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ASEAN–China Free Trade Area and the Competitiveness of Local Industries: A Case Study of Major Industries in the Lao People’s Democratic Republic

dc.contributor.authorLeebeer Leebouapao
dc.contributor.authorSthabandith Insisienmay
dc.contributor.authorVanthana Nolintha
dc.description.abstractThis paper provides an evaluation of the impact of the ASEAN–China Free Trade Agreement (ACFTA) on industries in the Lao People‘s Democratic Republic (Lao PDR).1 In general, the paper finds that price competitiveness in the three industries under review falls substantially if tariffs are completely removed. However, the degree of impact varies substantially across industries. In the wood processing and cement industries, of which the latter benefits from import substitution policies, competitiveness based on both price and product quality will be affected by the removal of tariffs. Ensuring product quality in the face of increased competition from neighboring countries will be crucial for both industries in order to maintain domestic market share and expand into ASEAN and People‘s Republic of China (PRC) markets. For a foreign direct investment (FDI)-led industry such as motorcycle assembly, the concern over price competitiveness seems to be less significant. However, strengthening product quality and brand reputation should be high on the agenda of Lao People‘s Democratic Republic motorcycle assemblers as they seek to penetrate the neighboring Thai market. This paper concludes by recommending a package of industry-specific policy interventions to prepare Lao People‘s Democratic Republic industries for increased competition in domestic markets and possible expansion into the more competitive regional markets of ASEAN and the People‘s Republic of China
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.titleASEAN–China Free Trade Area and the Competitiveness of Local Industries: A Case Study of Major Industries in the Lao People’s Democratic Republic
dc.typeWorking Papers
dc.subject.expertProject Evaluation & Review Technique
dc.subject.expertOperations Evaluation
dc.subject.expertWorld Trade
dc.subject.expertTrade Volume
dc.subject.expertTrade Promotion
dc.subject.expertTrade Flows
dc.subject.expertTrade Development
dc.subject.expertPatterns Of Trade
dc.subject.adbResources evaluation
dc.subject.adbInput output analysis
dc.subject.adbImport volume
dc.subject.adbExport volume
dc.subject.adbExport Development
dc.subject.adbEconomic agreements
dc.subject.adbInternational market
dc.subject.adbImport policy
dc.subject.adbExport policy
dc.subject.naturalParticipatory monitoring and evaluation
dc.subject.naturalParticipative management
dc.subject.naturalForeign trade routes
dc.subject.naturalTrade routes
dc.subject.naturalForeign trade and employment
dc.title.seriesADB Working paper Series on Regional Economic Integration
dc.title.volumeNo. 98
dc.contributor.imprintAsian Development Bank
oar.adminregionAsia and the Pacific Region
oar.countryLao People's Democratic Republic
oar.authorLeebouapao, Leebeer
oar.authorInsisienmay, Sthabandith
oar.authorNolintha, Vanthana

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  • Regional Economic Integration Working Paper Series
    The Asian Development Bank Working Paper Series on Regional Economic Integration focuses on topics relating to regional cooperation and integration in the areas of infrastructure and software, trade and investment, money and finance, and regional public goods. The series is a quick-disseminating, informal publication that seeks to provide information, generate discussion, and elicit comments.

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