Improved investment procedures needed for Lao economy
Improved investment procedures needed for Lao economy
Laos needs to simplify its investment procedures as a source to attract more foreign direct investment (FDI) to the country over the coming years, according to academic research by the Institute of Developing Economies Japan External Trade Organisation (IDE-JETRO).
Simplification of investment procedures in Laos was one of the hot issues discussed at yesterday's seminar to give policy recommendations to the Lao government, attended by representatives from various sectors and enterprises.
One of the key speakers and research fellows at IDE-JETRO Mr Kiyoyasu Tanaka told the meeting that more Japanese investors have expressed their interest in investment in Laos but the procedures in relation to investment still take a long period of time.
“One important way to attract more foreign direct investment in Laos is for the Lao gov ernment to reform its policies in relation to investment if it wants to attract more overseas investors,” he said.
Currently more Japanese investors are interested in investment projects in Laos, including in the garment industry, agriculture and other industries related to the electricity sector.
During the seminar, senior Japanese researchers also advised that Laos has potential benefits in the agro-processing industry, especially organic agricultural products.
However more advertisements need to be launched to promote local products on international markets.
Besides improvements to the investment procedure, many key speakers also advised the government to enhance industry in Laos, the liberalisation of services and pay attention to human resource development.
Meanwhile the Director of Asia and Oceania Division under the Overseas Research Department of JETRO Mr Ryo Ikebe said that the Japanese production industry should be encouraged to invest in Laos because they will also help to train more skilled workers and technical personnel.
The seminar was organsied by the Institute of Developing Economies Japan External Trade Organisation (IDE-JETRO) and Japan External Trade Organisation (JETRO).
Executive Vice President of JETRO Mr Daisuke Hiratsuka and Special Assistant to the President of the Economic Research Institute for Asean and East Asia (ERIA) on CLMV issues Mr Yasuhiro Yamada co-chaired the seminar.
Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong was also an honourary guest, giving a speech on the current situation of the Lao economy and the influences brought by changes to the world economy.
“Recently the Lao government has improved the rates of bank loans in an effort to promote small and medium enterprises in Laos, so it will be a significant step for SME promotion,” he said.
Presently the world economy has been recovering slowly but the Lao economy has continued growing remarkably over the past few years. The growth has come largely thanks to expansion in agricultural production, services, electricity and mining.
