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KEY WORD: ASEAN; Free Trade Area;AFTA;LAO;Thai;China;Yunnan;CAOLONG;Yunnan Corporation For International Techno-Economic Cooperation

In Laos, virtually few other local products can have so much popularity and significance like the "Golden Bull" cement, produced by a Chinese-Lao joint venture and regarded as a new monument of the solid friendship between the two nations.

The backside of a 5000-Kip banknote (0.6 U.S. dollars) issued by the Lao government in 1997 highlights the image of the factory compound of the Wanrong Cement Plant One, which in 1994 produced the first batch of the "Golden Bull" cement, also the first-ever home-made cement product in the Lao history.

It may be the highest recognition for any single product in the country.

As Southeast's only landlocked country and one of the world's poorest nations, Laos has a specially urgent need for cement products for infrastructure building and economic development.

"In 1994, Laos made its first cement product in the Wanrong Cement Plant One. After the Wanrong Cement Plant Two began operation in March this year, now the country does not heavily depend on imported cement anymore," said Cao Long, top Chinese representative in the Lao Cement Co., a Chinese-Lao joint venture which owns the two cement plants.

"During the past, Laos had to import cement with high costs, which had further squeezed its already-tightened foreign exchange reserve and resulted in delays of national economic development," he told Xinhua during a recent interview at the spacious, orderly modern factory compound of the Wanrong Cement Plant Two, 150 kilometers north of the Lao capital.

"However, the mass production of the 'Golden Bull' cement starting earlier this year has largely changed that situation, with the product's international-level quality and low prices,"

Cao Long said, mentioning that the brand has occupied half of the cement market in Vientiane and covered seven provinces across the country within several months.

With "Golden Bull"'s growing presence, local cement prices have been slashed from 120 dollars per ton to around 60 dollars per ton, greatly benefiting the country's economic development.

A symbol of Chinese-Lao friendship and cooperation

Moreover, the "Golden Bull" cement is widely viewed as a significant symbol of the growing Chinese-Lao friendship and cooperation.

China invested 300 million Renminbi (36 million dollars) and provided all the technical assistance in building the Wanrong Cement Plant Two, the largest-ever economic cooperation project between China and Laos.

With Chinese technicians' efforts, the project's construction was successfully completed in March this year, nearly two years ahead of the original schedule, thus saving Laos at least 10 million Renminbi (1.2 million dollars) in interest payments for the investment loans.

Meanwhile, Chinese experts equipped the plant with world-class facilities, which curbed emission of smoke and dust by 98 percent and thus protected the environmental resources in the surrounding areas.

The Chinese side also offered trainings for Lao technicians and management staff, helping to create a modern management style combining Lao traditional cultural elements.

"Both Lao and Chinese executives in the joint venture are confident about the product's prospect," said Cao Long, who is also the top Chinese representative in the firm, noting that the project is expected to break even within its first year of operation.

If everything goes well, Laos will be able to repay all loans owed for building the project within six to seven years, and at that time China and Laos will start to share the profits.

Nearly every Lao government official gave the "Gold Bull" cement high marks, saying it started a new phase in the country's economic development and is a successful model for Chinese-Lao economic exchange and cooperation.

"'Golden Bull' not only saves us a lot of foreign exchange, but also boosts Lao people's confidence in building their country," said Mayene Inseng, president of the Committee for Laos-China Cooperation(CLCC), a Lao government agency in charge of cooperation with China.

Actually, Laos, a friendly neighboring country of China since ancient times, is expecting more assistance and investment for its "elder brother".

In 2001, China signed 10 direct investment projects with Laos worth 6.21 million dollars, marking that the total Chinese investment in that country reached 128 million dollars. Recently, a telecom company from Shanghai, China, also signed a large-scale investment project with Laos.

If nowadays one drives along the 150-kilometer-long road between Vientiane and Wanrong, where the two Chinese-Lao cement plants are situated, huge trucks carrying full loads of the "Golden Bull" cement can be seen all the time.

On the roadside where there used to be only wooden houses, the number of cement buildings is increasing, -- a new phenomenon directly resulting from the growing production of the Wanrong Cement Plant Two.

Local officials said the presence of the two big plants is bringing new life to the former hinterland of Wanrong, with the growing number of shops, foreign tourists, bars and hotels.

Meanwhile, living standards of local people have been improved as well.

No doubt, the "Golden Bull" cement is helping Laos to shake off its image as one of the least developed nations in the world. Moreover, it signifies a new high in the growing cooperation between China and Laos.

Source: Xinhua