Boosting exports to Laos

According to Vietnam Customs statistics, exports to Laos in the first five months of the year hit US$205.3 million. Main commodities included fruits and vegetables, coal, petroleum, paper, garments and textiles, iron and steel, machinery and equipment, spare parts, electric cables, transportation vehicles, and components. Imports from Laos were estimated at US$228.4 million including corn, wood products, and metals.

State management agencies confirmed that trade turnover between Vietnam and Laos has increased remarkably in recent years, by 38.13 percent to US$274.10 million in 2011, compared to the previous year’s level. Last year, Vietnam earned US$421 million, a 53.3 percent year-on-year increase in export earnings from Laos.

Pho Nam Phuong, Director of the HCM City’s Investment and Trade Promotion Centre (ITPC) said that bilateral trade turnover in the first half of 2013 already reached US$520 million, up 11.6 percent compared to the same period last year.

He cited one advantage for Vietnamese exporters to exploit is that there is a large Vietnamese community in Laos, not to mention this country has to import most of consumer goods from other nations.

The Vietnam trade office in Vientiane said Vietnamese goods currently make up just 16.4 percent of Laos’ total import volume. But some Vietnamese brands and products have proved a hit with Lao customers.

A batch of cars including Mazda 2, Mazda 3, and CX-5 models assembled at a factory in Quang Nam province’s Chu Lai Open Economic Zone will be exported to Laos on July 14 under the terms of an automobile cooperation contract signed between Vina Mazda and Japan Mazda Motors on June 27.

The ITPC has closely coordinated with the Lao People’s Republic’s Consulate General in HCM City to hold a seminar on Laos’ market trend and the city’s trade, investment, and tourism promotion program.

Lao Consulate General Southideth Phommalat said that apart from its hydroelectricity potential, Laos is rich in mineral resources like gold, coal, and iron. In the current process of regional and international economic integration, Laos is set to promote its diplomatic contacts with a view to attracting foreign investment and expanding import-export and tourism activities.

Laos has already introduced its incentive policies for investors in agriculture, forestry, and processing industries, and tourism, he said.

Mr Phommalat recommended Vietnamese businesses deepen their understanding of Laos’ legal system, policies, and administrative procedures, including taxation and labour management. As a reward for such efforts, more opportunities will be opened for them to expand production and business operations.

HCM City will host an investment, trade, and tourism exhibition scheduled for July 22–26 and conduct a Laos market survey from July 22–25. HCM City plans on tailoring the promotion program to businesses operating in garments and textiles, cosmetics, household utensils, food and foodstuffs, electronics, and construction materials.

Lao Government statistics show that since late 2012, Vietnamese businesses have invested in 224 valid projects in 16 out of Laos’ 17 provinces with a total capitalisation exceeding US$4.2 billion.

Two-way trade turnover between Vietnam and Laos is expected to reach US$2 billion by 2015.