GIZ helping Lao prepare for AEC

GIZ helping Lao prepare for AEC

The German government's development organisation, GIZ, is currently assisting Laos to strengthen its capacity and readiness to reduce possible risks to both the public and private sector after entering the Asean Economic Community (AEC) at the end of this year.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is operating various projects to support the Initiative for Asean Integration under the framework of the AEC including one which su pports the regional economic integration of Laos into Asean in the field of trade and entrepreneurship development (RELATED).

Both projects are very important to Laos as it seeks to gain advantages and minimise risks during Asean economic intregation.

Speaking to Lao media on Wednesday at the GIZ Office in Vientiane, GIZ Country Director Mr Ernst Hustadt said the RELATED project is very important for Laos and that many people will be interested to see the capacity of the country after it enters the AEC.

The purpose of the project is to help Laos to utilise its potential within the AEC and reduce possible risks.

The main target is to improve the conditions and work of the public sector to ensure its readiness such as communication, coordination, monitoring, integration and the improvement of trade, investment and services. The project also seeks to create strength in the private sector, particularly in the area of coffee, as well as the tourism and logistics sectors.

Regarding the supporting project to the Initiative for Asean Integration, the main target is to support Cambodia, Laos, Myanmar and Vietnam in the implementation of the Asean agreement under the framework of the AEC.

The project is being implemented from August 2015 to December 2017, with a total investment value of some 6 million euros. It focuses on technical assistance to institutions and human resources through training, exchanges and study tours.

It also seeks to foster the technical skills required to propel the economy, particularly the labour market and trade, provides facilitation to the negotiation processes, and creates acknowledgment and awareness of opportunities within Laos in the region.

Among the objectives of the project are to help the relevant ministries in Cambodia, Laos, Myanmar and Vietnam to achieve a reduction to trade barriers in the services sector, improve the investment climate, and to increase the competitive capacity of small and medium enterprises in these countries.

The year 2016 will be an important year for Laos after the AEC is established because both the public and private sectors will play significant roles to provide facilities for trade and services and increase competition with other Asean member countries.

Next year is also very important for the country as it will assume the chair of Asean.

The Lao government has confirmed the country is aiming to be the very best host of the Asean Summit during its chairmanship next year.