Laos seeks to acquire Korea Airports Corp.'s ESSG management know-how

Laotian government officials and airport authorities' personnel attend the Korea Airports Corp.'s training session on airport pavement management at Lao Plaza Hotel, Vientiane, Tuesday. Courtesy of Korea Airports Corp.

Korea Airports Corp. provides training program for Laotian government officials, airport authorities on ESG and safety management

By Lee Hae-rin

VIENTIANE ― The Southeast Asian nation of Laos plans to enhance its airport services by implementing Korea's airport management know-how in environment, social, safety and corporate governance sectors and prepare its travel infrastructure for a post-pandemic tourism boom.

The Korea Airports Corp. (KAC) held a training program for the Laotian Ministry of Public Works and Transport's Department of Civil Aviation and airport authorities starting from Nov. 9. About 50 government officials participated in the last day of the five-day training program, Tuesday, at Lao Plaza Hotel in the Laotian capital of Vientiane to acquire KAC's airport management technology and policy knowhow.

Since its establishment in 1980, the company has operated 14 international and domestic airports nationwide, except for Incheon International Airport, and has been providing integrated aviation services. The company has shared airport management know-how with 17 international airports in 15 countries since 2007.

The training program is part of the Korea Trade-Investment Promotion Agency's (KOTRA) Global ESG+ Project. The project aims to solve local social problems by supporting environment, social and corporate governance (ESG) activities of Korean companies. KAC has been establishing win-win cooperation with Laos' airport beneficiaries through the project under the theme of ESSG ― the principle that the company presented in March with an added S representing the value of safety.

The government of Laos and its officials who participated in the training program said the KAC's ESSG know-how will enhance their own hands-on airport management. The five-day program included airport safety and security management, such as pavement evaluation and assessment.

Viengxay Singkham, the director general of Laos' Department of Civil Aviation said, Tuesday, "The training program was a meaningful opportunity to experience and apply KAC's ESSG management policy and technology to Laos' airports."

Sengsangoun Chamthavong, left, an official from the Lao Department of Civil Aviation, and Phoutsavanh Khaikhamphithoun from Airports of Laos answer Korean reporters' questions after the training session on airport safety management in Vientiane, Tuesday. Courtesy of Korea Airports Corp.

Phoutsavanh Khaikhamphithoun, an official from Airports of Laos who participated in Tuesday's training session said he learned to manage the airport budget more efficiently and strengthen airport safety.

Sengsangoun Chamthavong, another Laotian government official from the Department of Civil Aivation, said, "Today's (Tuesday) program substantially helped us by providing practical guidance on priorities and methods of airport management tasks." Chamthavong said the last day's session, which focused on airport pavement evaluation, will help enhance safety in Laos' airports.

The Laotian government officials who attended the program, including Khaikhamphithoun and Chamthavong, are in charge of the Luang Prabang International Airport's development project. KAC aims to establish amicable relations with the Laotian government to win the bid to engage in a private partnership for Luang Prabang International Airport's expansion and development project.

Located 4 kilometers from the northern mountainous city, the airport carried over 750,000 international and domestic passengers combined in 2019 before the pandemic and is a gateway to the country's top travel destinations. The entire town of Luang Prabang is a UNESCO-designated World Heritage site and serves as the most important tourism venue for the southeast nation.

"For now, it (Luang Prabang airport) is 100 percent state-run but it is not as competitive as the private ones (from other countries). The airport has limited geographical conditions for expansion and that is why we seek private partners to provide enhanced service from its limited conditions," said the Laotian director general of civil aviation.

The country saw a surge in the number of visitors in the first six months of 2022 and expects another tourism boom as the pandemic wanes and more people plan overseas travel. The country fully reopened its border in August for vaccinated and unvaccinated international travelers, and has seen about 50 to 60 percent tourism recovery, said Bountaeng Symoon, the director general of Airports of Laos.

Before the pandemic, the largest portions of tourist arrivals to Luang Prabang by nationality were Korean, Chinese and Vietnamese, explained Symoon. Considering that direct flights between Korea and Laos have not been resumed and China has not reopened its borders for international travel, the region expects more travelers and aims to upgrade its airport infrastructure in the meantime, he explained.

KAC has been conducting a preliminary feasibility study with Dohwa Engineering on Luang Prabang airport's expansion and development plan by assessing its management, financial propriety and demand forecast. The company aims to win the international bidding for the airport's development and management plan as the Southeast Asian socialist nation is seeking a private corporation for a 50-year partnership worth 200 billion won ($150 million) for the airport's expansion.