Challenges
a) Exports:
Challenges and recommendations for exports to ASEAN market:
- A single market in AECwill be a highly competitive market. Therefore, in order to
benefit from opportunities associated with AEC integration, including the reduction of
tariffs and no-tariff bariers as well as other trade facilitation provided by other
ASEAN member countries, it will be necessary to enhance completitiveness by
improving quality of products and by seeking niche markets.
- With the exception of electricity and minerals, the major export products are exported
to ASEAN market only by small sized enterprises exporting mainly agricultural
products. Most of these small enterprises are still lacking capacity to increase their
production and to enhance quality of their products for export. Increasing
productivity and upgrading quality of export products it is the key factor to enhance
competitiveness in joining AEC.
b) Imports:
Challenges and recommendations for imports from ASEAN countries:
- After 2015, the country will lower tariffs for all goods to 0% and eliminate all nontariff
barriers for import from ASEAN member countries. This will lower the price of
imported goods which may lead to extreme competition with domestic producers. For 8
those domestic producers, who cannot compete, their businesses will be less
profitable, encounter losses and even leading finally to bankruptcy.
- More opening and increasing imports from ASEAN member countries may create
social and environment impact for the country in particular crime, cultural impact, ,
environmental issues, others.
c) Labour Migration
Challenges and recommendations for labour migration :
- Domestic workers might migrate to other ASEAN countries where higher wages are
provided. Consequently, this could lead to a shortage of domestic workers, and to
family problems and social problems.
- Labour migrants from ASEAN member countries are likely to increase to Lao PDR
because Lao PDR has relatively small population compared with other ASEAN
member countries and is in shortage of labor forces in particular skilled labor. This
will increase competition for job opportunities in the country and create labor
migrant management challenges. So, Lao PDR needs to enhance coping measures for
labor migrant management.