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Lao businesses size up benefits of China-ASEAN Free Trade Area
Lao business leaders have been learning about the China-ASEAN Free Trade Area (CAFTA) and how they can capitalise on the freer flow of trade.
The Executive Secretary General of the China-ASEAN Business Council China Secretariat, Mr Xu Ningning, visited Vientiane this week to explain the implications of the CAFTA to local businesses.
Mr Nu spoke yesterday at a seminar held at the Lao National Chamber of Commerce and Industry, which was attended by over 40 Lao entrepreneurs as well as Chinese business operators in Laos.
Mr Xu said that by 2015, the tariffs on more than 90 percent of products traded between Laos and China will be zero. “This can be considered a short or a long time, but preparations are vital in order for Lao businesses to be ready.”
It is very important for business leaders to understand the workings of the CAFTA. “It can be a great opportunity if you understand it, and it will be a challenge if you don't prepare, and you will miss opportunities,” he said.
The CAFTA first opened in 2010. Training seminars on the free trade area are held regularly in many parts of China, attended by thousands of entrepreneurs. Mr Xu has also given similar seminars in ASEAN countries including Laos.
“Since the CAFTA opened in early 2010, trade and investment between China and ASEAN has increased.”
ASEAN is the third biggest trading partner of China, while China is the number one trading partner of ASEAN, Mr Xu said.
Total investment between China and ASEAN now stands at about US$9 billion, of which US$6 billion is invested by ASEAN in China, with Singapore the number one investor.
Mr Xu also talked about the main regulations of CAFTA, its development trends, how Lao businesses can promote themselves in China, and how Lao products can exploit the huge China market.
Lao National Chamber of Commerce and Industry Vice President Dr Sananh Chounlamany said “Since the start of the CAFTA, the trade volume between Laos and China has increased significantly.”
The trade volume between Laos and China in 2010 was US$1.6 billion, which was a 47 percent increase on pre-CAFTA trade. Lao imports had increased by 40 percent and exports by 53 percent.
Dr Sananh said that since 2010, more and more Chinese business operators have been investing in Laos and more Lao businesses are seeking export opportunities in China.
The annual China-ASEAN Expo is one of the driving forces of trade and investment in the region. Each year, more and more Lao companies participate in the expo and China continues to encourage Lao firms to display their products and services.
vientiane times
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