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| President Moon Jae-in, left, and Laotian President Bounnhang Vorachith celebrate after signing a memorandum of understanding between South Korea and Laos following a summit at the presidential palace in Laos, Thursday. Yonhap |
By Kim Yoo-chul
VIENTIANE, Laos ― South Korean President Moon Jae-in vowed to elevate ties with Laos by investing more in various business sectors in the Southeast Asian country.
On the last stop of his six-day tour to three ASEAN countries including Thailand and Myanmar, the President arrived in the Laotian capital, Thursday afternoon. Moon held a summit with Laos President Bounnhang Vorachit on bilateral cooperation.
"South Korea is ready for Laos. We will work together in promoting Laos' real export sector. As Laos is called the battery of Southeast Asia given the country's abundant hydropower resources by way of the Mekong River, South Korea hopes Laos will offer substantial support to South Korean companies that have investment plans in water management-, bio- and medical-related businesses," Moon said at the start of the summit with his Laotian counterpart held in the presidential palace, according to Cheong Wa Dae press pool reports.
Laos is one of the poorest countries in the Southeast Asian bloc but has close to 50 hydroelectric plants operating on various Mekong tributaries and more than 50 planned or under construction, several of them along the main stem of the Mekong.
"Having solid infrastructure is of utmost importance to the operation of countries that want to expand influence in other business sectors that also have greater growth potential in terms of sustainability. South Korea aims to provide assistance in helping Laos get better road, railway and port systems," Moon said.
Total bilateral trade volume between South Korea and Laos last year was valued at $114 million. Laos' imports from South Korea were valued at $84 million and mainly comprised low-end vehicles, trucks, automotive parts, construction equipment, electronics and cheap consumer products.
In a press briefing, presidential economic adviser Joo Hyung-chul told reporters the government is planning to provide various types of assistance to South Korean companies to encourage them to invest more in hydropower, renewable energy, smart cities, digital infrastructure and water resource development.
Laos is on the edge of an economic boom. But its economic stability and financial soundness aren't that strong compared to other ASEAN countries given its increased borrowing. With financial support from China, Laos was aiming to cut the country's debt burden by spending more in large infrastructure-related projects. Data from the World Bank released in August showed Laos would achieve 6.8 percent economic growth throughout this year, up from 6.3 percent last year.
At the summit, President Moon also told Bounnhang South Korea will "explore possible but detailed ways" to offset cumulative impacts of trans-boundary stressors and the impending impacts of climate change, point to a fear that the Mekong River will be affected, the pool reports said.
"The rapidly accelerating pace of climate change is making negative impact on core function of the Mekong River. It's necessary to join forces to protect the huge diversity of wildlife and people that depend on it," the President Moon said.
After wrapping up his state visits to the three ASEAN countries, Moon is set to return to Seoul Airport Friday afternoon.
