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Indian investment in Laos boosted by closer diplomatic ties
Outgoing Indian Ambassador to Laos Dr Jitendra Nath Misra has paid tribute to the closer ties between Laos and India that have lead to more investment and cooperation projects by the Indian government and private investors in Laos.
“The reason for the increasing Indian investment in Laos is the closer diplomatic relationship between the two countries,” Dr Jitendra said at a press conference in Vientiane on Monday to discuss the bilateral relationship following the conclusion of his mission as ambassador.
Dr Jitendra served as Indian ambassador to Laos for one year and 4 months and is leaving this week for India to take up a new diplomatic position.
Dr Jitendra said that investment by Indian investors now ranks seventh in terms of total foreign investment in Laos, which is a significant rise given that Indian investment ranked 22nd a few years ago.
“If the Lao government approves investment by the TATA group in future mining projects, we will immediately jump to fifth.” he said. TATA is one of India's largest companies and operates in many sectors including refining, engineering, manufacturing, communications and services.
Laos and India established diplomatic relations on February 2, 1956. Throughout 55 years, the cooperation and relations between Laos and India have constantly grown and deepened.
High-ranking delegations from Laos and India have exchanged visits during important events in recent times, especially the visit to Laos by the president of India in September last year.
The bilateral relationship between the two countries encompasses cooperation in various fields including agriculture, credit loans, trade and investment, energy and mining, transportation and tourism, education and culture, health, science and technology and national defence.
During the press conference, Dr Jitendra highlighted some outstanding achievements, including high level visits, agreements, loans and grants, concluded in recent years. In September last year the Exim Bank secured a US$72.55 million loan for the installation of electricity transmission lines and substations between Nabong and Thabok and for the 15MW Nam Boun 2 hydropower plant.
Dr Jitendra also highlighted some indirect Indian investment in Laos. The Birla Lao Pulp and Plantation, established in June 2006, is committed to investing US$350 million in a eucalyptus pulp and plantation project in Savannakhet province.
The Lao SPG CMC Mining Company obtained a license for an iron ore mine in 2008 with a commitment to invest US$10 million in Huaphan province.
The HSMM Group has invested US$13.8 million in an agarwood plantation and two factories in Vientiane province. It has a US$800,000 iron ore mine in Xekong province in partnership with Mineral Enterprises Ltd and a US$100,000 iron ore mine in Khammuan province.
The press conference was also attended by Vice-President of the Lao-India Friendship Association Dr Khamphay Rasmy, President of the Indian Chamber of Commerce and Industry in Laos Mr Habib Mohammed Chowdhury and government officials involved with various Lao-Indian joint projects.
vientiane times
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