How is China's New Silk Road transforming Vietnam and Laos? | The New Silk Road | Full Episode

since the launch of its Belton Road initiative China has been seeking to unlock opportunities for collaborating with its former Cold War comrade but despite an urgent need to plug its one hundred billion dollar infrastructure gap growing nationalistic sentiments prevent Vietnam from fully embracing China's new Silk Road and over and Laos joint projects ranging from malls to a mega railway are helping shape the country into osteons next investment hotspot but with the threat of a debt trap rising will its increasing reliance on China ultimately become boon or Bane or landlocked Laos one country is seeking to mature its economy another is on the cusp of something big both share a neighbor who is promising support in exchange for a slice of their economic pie can the New Silk Road truly create a win-win situation for Vietnam Laos and China [Music] [Music] this is Lao Cai a province in Viet Nam's Northwest it's famous for its rice terraces and lush green mountains which are among the tallest in the region but I'm not here just for the scenery my journey to explore China's new Silk Road has brought me to the capital of this picturesque province which shares a border with Jaco an autonomous County in China's Yunnan province I've been greeted with wet weather upon arriving here but for the people of Lao Cai province their rainy days are now far behind them thanks to China and this is why over the past few years Lao Cai has been at the forefront of Viet Nam's trade with China the border between Lao Cai and Jaco which means River mouth and Mandarin is located right at the convergence between Viet Nam's Red River and China's Nancy River and every day vast numbers of goods are transported over these rivers via three different border crossings by rail and by Road but those without the luxury of wheels have a different border crossing experience one that's a little more hectic I mean it is literally a race across the China and it happens every day look at them go carrying whatever they can in their baskets and trolleys sometimes a little too much these farmers and vendors from the nearby Vietnamese hillsides are all competing to be the first to reach the local hook hole markets where spots to sell their goods are not fixed but grabbed based on a first-come first-served basis it's a - because those who arrive late to the Chinese markets probably won't be able to sell all their goods and they'll be making that return trip back with full baskets and empty wallets and that is a walk of shame no one wants to make forty-five-year-old vegetable sellers shem takes part in this mad rush every morning while the border gate opens at 7:00 a.m. every day his day begins three hours earlier that's a lock i wholesale market [Music] here he and his wife spend more than an hour picking the freshest produce which they will later carry across the hakko but I wonder if the payoff from his tedious daily routine is really worth it [Music] as your standard of living improved since doing trade with China I'm about to partake of some they know they know Kali Cheon makes double selling vegetables in China compared to what he would make selling them locally he bought a motorcycle just for the job but before he can sell anything he along with hundreds of others have to first cross the border the immigration clearance is a fuss free affair made all the more pleasant by a very welcoming vibe don't know it either the easy crossing is telling of how close these two countries have become [Music] imports and exports via Luke I totaled 1.6 billion u.s. dollars just in the first half of 2018 and during those same six months the export of agricultural and seafood products from Lao Cai to China raked in more than 300 million dollars in revenue for the city but while the people of Lao Cai have certainly profited from cushy relations with China in the present you do wonder if their past ever gets in the way of their furthering this newfound friendship [Music] I'm in the mountains overlooking Lao Cai province in 1979 this valley was a battleground the site of one of the fiercest fights between Vietnamese and Chinese soldiers in the month-long sino-vietnamese war the border war was triggered by Viet Nam's invasion of Cambodia which was then under the rule of the china-backed Khmer Rouge in 17 days of bloody fighting thousands of Vietnamese died [Music] now nearly 40 years on I'm wondering if the folks from this very community caught in the epicenter of that conflict have managed to move on 31 year old time runs the most popular restaurant in Lao Cai he was born eight years after the conflict but vaguely recalled stories his parents told him about that dark episode in Viet Nam's history the momentum okay well cooked in Rakuten China been doing the super phenom the min senior dollar we took worked and sang banana like my home why that today Ty and his family have not only moved on from the war they welcomed the Chinese we spend as much as a hundred and twenty thousand US dollars every month at his restaurant nearly half of their customers are Chinese nationals who regularly cross the border for the fresh seafood Lao Cai stands for the 14th annual having taught me to talk or do katsumi lemon the partying focus on hood hood you interact with Chinese visitors at your restaurant quite a lot what impression do you have of the Chinese until come in the I don't like to cook you don't leave yet so thank you thanks Andy can we sit missile imaginary with equality I don't know do they do but outside Lao Cai the mood maybe a little less conciliatory what happened in 1979 remains fresh in the minds of Vietnamese across the country some groups have even resorted to use in 1979 as a linchpin to stir up tension surrounding the two countries territorial disputes in the South China Sea most recently in June 2018 plans to build three new special economic zones and a bill proposing new lease terms for foreign