Price control to struggle in AEC
Price control to struggle in AEC
The government will be forced to find solutions on controlling the price of goods once the Asean Economic Community (AEC) arrives in 2015, according to an industry and commerce official.
The Ministry of Industry and Commerce's Domestic Trade Department Director General, Mr Leuam Nhongvongsithi, told Vientiane Times the implementation of the AEC will challenge the controlled price of goods as foreign goods begin to enter the Lao market without any customs or tax fees.
The AEC is set to create a single market and production base and a highly competitive economic region of equitable development that occupies a significant place within the global economy.
Mr Leuam said once foreign products enter the Lao market the price of Lao products will be impacted by inflation and local supply and demand.
He said the department will need to control food prices in particular because while some produce will continue to be supplied locally, the import of foodstuff will be of a larger quantity than what can be produced in Laos.
“It will be our job to find resolutions for price controls to ensure as little impact as possible… and to implement regulations to stop the price of local goods fluctuating too much,” he said.
Currently the local market has enough pork, rice and poultry to satisfy demand however foodstuffs that cannot be sourced in-country will be imported, causing prices to rise.
The Domestic Trade Department is working with the Vientiane Industry and Commerce Department, the Ministry of Agriculture and Forestry and other related ministries to address the issue.
vientiane times
