Laos to import more German heavy trucks
Laos to import more German heavy trucks
A major importer of German heavy construction machines, World International Network Co Ltd (WIN), expects to import about 100 dump trucks this year, up from 50 trucks last year.
“We expect that imports will rise further to 150 or 200 trucks in the coming years,” company representative Mr Ronachai Chinwattanaporn said in an interview at a recent contract signing celebration in Vientiane.
“We believe we can achieve that target because Laos is rich in natural resources and has many mining operations that need a lot of heavy machinery and equipment,” he added. “Currently one mining project in Xepon district, Savannakhet province, is using some of our products and places repeat orders.”
Laos also has many large projects that are the basis for growth in the construction sector.
Mr Ronachai said the company sold about 50 heavy machines or dump trucks in the first year of entering the Lao market. This amount pleased the German manufacturer, MAN Truck & Bus, and they plan to furthe r supply equipment to the Lao market.
The initial sale of 50 trucks was a good start for the company's products in Laos at that time “because it was not easy for German products to enter the Lao market due to their high price and also their high quality,” he added.
Now the importer plans to build a service centre and showroom in Sikhottabong district, Vientiane, to provide after-sales service.
“We expect to open the centre within the next two months,” Mr Ronachai said.
The importer believe business will keep growing in the coming years as the full effects of the Asia Free Trade Area come into play in 2015. Laos is a relatively new member of the Asean community but has a geographical advantage, being surrounded by China, Thailand, Cambodia, Vietnam and Myanmar.
“This means Laos will be a hub with road links to these countries. MAN sees this potential for having its products supply the market in Laos,” he said. “And currently Laos is undergoing development in many areas of construction and other services.”
The imported products include heavy machinery, trucks, concrete mixers, concrete-pumps and dumps. “Now we are focusing on the transportation market,” Mr Ronachai said.
WIN, a Lao-Thai joint venture, was appointed the exclusive importer of MAN products two weeks ago and offers marketing, sales and services for MAN vehicles in Laos.
In 2007, MAN set up regional operating headquarters in Bangkok, Thailand. With a focus on the growth in Asean countries and the Lao market, the company aims to enhance its brand and boost its sales volume to capture the many increasing growth opportunities in Laos.
MAN was approached and given market information and a complete business concept for Laos and was convinced that this was the ne xt country to explore.
vientiane times
