Category: Business

Deputy Minister of Labour and Social Welfare Phongsaisack Inthalath met with President of the Human Resources Development Service of Korea (HRDK) Uh Soo Bong to discuss the export of Lao workers to the Republic of Korea under Korea’s Employment Permit System (EPS) and labour skills training.

The export of workers under EPS is the cooperation between the Ministry of Labour and Social Welfare of the Lao PDR and the Ministry of Employment and Labour of the Republic of Korea as the two countries signed an MoU on exporting Lao workers to Korea under EPS in September 2016.

Under EPS, foreign workers need to pass tests on Korean language and interviews and be selected by Korean employers.

Those passing the tests must learn Korean culture and Korean language for 45 hours, be trained, have health examinations and seek permission from the Ministry of Labour and Social Welfare.

EPS allows foreign workers to work in Korea for three years. The workers can renew the contract for another one year and ten months. Once returning to the Lao PDR, they can also reapply for employment opportunities in Korea.

Since 2018, more than 1,100 Lao workers including 79 females, have been exported to the Republic of Korea under its EPS mechanism.

Lao PDR faces several difficulties in term of exporting workers to Korea. Workers need to be tested for Korean language and key skills. Meanwhile, most workers in provinces are poor and find it difficult to access Korean language class. Data on workers who have completed, renewed contracts or who have had contracts revoked are yet to be properly kept.

Less female workers are chosen compared to their male counterparts.

Many employers cannot expect their workers to arrive in Korea in time as this time is a peak season for tourism. Most seats have been reserved for Korean visitors so few seats can be arranged for Lao workers.

Deputy Minister asked the Human Resources Development Service of Korea to strengthen cooperation on the exchange of information especially the information on those who have completed, renewed contracts and have their contracts revoked and to consider the provision of assistance to Lao workers, especially in case they have disputes with their employers or need to change jobs.

He also asked Korean employers to hire more female workers and increase EPS quota for Laos from 500 to 2,000 per year.

Source: Lao News Agency

The Lao National Chamber of Commerce and Industry (LNCCI) held a meeting with the Department of Commerce of Yunnan Province, China to discuss promotion of trade and economic cooperation between Laos and China’s Yunnan Province in Vientiane on Feb 21.

The meeting was attended by LNCCI President Udeth Suvanavong, Director General of the Commerce Department of Yunnan Province Li Chenyang, and delegations of both sides.

This meeting provided the opportunity for 31 Chinese companies in international trade and investment, processing and construction industries and services to explore the partnership opportunities with Lao counterparts thus contributing to the implementation of the framework of economic-trade cooperation and investment along the Lao-China Economic Corridor.

China is the second largest trade partner of the Lao PDR. The bilateral trade between the two neighbours between 2018 and 2022 reached 15.9 billion dollars, an average increase of 15.63% per year.

The Lao National Chamber of Commerce and Industry is the leading and largest business organization in the Lao PDR, which has more than 1,000 member companies across the country.

Laos-China trade cooperation is mainly limited to border trade, especially between Laos and Yunnan Province, which is regulated by the ASEAN-China Free Trade Agreement, the Asia-Pacific Trade Agreement and the RCEP Agreement.

The main Chinese goods imported by the Lao PDR in 2022 included machinery, electrical appliances and equipment, car parts, steel. Meanwhile, mixed gold, gold bars, bananas, gold ores, iron ores, wood and furniture products, paper and paper products, fertilizers, latex, and fruits (melons, passion fruits, tamarinds) were exported to China.

Source: Lao News Agency

A groundbreaking ceremony was held on Feb 22 for Khaen twin towers of the Sithandone Special Economic Zone in Khong, Champassak, the southernmost province of Laos.

The ceremony was officiated by Prime Minister Sonexay Siphandone, Minister of Planning and Investment Khamchen Vongphosy, Governor of Champassak Vilayvong Boutdakham, representatives of the Sithandone Special Economic Zone developers and relevant authorities.

The multi-purpose buildings will be located at Thakho village, around 2 km from well-known Khone Phapheng Waterfall, known locally as li phi.

Designed to have the shape of Khaen, a Lao musical instrument whose music has been recognized as UNESCO’s world intangible cultural heritage, the twin 63-floor towers (248.9 m high each) will house five-star hotels, commercial offices, entertainment and convention facilities, among others.

Two hotels, each has 13 floors (62 m high), in the shape of tip khao, a Lao traditional container used for keeping steamed sticky rice, will be also built in phase one of the Sithandone Special Economic Zone project.

Investors are expected to invest around 130 million US dollars into developing the construction project over the next three years.

“This development project is an activity of the Sithandone Special Economic Zone development plan that we signed with the government in June 2018. The project is located in an area of 9,846 ha whose 50-year concessional period has been divided into six phases,” said Vice Chairman of Shareholders Council of Sithandone Joint Development Co., Ltd Lati Sisouphannavong.

The Sithandone Special Economic Zone has been designed to be a comprehensive, modern and green economic zone to attract domestic and foreign investments.

There are four special economic zones in Champassak. Established in 2018, the Sithandone Special Economic Zone costs 1,330 million US dollars.

Source: Lao News Agency

The Bank of the Lao PDR (BOL) has issued a decision on foreign exchange rate setting to guide commercial banks in foreign currency trading.

