Laos looks to spark Japanese investment interest
Laos looks to spark Japanese investment interest
Deputy Prime Minister Somsavat Lengsavad has spoken to 50 leading Japanese businesses about the merits of investing in Laos, laying special emphasis on agri-business and environmentally friendly industries.
Mr Somsavat, together with Planning and Investment Minister Mr Somdy Douangdy and a Lao delegation, met with representatives of the Japan-Mekong Business Cooperation Committee (JMBCC) last week at a roundtable meeting in Tokyo, Japan.
The 50 companies represented at the meeting operate in the sectors of logistics, vehicle and spare parts assembly, IT and electronics.
Mr Somsavat thanked the JMBCC for its interest in Laos and explained Laos' immense investment potential. He cited investment opportunities in the generation of 23,000MW of electricity, mineral deposits, tourism, and the 2 million hectares of land available for agriculture purposes.
Investment opportunities abound in organic crop farming, herbs, industrial tree plantations, and livestock and fish breeding.
The investment climate in Laos is improving year by year. Laos became a member of the World Trade Organisation in February this year and will participate in the Asean Economic Community when it comes into effect in 2015. These developments open up the economic landscape and broaden investment opportunities even further.
Mr Somsavat said that since the Investment Promotion Law was passed in 2011, the time taken for the government to approve an investment licence has shortened considerably.
In addition to its growing labour supply, Laos has another pool of workers who currently work in other countries, as well as foreign workers.
Japanese investors are already doing business in Laos and their operations are running well.
Last month, Nikon began building a manufacturing plant in Savannakhet province, known as Nikon Lao Company Limited, for the assembly of digital SLR (single-lens reflex) cameras.
Nikon is investing about 62.4 billion kip (US$8 million) in the plant, which is being built in the Savan-Seno Special Economic Zone and is set to become operational next month. There are also other Japanese and foreign investors running businesses in the zone.
Laos also benefits from the Generalised System of Preferences, which cuts tariffs on goods exported to more than 40 developed countries.
Mr Somsavat thanked the Japanese public and private sectors for their previous contributions to economic development since Laos and Japan established diplomatic relations in 1955. He said this had helped to speed up economic development in Laos.
Since 1955, Laos has regularly received Official Development Assistance (ODA) from Japan. Japan has been one of the main providers of ODA for infrastructure development, which has spurred the development of transportation and business operations.
vientiane times
