VientianeTimes-Dec 29
Laos has huge potential to benefit from regional connectivity and economic integration as the land-locked country neighbors several major global trading partners. According to a new Asian Development Bank (ADB) report, the limited trading basket of Laos indicates that there may be unexploited potential for expanding into more diverse products that are traded with regional and global partners. “A potential pathway for diversification is developing shared production and export capabilities through greater regional cooperation,” the report stated. “Therefore, an important issue for national and regional policy is how to encourage the spread of capabilities, technology, knowledge, and network linkages between GMS (Greater Mekong Subregion) neighboring countries to support per capita growth spillovers.” The Lao government has prioritized programs to build road networks, railways and expressways to connect with its neighbors so as to transform the country from a land-locked nation to a land-linked hub. The ADB report suggested that GMS member countries, including Laos, will need to grow significantly faster than the more advanced members, so that convergence becomes a reality.The report also discussed the potential for Laos to upgrade its value chain positioning, diversify its industries, and capitalize on regional cooperation to achieve its development targets. Currently, there are only a few sectors in which Laos produces goods that have product complexity and score higher than the global average. Most of these are associated with primary and low-tech industries. Understanding these opportunities can help to create short-run export diversification opportunities for driving the process of structural transformation. Read more at: https://www.vientianetimes.org.la/freeContent/FreeConten2022_Laos253.php
