Prime Minister Sonexay Siphandone addresses the Laos-Japan Business Forum in Tokyo on June 11.

PM seeks more Japanese investment in green growth, innovative industry

Prime Minister Sonexay Siphandone has encouraged more Japanese businesses to expand investment in Laos, highlighting opportunities in clean agriculture, renewable energy, infrastructure, logistics and innovation-driven industries, as the two countries continue to strengthen economic ties.
According to a report by the Lao News Agency, Japan has invested more than US$157 million in 93 projects in Laos since 1989, while 61 Japanese companies have committed a further US$185 million in Special Economic Zones, highlighting Japan’s longstanding contribution to Laos’ socio-economic development.
The figures were cited at the Laos-Japan Business Forum held in Tokyo on June 11 during Prime Minister Sonexay’s visit to Japan for the 31st International Conference on the Future of Asia. The event was also part of activities marking the 71st anniversary of diplomatic relations between Laos and Japan.
Addressing government officials and business leaders from both countries, Prime Minister Sonexay said the forum was an important platform for strengthening ties between the Lao and Japanese business communities, fostering mutual understanding, and exploring new opportunities for trade and investment cooperation.
He reaffirmed the longstanding friendship and comprehensive strategic partnership between Laos and Japan, while expressing appreciation to both the public and private sectors for their efforts in promoting closer economic relations.
The Prime Minister noted that economic cooperation continues to be supported by key frameworks, including the Agreement on the Liberalisation, Promotion and Protection of Investment, which has been in force since 2008, as well as cooperation under the ASEAN-Japan framework and the Regional Comprehensive Economic Partnership (RCEP), which came into force in 2021.
These mechanisms, he said, have helped to protect investors, strengthen business confidence, and facilitate long-term investment between the two countries.
Prime Minister Sonexay described Japanese companies as high-quality investors recognised for their technological expertise, financial capacity, compliance with regulations, and strong commitment to environmental and social responsibility.
Their investments, he noted, have contributed significantly to technology transfer and the development of skilled human resources in Laos.
He encouraged Japanese comapnies to consider Laos as a strategic investment destination, particularly in sectors aligned with the country’s green and sustainable development agenda.
These include high-value agriculture, processing industries linked to ASEAN production networks, clean energy, infrastructure development, logistics and related services.
During the forum, Deputy Minister, Vice Chair and Standing Member of the Investment Promotion and Management Committee, Mrs Phonevanh Outhavong, outlined recent efforts to improve Laos’ investment climate through legal and policy reforms, enhanced regional connectivity, and measures to strengthen the country’s competitiveness.
She noted that Japan ranks as the 14th largest foreign investor in Laos, with direct investment accounting for more than US$144 million of total investment value.
Agriculture remains the largest recipient of Japanese investment at approximately US$59 million, followed by industry and handicrafts (US$30 million), wood processing (nearly US$20 million), services (US$13 million), and garment and textile manufacturing (around US$5 million).
The Laos-Japan Business Forum underlined the shared commitment of both countries to deepening economic cooperation and creating new opportunities for business collaboration, supporting Laos’ sustainable socio-economic development while further strengthening bilateral relations.

By Times Reporters
 (Latest Update June 16, 2026)