Bounleuth Luangpaseuth, vice president of the Lao National Chamber of Commerce and Industry (LNCCI), speaks in an interview with Xinhua in Vientiane, Laos, Dec. 29, 2021. (Photo by Phouthaphone Sirivong/Xinhua)
by Zhang Jianhua, Chanthaphaphone Mixayboua
VIENTIANE, Dec. 30 (Xinhua) -- The Regional Comprehensive Economic Partnership (RCEP) agreement, which will take effect on Jan. 1, 2022, is of great significance to promote free trade in the region, a Lao business leader said.
"The RCEP would promote trade and attract investments to all participants in ASEAN indeed. The entry into force of the agreement is of great significance for further promoting intra-region free trade," Bounleuth Luangpaseuth, vice president of the Lao National Chamber of Commerce and Industry (LNCCI), told Xinhua on Wednesday.
"Goods and services could be more freely traded. It will have a significant impact on a wide range of fields including goods, services and investment."
RCEP is a mega trade pact proposed by ASEAN (Association of Southeast Asian Nations) to boost trade among its member states and with its free trade agreement (FTA) partners. It includes the 10 ASEAN members, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, and the bloc's five FTA partners of Australia, China, Japan, New Zealand and South Korea.
It aims to break down trade barriers and promote investment to help emerging economies catch up with the rest of the world. The 15 participating countries of RCEP account for around 30 percent of the global population, global GDP and 28 percent of global trade.
Specifically, Bounleuth said, "The RCEP agreement has great importance for business in Laos, as it will create favorable conditions for more trade, foreign investment and tourism in Laos."
Taking his own business as an example, Bounleuth who is also leading his Luangpaseuth Corporation in the businesses of construction, hydropower development, trading, logistics and tourism, said, "My company is developing eco-cultural tourism in Luang Namtha province. Luang Namtha connects with many countries, especially China. This will be suitable for investment to provide services for travelers from neighboring countries."
Luang Namtha Province, around 450 km north of the Lao capital Vientiane, borders China and also has road connections to Thailand and Vietnam.
"RCEP would open a new chapter for regional economic and trade ties. It will also put Laos in the global spotlight," Bounleuth said, noting the newly-completed China-Laos Railway may play an active role in the framework of RCEP, especially after a dream tour on the train. "I traveled to Oudomxay province Tuesday by the train, it took only over two hours and it was convenient."
"For me, this was like a dream," Bounleuth spoke highly of the railway. Formerly, traveling to Oudomxay in northern Laos by road might take one and a half-day.
The China-Laos railway could potentially increase aggregate income in Laos by up to 21 percent over the long term, the World Bank said in a report last year.
The section connecting Vientiane and Boten (at the northern border with China) could provide Laos with a land link to global and regional supply chains, which could make the country more attractive to investors, create new jobs, and accelerate economic growth, said the report.
"The Laos-China Railway transformed Laos from the land-locked country into a land-linked hub in the region. The railway will be an important piece of infrastructure that increases the nation's transportation connectivity with other parts of the region," the Lao business leader believed.
In this way, Bounleuth said Laos' development strategy to become a land-linked hub is absolutely correct.
As a docking project between the Belt and Road Initiative and Laos' strategy to convert itself from a landlocked country to a land-linked hub, it will slash the travel time between Vientiane and Kunming, capital of southwest China's Yunnan Province, to about 10 hours.
"The railway would definitely play an important and positive role in promoting trade and investment in Laos, and it will create thousands of local jobs," Bounleuth said.
"The Laos-China railway not only benefits bilateral trade, but also benefits other countries that want to invest or export products by using the train. The railway will also promote the implementation of multilateral cooperation." Enditem
Bounleuth Luangpaseuth (R), vice president of the Lao National Chamber of Commerce and Industry (LNCCI), speaks in an interview with Xinhua in Vientiane, Laos, Dec. 29, 2021. (Photo by Phouthaphone Sirivong/Xinhua)