firms sparked fresh protests under new laws foreign investors can now lease land in industrial parks like these for up to 99 years so longer than the terms before which was 70 years and that is wearing many Vietnamese who fear the government's relations with China are a little too cozy and worse that they might have already given the mighty Chinese a little too much game in their own economy economist dr. Burt Rutan feels that the worries and fears on the ground are still a little too premature because the draft laws would have to go too many rounds of debates and deliberations before anyone decides to pass them you need to go through very rigorous procedure and at the initial decision by the prime minister many guy of dimension eating about right liberalization fry in terms of incentive for the business for the investment so right now a lot of the bed in Vietnam right number whether we need to that guy or economics patient's own right because we are already very open whatever the outcome of the bill it's unlikely that Chinese investors will be perturbed by the recent developments for many Chinese companies Vietnam offers cheaper labor and a relatively young population with workers below the age of 35 dominating the assembly lines all this coupled with access to the broader ASEAN market is what attracted Vina Soler a leading producer in solar panels to set up its manufacturing operations here by utilizing cutting-edge robotic technology to produce high quality solar panels veena is seeking to promote the use of Chinese solar technology among the Vietnamese community the majority of people in Vietnam and across Southeast Asia can't really afford to install solar panels in their homes so who are your main customers then poor men no go and then go Tico couldn't pay heed couldn't how that happened tamping down hominin go to see cherry and joy Holden thought I should wait to Soylent Donna she want then go horrid I said are you an an amputee Kwanzaa how that Ichi Jing Zhu shin woman you work that's happening right fun ham and cheese yet yeah we gonna want you to chat him the soul who the totally without up Ivan - there's been a rise in anti-chinese sentiment in Vietnam recently and in the past protesters have attacked factories and companies how concerned are you about this Shinta tested arrested had a warrant a Livonia tomji she don't bear in the past your ankle so fact it is Yoshi insulin new iPad no are still young gone so time to don't Isola Lucas orange a moment she she she come quick cheerleader she you know one she that just in a father John Tom the Coons are so low potential call leo sunbae actually atomic enjoy that song go see a girl Saturn Sheen to it hammer home the bounds would have a coupon she got some attention from creating jobs to cross-border trade the benefits of collaborating with the Chinese are being appreciated by locals across the country but a vast majority of the population have mixed feelings about China's new Silk Road plan and are instead pushing for stronger ties with Viet Nam's former enemy [Music] [Music] I'm in Vietnam one of osteons most dynamic economies in one of two communist countries in the Southeast Asian region and Viet Nam's embrace of its communist identity is hard to miss [Music] socialist posters like this one can be found in public spaces across the country the national flag bears a variation of the iconic star a universally recognized symbol of communism there's even a park dedicated to Vladimir Lenin in the heart of Hanoi [Music] you'd expect China and Vietnam shared communist ideologies to smooth out the rough patches they've had in the past like the 1979 border war and the ongoing territorial disputes in the South China Sea or maybe not because both countries might still be reconciling their checkered history and that's despite being comrades in arms during Vietnam most famous war ironically many Vietnamese still appear to be more forgiving towards the Americans whom they spent 20 years fighting than the Chinese who invaded the country in 1979 in fact a recent survey found that 84% of Vietnamese viewed the United States favorably compared to 10% who Express positive attitudes towards China but the reality is in recent years it has been the Chinese not the Americans that have been helping Vietnam develop some of its most critical infrastructure the Vietnamese government continues to be caught in a tough balancing act while it recognizes the people's attitudes towards China it also needs to raise more than a hundred billion dollars worth of investment to meet the country's infrastructure needs and China's extensive Belton Road initiative offers many opportunities for Vietnam to fill this wide infrastructure gap a case in point is the Catlin haedong urban railway line in Hanoi for which China provided more than 300 million dollars in loans it also supplied the manpower and technology that was used in the railways construction one man can have positive contribution to infrastructure development in the sofa you can observe the tariff reduction very significantly even we have in the reason many API free trade areas so parry is no more problem so how you can facilitate you try investment and business so connectivity infrastructure development a important in principle Vietnam has already committed to participating in China's belt and road initiative Chinese President Xi Jinping's visit to Vietnam in November 2017 saw the signing of an MoU in which both China and Vietnam pledged to implement the belt and road initiative but the question on many observers minds is whether the recent MOU would lead to any further substantial collaborations so far not any project come from that initiative of you're not like many other countries they already have some displacement from the IRB I think not because of two reasons number one Vietnam in the process of development and we change yeah man the infrastructure development especially since the launch of the one belt one Road plan China has repeatedly