Hong Kong firms should tap Laos for logistics, green finance in ‘new era’ of ties: top envoy

Hong Kong and Laos signed 12 memorandums of understanding during Lee’s three-day stay in the country’s capital, Vientiane, including a deal between the Hong Kong Shippers’ Council and the Lao National Chamber of Commerce and Industry.

Saenchonghack said the country was aiming to become a “land link” transit hub for regional trade after the completion of the Laos-China Railway in 2021.

“When you look at the geography of [Laos], we are in the centre among the Asean countries. I would say that Laos will be the door to access China in terms of the connectivity on land,” he said.

Goods can now be shipped to Kunming and other mainland Chinese cities through Laos from Thailand and Malaysia via a transshipment facility located on the outskirts of Vientiane, near the border with Thailand.

“Hong Kong has potential, especially for logistics. You have a lot of experience in logistics,” he said.

He added businesses from the city could contribute to Laos’ efforts to build its merchandise trading capabilities, including through logistics support, market access and regulatory advice.

Companies could also share expertise in developing infrastructure, environmental sustainability initiatives and technology.

He said Hong Kong’s experience as a financial hub could help attract and manage investments in infrastructure and development projects.

“The [Laos] government is spending a lot of money to construct the infrastructure. That’s why now the people are concerned,” said Saenchonghack, referring to worries over debt levels that exceeded the nation’s gross domestic product.

“But in fact, after we finish the projects, especially with the policy of the government to transition the country from being landlocked to a ‘land link’ country, then Laos will become attractive to other countries – not only [in terms of] the connectivity, but also [in] green energy.”

Among the 12 agreements announced during the city leader’s visit was a deal between Hong Kong’s CLP Power, the mainland’s CGN Energy and Laos’ Krittaphong Group to explore collaboration in wind and solar energy projects in the Southeast Asian country.

Saenchonghack said the country’s green energy push offered potential opportunities for Hong Kong, one of the top 10 green bond issuers in the world last year in terms of volume, noting that the city had already been involved in funding a wind farm project being built in the southern provinces of Sekong and Attapeu.

The Hong Kong Mortgage Corporation, wholly owned by the government, has loaned US$30 million to the Monsoon Wind Power Project, billed to be the largest wind farm in Southeast Asia once completed, as a part of a financing package led by the Asian Development Bank.

The Thai and Japanese investors in project are also using a Hong Kong-based subsidiary to set up a joint venture with their local partner.

The consul general said the city could strengthen ties and build goodwill in the Association of Southeast Asian Nations by working with member countries on common reginal challenges, such as environmental sustainability, disaster management and public health.

Hong Kong’s trade with Laos stood at US$17 million last year – the lowest among all Asean members.

Saenchonghack conceded the city’s economic interest in Laos remained “a small number”, but he said Lee’s visit marked the new beginning of closer ties.

“This is the new era for Laos and Hong Kong, which will be enhancing cooperation in the future,” he said.

“I’m sure that after His Excellency John Lee’s visit to Laos, Hong Kong people will go to Laos more and more, and also Laos people will come to Hong Kong.”

The two places are currently linked by a once-a-week direct flight between Hong Kong and Vientiane, which was launched three months before Lee’s visit. The country is also offering visa-free travel until December for Hong Kong passport holders under the “Visit Laos Year 2024” initiative.

More than 1 million visitors arrived in the country in the first quarter of the year, over 240,000 of which were from China. There was no breakdown of the data for Hong Kong residents.

Saenchonghack said he hoped Hongkongers would be keen to visit Unesco World Heritage sites in the ancient capital of Luang Prabang and Champasak province, as well as ecotourism activities tied to the country’s numerous coffee farms.

“Hong Kong and Laos people, they don’t know each other well, we need to [create] more understanding, to learn from each other about their culture, society and economy,” he said.

“Now, we already have a direct flight from Hong Kong to Laos, and also we have Laos-China Railway to connect to Hong Kong. I think it’s very advantageous for our future cooperation in people-to-people exchanges.”

Lighter side

Do you have a favourite Cantonese dish or beverage?

My favourite dishes are local fresh seafood in Sai Kung because when I order I can suggest to them how I want the food cooked and my choice of seasonings and special taste. Traditional food like dim sum is also one of my favourites. I love the way the dishes can be shared among family and friends, it’s a good way to enjoy tasty food and spend quality time together.

What is your favourite part about Hong Kong?

I find that Hong Kong is very secure and convenient, particularly transportation, food and services. Hong Kong also has beautiful scenery. I enjoy hiking to The Peak, along the Dragon’s Back trail and walking around Victoria Harbour.

What Hong Kong attractions would you recommend visitors to see?

The must-visit place for me is the Big Buddha, the largest outdoor seated Buddha statue in the world, which is located high in the mountains at Ngong Ping of Lantau Island. Other favourite attractions for me are Kwun Yum Temple in Hung Hom and Che Kung Temple, which are popular places to visit as historical buildings and symbols of Hong Kong’s local folk culture. Moreover, those are the best places to pray for luck and a good future to come.