FoodLatest NewsShopping

Vientiane Eyes Reduced Imports Through Higher Domestic Output

Source: Vientiane Times

City authorities plan to reduce the volume of imported goods by encouraging manufacturers to boost output levels so that more Laos-made goods are available for purchase.

At the same, there will be a drive to persuade more people to buy products made in Laos instead of buying imported goods.

The Mayor of Vientiane, Dr. Atsaphangthong Siphandone, led a meeting at the Vientiane Department of Planning and Investment on Wednesday to discuss what types of goods and equipment could be manufactured by Lao companies, as part of efforts to stabilize the economy, boost production levels, and lower the rate of inflation.

The meeting was attended by officials from the Department of Planning and Investment, Department of Industry and Commerce, Vientiane Chamber of Commerce and Industry, and representatives of Lao companies including the Lao Pipe Co., Ltd., steel manufacturers, and others.

International marketing experience to achieve a successful local outcome.
We are Your Marketing Partners in Laos

Dr. Atsaphangthong said the meeting was convened to enable open discussion about the raw materials and equipment that could be manufactured in Laos in order to replace imports and bolster domestic production levels.

“Higher production levels are essential for the socio-economic development of Laos, especially Vientiane, and at the same time will create job opportunities and make use of available resources for maximum results,” the mayor said.

Companies in Vientiane currently manufacture 834 products for sale to consumers. Officials have named 38 products that could be manufactured in greater quantities to replace imported goods, such as cardboard cartons, steel rods, pipes and other items, according to the Vientiane Chamber of Commerce and Industry.

If domestic production levels can be raised sufficiently to replace the need for imported goods, this would greatly improve Laos’ balance of trade.

Numerous companies have been awarded concessions to use state land for development projects and require raw materials, equipment, machinery, and vehicles to carry out their operations.

But nearly all of these items are imported, with company managers saying the equipment produced in Laos does not match their needs in terms of quality, quantity, service and price.

These companies have also been granted exemptions with regard to the payment of import tax and VAT, with many operating sizeable plantations growing watermelons, bananas and other crops.

Since 2018, the value of goods imported into Vientiane has exceeded US$705 million, including raw materials, materials, machinery, specialised vehicles and other goods, according to the Vientiane Planning and Investment Department.