Laos' strategic location offers investment incentive
Laos' strategic location offers investment incentive
Laos' strategic location, surrounded by big neighbouring economies – China, Thailand and Vietnam, has provided investment incentives for the country, New Zealand Trade Minister has said.
Mr Todd McClay made the comment recently during his attendance at the meeting between Economic Ministers from the 10 Asean member states as well as Australia and New Zealand held in Vientiane on the sidelines of the 48th Asean Economic Ministers' Meeting earlier this month.
To reach untapped trade and investment potential to promote bilateral economic cooperation, he added, both sides need to explore better ways to get New Zealand's businesses to look at Laos as their destination to establish manufacturing and trade.
“Laos sits in the centre of a number of very large economies whom we trade with a lot more, so I think you [Laos] are very well placed to attract New Zealand investment,” he told local media.
As Laos chairs the Asean Summits this year, a number of meetings have been and will be hosted by the country providing a great opportunity to promote investment potential, the minister stated.
Officials have estimated that at least 5,000 foreign delegates and media representatives will visit the country next month to attend and cover the Asean Summit, as well as its related summits and meetings.
“Our Prime Minister will visit Laos in a few months time and that will be the opportunity for us to further consider ways to encourage our citizens to cooperate more with each other,” he said.
He added that both sides should also work together to promote greater people-to-people exchange during the visit.
“I think the potential can be delivered upon,” MrMcClay said.
Bilateral trade between Laos and New Zealand remains low. Total trade in goods reached only US$7 million in 2014. New Zealand exports to Laos were recorded at US$2 million, while Lao exports to New Zealand reached US$5 million.
To boost greater trade and investment, MrMcClay reiterated that both sides should create frameworks that facilitate New Zealand businesses to come and do business in Laos easily, saying that agreements currently under negotiation including multicultural framework agreements will be effective tools for this process.
In their meeting in Vientiane, the economic ministers of Asean countries, Australia, and New Zealand are all supporting the Asean Economic Community in practical ways, including through the implementation of the Asean-Australia-New Zealand Free Trade Area (AANZFTA) and its economic cooperation support programme.
The ministers acknowledged there is still considerable untapped potential in the trade and investment relationship.
In light of this, the ministers discussed the next phase of AANZFTA and agreed that a general review of the AANZFTA would take place during 2017.
The ministers noted the ongoing pilot study surveying business in the region to identify key non-tariff measures and develop recommendations for addressing them.
Total merchandise trade between Asean, Australia, and New Zealand grew to US$60.3 billion in 2015. Foreign direct investment flows from Australia and New Zealand to Asean amounted to US$7.4 billion in 2015.