The move allows commercial banks to have a more flexible margin in buying and selling foreign currencies, thereby stabilising the value of the local currency, the kip (LAK).

Specifically, commercial banks are allowed to set the exchange rate each day based on the reference rate set by the BOL.

Accordingly, the buying and selling rates of the LAK/USD of commercial banks must not differ by more than /-4.5% compared to the reference rate of the BOL.

The new decision does not limit the amplitude of the exchange rate between the LAK and the EUR , THB, CNY and other currencies, allowing for possible deviations from the BOL reference rate.

However, in all exchange rates, the gap between the buying and selling rates should not exceed 1%. Commercial banks are required to report the value of their foreign exchange transactions to the BOL on a daily basis, with separate reports for each currency.

In 2023, the Lao government has committed to further tighten the exchange rate based on a market-oriented mechanism but under state management.

Source: Lao News Agency

The Lao National Chamber of Commerce and Industry in cooperation with the Champassak Provincial Chamber of Commerce and Industry is holding Made In Laos Expo 2023 (Feb 10-19) under the team “Revitalize the economy and promote Lao products’ access to overseas markets”.

Held at Lao-ITECC, Vientiane, the exhibition aims to promote the use and commercial production of domestic products, and the competitiveness of Lao products at overseas markets, SMEs, and business matchmaking.

The opening ceremony of the event (Feb 15) saw the presence of Prime Minister Sonexay Siphandone, ministers, presidents of central and provincial chambers of Commerce and Industry, representatives of relevant authorities and international organizations and business community.

“This year exhibition has over 200 booths selling and displaying a variety of products of more than 130 businesses and companies from across the country including one district one product – ODOPs, handicrafts, food, beverage, agricultural products, industrial products, furniture, IT, and services,” said Vice President of the Lao National Chamber of Commerce and Industry Ms Chanthachone Vongsay.

“Interestingly, this year we have invited investors from China, Thailand and Vietnam to exhibit their products, and we also organize many sideline events including meetings, seminars to encourage knowledge sharing, award events and a concert,” Ms Chanthachone Vongsay added.

“Made in Laos Expo was held for the first time in 2011. Annually, a provincial Chamber of Commerce and Industry will co host the event with LNCCI and this year is the turn of Champassak to be the co-host. It designed and decorated the gate of the exhibition which portrays lifestyle, customs, culture and cultural and natural tourism attractions as well as the economic growth of the province,” said LNCCI Vice President Ms Chanthachone Vongsay.

The exhibition also provides the opportunity for businesses to seek new partners, introduce their products and services to domestic and foreign visitors as well as to share ideas and solutions on doing business and production.

Source: Lao News Agency

Vietnam’s industry insiders have shown their confidence in exporting 4 billion USD worth of fruits and vegetables this year given rosy signs recorded recently.

China, the biggest market of Vietnamese fruits and vegetables, reopened its borders in the beginning of 2023, giving Vietnam a number of opportunities to increase shipments there. Particularly, fruit export holds many chances as this market always has high demand for farm produce imports.

Besides, during an official visit to China by Vietnam’s Party General Secretary Nguyen Phu Trong in October 2022, protocols were signed to boost the export of an array of Vietnam’s agricultural products via the official channel to China, opening the door wider for fruits to enter this market.

Dang Phuc Nguyen, Secretary General of the Vietnam Fruit Association, said with China’s complete re-opening of borders, businesses now have many export advantages and can cut down expenses. Goods will be exported in bigger volumes and enjoy faster customs clearance, which will help guarantee product quality better.

Some industries are forecast to be hit hard by inflation, but the fruit and vegetable sector will not be affected that much, he said, noting that this year’s export value may grow by some 20% to 4 billion USD from nearly 3.4 billion USD in 2022.

In 2022, durian shipments alone brought home over 420 million USD, mostly in the fourth quarter, after the fruit had gained the green light to enter China via the official channel.

Durian exports to China are likely to generate 1 billion USD in 2023. Added with the 3 billion USD in revenue like last year, total fruit and vegetable exports can reach 4 billion USD, Nguyen went on.

Not only China, the EU has also removed four herbs of Vietnam from the list of those controlled at a frequency of 50%, namely parsley, coriander, basil, and mint.

It is expected to help boost the recovery of herb production and export to the EU, Nguyen said.

In addition, the return of the International Exhibition & Conference for Horticultural and Floricultural Production and Professing Technology in Vietnam, to be held in Ho Chi Minh City in early March, after a two-year hiatus caused by the COVID-19 pandemic is also hoped to open up numerous opportunities for the sector.

Nguyen Dinh Tung, General Director of Vina T&T Group, said that in January, his firm saw a year-on-year increase of 30% in the number of fruit export orders. Notably, the shipments of pomelo to the US and durian to China contributed much to this growth.

Given this, the company is confident in achieving the growth target of 30 – 40% in 2023, he noted.

Sharing the belief in a bright export outlook, Ngo TuongVy, General Director of the Chanh Thu Fruit Export – Import Co. Ltd, said Vietnamese durian has entered China much later than that from Thailand and Malaysia, but its quality is comparable to the rivals’. This is a basis for the business to continue improving quality and then export volume.

The Chanh Thu company is completely able to double its durian sales to China in 2023, she added.

Source: Lao News Agency