Hong Kong and Laos set to sign accords as PM arrives in Vientiane on Sunday (July 28)

VIENTIAN: Hong Kong Special Administrative Region (HKSAR) Chief Executive John Lee (pictured) is leading a prestigious delegation of officials and business leaders to Laos from July 28 to 30. Several cooperation agreements are expected to be signed during the visit.

This is the first visit to Laos by the director of the international financial, trade and investment exchange centre as part of a tour that will also include Cambodia and Vietnam.

In Vientiane, Lee will meet with Deputy Prime Minister and Foreign Minister Saleumxay Kommasith, who invited him for the official visit.

According to a press release from the Lao Foreign Ministry, Lee will also meet with Prime Minister Sonexaya Siphandone.

A number of cooperation documents are expected to be signed during the visit, Ammala Saenchonghuk, Lao consul general in Hong Kong, said in an interview with Hong Kong media before Lee’s departure.

Lee’s delegation, organised by the Hong Kong Trade Development Council (HKTDC), comprises senior officials from the Hong Kong SAR government and some 30 leaders of leading international, Chinese and Hong Kong businesses operating in sectors including finance, insurance, innovation, technology, professional services, infrastructure, transport, logistics, energy and hospitality.

While in Laos, the delegates will visit key sites in and around Vientiane to learn about Laos’ socio-economic development and the impact of the expansion of the Belt and Road Initiative (BRI), said an HKTDC press release sent to the Vientiane Times.

In addition, they will meet with representatives from local chambers of commerce to discuss business opportunities, leveraging Hong Kong’s role as a super connector between China and the world.

“The aim of our visit is to strengthen ties between Laos and Hong Kong, as well as the broader economic ties between ASEAN and Hong Kong,” HKTDC Chairman Dr Peter KN Lam was quoted as saying.

Hong Kong aims to develop close relations between mainland China and Laos, creating opportunities for Lao businesses to access the mainland market.

It is worth noting that the Vientiane Saysettha Development Zone and the 15-day visa-free period for Chinese tourists visiting Laos are expected to create new business and tourism opportunities.

Hong Kong intends to strengthen partnerships with Laos to support the development of Lao small and medium-sized enterprises in areas such as banking, digital finance, logistics and e-commerce, helping them build capacity, find partners and explore new markets.

In a statement prepared for an interview with Hong Kong media and obtained by the Vientiane Times, Consul General Ammala said frameworks such as the BRI and the Regional Comprehensive Economic Partnership open up opportunities for Laos and Hong Kong to explore additional opportunities and expand partnerships in various dimensions.

The launch of the Laos-China railway from December 2021, as part of the BRI, has transformed landlocked Laos into a land-based link in the regional and global supply chain, making it more attractive to investors.

Recently, the ASEAN Express, a freight train connecting Malaysia with Thailand, Laos and Chongqing in China, completed its first round trip. The one-way journey took just nine days, compared with 14 to 21 days by sea, translating to a cost saving of about 20 percent.

The rail network, which also connects Hong Kong, as well as the availability of direct flights between the island city and Vientiane, the Lao capital, make it “a very advantageous place in terms of travel and beneficial for trade and investment for both sides,” Ammala said.

According to a Lao diplomat, there are twelve special and specific economic zones (SEZs) in Laos that offer investment incentives such as tax breaks and low labor costs, further increasing the benefits for investors.

Importantly, the developer of the Saysettha Development Zone in Vientiane, part of a broader economic corridor under the BRI, has indicated that manufacturers in the SEZ will enjoy privileged access to major markets in countries that grant tariff exemptions or reductions on goods produced in Laos, on an unlimited quota basis.

Some 42 countries and territories grant Laos such special treatment.

Ammala stressed that expanding the partnership between Laos and Hong Kong could build on the successes of Hong Kong investors already operating in the country, engaging in sectors such as energy, mining, agriculture and services.

An example is Hong Kong Mortgage Corporation Limited (HKMC), which is one of the co-financers of the US$692 million Monsoon Wind Power Project in southern Laos, the largest of its kind in Southeast Asia.

“I strongly believe that Chief Executive John Lee’s official visit to Laos will lead to significant success in business cooperation between Hong Kong and Laos,” Ammala concluded. – Vientiane Times/ANN