New Delhi: The landlocked Laos has invited Indian investments in food processing, mining, hydropower, consumer items and tourism industry citing its growing connectivity in the Greater Mekong Sub-regional Economic Zone, through the East-West Economic Corridor and North-South Economic Corridor. Both these corridors would pass through Laos.
 
The East-West Economic Corridor stretches 1,450 km from Mawlamyine in Myanmar to Thailand, Laos and DaNang city in Vietnam. The project funded by the Asian Development Bank (ADB) and Japan is nearing its completion.
 
The North-South Economic Corridor also funded by the ADB would link would link Yunnan province in China, northern Thailand via Laos.
 
The visiting Deputy Prime Minister of Laos, Dr Thongloun Sisoulith addressing a business meeting organized by the apex industry body – FICCI – in Delhi on Tuesday said that his country has formulated new investment promotion laws and regulations to attract foreign direct investments (FDIs).

After a sharp decline in FDI flows experienced in the crisis period of 1997-98, the government has taken adequate steps to improve the situation, he said.
 
“Some key activities of the government include revitalization and expansion of production sectors, especially in the agro-based and export-oriented industries as well as tourism. On the whole, the level of the industrial development in Laos has just started to emerge concentrating mainly on some key industries taking into account the endowment and richness in its natural resources. Among the major challenges is to mobilize sufficient capital for development of the national economy,” said Sisoulith.
 
He also invited Indian investment in rice processing.
 
Laos has investment treaties with 37 countries. The Mekong river has the potential to harness 23,000 MW power. Laos has rich deposits of tin, lead, zinc, iron ore, copper, gold, gypsum, lignite and sapphires. It has vast areas of natural forests.
 
Laos is a power surplus country, a situation conducive for investors. India ranks seventh in the list of FDIs in Laos. Aditya Birla group has made investment in plantation and paper pulp industry in Laos. The Tata group has a presence in mining
 
The joint secretary-South in the Indian ministry for external affairs, Arun Kumar Goel said “Laos is preparing to join the WTO and since it is a least developed country (LDC) the exports from that country would enjoy duty-free entry in India.”
 
India’s total exports to Laos in 2008-09 was $185,295.36 million while its total imports from Laos was $303,696.31 million. Though India has a negative trade balance with Laos it can offset it by boosting its exports to other regions of ASEAN. Access through Laos can help in this direction.
 
Major commodities of India’s exports to Laos are machinery and instruments, manufactured rubber products, except footwear, electronic goods, metal products, cotton yarn and fabrics, manmade yarn, finished leather, pharmaceuticals and drugs, plastic and linoleum products, sport goods, leather footwear, inorganic and organic agro-chemicals, gems and jewellery, paper and wood products and transport equipment.
 
India’s major imports from Laos consists of made-up textile articles, spices, wood and wood products, dyeing, tang and colouring materials, machine tools, organic chemicals, machinery, except electric and electronics, machine tools, chemical materials and products and electronic goods.