Thailand
Buying ‘Made in Laos’ can boost nation: economist
An economist supported Prime Ministerial Order No. 09 issued on May 19 to ensure the effective use of the State budget, but called for the government to promote stronger spending on local products.
Independent and experienced economist Dr Mana Southichak told Vientiane Times recently that spending can be good for the country’s economy, but the money needs to be disbursed on efforts that promote productivity, industrial manufacturing and job creation activities.
“I think spending on buying new cars and building new offices is unnecessary. I agree with the government saving money in this respect,” he says.
“Nevertheless, the money saved from buying cars and building new offices needs to be spent instead on education, improving infrastructure, particularly roads, and encouraging productivity and skills development and job creation efforts for local people.”
During the week-long celebration of Lao New Year in April, huge spending occurs by local people mainly on groceries and transportation.
Unfortunately, during this period too much is spent on imported goods such as food and fuel; meaning more money is taken out of the country.
Vice President of the Lao National Chamber of Commerce and Industry Ms Valy Vetsaphong commented that encouraging Lao people to spend on locally made products is important to boost the economy.
Nevertheless, it’s also essential to improve the quality of Lao products and price them reasonably so they can compete with imports.
She explained that it’s crucial to explain the PM’s new order to the public, ensuring that many people understand it properly since the order does not aim to promote saving among members of the public, but instead promote the effective use of the budget.
She said in many countries, spending helped boost the economy and create job opportunities for local people, adding if money was spent on buying imported products then it would indeed boost the economies of other countries, not Laos.
Therefore, a stronger campaign was essential for Lao people to utilise their own products. The campaign could be made through trade fairs and other events taking place in Laos and overseas.
Over recent years, Laos has organised numerous trade fairs but small volumes of Lao products were exhibited, which instead have been dominated by imports.
Critics say it’s also vital for government sectors to work with entrepreneurs to make Lao brands known in the region and around the world.
She called for the government to assist the business sector, particularly small and medium sized enterprises (SMEs) by addressing their challenges, including access to finance, and improving product quality and market research.
Source: http://www.vientianetimes.org.la/FreeContent/FreeConten_Buying_145.html