Laos needs active preparation for AEC: economist
Laos needs active preparation for AEC: economist
Laos must prioritise the development of infrastructure ahead of the integration of the Asean Economic Community by 2015, a senior economist has said.
“If we compare our situation with two of our neighbouring countries Thailand and Vietnam, where trade cooperation has been established for a long time, we still need to do a lot of work on infrastructure,” economist and business advisor Mr Mana Southichack told Vientiane Times yesterday.
He explained that AEC integration means the free flow of goods, capital and skilled labour and the investment climate must also be more flexible.
“As for our preparedness for AEC integration, Laos will also enjoy business growth within the country and outsiders will enter Laos for business operations as well. This is what is going to happen in the future but the percentage of Lao businesses to move into neighbouring countries will be quite low,” Mr Mana said.
Despite the country having a short time to prepare for integration, many business operators are eagerly looking forward to experiencing the business competition and cooperation over the coming years.
“Lao businesspeople should not only look at local markets but regional markets such as neighbouring Thailand as well as they are also critically important,” he stressed, adding that some Thai businesspeople are already operating their businesses in Laos, especially restaurants, chain businesses and other investments.
He also said that raising the awareness of members of the public about the AEC is still limited in Laos when compared to neighbouring Thailand.
“There are still many people who don't know what the AEC is because they lack access to TV programmes on the subject,” Mr Mana said, adding that the most important factor for Laos to benefit from AEC integration is the development of infrastructure, including drafting laws on business protection, improvements to telecommunications, posts and banking systems.
Laos became a member of the Association of Southeast Asian Nations on July 23, 1997 so this year marks its 17th anniversary of Asean membership.
Presently the Lao government is spending a large amount on road and airport developments to ensure it paves the way for good Asean connectivity.
“The relevant government sector must also properly manage the flow of business operations in Laos with appropriate regulations,” he said.
The Lao government also works on promoting small and medium enterprises by providing advice and improving legal systems to ensure the entrepreneurs are ready for business competition.
With almost a year remaining ahead of AEC integration, Laos will face several challenges and difficulties in terms of education regarding technical and skilled labour developments.
“I think the government will need to take some time to find solutions to all the challenges and obstacles,” Mr Mana added.
vientiane times
