Laos wins China approval for fresh durian exports, challenging Thailand
Laos could present a real challenge to other players in China’s vast durian market due to its low costs and logistical advantages
- Laos has received official approval to export fresh durians to China, positioning it to compete directly with established suppliers Thailand and Vietnam.
- Laos holds several competitive advantages, including lower land and labor costs and a new Vientiane-Kunming railway that shortens delivery times and reduces transport costs.
- This trade development is part of China's broader "durian diplomacy" and the Belt and Road Initiative, aimed at strengthening economic ties with Southeast Asian nations.
- To compete in China's lucrative market, Laos is rapidly scaling up its durian industry, with a goal to produce approximately 24,300 tonnes by 2026.
Laos has been given the green light to export fresh durians to China on Friday (December 19), adding another Southeast Asian supplier to a market that has become increasingly crowded as demand for the spiky fruit keeps climbing.
The clearance allows shipments to proceed provided they meet China’s plant-health and quarantine requirements, putting Laos in a position to test how quickly it can scale up volumes and win buyers against established rivals.
Analysts say Laos has several built-in advantages: comparatively low land and labour costs, improved transport links, and close political ties with Beijing.
A key boost is the rail connection linking Vientiane with Kunming in southwest China, which shortens delivery times and can help keep prices competitive for a fruit that often sells at a premium.
Lim Chin Khee, an adviser to Malaysia’s Durian Academy, said logistics and labour costs would be decisive factors for Laos, noting that the fruit’s taste profile is unlikely to differ much from durians grown in neighbouring Thailand and Vietnam because the countries share similar rainfall patterns.
China absorbs the overwhelming majority of global durian exports, with the fruit prized enough to feature as a high-status gift at events such as weddings.
In China, a single durian weighing around 6kg can sell for as much as 200 yuan (US$28), underlining why exporters across the region are racing to expand supply.
Chinese import data shows China brought in about US$6.99 billion worth of durians last year, a record high.
Thailand accounted for roughly 57% of that total, while Vietnam supplied about 38%.
Cambodia, Malaysia and the Philippines made up the smaller remainder.
The expansion of durian trade has also become part of a wider push by Beijing to deepen commercial ties with Southeast Asia, a trend some analysts describe as durian diplomacy, as regional importance rises amid more strained China–US relations.
During a visit to Laos in October 2024, Chinese Premier Li Qiang said Beijing would continue working with Vientiane to help transform Laos from a landlocked country into a more connected “land-linked” hub through the Belt and Road Initiative.
Rajiv Biswas, CEO of Asia-Pacific Economics in Singapore, said China has been supporting Laos in expanding agricultural exports, with the Vientiane–Kunming rail route playing a central role.
He added that approval for fresh durian exports should strengthen Laos–China trade ties and deepen agricultural trade links between China and ASEAN.
Laos is now seeking to accelerate the development of its durian industry.
The country has around 20,000 hectares under durian cultivation, with about 10,000 trees already producing fruit.
It is aiming to harvest from roughly 270,000 trees by 2026, targeting an output of about 24,300 tonnes, as growers and businesses build up know-how to expand and compete in China’s lucrative market.
SCMP
