Laos Trading

Laos has 6.646 million people. They are 55% of Lao, 11% of Khmu, 8% of
Hmong, and 26% of other ethnic. Government uses communist state to dominate
the country by Laoss president, Choummaly Sayasone. For geography, Laos is
landlocked and mountainous landscape. Most of mountainous area is in the
northern of country and dense forest as well. Laos has Mekong River that border
between Burma and Thailand. That makes Laos is country has rich water
resource, but it has degradation of natural water because of water pollution. Not
even water quality issue, but also air quality. Air quality is going terrible. That is
due to burning forest, drug of Golden Triangle and traffic. In additional, most of
Laoss exports are raw material such as wood, copper, and coffee. Those exports
are transported to nearest neighbors. They are Vietnam, Thailand, China, and
Cambodia. As for imports is petroleum, and large construction vehicle.
According to Chris Lang (REDD monitor), in 3 years ago, Laos had
external problem about exporting illegal timber to Vietnam. The problem was
revealed when REDD (Reducing Emissions from Deforestation and forest
Degradation) agent came to check resources in Laos and found many logs had
been poured over the border into Vietnam in illegal way. The reason that why
REDD agent came to check Laos resources because of Laos deforestation. The
exporting the round logs and square logs is illegal. Laos has to make them to be
products first. Then they will be transported to other countries such as Thailand,
but Vietnam was exception. As Vietnam had trading timber only see it, they
never to see the quality of it because Vietnam had lack of timber resource. They
didnt care about processing to make timber to be products, cost of it, and is it
illegal? In the procedure to export illegal timber to Vietnam, was involved with
Laoss government and military as well. They had known about this illegal
exporting, but they ignored it by lot of money, under the table money, and quota.
In additionally, Laos wanted to make benefit from timber quickly due to amount
of payment of making timber to be product and they thought it was not to be any
problem if they have money anyway. Which not even made many areas of Laos
became deforestation, but people who lived there had problem to find new
shelter that has abundance resource for living.
Laos has never learned anything about natural resources of country since
in the past. In the past, Laos had many problems of environment, especially
deforestation. Deforestation had been increasing, as hydroelectric facilities
demand of foreign, and growing population. It not only destroyed forest, but all
so reduce nature reserves and groundwater levels. In 1987, Laos was one of
eleven countries in the world that were responsibility of world carbon emission.
Later, the Indochina War happened which made extremely changing of local
ecology. Therefore, government required preserving valuable of wood. They
executed it by forbid swidden agriculture in country. However, it made group of
people who lives depend on this agriculture to planning rice and using forest
product for food. During this executing, government didnt sure that was it
working because of money. The enormous of money those come from foreign
trading. Then government committed to preserve environment resources such
as wild animal, forest, and fish that improve country. They also, committed to
find a new swidden agriculture that not destroy environment. That established
program to reserve resource. That is National Forrest Resource Conservation
and Development Strategy.
In additional, Laos is lacking of communication system. Many rural areas
dont have road system for transportation. Laos doesnt have budget improve
this issue. Therefore, many foreign countries such as China and Japan assist it
because of Laos resource. Many big countries want to buy mass of Laos
resource, but Laos have low quality of communication and technology that
makes income of country from export raw material not only slowly but also
makes a debt. Although Laos got favor from donor from foreign countries, but it
isnt increase Laoss benefit as expected.
Summary, Laos, a country that will be WTO (World trade Organization)
member soon, but Laos makes WTO distrust that what is mean to Laos to be
WTO member. The reasons that WTO distrust Laos because Laos committed to
improve country, but it not like that. Laos had illegal trading with Vietnam that
affect to natural resource problem. The trading of Laos is look like become
worse. Laos had to do alike this as to improve country fastest that government
could do. Therefore, Laos has to prove itself about possibility to make country
from undeveloped to achievement country by legal trading and diligence to solve
all problem that influence economic such as natural resource, drug, black
market, and do it carefully. Then Laos might reach the goal soon as World Bank
has declared. However, the main factor that affect to Laos trading or economic is
not inside country, but it is come from outside country. External problem of Laos
is not only WTOs distrusting, but also prosperity of Laoss neighbor; Vietnam,
Thailand, China, and Cambodia. Most of income country is come from trading
with other countries; therefore if all Laoss neighbor had low prosperity, Laos
would be low as well. As no country that can buy Laos product or they can, but
in low price. It also cannot make a profit for country. According this issue, Laos
could focus on business with neighbors that far away and have constant of
prosperity, for example China, Germany, and France.