Laos welcomes Japanese investment in infrastructure
Laos welcomes Japanese investment in infrastructure
The government has urged Japanese businesspeople to join hands with state agencies to invest in the development of urban infrastructure, logistics and water supplies.
Minister of Public Works and Transport, Mr Sommad Pholsena made the call at the Japan-Mekong Forum in Tokyo last week amid rising demand for improved basic infrastructure ahead of the establishment of the Asean Economic Community.
The minister also expressed confidence that improved basic infrastructure and the business and investment climate will encourage Japanese businesspeople to invest in the country after finding that many Japanese firms are looking for new production bases due to rising labour costs in other countries.
“I think that within the next two years, Japan will climb in the ranking from the sixth to the fourth largest foreign investor in Laos after China, Vietnam and Thailand,” Mr Sommad said at the forum.
A number of Japanese firms held discussions with Lao diplomats in Japan earlier this month and informed them that they would lead a group of Japanese businesspeople from Nagoya to Vientiane to seek investment opportunities.
They want to set up a number of manufacturing plants such as garments for export back to Japan after learning that the cost of labour in Laos is still very affordable.
At the forum, senior Japanese officials said that Japan will continue to provide more aid to Laos under a policy to narrow the development gap between new and old Asean countries.
Other Mekong nations including Cambodia, Myanmar, Vietnam and Thailand will also gain similar assistance.
“In addition, Japan will further strengthen assistance in so-called `soft' infrastructure such as capacity building for managing so-called ‘hard' infrastructure,” the parliamentary senior vice foreign minister Norio Mitsuya said.
“Japan's support to the Mekong region...is dictated by a long-term perspective for the development of individual countries and the region at large.”
Mr Mitsuya said Japan expects economic activities and people-to-people exchanges between Japan and the Mekong region to expand after Tokyo eased visa requirements for all Mekong countries last year.
Japan also agreed with Cambodia and Laos last year to launch bilateral negotiations on direct flight services, while signing an investment pact with Myanmar in December.
Economists were not surprised by Japan's commitment to provide more aid to Laos and other Mekong nations as they are still rich in both natural resources and manpower, of which Japan is in need.
vientiane times
