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PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

Figure 22: Mapping of Lao-China
High speed Railway
Currently, China is opening more
effective trade routes between Lao,
Malaysia, Singapore, and Thailand.
As a result, logistic cost for export to
China will be reduced in these areas,
which will contest for Vietnam’s rice
and Cambodia’s rice. Laos PDR rice
and Thailand rice are expected to be
cheaper, more accessible in China,
Malaysia, and Singapore, all three large
markets for high-value rice products.
This will improve the competitive
power for Lao PDR and Thailand rice
in the regional markets, while Vietnam
and Cambodia will see a small steep
in rice export for these markets.
Moreover, road link between Lao and
Vietnam has also enable this country
can ship to central seaports of Vietnam
to export to international markets.
Source: The Logistician (2020).
4.2.7. Labor shortages in agricultural sector

Shifting to development of off-farm activities and changing to industrial
and service sector lead to decreasing labor in agricultural sector. It is a tendency in
economic development in the world as well as in Cambodia, Lao PDR and Vietnam. The
percentage of agricultural labor in total labor force has been decreased rapidly in Lao,
from 57% in 2010 to 37% in 2019. This number is 71% and 61% for Cambodia and 49%
and 35% for Vietnam.
Figure 23: Agricultural labor in total labor force (%)

Source: WB, 2022.

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