Thai, Vietnamese and chinese products are fluxed into the country. What are the best ways to protect Lao-made goods and to motivate Lao to use Lao products?
Famous thai products in Laos
Entrepreneurs call for high ceiling on import tariffs
Representatives of private enterprises in Laos have proposed that the government make the ceiling for import tariffs as high as possible, as a way of protecting the market for Lao-made goods.
The representatives from several private companies, including manufacturers of cement, steel, and agricultural goods, submitted the proposal to the Deputy Director General of the Policy Department of the Ministry of Industry and Commerce, Ms Bansati Thepvongsa, one of officials responsible for World Trade Organisation (WTO) membership negotiations, during a meeting held on Monday at Lao Plaza Hotel in Vientiane .
Photo: Lao toilet paper
The meeting aimed to provide local enterprises with information about the opportunities and challenges of being a member of the WTO, as well as providing a forum for enterprise representatives to express their opinions on the issue.
The representatives explained that at present, their domestic products could sell well in local markets as similar imported products were more expensive because of the high import tariffs. However, locally made products would be unable to compete once the Lao government began allowing foreign products to enter the Lao market with low import tariffs.
Speaking after yesterday's meeting, Ms Bansati said the government was aware of the issues and was prepared to raise the concerns of Lao entrepreneurs at the next meeting with WTO negotiation partners.
She said she approved of the stance taken by entrepreneurs at the meeting, adding that Lao negotiators planned to set as high a ceiling as possible for import tariffs, as a way of promoting and protecting domestic products.
She explained that all WTO member countries had the right to propose import tariff ceilings; however it was up to other members to agree with proposal before it could be put into practice.
“We must have good reasons to explain why we need higher import tariffs, to convince other WTO members to agree with us. This will be difficult, as negotiation partners have a firm expectation that Laos will introduce much lower tariff rates,” she said.
She said she could not confirm what the exact proposed tariff rate would be, because it would remain flexible until the negotiations.
Ms Bansati said it was natural that each country wanted high import tariff rates, while expecting other countries to reduce their own rates to allow them to export their products at competitive prices.
She said each country considered import tariffs not only as a source of income but also as a tool to protect domestic products; the higher the ceiling for tariffs, the greater the country's advantage.
“This would also mean that we could decrease the tariff rate as need be, such as when we require products such as raw materials for investment projects,” she said.
I'm sorry to say this. I would hesitate to use this bright pink toilet paper if i have other choices. I've seen very light pink an blue before, but never seen this bright color.
the first way to support the production of Lao goods is to invest money in them so that they can be produced to a higher quality. The big problem with most lao goods is that they are 'home made'. Another way is to invest in education and research. We need people who will research consumer markets, who know what consumers want, and how what they want will change in the future. It really does not matter whether products are Lao or Thai or Vietnamese or Swedish or wherever, as long as they are contributing to the economy in Laos. At the moment, most trade in Laos is with foreign goods, so products made in Laos need to improve in quality and in the knowledge behind them. Who would buy a pink toilet roll if they could afford 'huggies super soft' toilet paper which feels like heaven and its advertised on global tv and other media. Answer is, only Lao people who do not have much money.
Laos doesn't need to be a member of WTO since Laos is not a country that would be able to compete with other developed countries. Otherwise, Laos would be just a market of other countries.
Some of our people only think that if Laos is a member of WTO, if Laos would be more developped.
Just think if you have nothing to trade with them, how would gain any profit from them?
It would be nothing different with the land link from Thailand-Lao-Viet or Thai-Lao-China. What can we gain from that? Equally nothing, just being a road for them to pass and trade between Thailand and Vietnam or Thailand and China.
Here, if I were Lao government, I would let Lao authority collect a high tax for foreiners use that roads. Now, Laos get nothing except getting more air and noice polution.
lately, i've seen some clothes with a lable "made in laos"... i couldn't believe it at first, i had to do a double takes... that particular item of clothes was a winter wear for a very popular brand.. "Spyder" for those whom skii or snowboard must heard of this brand name...
i hope to see more stuffs are made in laos..... would be cool if Nike move its factory there..
