Asean Summits host role will boost nation's businesses: economist
Asean Summits host role will boost nation's businesses: economist
Lao economists are optimistic about the potential short- and long-term business spinoffs from the country hosting the 28th and 29th Asean Summits and related Summits which will be held next week in the capital.
In addition to any initiatives announced, there is expected to be an immediate benefit to the local economy with many world leaders, delegates, business leaders and media converging upon Laos.
The country experts say the three day summits are expected to bring around 5,000 people to the country, which will help shine the spotlight on Laos as a high-quality destination for tourism and investment.
National Economic Research Institute (NERI) Senior Economist Dr Leeber Leebouapao told Vientiane Times on Monday that businesses related to transport, accommodation and restaurants will clearly benefit from the actual event itself.
A huge amount of money will be spent during the summit. Many hotels and restaurants are fully booked, Dr Leeber said, adding that airlines, retailers of local crafts and souvenirs and providers of associated other services will also benefit from the summits.
The event will also provide opportunities for the longer term as business leaders a meet and discuss cross-border collaborations as well as exploring possibilities of doing businesses here in Laos.
According to Lao National Chamber of Commerce and Industry, more than 300 businesspeople, members of academia and speakers from institutes in and outside of Asean are expected to attend the Asean Business and Investment Summit (ABIS 2016) which will be held to coincide with the Asean summits.
This summit will provide a platform for the business community to engage with Asean leaders and key policy makers alike.
In the long-term, Dr Leeber believed Laos could be an increasingly interesting destination for regional investors and tourists after seeing firsthand the opportunities still awaiting in this landlocked country.
Dr Leeber said the summits would also provide an opportunity for Laos to promote its investment policy to foreign entrepreneurs directly and allow local businesspeople to meet with them and talk about the business outlook and ideas.
Economically, he said Laos had become an attractive destination for foreign investment, particularly with the establishment of Asean Economic Community on December 31, 2015.
The AEC in particular promotes the free flows of goods, services, and skilled labour as well as freer movement of capital across the region.
The 10-nation bloc is now a single market of over 620 million people and production base with a combined GDP of US$2.6 trillion, ranking as the 7th largest economy in the world.
Laos is located in close proximity with major and more advanced nations like China, Vietnam and Thailand. Foreign entrepreneurs can invest in Laos and then export to the rest of the region.
Dr Leeber said one of the most important things for Laos is to further improve infrastructure to truly integrate with neighbours and the rest of the region.
We also need to simplify various procedures for the business sector and take into account the problems of businesspeople and help them to address it, he said.
