Laos, Japan push for greater economic cooperation
Laos, Japan push for greater economic cooperation
Laos and Japan highly valued the current economic cooperation under their strategic partnership and agreed to further strengthen trade and investment cooperation between the two countries.
This was the common view from the top leaders of Laos and Japan during their bilateral talks in Tokyo last week.
Lao Prime Minister Mr Thongloun Sisoulith paid an official visit to Japan and attended the 23rd International Conference on the Future of Asia in response to an invitation from Japanese Prime Minister Mr Shinzo Abe.
The two sides viewed that their economic cooperation under the strategic partnership has resulted in positive results.
Currently, Japan ranks as the 7th largest foreign investor in Laos with 102 projects worth US$438 million.
Many Japanese companies are investing in the manufacturing sector at Special and Specific Economic Zones in Savannakhet and Champassak provinces.
They are also investing in services as well as the agriculture, banking, and consulting sectors in Laos as the Southeast Asian country is being integrated with the region and the world.
The Lao government has said they wanted Japanese investors in the country given that Japanese take into account their environmental and social responsibilities.
In addition, the value of the two-way trade in 2016 attained US$231 million, of which the value of Laos’ exports to Japan amounted to US$115 million.
During the bilateral talks, the two sides discussed the possibility of opening direct flights between Vientiane and Tokyo to promote people-to-people ties and facilitate economic cooperation.
Over the past years, Japan has assisted Laos in a number of projects to develop infrastructure, notably roads to facilitate economic activity and transform Laos from a land-locked to land-linked country.
Mr Abe was quoted in The Japan Times as saying that Laos was an important country that borders all the other countries in the Mekong region.
“We will work together to maintain and strengthen a free and open international order based on the rule of law, including by fortifying regional coordination,” Mr Abe said.
Lao PM Mr Thongloun hailed Japan’s commitment to working on roads and other infrastructure investment in the East-West Economic Corridor through the Mekong region to improve connectivity.
The land corridor project links Laos with Myanmar, Thailand and Vietnam. The Mekong region is also connected by a North-South corridor, into which China has put significant investment.
The Lao PM also thanked Japan for its commitment to further study the feasibility of the Vientiane-Hanoi expressway which is considered a development priority programme of Laos and Vietnam.
Laos is a target destination for the Mr Abe administration’s push for “high quality” infrastructure investment in countries in the Asia-Pacific region, aimed at reaping both economic and strategic benefits.
Japan currently ranks as the top donor for infrastructure and social development projects in Laos. Last March, the government of Japan approved a grant of US$32 million to Laos for development initiatives in electricity, health and transportation.
