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Japanese firms see strong investment potential in Laos
Japanese investors see Laos as an attractive investment destination in Asean, according to a Japan External Trade Organisation (JETRO) official.
JETRO Chief Repre-sentative for Asean and South Asia Mr Setsuo Luchi made the comment at the 5th Laos-Japan Public Dialogue held on December 16 in Vientiane, which discussed measures to increase Japanese trade and investment in Laos.
Mr Kuchi said Japanese investors believed Laos had a number of investment and business advantages thanks to its abundant natural resources and its strategic position in the centre of emerging countries in the Mekong region.
These emerging countries will need to transport their goods through Laos so they can increase trade value and economic cooperation. Laos' land-linked status can provide Japanese investors with investment opportunities in the service sector, including international freight operations.
Mr Luchi said that another of Laos' advantages was its business links with neighbouring China, Thailand and Vietnam.
These business links will make it easier for Japanese investors to establish manufacturing bases in Laos so that they can export their products to the regional market.
Mr Luchi said Laos was becoming the battery of the Mekong region thanks to its investment potential in hydropower plant development. Laos also has a strong workforce as most of its population is of working age.
Another important investment advantage is that Laos and Japan enjoy good relations, which can lead to a better environment for the two countries to increase trade and investment cooperation.
The Ministry of Planning and Investment's Investment Promotion Department Director General, Mr Houmpheng Souralay, said Laos welcomed Japanese investment in the agriculture, tourism, manufacturing and processing sectors.
Japanese firms are also encouraged to invest in logistics, electricity generation and mining, he said.
Policymakers said Laos would like to see Japanese investment increase, as Japanese businesses have a good record in terms of environmental protection, which would help to ensure the stable and sustainable growth of the Lao economy.
According to a report from the Ministry of Planning and Investment, the number of Japanese investment projects and their value has increased since the two governments established a business forum to address investment barriers and boost Japanese investment in Laos.
At present, there are 87 Japanese investment projects in Laos worth about US$540 million, with most in the areas of agriculture, hydropower and construction.
Despite the rapid increase in Japanese investment in Laos, Japan's investment value is still low compared to that of China, Vietnam, Thailand and the Republic of Korea.
vientiane times
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