Logistic improvement to lift Laos in Asean trade
A Lao logistics business has joined with one of the largest international supply chain providers increasingly active in the region to grow trade partnerships between Laos and Southeast Asia nations.
Lao Logistic Group Company Limited signed an agreement on Wednesday in Vientiane in partnership with the Linfox International Group aiming to develop the logistic system in Laos to better improve logistics connectivity to neighbouring countries in the region.
The joint venture enables Linfox to provide transport services throughout Laos in partnership with local businesses and people.
CEO Linfox International Group, Ms Gabby Costigan said the partnership provides Linfox with a foothold in the emerging economies of the Mekong Delta region.
“Expansion into the greater Mekong Delta countries of Laos, Myanmar, Vietnam and Cambodia is a key objective of Linfox’s business strategy,” MsCostigan said.
“We see great potential in this region, not only for Linfox, but for the local communities and economies.”
“The position of Laos in relation to its neighbours offers enormous potential as a land-link and location to build further trade connections internationally.”
“It will also generate real income for local business and promote increased investment in the region through the provision of efficient and cost-effective logistics services.”
The partnership will also open up new opportunities for Laos to expand relationships with its Association of Southeast Asian Nations (Asean) trade partners.
“We believe this joint venture is a positive step towards achieving Asean’s regional economic integration agenda,” MsCostigan said.
She added the company looked forward to learning more about Laos, its culture and people as the relationship grows.
Lao Logistic Group Company Limited, Chairman and Managing Director, MrSakhonePhilangam said Laos will further integrate with neighbouring countries so the firm had to cooperate with a company with success and great experience in logistics.
“This will help to lift logistics competitiveness in this region. We ourselves will need to improve a lot of things including capacity building in our work, service systems and logistics technologies. Therefore, we need to cooperate with the experienced company (such as Linfox) to be a partner in this,” MrSakhone explained.
President of the Lao Int’l Freight Forwarders Association under Ministry of Public Works and Transport MrPrachithSayavong said that Laos as land locked country has found it challenging to best utilise transportation to its benefit.
While Laos has partnerships in neighbouring countries it was still hard.
Logistics in Laos faces many problems, not only the infrastructure but it also knowledge and practices in the industry.
“Transportation is a major key to build the economy and integration of Laos with the Asean nations. Among the countries of this region, the access to technology is developing very fast and our neighbours are increasingly fast adopters.
“Laos has been slow and we as yet do not have enough up to date knowledge among the people working in this sector,” explained.
MrPrachith added that this partnership between Lao and Australian logistics companies will lift Laos to a similar level in logistic works.
With more than two thirds of its growing team located in Asia, the Linfox International Group has forged a presence in key Asian markets over several decades.
Linfox describes itself as one of the largest international supply chain providers in the region with a proven reputation for quality, efficiency and market expertise.
With roots in Australia, Linfox shares a strong history and relationships with many iconic global and local brands in Asia, whilst adding value to new customers, markets and locations every year.
According to Linfox, the company’s presence in the Asian FMCG and Retail sectors is longstanding while renowned supply chain solutions are being adopted by customers in the Healthcare and Resources and industrial sectors.