Korean companies seek to expand opportunities in Laos
Korean companies seek to expand opportunities in Laos
More than 100 Korean companies come to Laos each year to seek potential business partners, the Korea Trade-Investment Promotion Agency (KOTRA) recently reported.
Manager of KOTRA, which was established in Laos in 2011 to assist bilateral trade and investment between Laos and the Republic of Korea, Mr Jong-Won Lee, says that currently there are more than 10 distributors importing Korean products to Laos. He expects that number to increase through continuing promotional events.
This year alone KOTRA has arranged its third promotional event, which was led by more than 30 companies including those representing construction equipment, medical equipment, cosmetics, and other consumer goods. Promotional events are aimed to introduce Korean products to Lao businesses who want to be distributors supplying the demands of both local and Korean customers in Laos as well as trying to expand these markets.
The efforts of promotion by the agency are starting to show, as more consumer goods from the Republic of Korea are now available and Laos has seen an increase in buyers as more people become interested in obtaining a variety of goods.
According to the Korean Economic Statistics System, imports to Laos were valued at US$170 million in 2015, an increase of 9.2 percent from 2014.
Some of the main imports include passenger vehicles, freight vehicles, motors, automobile parts, and construction equipment.
Growth is also being seen in exports. In 2015, Lao exports to the Republic of Korea were valued at US$22.9 million, an increase of 52.5 percent compared to 2014.
Main exports include potassium fertiliser, wood, coffee, lead bullion and scraps, fabric, and vegetable ingredients used in natural medicines.
The Republic of Korea is the sixth ranked country investing in Laos, with some 257 projects that have a combined investment value of US$800 million since 2011.
Trade volume between the two countries reached US$199 million last year, according to the Ministry of Industry and Commerce.
