Japanese businesses have yen for investment in Laos
Japanese businesses have yen for investment in Laos
Twenty Japanese businessmen from 18 companies are in Laos this week to identify possible investment opportunities.
The Japan External Trade Organisation (JETRO) has organised the mission from January 15-18, hoping to attract Japanese investment, particularly in the manufacturing sector.
The delegation met yesterday with Deputy Minister of Planning and Investment, Dr Kikeo Chanthaboulyalong, along with representatives from the investment promotion, planning and special economic zone sectors. They learnt about Laos' investment promotion policy as well as its potential, opportunities and business climate.
�The new government is trying to improve investment conditions by facilitating Lao and foreign investors so that both investors and the government benefit,� Dr Kikeo said at the meeting.
Amendments to the Investment Promotion Law offered more tax incentives and other special policies for investors in remote areas of poor districts, he said.
In an attempt to encourage investment in rural communities, the amended law specifies three incentive levels. Investors in education, health and agriculture in areas of extreme hardship will be granted the maximum profit tax exemption of up to 10 years or more. Varying levels of hardship and fields of investment will attract different incentives.
The amendments require investors to fulfil their obligations to the state as well as their social and environmental responsibilities.
The delegation then met with the Minister of Industry and Commerce, Ms Khemmani Pholsena, and other officials to study Laos' trade promotion and commercial processing industry.
Ms Khemmani advised Japanese investors to consider agriculture due to Laos' considerable potential and some Japanese businesses already investing in the sector.
The team will also visit a Japanese cable factory and sensor factory, the Vientiane Industry and Trade Area (VITA) park, Japanese Chamber of Commerce and In dustry in Vientiane and Japanese companies investing in the Pakxe district Special Economic Zone in Champassak province.
The visitors come from 18 companies operating businesses in various countries such as China and other Asean nations.
They hoped the mission would gather valuable information for Japanese business operators and attract more investors to Laos.
There are currently 135 Japanese companies investing in Laos, which help to create job opportunities, transfer technical knowledge and contribute to socio-economic development, according to the Japanese Embassy to Laos.
