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German investors attracted by Laos' central location
German business operators view Laos as a regional hub which they can use as a base from which to expand within Asean, a German official has said.
German Development Cooperation official Mr Armin Hofmann said yesterday that Laos is located in the centre of the Southeast Asian mainland, meaning German business operators can easily trade with Cambodia, Thailand, Myanmar and even China, the world's second largest economy.
Business representatives attend the Lao-German Business Forum in Vientiane on Friday.
Mr Hofmann who is Programme Director for Sustainable Economic Development, made the comment prior to the Lao Business Forum in Vientiane yesterday. The forum discussed business matching and investment cooperation.
The forum is an integral part of the visit to Laos by German Federal Minister for Economic Cooperation and Development, Mr Dirk Niebel, from February 15 to 18. The meeting allowed business operators from Laos and Germany to share information on business and investment opportunities in each country.
The visit by Mr Niebel and his delegation is the highest level visit from Germany since 1997, marking a milestone in economic cooperation.
Mr Hofmann noted that Laos will be part of the Asean Free Trade Area (AFTA) after 2015, and goods, services, investment funding and the workforce will be able to flow freely. This encourages German businesses to expand their investment in the Asean region.
Laos will no longer be a small market of just 6.5 million consumers after it joins the AFTA, but part of the regional market of 500 million people. This will help the landlocked country to attract foreign investment, he said.
Mr Hofmann said the area of greatest potential for Germany is the energy sector, because Germany has the best technology and machinery for use in renewable energy.
Laos has the potential to develop hydropower, and also biodiesel due to its large areas of fertile land, which can provide agricultural products for the biodiesel processing industry.
But despite Laos' considerable investment potential, the country still has a number of challenges to address before it can attract more foreign investment.
Mr Hofmann said Laos must be able to supply a sufficiently skilled workforce, improve its business climate, and make it easier for foreign investors to do business in the country.
According to a press release from the Lao German Business Forum organiser, the forum was chaired by the German Federal Ministry for Economic Cooperation and Development's South East Asian Unit Head, Dr Josef Fullennach.
Lao National Chamber of Industry and Commerce and Lao Hotel and Restaurant Association President, Mr Oudeth Souvannavong, representatives of the European Chamber of Commerce and Industry in Laos, and of the Federation of German Industries and Federation of German Wholesale and Foreign Trade and Services also attended the forum.
Dr Fullennach spoke about the ways in which the German ministry could help the private sector to do business in Asean and make the most of investment opportunities. The ministry could also help businesses to address various challenges in the region so that they are prepared to adjust themselves to the new business climate.
German Development Coo-peration Managing Director, Dr Sebastian Paust, talked about some of the advantages and innovative forms of cooperation with the private sector in the region.
vientiane times
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