Laos minister urges speed-up in AEC preparations
Deputy Prime Minister and Minister of Foreign Affairs Thongloun Sisoulith has called on National Assembly (NA) members to be a driving force in strengthening Laos's preparedness for the launch of the Asean Economic Community (AEC).
Thongloun made the call on Wednesday as he reported on the country’s preparations to join the AEC in 2015.
The deputy prime minister said more action was needed on laws and national budget-spending directed at AEC integration.
He also advised (NA) to amend existing laws and new drafts so they conform to international integration.
Thongloun said Laos’s social order, geographic location and abundance of natural resources could benefit the country when the AEC brought a freeing up of regional trade. “Political stability and social order are the main factors for development, so we are urged to maintain this,” he said.
Other positive conditions mentioned by the deputy prime minister were the huge government investment in infrastructure and the assistance from friendly countries, international organisations and financial institutes.
The AEC will bring tough competition, with free passage of goods and services within the region along with the unrestricted movement of labour.
He also reminded the Assembly of areas where the country needs to improve, saying that Laos was the least developed among the 10 Asean members, while education levels of its citizens remain low compared to others.
Laos also has the least-developed trade and banking system, disadvantages in bargaining, insufficiency of skilled workers and a substandard social welfare system.
Large parts of the country’s transportation infrastructure, including roads, border checkpoints and transit services, do not meet international safety and efficiency standards, he added.
With regard to economic development in general, Thongloun said the national economy was fragile. Its products should be improved in both quantity and quality and production costs lowered, he said.
“To reach all of these goals, transparency is required,” he stressed.
Regarding finance, he advised the government to review its value-added tax policy to see whether it supports or hinders economic development.
He said the industry and agriculture sectors should operate according to their potential, rather than producing too wide a variety of substandard goods.
Thongloun concluded by warning that the weaknesses in administrative mechanisms needed to be addressed quickly.
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