Finance and banking sectors need to enhance competitiveness
Finance and banking sectors need to enhance competitiveness
The finance and banking sectors will benefit from Laos becoming a member of the World Trade Organisation (WTO) and the Asean Economic Community (AEC), if they increase their competitive ability.
Deputy Director General of the Foreign Trade Policy Department at the Ministry of Industry and Commerce Dr Laohoua Cheuching stressed the point at a seminar held at the Bank of the Lao PDR yesterday.
The seminar was chaired by Vice Governor of the Bank of the Lao PDR Mr Sonexay Sithphaxay.
After becoming a member of WTO, he said, many new opportunities will arise and help boost the country onto the international arena in regards to trade.
Dr Laohoua said as part of the WTO membership, Laos will be treated equally in regards to trade with other member countries through the use of the non-discrimination principles enshrined by the WTO.
Laos would also be able to use WTO dispute resolution mechanisms to protect the country's protected benefits in the international trade arena, he said.
In the meantime, when Laos joins the AEC, there will be opportunities to expand the Lao market to other Asean member countries and attract trade and investment to the country through the mutual agreements rule offering ease of trade and investment.
Asean member countries have agreed to significantly reduce trade and investment barriers, which will help lower the capital costs of production and increase convenience for traders.
According to the four-breakthrough resolution of the 9th Party Congress, it aims to reduce inappropriate and unnecessary processes and regulations, with free trade agreeements aiming to reduce trade and investment barriers.
When Laos opens such cooperation to the world, it will bring new knowledge and technology, as well as administration and management methods to help garner stronger competitiveness in Laos, Dr Laohoua said.
He said once the free market is open, the finance and banking sectors will support trade transactions more frequently, along with improving the deposit and investment channels to enable a stronger financial system.
In addition, direct foreign investment will bring knowledge on banking management, capacity building among personnel and more jobs to Laos.
Dr Laohoua said integration would increase competitiveness and result in effective adjustments and developments in the finance and banking business operations, which would benefit consumers and the national economy.
He said the benefits that Laos stands to gain from financial integration depends on the competitive ability of various businesses and sectors in comparison to those from other countries.
Dr Laohoua said that according to the indicators, the development of the finance sector and the quality of financial institutions is quite low, so improving the competitive ability of the service and finance sector will be essential.
vientiane times