emphasized that the initiative is not just about investing in infrastructure it also hopes to use the New Silk Road to promote cultural exchanges between the Chinese and communities around the world in line with this goal Beijing co-sponsored the construction of this state-of-the-art building the China Vietnam Friendship palace was officially opened by Chinese President Xi Jinping himself in November 2017 this massive mural is what greets you when you enter the palace and it depicts a very vibrant cultural exchange between the two countries China and Vietnam and it showcases the various ethnic groups cultural performances and it really encapsulates what both governments seek to achieve with this venue the 35 million dollar building is decked out with the most modern equipment and facilities it has everything you'd need to hold meetings dialogues and parties between the two sides but since it opened about a year ago there hasn't been any of that happening just yet [Music] donjuan for me is the vice-president of the vietnam union of friendship organizations the institution which runs the place at the moment the palace is not under full operation as some of the technical check ups adjustments have to be made but activities like cultural events performances exhibitions language classes traditional medicine receiving visitors from vietnam and china those kind of activities will happen at a time when there might be certain strong feelings towards china in the region how important is it for organizations like you to kind of create a bridge between let's say vietnam and china the attitude of the vietnam is to work together to address issues and with disputes over the islands that belong to vietnam we are determined to continue working with other countries especially china to address according to international laws and by peaceful means diplomatic channels within peace is key to development and prosperity while we wait for the China Vietnam Friendship palace to officially open locals elsewhere in Hanoi have already taken it upon themselves to promote Chinese cultural activities in their community take hai for example he's a former national athlete who was sent by the Vietnamese government to China to learn wushu when he returned he set up this Taiji Club in Hanoi now he's imparting those same values and philosophies he learnt about the art form to his students [Music] mostly John McCain and dangler cheaply MZ Wang no arching Lakai the lot up to the mountain Chile sang-joong rate up in a hillbilly type unison hi horsey Penn bamboo Banton weapon bang do you think that cultural activities like Tai Chi may be a solution towards building bridges between the two countries the military economic Japan you a teen on a Zubat thought knapsack on open hey Luca con un Ojo versa capita they know that no microrna time I open a totally got him to salute [Music] the key to mastering Tai Chi is finding your balance thank you and that's something Viet Nam's government is struggling to do as it seeks new opportunities for collaborating with China while at the same time being careful that it doesn't alienate itself from its public emits a growing protest culture but stories like that of highs do offer some hope it's an example of meaningful people-to-people exchanges which is a key pillar of the belt and road initiative [Music] progress on that front is already in high gear across the border in Laos where Chinese and lotions now collaborate in many industries from construction to film production the Chinese might be winning Lao hearts and minds in the process but can their money help Laos where it matters most to fulfill the landlord's emissions to the osteons next investment hotspot [Music] I'm on the final leg of my journey along China's new Silk Road in Indochina and today my travels have brought me to be in 10 the capital of Laos but before I begin my journey exploring China's growing footprint in the country I'm going to take a slight detour to check out a prominent vientiane icon [Music] it's the first stop for any tourists coming into the city and the most important national monument in town the battousai Laos Arc de triumph as tour guides call it seems to be iconic and ironic fashioned after the one in Paris the Batu Sai is a tribute to Lao soldiers who bravely fought and died during the country struggle for independence against the French French and Indo Chinese influences inspire its design and the cement that was used to build it all was donated by the United States the Americans thought it would be used to build an airport thousands would have an arc instead the city's older residents call this a vertical runway just nearby another monument has a less complicated context I'm not only interested in boxin side but also what's next to it here's a water fountain donated by the Chinese government a symbol of Chinese friendship right in the heart of Laos in history a sign of the deep ties that the two countries share [Music] nearly 15 years since the fountains installation the relationship between Beijing and its southern neighbor is stronger than ever because of what's happening elsewhere in the country there's a constant flow of Chinese money into Laos and that's slowly turning this developing country into an investment hub China has invested in everything from hospitals satellite internet and television to shopping malls [Music] [Applause] and when it comes to malls the m10 Center bill two years ago is currently the newest and biggest in the country it's five hectares of anything of Vientiane city-slicker might ever need including a Singaporean style food court dominated by Chinese food stalls this mall is actually pretty small compared to malls in other capital cities across ASEAN like Bangkok for example however I must say that this mall looks pretty sleek and modern and as the first fully air-conditioned retail and entertainment hub in the city it fills a critical void in Laos society especially for its youth that's if they can afford any of this