July 30, 2024
VIENTIANE – Laos and Hong Kong on Monday inked 12 pacts to broaden cooperation in education, economics and trade, reciprocal assistance on tariffs and more, during a visit by the Chief Executive of the island city to Laos from July 28-30.
The agreements will be a reference to enhance future cooperation between the two sides, the Lao Ministry of Foreign Affairs said in a press statement.
The documents were signed during the first visit to Laos by the Hong Kong Special Administrative Region (HKSAR)’s Chief Executive, John Lee, as part of a tour that will also take him to Cambodia and Vietnam.
During talks on Monday with Deputy Prime Minister and Minister of Foreign Affairs, Saleumxay Kommasith, who invited Mr Lee to make this official visit, the two sides noted that his visit was of great significance in bolstering future cooperation between Laos and Hong Kong, which is well known as an international financial hub.
They exchanged views on “pushing relations and cooperation in areas such as economics, trade, investment, finance, banking, education, transportation, health, tourism, and more,” the Lao ministry said.
They also noted that the weekly direct flight between Laos and Hong Kong has enabled more people-to-people and business-to-business links.
Mr Lee was accompanied by high-level officials and around 30 leaders from prominent international, mainland Chinese, and Hong Kong enterprises operating in sectors such as finance, insurance, innovation, technology, professional services, infrastructure, transport, logistics, energy, and hospitality.
The business executives met for talks with Lao entrepreneurs to explore partnership opportunities, leveraging Hong Kong’s role as a superconnector linking China and the world.
“Our aim with this visit is to strengthen the bond between Laos and Hong Kong, and broader economic ties between ASEAN and Hong Kong,” the Chairman of the Hong Kong Trade Development Council (HKTDC), Dr Peter K N Lam, was quoted as saying in a press statement sent to the Vientiane Times.
Hong Kong aims to support the growth of Lao SMEs in areas such as banking, digital finance, logistics, and e-commerce by assisting them in building capacity, finding partners, and exploring new markets.
Meanwhile, the 15-day visa-free policy for Chinese tourists visiting Laos is also expected to generate new business and tourism opportunities.
Deputy PM Saleumxay invited investors from Hong Kong to do business in Laos, leveraging Laos’ position as logistics connector within the region.
The Laos-China Railway, part of the Belt and Road Initiative (BRI), has transformed landlocked Laos into a land link to regional and global supply chains, enabling express freight trains to link Malaysia via Thailand and Laos to China and even Europe.
Mr Lee thanked his host for the warm hospitality extended to himself and his delegation, and pledged to work with the Lao side to enhance cooperation, according to the Lao ministry.
On the same day, Mr Lee also called on Prime Minister Sonexay Siphandone at the Prime Minister’s Office, when the Lao premier welcomed the delegation and encouraged Hong Kong investors to do business in Laos.
Lao Consul General to Hong Kong Ammala Saenchonghuk highlighted the investment opportunities in Laos, saying that as many as 12 Special and Specific Economic Zones (SEZs) are being developed and operated across Laos, offering investment incentives such as tax breaks and low labour costs.
Importantly, the developer of the Vientiane Saysettha Development Zone in Vientiane, part of the broader economic belt under the BRI, indicated that manufacturers in SEZs enjoy privileged access to major markets in countries that provide exemptions or reductions of import tariffs on goods made in Laos, with an unlimited quota.
Approximately 42 countries and territories extend such special treatment to Laos.
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