Hopes for Lao-France trade promotion
Hopes for Lao-France trade promotion
The trade value between Laos and France is still very low when compared to neighbouring countries but the figure is expected to increase in the coming years, according to Lao and French trade officials.
Deputy Minister of Industry and Commerce, Mr Somchith Inthamith delivered a report at the recent Vientiane Economic Forum, drawing more than 100 entrepreneurs from Laos, European and regional countries to debate trends and opportunities in the Asean market.
The government links the achievement of Vision 2030-Least Developed Countries (LDC) graduation to attaining an annual GDP growth rate of around 7 percent from the present to 2020, on the basis of total investments made in each year of around 30 percent of GDP.
More than 50 percent of the investment is expected be mobilised from the private sector both domestic and foreign.
Mr Somchith said the trade value between Laos and France reached almost US$83 million in 2014 and is expected to increase in 2017. However, when comparing with other neighbouring Asean countries this figure is still very low.
On the other hand, it is also noted that the information in trade and investment between the two countries is still limited. In 2016, France's investment in Laos reached more than US$490 million, making France the sixth ranked foreign investor in Laos, he added.
The Government of France has provided grant and financial assistance to Laos through AFD and the French Embassy in Laos. Besides that, French organisations have also provided financial support to Laos.
Currently, there are five assistance projects in Laos through AFD and 23 projects through the French Embassy in Laos at an average of 15 million euro per year and France's assistance to Laos through the mutual cooperation framework at a cost of 25 million euros.
Therefore, we need to promote cooperation in every sector, especially the bilateral economic frameworks, through conducting research on the potential of each country for further economic cooperation and stepping forward to further cooperation in the future, Mr Somchith said.
The Lao government has adopted and revised many laws, especially the revised Investment Promotion Law 2016. These laws provide more favourable financial and non-financial incentives, and equal treatments for domestic and foreign investment.
Therefore, I would like to invite French investors to invest in Laos in various sectors, especially in SMEs and the service sector, namely tourism, financial and others.
I do hope that the good relationships between our two countries will continue to flourish; we hope to support mutual investment, trade and tourism relations over the next years, Mr Somchith said.
