The Ministry of Industry and Commerce in Laos yesterday held a meeting
with representatives of the private sector as it formulates its policy on Asean
economic integration.
Minister Dr Nam Vinhaket presided
over the opening of the half day consultation workshop titled Public and
Private Dialogue on Asean Economic Integration, in Vientiane.
A number of business operators
attended the GIZ-sponsored event. They made suggestions as to the direction
that government policy should take to benefit from the Asean Economic Community
(AEC), which will come into effect in 2015.
Speaking at the opening ceremony,
Nam said the meeting was an important forum to help the government create an
economic development policy in the new environment of Asean economic
integration.
Laos will face various
opportunities and challenges when the Asean Economic Community comes into
being, he said. He advised that the government and private sector should join
forces to address the challenges so that Laos could maximise the potential
offered by regional economic integration.
One of the main purposes of the
AEC is to create a single market and production base within the region where
goods are allowed to flow freely. The AEC will also empower the region to
compete with China, Japan and the Republic of Korea.
Trade officials say one of the
greatest challenges Laos will face is that it will have to reduce import
tariffs for Asean member countries to enable the free flow of goods in the
region. To compensate for the loss in revenue, the government has introduced
the Value Added Tax system.
One of the challenges the private
sector will face is that the extra inflow of goods will make it difficult for
businesses to compete with foreign competitors. Industries that import raw
materials from overseas may not survive in an environment of fierce business
competition.
Lao business operators have urged
the government to provide them with incentives to help them survive amid
growing competition. Those businesses that use domestically sourced raw
materials will be able to produce cheap goods for export. However, they must
improve their operations and learn about regional demand for their products so
they can turn out goods for which there is a market.
The government hopes regional
economic integration will encourage foreign businesses to invest in Laos,
especially in areas for which Laos has a stable supply of raw materials such as
the agricultural processing industry.
Vientiane Times
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