Logistics remains obstacle for AEC integration
Logistics remains obstacle for AEC integration
Laos faces a wide range of logistical challenges with the coming AEC integration such as skilled personnel shortages, high fees for transport and poor infrastructure, according to a senior transport official.
Goods transportation and logistics will also play crucial roles for business connectivity with other countries in the region but Laos still faced issues with underdeveloped infrastructure and no exit to the sea.
President of International Transport Association, Mr Prachith Sayavong, speaking at a recent consultative meeting, said that although the nation already had good legal systems and road and bridge linkages with its neighbours transport fees were still relatively high.
“Goods transport operators have to spend too much money on paperwork at the border. This is an obstacle for transport investors,” he said.
He also noted that trade, investment and transport were still not fully integrated with each other and remained an ongoing problem.
The payment of high taxes at the border plus paperwork for imports and exports remain unresolved issues, which directly affected logistics and transport investors.
“Solving problems for transport is not yet centralised because many provinces have separately announced transport tax in their jurisdictions,” he said.
Mr Prachith said the law on International Transport was not yet widely disseminated to local authorities meaning they still charged for transport differently.
“Some local officials and entrepreneurs still misunderstand about various measures of transport practices. It means that the distribution of the right information on the law is needed,” he said.
He also called on the government to reconsider international transport agreements because Lao vehicles were unable to transport goods to Thai ports and airports but many Thai trucks are running on Lao roads every day.
“This is not fair for the Lao transport sector,” Mr Prachith said.
Meanwhile the Deputy Minister of Public Works and Transport Mr Lattanamany Khounnivong highlighted transport as an important factor in the development of the Lao economy and the expansion of infrastructure was a priority.
“The tax for transport is relatively high because it is not centralised. Every level of authority charges it differently, making it difficult to manage with such a disjointed system,” he said.
He also added that the relevant government sectors were required to work in collaboration with each other to fix these unresolved issues.
