More Japanese businesses eye investment in Laos
More Japanese businesses eye investment in Laos
Laos is one of several Asean countries attracting the interest of Japanese businesses considering alternatives to Thailand for their production bases, as continuing political unrest there is a cause for concern.
Many Japanese business operators have come to Laos to look at the facilities available here as well as going to Cambodia and Myanmar, President of the Vientiane Industry and Trade Area, Mr Sibounheuang Vienheuangphay, told Vientiane Times recently.
The special economic zones in these countries are attractive opportunities for most Japan businesses as they offer special benefits, he said.
They are studying these countries, comparing concession prices and policies to get the best deal they can for their investment, Mr Sibounheuang said.
The most important things that will give them the confidence to invest are a guaranteed source of labour and a continuous supply of utilities, he explained.
If these facilities are guaranteed, they are likely to make the decision to invest in that country.
Laos has a ready supply of electricity and water but is still faced with a challenge over the shortage of labour, he added.
However, some Japanese companies have already invested in Laos.
One Japanese company has set up a factory in the Vientiane Industry and Trade Area to process electronic equipment for export, said Mr Sibounheuang.
Last week delegations from the Japan-Asean Centre and the Japan Chamber of Commerce and Industry met with the Savannakhet provincial Governor, Dr Souphanh Keomixay, to study the condition of facilities in that province.
Savannakhet is centrally located in Laos and has high potential for the exploitation of natural resources, including good agricultural land that can produce crops for processing.
The value of foreign investment in Savannakhet province is continuing to increase with more than 10 countries investing including China, Thailand and Vietnam, Dr Souphanh told the visiting Japanese delegations.
Overall there are 143 foreign investment projects in Savannakhet worth more than 13.54 trillion kip (US$1.736 billion) including 31 in the Savan-Seno Special Economic Zone and six projects in the trade border zone.
vientiane times
