Replace imports by utilising European technology and knowhow
Replace imports by utilising European technology and knowhow
Laos has the potential to produce some higher quality and lower priced consumer products to replace those currently imported and also export them at competitive prices by using European technology.
Shopping at supermarkets, minimarts and local markets we cannot deny that most of the goods we buy, from daily necessities to more sophisticated products,are imported from neighbouring countries.
When we pick up a product and read the ingredients, we sometimes think to ourselves that Laos has plenty of these raw materials at an affordable price, but we just don't know how to process and market them.
Well, one man believes he has the answer.
“Laos can produce a wider variety of common used consumer itemsof higher quality for sale in the country and even export to the region at a competitive price.All it needs is the best technology and knowledge, and Hungary can provide that solution,” said Hungarian National Trading House Director to Laos, Mr Balazs Kotai.
Mr Kotai said the key to this process was the effective use of advanced technology.
He gave the example of Hungarian orange juice which could be sold in Vientiane fora lower price and would be better higher quality compared to drinks imported from neighbouring countries, even though shipping and other fees would be included in the sale price.
“We can do that because we have more effective technology. This can keep production costs low but result in a better quality product that would be more competitive in the market place.”
Mr Kotai said Hungary was known for its technological development and good education system. Hungary's products are of European quality but their price is lower than goods produced in many other European countries as the cost of living in Hungary is lower than – for example – Germany or UK, as well as the labour cost. Hungary expor ts products mainly to other European countries and less well known to the rest of the world.
“Hungary is also a land-locked country, so with that disadvantage we have highly developed technology and have raised the standard of education. With its long history the country is now well known for its technology and knowledge.”
Thanks to the country's skilled, many European brand name products are being made in Hungary, he said.
“It is not only technology that we have, it's the knowledge provided through the technology.”
Laos has potential in agriculture but to be successful more is needed than simply encouraging villagers to grow and export products with small profit margins.
Lao agriculture is predominantly small-scale family based farming so it's hard to compete against large scale production from neighbouring countries in terms of exporting raw products.
“To boost Lao agriculture, this needs to be done through food processing using the best technology,” he said. “This can be a real agriculture sector development and can earn a big income for the country as a whole.”
“I want local businessmen to start looking for opportunities and help develop the sector this way. We are pleased to help, consult and provide the best technology and knowledge on any need.”
Mr Kotai has an answer for naysayers who might think Laos a small market not worth the investment.
“I've been in Laos and in the region for more than 10 years; I know Laos has more potential for business opportunities. As it is developing, there are many gaps to fill, and that is a business opportunity.Important, not to let fulfil this opportunity by others than Lao entrepreneurs.”
“Lao people are now looking for quality products, especially food products as people have more money and care more about their health. We can provide that answer.”
“Especially with the Asean Economic Community (AEC) coming soon, tariffs will be reduced and slowly eliminated, so a product's quality and competitive price are key to competing in regional markets. So it is time to act now.”
The Hungarian National Trading House was established in 2013 by the Hungarian government and the Hungarian Chamber of Commerce and Industry to connect sellers and buyers. It opened in Laos last year. Its aim is to support small and medium companies andits showroom displays products while also assisting in finding business opportunities.
“We have a variety of sectors to offer that businesses can explore. However, in Laos we would like to focus on three main fields that are primarily important: food production and processing; the energy sector - mainly small hydropower; and the information and technology sector. These sectors have potential and are much needed in Laos.”
