Cảnh đẹp Viêng Chăn - Thủ đô nước Lào

Cảnh đẹp Viêng Chăn - Thủ đô nước Lào

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Hopes to improve the investment climate by infrastructure development (Deputy Minister, Ministry of Planning and Investment of Lao PDR Dr. Bounthavy Sisouphanthong)

Dr. Bounthavy Sisouphanthong, Deputy Minister of the Ministry of Planning and Investment of Lao PDR, gave a speech concerning the investment climate in Laos, at the 7th Otagai Conclave (regional key person meeting) held in Himeji City, Hyogo Prefecture on July 25th, 2014, Japan. Although Laos is a small country with a population of only 6.8 million, the investment climate such as infrastructure has rapidly been consolidated recently, and Japanese companies are expanding into Laos consistently.

Deputy Minister, Ministry of Planning and Investment of Lao PDR Dr. Bounthavy Sisouphanthong

Currently the GDP of Laos is growing by 7 to 8% a year. Especially, development in the agricultural sector is persistent. There was support for organic cultivation from JICA, and Laos is participating as a member from Asia. Another advantage is hydroelectric power generation with the use of plentiful water resources in Laos. There is also high interest on solar energy generation and wind-power generation as recycle energy. Also, Laos is putting a great deal of effort into tourism. It has received the Best Tourism Award from the Commerce and Industry Association of Europe at the beginning of 2013. In addition, sectors in which the government is focusing investment on are education and welfare. These are very important, and it has become possible for private corporations to operate clinics, therefore are new strategies for promoting.

Now I would like to talk about Japan's investment towards Laos. Laos has been developing with the assistance of Japan's ODA. Anyone in Laos would say that support from Japan such as establishing infrastructure has been of a great benefit to Laos. Since 2013, investment by Japanese private companies has been increasing. In 2012, there were 27 million dollars of investment, and in 2013, the amount grew up by approximately 10 times to 400 million dollars. By virtue of companies such as the Kansai Electric Power Co., Inc. (dam construction), Oji Paper Co., Ltd. (tree-planting program), Tsumura & Co. (cultivation of Chinese herbal medicine), Nikon Corporation (digital single-lens reflex camera), Toyota Boshoku Corporation (automobile seat covers), and Mitsubishi Materials Corporation (thermistor sensors), Laos is continuing its development. How did these circumstances occur? I'd now like to talk about the advantages of Laos.

Many natural disasters occur in the Mekong region, which might be a shackle towards investment. A politically unstable condition may be another reason for reluctance to investment. There is a rapid increase in production cost. In Laos, there are few natural disasters compared to other countries, and is politically stable. The government of Laos is trying to create great incentives for investors. A special economic zone was made, and a tax-free system has been adopted for 10 years. Recently, laws concerning added-value tax have been amended. When importing agricultural products in Laos, it is totally duty-free, therefore there are no barriers concerning trade. Labor-cost and usage of electricity is still low compared to the countries around, and there have not been any protests from the labor association.

As a country, we hope to improve the investment climate by further development of infrastructure and hope to receive support mainly from Japan for promotion of investment through the East-West Economic Corridor from Myanmar to Vietnam. Laos locates itself in the center of the Mekong region, therefore is under most favorable conditions.

I would like to point out once more, that there are very few natural disasters in Laos. Cooperative relationship with Japan has made great progress since 2013. Currently, there is a JETRO office in Laos. We honestly believe that we can make a significant contribution to the development of the Asia. We have already signed letters of agreement with Mizuho Bank and the Bank of Tokyo-Mitsubishi UFJ. We will do our utmost to meet your expectations, so please feel free to ask any questions. We hope for your success, and best wishes to everyone.

http://kenplatz.nikkeibp.co.jp/article/otagaien/news/20141118/683848/


Dr. Kikeo Chanthabouly