Chief Executive of the Hong Kong Special Administrative Region (HKSAR), John Lee.
VIENTIANE: Chief Executive of the Hong Kong Special Administrative Region (HKSAR) John Lee (pic) is leading a high-profile delegation of officials and business leaders to Laos from July 28-30, during which several cooperation agreements are expected to be signed.
This marks the first visit to Laos by the top executive of an international financial, trade, and investment exchange hub as part of his tour that will also take him to Cambodia and Vietnam.
In Vientiane, Lee will meet with Deputy Prime Minister and Minister of Foreign Affairs, Saleumxay Kommasith, who invited him for this official visit.
Lee will also call on Prime Minister Sonexay Siphandone, according to a press statement from the Lao Ministry of Foreign Affairs.
A number of cooperation documents are anticipated to be signed during this visit, Lao Consul General to Hong Kong Ammala Saenchonghuk told Hong Kong media in an interview ahead of Lee’s departure.
Organised by the Hong Kong Trade Development Council (HKTDC), Lee’s delegation includes principal officials from the HKSAR Government 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.
During their stay in Laos, the delegates will visit key locations in and around Vientiane to gain insights into the socio-economic developments of Laos and the outcomes of the Belt and Road Initiative (BRI) expansion, as stated by HKTDC in a press release sent to the Vientiane Times.
Additionally, they will meet with local chambers of commerce to explore business 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,” HKTDC Chairman Dr Peter K N Lam was quoted as saying.
Hong Kong seeks to build upon the close relationship between Mainland China and Laos by creating opportunities for Lao businesses to access the mainland market.
Notably, the Vientiane Saysettha Development Zone and the 15-day visa-free policy for Chinese tourists visiting Laos are expected to generate new business and tourism opportunities.
Hong Kong aims to reinforce partnerships with Laos 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.
In a prepared statement for the interview with Hong Kong media acquired by the Vientiane Times, Consul General Ammala said that frameworks like the BRI and the Regional Comprehensive Economic Partnership provide avenues for Laos and Hong Kong to explore additional opportunities and expand partnerships across various dimensions.
The operation of the Laos-China railway since December 2021, part of the BRI, has transformed landlocked Laos into a land link in the regional and global supply chain, making it more attractive to investors.
Recently, Asean Express, a cargo train system linking Malaysia to Thailand, Laos, and Chongqing, China, completed its first round trip, taking just nine days for a one-way journey compared to 14 to 21 days by sea, resulting in approximately 20 percent cost savings.
The rail network, which also connects to Hong Kong, along with the availability of direct flights between the island city and Vientiane, the capital of Laos, has made it “very advantageous for travel and beneficial for trade and investment for both sides,” Ammala stated.
Twelve Special and Specific Economic Zones (SEZs) are being developed and operated across Laos, offering investment incentives such as tax breaks and low labour costs, further enhancing the advantages for investors, according to the Lao diplomat.
Importantly, the developer of the Vientiane Saysettha Development Zone, part of the broader economic corridor under the BRI, indicated that manufacturers in SEZs will 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.
Ammala emphasised that the expansion of the partnership between Laos and Hong Kong can build on the success stories of Hong Kong investors already active in the country, engaging in sectors such as energy, minerals, agriculture, and services.
The Hong Kong Mortgage Corporation Limited (HKMC) exemplifies this, being among the co-financing entities funding the US$692 million “Monsoon Wind Power Project” in southern Laos, the largest project 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 collaboration between Hong Kong and Laos,” Ammala concluded. - Vientiane Times/ANN
