I saw a pit black Ferrari, plate No. Nor Por 8888, parked in front to
Lao Plaza Hotel as I stepped out of a taxi last Wednesday night. When I asked
about the mysterious owner, a door man answered quickly "I don't
know." I repeated my question to the second door man. "Boh huu"
- I don't know in Lao language, he said with an annoying face.
The doormen might not know who
owns one of the world's most expensive cars, but they know that Lao will soon
graduating from one of the least developing countries in the world. Every day,
they have to open doors of fancy cars for their local guests who frequent this
five- star hotel. After all, the country GDP per capita has risen three-fold
from US$300 in 2000 to US$900 in 2009. It continues to rise up and has earned a
nickname of new young tiger.
But to see something less
fanciful and luxurious, one has just to take a short walk across the street.
Not far from rue Samsenetai where
the hotel is situated, one literally can stroll through a time warp along the
100-meter street named rue Pangkham leading to the heart of this once sleepy
capital city, the Nam Phu (or the Fountain). I walked pass Teng Liang Ky, the
shoe shop that once fixed my old Clark shoe when I covered the Thai-Laos border
in 1986. The famous tailor, Champs Elysee is still there. The shop, which could
make to order a business suite for under US$50 back then, is still untouched by
modernization and booming bars and cafes nearby.
Small boutique hotels, souvenir
shops, cafes have taken up all the front shops. There are also many high-end
restaurants along this narrow road. My favorite bookstore is no longer there.
It has turned into Center of Culture of Vietnam with a large exhibition hall.
It is one of several similar centers established in key cities throughout the
country.
The Namphu is where one can
observe the transformation of Lao society and economy. When Laos was liberated
in 1975, the Namphu stopped spurting water. It was left abandoned without any
care.
Over the years, several
improvements of the landmark were seen with a park theme, beer gardens and many
others. Finally, early this year, the Namphu has become the city's new trendy
place for high-end dinners, young couples and expatriates to sip beer and order
international cuisines along with a live easy-listening rock band, right in
front of the colorful fountain.
For those who love the good old
Nam Phu and garden atmosphere, the current sight is not a beautiful one. There
was little trace of the old Vientiane that I knew back in 1984 during my first
visit. Even the much dreadful 9-floor building belonged to former Ministry of
Culture in front of the Nam Phu has finally received the much deserved
renovation after 37 years of negligence.
One thing has stood unwavering
against all changes is the beef-noodle shop at the Nam Phu's south side. I know
the owner, Madame Thee, when her four children were little boys and girls. Back
in 1980's it was a popular joint for journalists to converge and exchange notes
as there were no cafes or bars or bistros.
Last week, as I walked through
the fountain near the noodle shop, one of the children recognized and called my
name. It was a delightful reunion. Like many other things, the noodle shop will
be moved to a new premise nearby arranged by the new owner who has decided to
build a hotel at the similar location.
Elsewhere in the capital,
preparations are at full swing for the biggest event of all time in history of
Laos, the 9th Asia Europe Meeting on 5-6 November. The capital's main airport,
Wattay International, has received a complete face-lift and additional runways
with US$37.8 million from China and additional funding from Japan. Traffic
policemen are given new khaki uniforms.
The French President Francois
hollande is the most prominent among the leaders and ministers from 51
countries from Asia and Europe who will descend over here for ASEM.
No wonder, the villagers of
Nongdouang-tai in Sikhottabang district have their work cut out for them. They
are working days and nights to weave the so-called magic carpet, measured 1.60
m by 2.39 m, to be used in the office of Lao president, Choummaly Sayasone,
where prestigious guests of ASEM will call on him. The carpet is designed in a
"khom xamnueua"—very intricate pattern comprised of threads of red,
blue, white and dark yellow. Laotians are proud of this weaving tradition.
Moving away from the Asia-Europe
nexus, Laos is also concentrating on the Asean Economic Community.
Vice Minister of Industry and
Commerce, Siaosavath Savengsuksa said last week that Laos needs capacity
building in human resource development to integrate with the broader Asean
economy.
"We have not gotten all the
objectives we hope for because of our inadequate human resource
development," he opined. Laos' score card on its performance towards the
Asean economic integration was among the lowest. For instance, Laos and Myanmar
scored the same level at 40 per cent of the custom standard and trade
facilitation. But in the non-tariff barrier, Laos scores above the average
better than Indonesia or Malaysia, according to a mid-term review prepared by
Economic Research Institute for Asean and East Asia.
Indeed, Laos has come a long way
since the government announced the New Economic Policy or jintanakarnmay in
1986.
For nearly three decades, Laos
has transformed from planned economy to market economy after it learned hard
way that the old system failed to yield adequate agricultural products and
promote industrial development. With such a system, technology transfer was
hard to come by, except those from former Soviet Union and Vietnam.
Since then, Laos has move ahead
with reforms such as price liberalization and reforms in agriculture, state
owns enterprises, foreign exchanges, et al.
Economic progress has grown
steadily followed the reform, which led the country to forge close economic
cooperation with neighboring countries and growing contacts with regional and
international trade arrangements.
So much so that now it is
qualified to join the World Trade Organization which will be decided on 26
October when the 157 members will vote in its favor, ending 15 years of
negotiations since Laos applied to join WTO in 1977 and its efforts to fulfill
263 questions related to Lao foreign trade practices. Laos has worked hard to
earn its place in WTO. In addition, the poverty headcount ratio at national
poverty line falls from 46 per cent in the fiscal year 1993 to 27.6 per cent in
2008.
Laos is aware that the country
cannot depend on the investment focusing on only electricity and mining, which
comprised 49 per cent of total investment in the last decade.
Although investment increased
from US$4 million in 1989 to US$4 billion in 2009, average 173 per cent per
year, Laos wants to see more investment in service and agricultural areas.
Tourism has been given a top priority nowy. With more than two million tourists
visiting Laos last year, potential for more revenue on tourism is huge.
With the Asean chairmanship in
2016, Laos is preparing itself to fully integrate with the economy of
620-million Asean Community. Lao government agencies are instructed to improve
trade facilitation, customs reforms, the use and upgrade of ICT and other
logistic sectors to ensure this ultimate objective can be attained.
Kavi Chongkittavorn
Business & Investment Opportunities
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