Korean companies seek Lao distributors
Korean companies seek Lao distributors
More Korean companies are interested in investment in automobile parts, construction equipment and cosmetics in Laos, as more economic growth is expected this year.
Director of the Korea Trade-Investment Promotion Agency (KOTRA) Vientiane, Commercial Section of the Embassy of the Republic of Korea, Mr Oh-Hyoung Kwon, commented yesterday during the 2017 Korea Trade Mission in Vientiane.
Mr Oh-Hyoung Kwon said KOTRA was helping nine companies specialising in construction equipment, electronic equipment and cosmetics from Gwangmyeong City to find Lao business partners.
These companies see a chance for business growth through the distribution of construction equipment for example and foresee even further growth as construction in Laos is booming.
Last year more than 100 Korean companies expressed interest in overseas expansion but only 30 companies invested in Laos as Korea’s economy saw slow growth alongside concerns over Laos’ small market.
Mr Oh-Hyoung Kwon said he expected more Korean companies would invest in Laos this year as Korea’s economy has experienced growth of 2 percent in the first three months of the year.
KOTRA will also arrange more meetings to open up opportunities for Korean businesspeople seeking Lao partners.
Promotions were also aimed at introducing Korean products to Lao businesspeople who wanted to be distributors as well as possibly expanding the market to supply the demands of both local and Korean customers in Laos.
KOTRA was established in Laos in 2011 and serves to assist bilateral trade and investment between Laos and the Republic of Korea.
According to the Korean Economic Statistic System, Korean exports to Laos in 2015 were valued at US$170 million, an increase of 9.2 percent compared to 2014.
The main exports included passenger vehicles, freight vehicles, motors, automobile parts, and construction equipment.
Lao exports to 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, wood, coffee, lead bullion and scraps, fabric, and vegetable ingredients for traditional medicine.
The Republic of Korea has the sixth highest investment in Laos, with some 257 projects that have a combined investment 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.
