Jan 17, 2012

Laos - Canadian firms seek to invest in Laos



A group of Canadian business leaders is in Vientiane this week to explore investment opportunities in one of the region's fastest growing economies.

The 19 business executives, led by Charge d'Affaires of the Canadian Embassy to Laos Ping M. Kitnikone, met Minister of Industry and Commerce Nam Vinhaket in Vientiane yesterday to discuss potential opportunities in Laos.

The 14 companies represented have a combined annual revenue of over US$25 billion and employ more than 100,000 people in dozens of countries worldwide. Their managers met with Minister of Energy and Mines Soulivong Daravong and Minister of Planning and Investment Somdy Duangdy.

The companies operate in the fields of financial, environmental and engineering services, information and communications technology, extractive and associated technologies, and agri-food.

Ping said Nam welcomed the idea of more Canadian investment in Laos as the country is seeking sources of foreign investment to boost development.

"We heard from the commerce and industry minister that the time is right to be in Laos. Laos is moving very aggressively on its Millennium Development Goals," Ping said yesterday after her meeting with Nam.

Ping, who was born in Laos, but emigrated to Canada at a young age, said she believed that backed by Canadian technical expertise and technology, Canadian businesses could successfully operate in Laos and work with Lao people to develop the landlocked nation.

She said Laos and Canada have similarities as the two nations are resource rich. Canada has a lot of useful experience on which Laos can draw to sustain its use of natural resources.

Canadian investment in Laos is increasing, she said, adding that some Laos-born Canadians are now returning to their motherland to do business here.

According to the Canadian Embassy to Laos, based in Bangkok, Thailand, the main Canadian firms already operating in Laos are the Deluxe Food Group, Canadian Helicopters Group Inc, Amanta Resources, and Asia Base Metals Inc.

Bilateral trade value between Laos and Canada is very low compared to that between Laos and neighbouring Thailand, Vietnam and China. However, Laos-Canada trade value has seen a marked increase in recent years.

In 2011 Lao exports to Canada reached $8 million, an increase of about 20 perc ent over 2009, while Lao imports from Canada amounted to only $2.7 million.

Canada has vowed to support Laos in its bid for World Trade Organisation membership, which would give Laos greater access to international markets. This would also make Laos more attractive to Canadian investors.

Laos is one of the fastest growing economies in the region thanks to the exploitation of its natural resources, notably through mining and hydropower. Its rapid economic growth has put Laos in the spotlight, especially among Vietnamese, Chinese, Thai and Korean investors.

Business Desk
Vientiane Times



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