AFTA attracts giant Chinese automobile group step into Laos



(KPL) The Lao PDR will launch an ASEAN Free Trade Area (AFTA) next year that it is attracting a large number of big companies from neighbouring countries to invest in the country.

An automobile group of the Government of China, is located in Guangdong province is out of many companies to expand its investment to Laos with a total cost of US$80 million for constructing an automobile assemble plant in Laos.

This is according to a recent announcement of its plan on investment with a hope to benefit from export tax under the AFTA.

Mr. Zhang Jingxin, Chairman of Futas Automobile disclosed that his company was a giant state enterprise on assembling automobiles of China, which assemble various types of automobiles, produce spare parts and automobile parts with a 150 types of automobiles.

“Our company is produced for serving in the Chinese market and now our products have exported to 30 countries in the American continent, Middle East and Southeast Asia,” Mr. Zhang said.

He continued that the automobile assemble plant would be set up in Laos, aiming at producing to serve in Lao market with a high demands and exporting to neighbouring countries.

The Guangdong Company has an initiative investment plan in Laos about US$40 million and plan to employ more than 2,000 Lao workers by focussing on producing 25-35-seats buses, pick-up trucks and jeeps.

At present, the most popular of vehicles in Laos is Korean automobiles because it is not expensive and Lao people can afford it.

However, many expensive cars imported from Thailand and Vietnam if the construction of the Chinese automobile assemble plant completed the cars in Lao market would be cheap.

Source kpl