April 2007. After several years of 1 Early rice 68 3.76 245 development, 23 hybrid rice
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