the average lowchen earns just a little more than 200 US dollars a month what this new mall is really selling is a new middle-class lifestyle that's very aspirational and very exciting and I wonder if those aspirations are within the reach of most locals I'm meeting Miao jeongwu he's the general manager of North namche undeveloped Minh the malls parent company as the manager of this mall what is your observation bin do you find that the typical allowing customer or guests to the mall are they able to afford the majority of products that you have for sale here yes I think the majority of our products they affordable for them like for instance just for one noodle one lunch you can go like 20,000 deep in us is around two and a half dollars so affordable and the fold the clothes the price is around a hundred thousand deep so in dollar it's gonna be like 15 okay 15 to 20 dollars so it's not expensive in your opinion would you describe the majority of your customers is mainly being maybe middle class I think yes middle class because before the more opening for the people who won't get middle class products there's no place for them to shop in that so they're gone across the border to Thailand [Music] shopping wasn't the only attraction that drove oceans to time malls there was also this other fix lotions do love their movies and with the opening of this cinema on the top floor of the intense center many have been spared the hassle of crossing the border to catch the latest Hollywood flicks this five Hall Cineplex boasts the most modern theatre facilities in the country and it's on par with any modern cinema in the region this is easily the most popular place within the mall especially among the youth tonight a woman oh so you like a girl I'm told that in addition to local and Hollywood films the cinema also screens Chinese movies which have become very popular among the lotions but lotions are not just watching on the big screen they're also watching in the comfort of their homes and it's not just movies but Chinese TV dramas as well which are a big hit in Laos there's such a staple among WoW households that an entire industry has emerged dedicated to converting them for audiences here Salian has one of the most famous voices in Laos he's been the go-to dubbing artist for English movies for more than 40 years now but these days Sally young and his audio engineer are getting much more work coming from Chinese content there's much more demand for them thanks to TV platforms like lhasa a chinese run satellite TV service based in vientiane why do you think there's been such a strong demand for Chinese films and TV dramas among Wow audience kyoko company oh wow did you know simcha been been home now atiba you know Meera no TV no mati mati don't I know in whom relative a saw song saying can kill top hit company what that Hong Kong saw did not like a who loves and and a whole lotta me welcome now to me with a civet animal Civic and tongue okay how come you do allow how no it's and I didn't get I allowed the young boy come out you know in other countries you might have audiences who are learning Korean to follow the Korean dramas or they will watch the series in the original language let's say like Chinese and then have the subtitles in their own language why do you think that lotions want to watch Chinese film TV dramas dubbed in in mouth I'm hobby Joe could not I know Kalani well if it's updated miss allowing coloboma I know it's a lie college market boom boom look at my phone no yeah but you manicotti wha lamella yeah no no me and as a team like a number now pontine from malls movies to manufacture [Music] China has pumped billions of dollars into Laos over the past five years making it the largest foreign investor into the country and much of this investment is concentrated in a multi-billion dollar mega railway that will link Laos major cities to China's Yunnan Province but will this mammoth project plunge the country into a debt trap [Music] [Music] as a landlocked largely mountainous country with many in the population living in poverty Laos has for years been perched high on the United Nations list of least developed countries in an attempt to graduate from this list the Lao government has sought billions of dollars in aid and infrastructure investment from China this has helped Laos develop critical infrastructure and places it on track to become osteons next investment hotspot [Music] I visit a Belton Road project that seeks to bring Laos closer to realizing this goal through the Belton Road initiative China has poured record amounts of capital into their less wealthy southern neighbor one of their more prominent projects is this one thus I set a development zone which was jointly set up by the vientiane municipal government and the Yunnan construction and investment Holding Group it's mostly a vast vacant plot now with just over 40 factories but once construction is complete this thousand hectare plot will be more than your usual industrial park there are already plans to build schools hospitals apartments shopping centers and even tourist attractions Leo who is chairman of the Laos China joint investment company the consortium responsible for developing this zone he saw the strategic value in setting up a special development zone in Laos early on we hiko can tune up and out so you could other chairs on the kocha no matter how cool yet to show Tom Verducci talking with part open Okocha Tony Angela sister party you go chiisana use tear got had serious and I use now what you go to one form for that Syria Matisse I go to Holland Lawton which ended the whole SS hide she book - the center I'm a Hawaiian Coco she can see Jane Cocco that year though light a lot what houses nama TC go to Holland ah watch it now we'll go to our the hole I say go fish home when Dino pooja what future plans is your company have for the say setter development zone HSA you go - in the long time in your country watching who sang she'd one chance in tune - ojala