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Korean firm opens up export business in Laos
An export company from the Republic of Korea is confident it will find a market share for Korean products in Laos, despite facing strong competition.
Jinyoulao Director Mr Langsy Aliyabandith said on Friday the company decided to set up business in Laos because it believed that Party and government policies were creating favourable conditions for foreign investment and stable economic growth.
Mr Langsy was speaking at the grand opening ceremony of the Korean trading company held in Pak Thang village, Sikhottabong district, Vientiane.
Polibureau member and Head of the Party Central Committee Office Mr Bounpone Bouttanavong, Minister of Industry and Commerce Dr Nam Vinhakhet, Vientiane Vice Mayor Mr Annouphab Tounalom, and Jinyoulao President Mr Yoon Byongin also attended the event.
Dr Nam said the Lao government welcomed the company's entry into Laos and would facilitate its business operations. He wished the company every success in doing business in Laos.
Mr Langsy said Jinyoulao imported Korean goods such as LED lights, cosmetics, and engine oil, and hoped its products would gain a foothold in the local market, especially as people's purchasing power is on the rise.
Jinyoulao also imports Korean furniture and will provide a home fittings instalment service for customers.
Economic growth in Laos has been above 7.5 percent over the past five years with hydropower and mining the main drivers of growth. This increasing and stable economic growth has made Laos an attractive destination for overseas companies wanting to explore new business opportunities.
The Korean International Trade Association led a group of 20 Korean manufacturers to Laos in September. The group was seeking Lao business partners to distribute their products, which were mostly construction materials, home appliances, cosmetics, and health and beauty products.
Korean companies have been steadily expanding their market bases in South East Asia, including in Laos and Vietnam and Cambodia, hoping to benefit from the duty free provision under the Asean-Korean free trade agreement.
Korean cars and electronics goods have met with success in the Lao market thanks to Laos' favourable investment policy. The Korean Stock Exchange also established a joint venture to operate the first stock market in Laos.
Analysis shows that Laos looks set to become a new market for Korean companies, thanks to the closer relations between Laos and the Republic of Korea.
The two countries have also opened up their skies to each other. Korean airline Jin Air last week flew its first Seoul-Vientiane charter flight, while Lao Airlines plans to start direct flights to Korea early next year.
vientiane times
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