The mini van service, among other vehicles, is popular during the high season.

Car rental services upset over unfavourable exchange rates, hike in fuel prices

Car rental businesses in Vientiane currently face a decline in customers following unfavourable exchange rates and the rising retail prices of fuel.
At the same time, customers face problems when they have to pay high fees for car rentals in the local currency.
“I’ve been running a van rental service for many years with attractive profits, but after the value of the Lao kip began weakening against the US dollar and Thai baht, all types of businesses have been significantly affected,” Mr Moua Thao, a Vientiane-based entrepreneur, told Vientiane Times on Friday.
He said that he used to charge his customers about 1,000 Thai baht, equal to 300,000 kip, for renting a van over the past few years, but this has now increased to 500,000 kip to 600,000 kip.
“We [car rental units] are in a difficult situation because of the exchange rates and the prices of fuel continuously rising almost every day. This is the main reason for losing customers, with their numbers down by 50 percent to 60 percent when compared to the figures for the same period in recent years,” Mr Moua said.
He called on relevant sectors of the government  to immediately address these problems to ensure that firms engaged in transportation services can survive and continue to support the demands of customers.
Many types of firms and entrepreneurs in Laos are currently being impacted by the depreciation of the Lao kip and the rapid rise in prices of all types of fuel. The aviation sector is considering the suspension or decrease of flights to avoid high expenses on fuel.

By Times Reporters
(Latest Update October 10, 2022)