part where you go Jenga come on when the movie I don't wanna aside without souvenir soon we the whole I thought how you could see and buy some time do you sir the engine once young cinta [Music] it would take another five years for this I set a development zone to take shape and while both the Lao and Chinese government's hope to draw on the success of this zone to elevate Laos profile as an investment hub they are faced with one critical challenge Laos own geography with its majestic mountains and green valleys through which flows the mighty Mekong River Laos offers some of the most breathtaking views in Southeast Asia but these natural wonders are also its greatest curse the terrain makes travel across the country difficult and that has long deterred investors I visit the site of a six billion dollar Chinese project which promises to help Laos solve this perennial problem [Music] the key to the success of the susceptor development zone is transforming laos from a landlocked to a land linked country and here's how China is helping Laos achieve this as you can see construction is already underway in Luang Prabang for a 414 kilometer railway line linking China to mainland Southeast Asia when completed the railway has the potential to help Laos boost transhipment income by plugging the country into the broader belton road network [Music] this is just one of dozens of tunnels that are being built to allow trains to cut through Laos numerous mountains and they won't just be passing through mountains but across rivers as well here in Luang Prabang a massive bridge is being constructed over the Mekong River which will eventually be linked to the tunnels while I can certainly see how Laos stands to benefit from all this connectivity I can't help but wonder about the impact of all this construction on this heritage town [Music] Oh Melissa by t-ball somebody sabaidee my upon is a staunch supporter of the project because of the hundreds of jobs it is created for the local community including himself he works for the Chinese railway construction company as the captain of this barge the barge transports trucks and construction supplies across the river every 30 minutes along with creating jobs chitta pond service also benefits his fellow villagers who travel on the barge for free passes on go OD Tolyatti oh come on ya go buddy seeing and they come hanoi to confirm with guy oh I think I know I've been here soon - how was your life changed since taking on the job of piloting these barges they were how they my youtube mean he'll I saw we remember YouTube me if you have a couple can be some love - how soon before volume when DJ's a Michael Kay mcclenney Banta cho youngnam because once it works about a pieman hat and nap you know you one guy and kyun my mom and dad said well sir by me not fight no banquet here kabocha me while the mega railway is being celebrated by many in the local community it has also attracted skepticism the project is funded almost entirely by loans from China and with the country's total public debt currently at 70% of these GDP Laos is in critical danger of being set up for a debt trap with China battening Singhania who works in the Laos Chamber of Commerce feels that the costs are justified in the name of progress you know you look into the long terms you know development so we have moved from this landlocked okay to learn linked initiatives and I think that in as a way although is a big investments but I think is a way that can help I don't think that it's just the only way but it can be one of the options that can help so I think connectivity is very important and that's the reason maybe the government has decided to go although it's very big project and it'll cost a lot of a public debt in neighbouring vang vien faith in the mega railway project is equally strong there's a train stop plan for this riverside town and that's raised optimism among the businesses here ever since construction began many foreign investors have also set up shops and restaurants in anticipation of receiving more visitors and more business once the railway starts running Tong Fung a Chinese entrepreneur was quick to jump on the bandwagon he runs a tour agency specializing in outdoor activities such as kayaking and buggy rides already his business attracts close to 4,000 tourists a month he believes this is nothing compared to the number of visitors who will flock here once the belt and road infrastructure projects are completed talita yellow Sorong Sanford suit indigo some tada Shambo Moody Sudha Willa Tweety don't knock watch our country father who taught home PA woman continues honking yoo-hoo finding it eluded Shambo telework hater Italian motor woman the pan to cut a leader how to fun beings freedom fission tada Jimmy de ello so gentle Oh Coco tsukumo get home - ho - yo one either don't worry you koala ah da da da da da da la la la as the saying goes When in Rome do as the Romans do so I conclude my six country journey by exploring bound them the same way tongues customers do all right down the rocket roll [Music] [Music] this journey has certainly given me a lot to reflect on I've seen firsthand how Chinese investment has improved the standards of living for many communities throughout the region but I've also seen cases of how these success stories have come at a price for the locals there are still challenges that states within ASEAN need to address eventually with China despite how much Chinese investment is being celebrated the new Silk Road offers many opportunities to collaborate and I would like to see the spirit of cooperation continue to inspire solutions for overcoming the existing challenges it's only then that China's growing footprint into ASEAN will not be met with fear but a sense of hope [Music] you

Channel: CNA

Views: 1,469,797

Rating: 4.5387769 out of 5

Keywords: new silk road, vietnam, laos, vietnam china, belt road initiative, china

Id: D2mUa8VavDc

Length: 47min 11sec (2831 seconds)

Published: Sun Sep 30 2018