Prime Minister Sonexay Siphandone (centre) speaks at a roundtable discussion with Japanese leaders in Tokyo on January 22.

PM​ meets Japan business leaders, encourages investment in Laos
 
Prime Minister Sonexay Siphandone on January 22 chaired a high-level roundtable discussion with Japanese business leaders in Tokyo in a bid to bolster investment and trade between the two countries.
The Lao PM is leading a Lao delegation on an official working visit to Japan from January 20-23 to enhance relations and mark the 70th anniversary of diplomatic ties and the 60th anniversary of Japan providing volunteer workers to Laos.
The roundtable meeting, jointly organised by the Ministry of Planning and Investment, the Lao National Chamber of Commerce and Industry, the ASEAN-Japan Trade Centre (AJC) and the Japan External Trade Organisation (JETRO), brought together more than 100 business and government representatives.
The meeting underscored the growing partnership between the two nations, which was recently upgraded from a “strategic partnership” to a “comprehensive strategic partnership”.
The event provided a platform for Japanese business executives to engage with Laos’ leadership, exchange ideas, and explore opportunities for investment, trade and collaboration.
Prime Minister Sonexay highlighted the importance of the meeting for bilateral relations and noted that the strengthened partnership has already begun contributing to enhanced economic, trade and investment cooperation between the two countries.
He emphasised Laos’ focus on “green” investment opportunities, including clean energy development, carbon credit trading and the production and processing of high-quality agricultural products using clean energy.
Laos’ Minister of Planning and Investment provided insights into the country’s investment climate. Since Laos opened its doors to foreign investment in 1989, Japan has undertaken 93 projects with investments exceeding US$157 million.
Japan currently ranks 14th out of 53 foreign investors in Laos.
The Minister highlighted recent legislative progress and said Laos has revised its investment promotion law, which was approved by the National Assembly and was set to come into effect by the end of 2024.
This reform aims to streamline processes, reduce bureaucratic barriers, and lower the cost of doing business in Laos, thus fostering a more investor-friendly environment.
According to the Ministry of Planning and Investment, Japanese businesses have made significant contributions to Special Economic Zones (SEZs) in Laos.
Currently, 57 Japanese companies are operating within these SEZs, including 41 wholly Japanese-owned enterprises and 16 joint ventures with Lao partners, with total capital of US$183 million.
The number of newly registered companies with Japanese investment also continues to grow. Between 2023 and 2024, 69 such companies were registered with a total investment of US$138 million, with interests in sectors such as agriculture, manufacturing, finance, wholesale and retail.
The Minister of Industry and Commerce Mr Malaythong Kommasith reported that trade between Laos and Japan has exceeded US$1 billion since 2018. In 2024 alone, two-way trade was valued at more than US$255 million, marking a 10.4 percent increase compared to the figure for 2023. Key trade items include clothing, electrical appliances, vehicles, machinery and synthetic fibres.
In the realm of investment, Japan has contributed to various sectors in Laos, including agriculture, services, education and manufacturing.
The Prime Minister invited Japanese executives to share their perspectives and provide feedback on Laos’ investment policies. This open dialogue reinforced the Lao government’s commitment to fostering a supportive environment for foreign investors.
Japanese business leaders expressed their confidence in Laos as an investment destination, encouraged by the government’s efforts to promote economic growth and simplify regulatory frameworks.
On the same day, a ceremony took place to mark the 70th anniversary of Laos-Japan diplomatic relations.
Laos’ Minister of Foreign Affairs Mr Thongsavanh Phomvihane highlighted the fruitful achievements of diplomatic relations since March 5, 1955, which serves as a testament to the enduring friendship and cooperation between the two nations.
Laos and Japan have now opened a new chapter in their relations by elevating their ties to a comprehensive strategic partnership, which coincides with the 70th anniversary of diplomatic relations.
Several important events will be held in both countries this year to mark the anniversary, including the Japan Festival, the Laos Festival, a special cultural exhibition, and other interesting activities, Mr Thongsavanh said.
As both countries work towards deepening their economic and friendship ties, the latest engagements highlight their shared commitment to sustainable growth and mutual prosperity in the years to come.

By Times Reporters
 (Latest Update January 24, 2025)