Lao freight forwarder proposes domestic transport priority
Lao freight forwarder proposes domestic transport priority
Lao Freight Forwarder Co., Ltd has proposed that the Lao government give priority to domestic transportation companies when it comes to all freight movements throughout the country.
The priority given to local companies will help to boost revenue, contribute to the government budget and promote income opportunities for domestic freight operators.
Deputy Managing Director of Lao Freight Forwarder, Mr Somphone Phasavath told Vientiane Times last week that there are plenty of domestic transport providers but most of the goods in transit are being moved by foreign freight companies.
Foreign operators can be seen transporting loads including minerals, instant products, timber and other goods.
This situation does not bring enough benefits to the government and Lao entrepreneurs will also lose the benefits of international goods transit.
Otherwise, he advised that the government should collect a road passage fee from all foreign trucks in order to boost revenue.
Each year, the government spends a large amount of funds from international assistance and the domestic budget for repairing and constructing the roads.
This revenue will be an important part of contributing to road improvement, he commented.
This priority for local transport companies will also help to reduce accidents as local drivers' knowledge of Lao highways is better than that of foreign drivers, Mr Somphone explained.
This suggestion has been exchanged and discussed at the Greater Mekong-Subregion but there has been no solution as yet.
A profitable freight industry is also one of the benefits to be garnered by transforming Laos from a landlocked country to a land-link in the region.
However the government and the business sector should also prepare a plan to invest in the construction of standard parking and warehouse facilities at the nation's major borders, Mr Somphone suggested.
He noted that transportation companies in Laos still lack professional human resources, for example technicians, drivers, service personnel and others, according to the government's research.
Compared to other Asean countries, the transport support industry in Laos is limited.
Hence, in order to to gain benefits from entering the AEC, it is necessary to organise training for those staff, including transportation companies to strengthen their capacity to transit goods overseas, especially to Thailand, Vietnam, China, or other countries.
If a transport company has to hire foreign staff, they may end up paying as much as three times what they otherwise would in labour costs.
