lncci

Vientiane, 7 June 2010---The previous official visit to Laos by Prime Minister Dato’ Sri Mohd Najib Bin Tun Haji Abdul Razak, the signing of new projects and individual business meetings between the two nations provide a significant opportunity for more Malaysians to invest in Laos and more business cooperation between the two countries.

Speaking with Lao media during the Malaysia-Lao Business Forum, the Malaysia Prime Minister was optimistic that Malaysian investment in Laos would increase in the near future.

He said factors such as low wages, low production cost, friendly investment policy and political stability are making Laos attractive to Malaysian investors.

The Malaysian PM was accompanied by more than 70 businesspeople who are looking for business opportunity in Laos. “There are good opportunities for Malaysian investors to explore and to link up with local investors. We are encouraging them to engage in partnership with local investors,” he said.

Two significant investment projects have already been agreed by the two parties. The first is a hydroelectric project with US$660 million. The second is the construction of an industrial park in the special economic zone in Savannakhet province worth about US$26 million.

Another important activity is the Individual Business Meetings where a number of local and Malaysian business people had a chance to discuss and explore business cooperation. The Lao National Chamber of Commerce and Industry who takes part in gathering the local companies to come to the meetings observes that the Malaysian business people are interested to invest in Laos and they are keen to discuss investment policy, law and regulation of Laos. “They seems to have clear objectives and plans of doing business in Laos,” said Sengdavone Bangonsengdeth, deputy secretary of LNCCI.

Mr. Zaki Muhamad from Aneka Bekal SDN BHD who provides service for construction believes there are a lot of opportunities for construction sectors and he expects to invest in Laos and looks for business partners. “Our meeting with local company is really good. We will keep in touch with them,” he said.

Like this Malaysian businessperson, Ms. Siri Sayavong, managing director of Lao Law and Consultant Group had a chance to introduce her company to a number of Malaysian companies and also network with them. “ This business matching is not just catching two birds with one stone but a lot of birds,” said Ms. Siri.

However, Mr. Zaki is still concerned about the law that is always changing. “It’s good that the government tries to adjust the law to the foreign investors but we can be skeptical about the law and tax if they keep changing,” he added.

In addition to the law, another big concern for Mr. Zaki is buying power due to the low income of Lao people.

The Lao National Chamber of Commerce and Industry receives a number of enquiries from overseas businesses seeking potential business partners in Laos and a number of business matching have been organized.