Experts advise Lao businesses on success in Korean markets
Experts advise Lao businesses on success in Korean markets
Korean experts on creative development are helping Lao businesspeople to improve their agriculture products in response to Korean customers' demands.
The two countries are now enjoying stronger trading opportunities. This is borne out by figures from the Korean Statistical Information Service, which reported in 2015 that the Republic of Korea's exports to Laos were valued at US$170 million, an increase of 9.2 percent compared to 2014.
The main exports are passenger vehicles, trucks, motors, automobile parts, and construction equipment.
Lao exports to the Republic of Korea in 2015 were valued at US$22.9 million, an increase of 52.5 percent compared to 2014. The main exports included potassium fertiliser, coffee, lead bullion and scrap, fabric, and vegetable ingredients for oriental medicines.
The Republic of Korea is the sixth ranked country for investment in Laos, with some 257 projects having a combined value of US$800 million. Trade volumes between the two countries reached US$199 million last year, according to the Ministry of Industry and Commerce.
Deputy Director General of the Trade Promotion Department at the Ministry of Industry and Commerce, Mr Saysangkhom Khotnhotha, said agriculture played an important role in Laos and 75 percent of the population was employed in the sector.
But Laos exports raw materials rather than finished products, so value addition to Lao products is needed to increase export volume, generate more income, and create more jobs.
The number of products available for agro-processing is limited and many of the end products need improvement. Agribusiness needs better technology to achieve consistent levels of quality and quantities as well as certification of the appropriate standards.
Mr Saysangkhom said the Trade Promotion Department is joining forces with the Asean-Korea Centre to help Lao entrepreneurs understand market trends and requirements so that Lao products can be improved accordingly.
For example, the recent seminar in conjunction with Korean experts aimed to encourage Lao companies interested in the Korean market to improve their products to match Korean consumers' preferences.
There is a growing trend in the volume of Korean business flowing into Laos through tourism, investment and bilateral trade, but Lao companies need to know how to make their products suit Korean market trends.
Korean shops are continuing increase in Vientiane, so Lao companies should figure out ways to improve their agricultural products for sale in their shops, Mr Saysangkhom said.
