ASEAN-China Free Trade Area and the Competitiveness of Local Industries: Lao PDR

Date: July 2012
Type: Papers and Briefs
Series: Regional Economic Integration Working Papers
Author: Leebouapao, Leebeer; Insisienmay, Sthabandith; Nolintha, Vanthana


This paper provides an assessment of the effect of the ASEAN-China Free Trade Agreement (ACFTA) on three industries-wood processing, cement, and motorcycle assembly-in the Lao People’s Democratic Republic. The paper finds that the ACFTA will have sizable but varying degrees of impact on the three industries. Prices in the three industries become less competitive when tariffs are completely removed. Early preparations to adapt to the ACFTA scheme prior to the full implementation of the agreement are necessary. Improving product quality will be crucial for all of the three industries under review, while brand reputation building is especially a priority for the motorcycle assemblers.


  • Abstract
  • Introduction
  • Theoretical Debates and Analytical Framework
  • Potential Impacts of the ACFTA on Selected Industries
  • Conclusion and Policy Recommendations
  • References