Ambassador Peter M. Haymond says the US is assisting Laos in helping its businesses to thrive. -- US Embassy
VIENTIANE (Vientiane Times/Asia News Network): Business leaders from Laos and the United States on Aug 17 held talks in Vientiane to explore potential business opportunities in Laos as the land-locked country is on track to becoming a land-link and transit hub for the Mekong region and beyond.
The talks entitled “US-Lao PDR Business Roundtable: Exploring Business Opportunities” provided a platform for leaders from major American corporations and more than 20 leading Lao companies to discuss and learn about the potential business opportunities in Laos.
Hosted by the Lao National Chamber of Commerce and Industry (LNCCI) and the United States Agency for International Development (USAID), the event would also forge connections that could lead to enduring business partnerships, the US Embassy in Vientiane said in a press release.
The meeting, held in conjunction with an official visit to Laos by a delegation from the Washington DC-based US-Asean Business Council (USABC), took place as the Lao government intensifies efforts to improve the business environment - one of the measures being carried out to address the country’s economic and financial difficulties.
Noting Laos’ efforts to improve the business climate, US Ambassador to Laos Dr Peter M. Haymond said “This is a critical moment for the government and the private sector to work together to address barriers to investment, accelerate economic growth, and create employment opportunities for the modern economy.”
The US, through the USAID Laos Business Environment Project, has supported a number of key initiatives including the Business Roundtable in order to promote international trade and investment in Laos.
“Our goal is to assist the Lao PDR in helping its businesses thrive, recover from Covid-19, and create jobs,” Ambassador Haymond told the Business Roundtable, which he co-chaired with LNCCI President Oudet Souvannavong.
Laos and the United States, which marked their fifth Comprehensive Partnership last year, have witnessed growth in bilateral trade over the last decade.
The increase in two-way trade followed the implementation of the Bilateral Trade Agreement in September 2003 and the Trade and Investment Framework Agreement in February 2016, Oudet said.
During the first six months of 2022, trade between the US and Laos amounted to US$172 million and US investment amounted to US$2.4 million.
“The trade and investment figures look moderate, but they are growing in acceptable directions,” Oudet told the meeting.
The US-ABC delegation is the first to visit Laos since 2018. The group included representatives from leading US corporations including Coca-Cola, Visa, RMA Group, Elanco Animal Health, Pernod Ricard, and Bower Group Asia.
During the meeting, representatives of Lao and American companies discussed a range of topics including investment promotion and regulations, the Lao government’s priorities, the digital economy, business opportunities, and payment systems.
In recent years, the Lao government has stepped up efforts putting Laos on track to become a land-linked country and regional logistics hub.
Since opening for service on Dec 3, 2021, the long-awaited Laos-China Railway linking Vientiane to Yunnan province in southern China has improved Lao logistics and transport services as well as business competitiveness.
Thai logistics service providers say they have benefitted from cuts in the cost of shipping goods from Thailand to China and Europe by rail through Laos and the China-Europe rail network by 20 and 40 per cent respectively, compared to transport by road and sea.
Chairman of the Vientiane Logistics Park Co, Ltd., Chanthone Sitthixay, previously said he believes Laos has the potential to become a new supply chain thanks to its cost-effective logistics and transport services.
Countries such as China, Thailand, Malaysia and Singapore are currently shipping goods through the logistics park and the Laos-China Railway.
In addition, investors operating businesses in Laos’ special economic zones are eligible for special incentives, including tax breaks.
Manufacturers in Laos also enjoy trade privileges and preferences, which major economies including the European Union and the US have extended to products manufactured in Laos.
As Laos becomes increasingly connected with regional and global logistics and transport networks, other countries in the region are seeking to link to these networks through Laos.
Thailand is working with Malaysia to develop a high-speed rail network that will connect with Laos and China – a move that will further enhance Laos’ attempts to become a logistics hub and investment destination.
