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S. Korean manufacturers eye Lao market
Manufacturers from the Republic of Korea view Laos as an emerging market in the South East Asia region, believing there are new business opportunities to be explored here, according to a Korean trade representative.
“Laos is developing very well. I understand that economic growth has been above 7 percent over the past several years,” Korean International Trade Association (KITA) Executive Managing Director Mr Wayne Yee said on Friday.
Mr Yee made the comment while leading a group of 20 medium size Korean manufacturers seeking business partners for product distribution in Laos. Even though it has a potential market of only 6.5 million consumers, the group views Laos as an emerging market.
A meeting to match up Lao and Korean businesses took place in Vientiane on Friday. Most of the Korean firms were manufacturers of construction materials, home appliances, cosmetics, and health and beauty products.
The Koreans also met representatives from the Ministry of Planning and Investment and Lao National Chamber of the Commerce and Industry to learn about investment opportunities in Laos.
Mr Yee said the Korean companies were not only looking at export opportunities but also the possibility of importing Lao goods, in particular agricultural products such as rubber and manufactured goods such as garments and shoes. Korean firms do not produce these goods due to the high cost of labour in the country.
The Korean companies have been expanding their market bases in South East Asia, including in Laos, and hope to benefit from the duty free provision under the Asean-Korean free trade agreement.
“Laos is a member of Asean, therefore we expect to benefit from the Asean-Korean free trade agreement,” Mr Yee said.
A number of Korean products such as vehicles and electronics goods have already found markets in Laos, and the successful presence of these goods has created opportunities for Korean manufacturers to explore further business opportunities here.
Mr Yee also said he considered Laos to be politically stable and recognised that the government had opened its door to the international community, adding this would help to bring more investors to the country.
KITA Director Mr James KZM said although it was the first visit by the association to Laos, the group was confident about exploring business opportunities here, in particular the sale of construction materials. He noted that demand for goods of international quality was increasing due to economic growth.
He also said that, like other countries in the region, Lao people would welcome Korean cosmetic products, along with health and beauty products, due to their fascination with Korean entertainment stars.
The KITA plays an important role in helping Korean companies to export their goods. The association now has about 65,000 companies as members. It also helps the Korean community to boost marketing overseas through research, training and networking with global trade communities.
vientiane times
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