Laos is continuing with its drive to increase trade both within and without the Southeast Asian region. In recent years great strides have been made to increase the commercial growth of this country, once seen as the poor relation in the area. Laos is now trading blows with its partners on a more equal footing.
In the latest move, the country’s neighbor Thailand has begun talks on a plan to double bilateral trade to US$8 billion by 2015 from its figure of $4 billion in 2011. The move has been greeted with optimism in both countries.
In Thailand, Deputy Prime Minister Niwatthumrong Boonsongpaisan stated that he will be attending the meeting between the Thai Commerce Ministry and the Lao Ministry of Industry and Commerce on August 8-9. He also serves as Commerce Minister for the country. The plan to double commerce between the two nations has been mooted for some time, it will finally now be discussed officially.
Thailand, which is already the third largest investor in Laos, after China and Vietnam, has agreed to urge more Thai businesses to invest in the country. Currently the biggest investment comes in the mining, forestry, agriculture and handicraft sectors. Tourism is also an important component. Now Thai business is being encouraged to invest in infrastructure.
Asia Tour Advisor CEO Mr. Tran Truong said, “The bilateral commercial investment that Laos already enjoys with Thailand has been an important factor in the growth and development of Laos tourism. Further investment in infrastructure is of course welcomed and can only assist in the growth of tourism here. We are already seeing a large increase in the numbers of tourists booking holidays centered around the two countries.”
Mr. Niwatthumrong also added that he intended to also discuss with the Laos government on the subject of how to jointly solve some of the trade obstacles. This would lead to further cooperation between the private sectors of the two countries. Thailand also intends to assist Laos in developing the One Tambon, One Product (OTOP) scheme, in which Thailand has a lot of experience.
Every year of course there is a large exhibition of Thai business in Laos. Part of the agreement is the extension and further promotion of this, with Thailand. It is assumed that the exhibition, can only get bigger in the future.
In 2012 the trade value between the two countries was worth $4.826 billion. This has grown at a rate of 23.82% per year. Thailand is currently the No 1 trading partner of Laos. Last year’s exports to the country were worth $3.588 billion and imports $.1238 billion. The largest exports are finished oil, vehicles, machinery and steel, whilst main imports include timber, scrap metal and farm produce.
Mr. Tran again, “Laos has been making great strides in recent years, it is both rewarding and encouraging that the country is now seen as a much more equal trading partner with the region. We are proud to represent this wonderful country.”