Japan seminar underlines three nations’ development potential
Japan seminar underlines three nations’ development potential
The development potential of Laos, Myanmar and Cambodia was highlighted at a business symposium on the three countries organised by the Keizai Koho Centre in Tokyo recently.
According to a report in The Japan Times speakers from the three nations addressed the conference examining the Asean up-and-comers while covering key issues they faced.
A question and answer session was also held at the symposium entitled “Potential of the development in Cambodia, Laos and Myanmar from the Viewpoint of Supply Chain”.
With the Asean Economic Community scheduled to take place in 2015, offering reduced tariffs and other incentives, the three nations are becoming more and more important for regional and international investors like Japan.
Deputy Director General of the National Economic Research Institute of Laos Mr Syviengxay Oraboune was among the presenters who delivered a presentation on potential development.
He explained that Laos is the only land-locked country in Asean, bordered by China, Myanmar, Vietnam, Thailand and Cambodia. The average growth rate of its economy is 8 percent annually.
The government aimed to graduate from “least-developed country,” status by 2020 and join the upper-middle income group by 2030, he said. But it also has potential development in some industries such as regional transit services, electric motorcycles, health-related products, eco-healthy tourism and regional business offices, he said.
Laos can offer transhipment services for goods transfers among Asean countries because it neighbours many of them. Active trading among the member countries is expected to increase demand for various transhipment services.
Mr Syviengxay also said Laos aims to increase electricity supply coverage to at least 98 percent of the country by 2020, and investment in electric motorcycles will have big potential. Hydropower development also had investment potential as total hydropower potential was about 23,000 megawatts in the country, while current output was only about one-tenth of that. The Lao government was planning some hydropower projects, which would increase electricity output by 3,846 MW between 2010 and 2015 and add an additional 2,851 MW between 2016 and 2020, according to Mr Syviengxay’s presentation.
“Also, demand for healthy food is growing globally and Laos can meet that demand,” he said. “The country has organic agricultural products grown in traditional ways, with low levels of chemical pesticides, while herbs and medicinal plants also have good potential,” Mr Syviengxay added.
On eco-friendly tourism, Laos has many tourism sites boasting deep histories and beautiful nature, he said. Luang Prabang town and Wat Phu Champasak are registered UNESCO World Heritage sites.
“I would not propose mass tourism, but Laos offers unique opportunities and, if you want to relax, come to Laos,” Syviengxay said.
Investment potential aside, he also noted Laos’ challenges and constraints, which included the lack of a coast, a small labour market, reliance on external financing, a weak private sector and poor infrastructure.
However, “With regional and global trends, those constraints could turn into potential development advantages for the country,” he also pointed out.
vientiane times
