Filipino businesses eye investment opportunities in Laos
Filipino businesses eye investment opportunities in Laos
A group of Philippine business people have expressed interest to invest in Laos after learning of the huge business opportunities in one of the fastest growing economies in the world.
The business delegation, led by Director for External Relations and Advocacy of the Philippine Franchise Association (PFA), Dr Alan Escalona met with officials from the Lao National Chamber of Industry and Commerce in Vientiane at the end of last month to discuss business opportunities in Laos.
They also met with Philippine diplomats based in Laos to learn about the investment climate in the country, which has been experiencing rapid economic growth over the past several years. As part of their efforts to expand Philippine business in Laos, the Philippine Franchise Association also participated in the “Made in Laos Exhibit” held at the Lao International Trade and Convention Centre, which ran from January 12 to 17 in Vientiane.
The event created opportunities for the Philippine association to promote the Philippines' franchise brands in the Lao market. The decision of the Philippine Franchise Association to visit Laos also aimed to create opportunities for its members to be ready for the Asean Economic Community in 2015.
The association believes that the establishment of Asean as a single market and production base will create opportunities for franchise businesses to expand rapidly due to increasing consumption demand and market integration.
According to the association, Laos is one of the four newer member- states of the association of Southeast Asian nations also known as CLMV (Cambodia, Laos, Myanmar and Vietnam).
The main growth drivers of the Lao economy are hydropower, mining and agro-forestry. The Philippine businesses view Laos as one of the countries in the region with high potential for Philippine franchises in the country because of the population's growing prosperity and its increasing tourist arrivals.
The Lao tourism industry has been growing at a rate of about 20 percent annually since 2008. In 2012 there were a total of 3.3 million visitors to Laos.
The Lao government has introduced a number of investment incentives to promote foreign investment in Laos as the country believes that the private sector will become the driving force of future economic growth. The government now promotes investment in the processing industry and service sector as part of its efforts to diversify the country's economic base.
At present, the Lao economy is based on natural resource exploitation, which economists said would one day be exhausted. The Philippines has potential to cooperate with Laos as it is also one of the Asean member countries. The Philippines also has a skilled labour force which can supply Laos with the workforce to meet the demands of foreign investment in the country.
vientiane times
