December 6, 2024
VIENTIANE – Laos and Hong Kong signed an action plan last week to simplify customs procedures and ease cross-border trade, in a move to enhance trade and investment ties between both sides.
The Authorised Economic Operator (AEO) Mutual Recognition Arrangement (MRA) Action Plan was agreed to at the customs headquarters building in the Chinese city, according to the Lao consulate in Hong Kong.
Hong Kong Customs said on its Facebook page that the signed Action Plan with Laos marks a significant step towards the conclusion of the MRA process.
Signing for the two sides was the Deputy Director General of the Lao Customs Department under the Ministry of Finance, Mr Vongvanhpheng Phoumsavanh, and Assistant Commissioner of Customs and Excise in Hong Kong, Mr Rudy Hui.
Hong Kong’s Commissioner of Customs and Excise, Ms Louise Ho, and the Lao Consul General to Hong Kong, Mr Ammala Saenchonghack, joined the action plan’s ceremony, where certificates and partnership awards were also given to existing AEOs.
The AEO MRA’s key benefits include priority places in customs clearance, which means AEOs enjoy faster customs clearance processes, reduced wait times, and lower costs with improved security standards.
“Under the MRAs, AEOs from the signatory countries or regions enjoy reciprocal trade facilitations including reduced customs inspection and prioritised clearance,” Hong Kong Customs said.
Currently, Hong Kong customs has ratified MRAs with 15 of its counterparts, including those in mainland China, India, South Korea, Singapore, Thailand, Malaysia, Japan, Australia, New Zealand, Israel, Canada, Mexico, Indonesia, Macao SAR, and Bahrain.
On expanding the MRA network, Hong Kong customs will now focus on discussions with Belt and Road economies, particularly member states of ASEAN and the Gulf Cooperation Council, as well as African and South American countries.
The signing of the action plan comes after this year’s historic visit to Laos by Hong Kong’s Chief Executive John Lee in July when both sides signed 12 agreements as part of the city’s broader business expansion plan with ASEAN countries.
Both officials say that there is room for Laos and Hong Kong to grow their ties by leveraging each other’s strengths, including Hong Kong’s role as a connector linking mainland China with the outside world and Laos as a key gateway between China and ASEAN countries after the launch of the Laos-China railway. At the 2024 Hong Kong-ASEAN Summit in September, Lao Deputy Minister of Finance, Mr Phouthanouphet Saysombath, advocated for Laos’ drive to become a production base, leveraging its strategic location and its 12 special economic zones set up to attract investment and boost trade.
The deputy minister also called for cooperation in green finance, trade, and logistics, suggesting that ASEAN economies can use Hong Kong’s financial expertise and funding to support green development initiatives in the region.