‘Laos is emerging as a preferred destination for corporates’

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: In what could be described as a blossoming of India’s ‘Look East’ policy, India and the Lao PDR have stepped up their bilateral economic and business engagement. This is a reflection of the fruition of India’s yearning to expand its cooperation with Asean nations and would certainly go a long way in building what Prime Minister Manmohan Singh emphasises a strong east Asia community.

India’s ‘Look East’ policy is not just confined to the political, strategic or cultural dimension. There is today a strong economic content. Indian business leaders have taken the cue and Laos is fast emerging as a preferred investment destination for Indian corporate houses as the country allows bringing in 100% foreign equity.

Companies like Kirloskar Brothers and WPIL Ltd already have a presence in Laos, having exported pumps worth $41 million and $4.1 million, respectively. Water And Power Consultancy Services (WAPCOS), the water and power consulting Indian public sector unit, has already made its mark in Laos in various projects like irrigation, power and is keen to undertake projects funded by the Asian Development Bank.

Anglique Group has also been involved in several projects like, power irrigation, especially in micro canal, hydropower transmission line and rural electrification and is also interested into mineral sector. Gimpex has already made investment in mining sector. J K Paper is keen to invest in Laos in the pulp and paper. Besides, the Aditya Birla Group, the Jaguar group and Kirloskars have good presence in Laos.

A joint statement by India and Laos during the first state visit of the Laos President, Chaommaly Sayasone, speaks of a considerable potential for Indian companies to enter the Lao economy through investments. Laos, on its part, sees huge scope for Indian investors in sectors such as hydro-power, mining, agriculture, construction, road and railway network, transportation, information technology and e-governance, steel making, small and medium enterprises.

It is in this context that both countries have welcomed the initiative of FICCI to organise the first-ever exclusive Indian trade exhibition in Vientiane in November 2008 to showcase Indian technological capabilities and industries. FICCI has also signed a MoU with the Lao National Chamber of Commerce, to give a boost to B2B ties between the two countries.